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How frequent flyer programs work, an introductory guide for those who want to start traveling with points

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TFC for dummies, EP1

How frequent flyer programs work, an introductory guide for those who want to start traveling with points

Here on TFC you often find articles discussing frequent flyer programs and flights, even dream flights, [...]

How frequent flyer programs work, an introductory guide for those who want to start traveling with points
by Matteo Strong
July 27, 2023

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Here on TFC you often find articles discussing frequent flyer programs and the Flights, even dream flights, obtained virtually for free using airline milese. In some discussions on the our FB group dedicated to Italian frequent flyers, various doubts and questions have arisen at the same time, posed by those who are approaching the world of frequent flyer programs for the first time and are unclear about the basic operation.

In this article:

    The thing itself is quite simple, but in order to be able to make the most of all the possibilities there are many concepts to have in mind. That is why this 'introductory guide' will be divided into several articles, content that is added to the TFCanswers column where we try to clarify our readers' doubts.

    In this first series of articles we will try to shed some light on what frequent flyer programs are and how they work, in particular today we will try to explain the first two pillars:

    1. what are frequent flyer programs
    2. how to get points (miles)
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    In future episodes, however, we will delve more deeply into the discussion related to air alliances and 'statuses'.

    Understanding how airline alliances work is critical to being able to optimize the accumulation and use of points, and it is important for everyone who enrolls in a frequent flyer program. We'll leave the part about statuses for last, however, because while they offer a lot of benefits...they're not really for everyone...in fact, to gain status you need to fly, and often a lot each year.

    But let's go in order and start from the beginning.

    What are frequent flyer programs?

    A frequent flyer program is a way, devised now many years ago by airlines to try to build loyalty and reward their customers by offering them prizes and/or other benefits of various kinds.

    For now, let's focus on the first part, the possibility of getting points and through those getting rewards, which is the easiest part to understand and more importantly is the part of the programs that everyone can take advantage of, even those who perhaps fly little, or as we will see, potentially never.

    The system itself is simple, nothing new, and the basic operation is very similar to that of many other 'point collections' that we are probably all used to, such as might be the one at the supermarket down the street.

    Virtually all airlines, except low-cost airlines, have their own loyalty program, which anyone can sign up for free. The only constraint might be in some cases the minimum age required for enrollment, but it depends on the individual program, so just in case, read the rules well before enrolling. The programs are all very similar, but they also have some differences between them, so it's better to have a little clear idea.

    Once you sign up (wait to do so, first read all the way through this article) you will be given your login information for the program portal and your frequent flyer code, a very important code, we will see why later.

    Okay, now that your registration is complete you can say you are a frequent flyer, actually you are not, you are just enrolled in a program, but that is already a very good step, all that remains is for you to figure out how to get the points you need to then be able to claim the rewards.

    Before continuing, however, two clarifications are necessary.

    1. what at the grocery store down the street are called points, most airlines call them miles, or award miles, other companies have been more imaginative with their programs and have given different names, British/Iberia for example call their points Avios, but it is just a semantic variation, the basic workings do not change, so the terms points and miles will be used indifferently from here on.
    2. we just talked about 'award miles' those that are used, as we will see, to claim awards. All frequent flyer programs, if you read the rules, provide for the accumulation of 'qualifying' miles as well, these are used to obtain statuses, a topic we will see in another article, for now so just pretend they don't exist 🙂 🙂

    How do you get the points (miles)?

    #1 Flying

    Frequent flyer programs Were created by airlines to build loyalty among their customers and entice them to buy their products, so it goes without saying that the way considered normal and preferred, at least by airlines, to get the points is to fly with the airline or its partners.

    The basic idea is simple, you signed up for the program, you have your frequent flyer code that identifies you in the program, when checking in or making a reservation you enter your code and the airline for that flight will award you a certain number of points.

    Attention, first important thing, points are credited only and exclusively for flights made by you, it goes without saying that you have to actually make the flight and you have to get on the flight, not a friend or relative.

    But how many points do you get from flying? The answer is it depends; it depends on many factors.

    Historically, and many companies still adopt this system, perhaps only in part, the miles that were obtained from a flight were directly related to the length of the flight itself. So the longer the flight the more points you get. After all, it is logical, one cannot hope to get the same number of points for a Milan/Rome as a Venice/Buenos Aires, the one to Buenos Aires probably costs more, so it is logical to expect more award points.

    Distance then is, or in some cases was, the basis on which the miles a traveler can earn are calculated. But it is not the only factor that airlines evaluate and reward with points; after all, it would not be fair for someone who spent €500 on a super-discounted flight in economy to get the same points as someone who took the same flight in first spending perhaps €10,000

    The award mileage count then is actually done on the miles flown multiplied by some 'correction index' based on the flight class of your ticket.

    Attention with class actually means the corresponding letter on the ticket, not the generic economy, business etc. but that is another matter.

    So for the same flight you might also get zero miles (happens perhaps on short-haul flights with ultra-discounted economy fares), such as the 200% of miles actually flown, if you paid a high fare.

    Another bonus is then possibly applied to these miles, in case you have elite levels within the program itself, but we will talk about this when we address statuses.

    I said earlier that distance is, or in many cases was, the basic system of calculation to see how many miles were gained. In recent years many companies have changed the