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A Look at Frequent Flyer Miles Programs

Aired June 27, 2003 - 13:20   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KYRA PHILLIPS, CNN ANCHOR: The 4th of July holiday weekend will soon be here. And if you're planning to get away from it all, it may not be too late to cash in on some great frequent flyer deals. Our Jen Rogers joins me now with the summer bargains. Hi, Jen, good to see you. Let's talk about how these programs, frequent flyer programs basically were being threatened. What's the status now with the various airlines?
JEN ROGERS, CNN CORRESPONDENT: That's right, Kyra. About six months ago, we were doing stories on frequent flyer programs maybe running into some trouble, especially with United going into bankruptcy, airlines making it harder for people to achieve elite status. But this summer, it seems the airlines are really out courting flyers, trying to get them to fly more, also trying to go after those coveted business travelers with some frequent flyer carrots being hung out there. And they are also making it a little bit easier for you to get some of these miles.

What are some of the deals that are out there? Well, some airlines have actually made it easier for you to get awards by requiring fewer miles to do so. Some of the deals that are out there right now, Northwest Airlines has made it a little bit cheaper in terms of how many miles you need to fly out of Milwaukee. American Airlines has a deal flying business and first class from California to Hawaii.

There is also bonus miles to certain destinations. That means that an airline might have some competition on a certain route, might have some softness on a certain route. So they're trying to entice people to fly there. One example, right now on Delta, you can get triple miles flying nonstop from Atlanta to L.A. That's a lot of miles.

Here's another one, extra elite miles for faxing a competitor's mileage statement. What does this mean? Well, United's trying to see how much of your business they're not getting. They get you to fax in some other mileage statements from other airlines you fly, and they get to get a sneak peak at that, and in return you get some extra miles. Those are a couple of the deals out there.

PHILLIPS: So the airlines aren't doing this out of the kindness of their hearts, right?

ROGERS: Of course not. They are doing it because this is very good for their businesses. They do it very strategically. It makes their businesses more efficient. In fact, when United filed for bankruptcy, their mileage program was really the only profitable unit. These are profitable units for these companies.

What they try and do is sort of change your habits, change your behavior. They use these to entice you to do something new and different. One way right now they're using them is they're trying to get you to use the Web more, trying to get you to use the new technology more. You get 1,000 miles when you check in online at Continental. A number of airlines are giving you 1,000 miles when you book award travel online or 1,000 miles to you sign up to get your e- statements. So that means getting your mileage statement instead of having to mail it; you basically get it e-mailed to you, so of course that would be cheaper and more efficient for the airlines as well.

PHILLIPS: What's best way to add these miles to your account?

ROGERS: Well, if you want to get miles, you really need to focus, you really need to stick with one airline. I know that's tough, people have budgets so they kind of play around on the Web, find the best airline. If you can't stick with one airline, try and stick inside an alliance. There are a couple of alliances out there. Star Alliance and One World. Those are the biggest alliances. United's part of Star Alliance. American, part of One World. But even Delta, Northwest and Continental have all tied up in a frequent flyer partnership. Take advantage of those partnerships.

Also, take advantage of partnerships with hotels, car rental companies. You know you get those things in the mail all the time with your bills that you're paying for your Visa or your Mastercard. Look at those. Try and figure out if these promotions are worthwhile for you to do. Get a credit card that gets miles and use it. I use my credit card to buy a stick of gum sometimes. The person behind the register looks at you a little weird, but that's a mile, they all add up.

PHILLIPS: Less than $10, they always lecture me. What about getting a seat, Jen? That's got to be -- are there fewer seats?

ROGERS: That's the tough part right now, supply and demand. I mean, it is tough to get a seat sometimes out there. But there are things to do. First of all, there has been an increase in award travel just in the last year. "Inside Flyer" magazine says there's been about a 16 percent increase. This has to do with the soft economy. People don't want to spend their money on tickets, so they're redeeming these awards.

Book early. You can book up to 331 days in advance on most airlines. That's pretty obvious. But book late. You have to think about this one a little bit. But people say, "Inside Flyer" magazine also coming and saying, you know, there are flights now coming online that have been canceled because of SARS or have been canceled because of the war or because of the soft economy. Now the airlines are ramping up again. Those flights hadn't been in the system a couple of months ago maybe when you tried to call and book. Now they're coming online. So more seats are being released. So if you got turned down, try again. You have to have a little patience, maybe a little flexibility. But those seats are out there -- Kyra.

PHILLIPS: Jen Rogers, thank you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired June 27, 2003 - 13:20   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: The 4th of July holiday weekend will soon be here. And if you're planning to get away from it all, it may not be too late to cash in on some great frequent flyer deals. Our Jen Rogers joins me now with the summer bargains. Hi, Jen, good to see you. Let's talk about how these programs, frequent flyer programs basically were being threatened. What's the status now with the various airlines?
JEN ROGERS, CNN CORRESPONDENT: That's right, Kyra. About six months ago, we were doing stories on frequent flyer programs maybe running into some trouble, especially with United going into bankruptcy, airlines making it harder for people to achieve elite status. But this summer, it seems the airlines are really out courting flyers, trying to get them to fly more, also trying to go after those coveted business travelers with some frequent flyer carrots being hung out there. And they are also making it a little bit easier for you to get some of these miles.

What are some of the deals that are out there? Well, some airlines have actually made it easier for you to get awards by requiring fewer miles to do so. Some of the deals that are out there right now, Northwest Airlines has made it a little bit cheaper in terms of how many miles you need to fly out of Milwaukee. American Airlines has a deal flying business and first class from California to Hawaii.

There is also bonus miles to certain destinations. That means that an airline might have some competition on a certain route, might have some softness on a certain route. So they're trying to entice people to fly there. One example, right now on Delta, you can get triple miles flying nonstop from Atlanta to L.A. That's a lot of miles.

Here's another one, extra elite miles for faxing a competitor's mileage statement. What does this mean? Well, United's trying to see how much of your business they're not getting. They get you to fax in some other mileage statements from other airlines you fly, and they get to get a sneak peak at that, and in return you get some extra miles. Those are a couple of the deals out there.

PHILLIPS: So the airlines aren't doing this out of the kindness of their hearts, right?

ROGERS: Of course not. They are doing it because this is very good for their businesses. They do it very strategically. It makes their businesses more efficient. In fact, when United filed for bankruptcy, their mileage program was really the only profitable unit. These are profitable units for these companies.

What they try and do is sort of change your habits, change your behavior. They use these to entice you to do something new and different. One way right now they're using them is they're trying to get you to use the Web more, trying to get you to use the new technology more. You get 1,000 miles when you check in online at Continental. A number of airlines are giving you 1,000 miles when you book award travel online or 1,000 miles to you sign up to get your e- statements. So that means getting your mileage statement instead of having to mail it; you basically get it e-mailed to you, so of course that would be cheaper and more efficient for the airlines as well.

PHILLIPS: What's best way to add these miles to your account?

ROGERS: Well, if you want to get miles, you really need to focus, you really need to stick with one airline. I know that's tough, people have budgets so they kind of play around on the Web, find the best airline. If you can't stick with one airline, try and stick inside an alliance. There are a couple of alliances out there. Star Alliance and One World. Those are the biggest alliances. United's part of Star Alliance. American, part of One World. But even Delta, Northwest and Continental have all tied up in a frequent flyer partnership. Take advantage of those partnerships.

Also, take advantage of partnerships with hotels, car rental companies. You know you get those things in the mail all the time with your bills that you're paying for your Visa or your Mastercard. Look at those. Try and figure out if these promotions are worthwhile for you to do. Get a credit card that gets miles and use it. I use my credit card to buy a stick of gum sometimes. The person behind the register looks at you a little weird, but that's a mile, they all add up.

PHILLIPS: Less than $10, they always lecture me. What about getting a seat, Jen? That's got to be -- are there fewer seats?

ROGERS: That's the tough part right now, supply and demand. I mean, it is tough to get a seat sometimes out there. But there are things to do. First of all, there has been an increase in award travel just in the last year. "Inside Flyer" magazine says there's been about a 16 percent increase. This has to do with the soft economy. People don't want to spend their money on tickets, so they're redeeming these awards.

Book early. You can book up to 331 days in advance on most airlines. That's pretty obvious. But book late. You have to think about this one a little bit. But people say, "Inside Flyer" magazine also coming and saying, you know, there are flights now coming online that have been canceled because of SARS or have been canceled because of the war or because of the soft economy. Now the airlines are ramping up again. Those flights hadn't been in the system a couple of months ago maybe when you tried to call and book. Now they're coming online. So more seats are being released. So if you got turned down, try again. You have to have a little patience, maybe a little flexibility. But those seats are out there -- Kyra.

PHILLIPS: Jen Rogers, thank you.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com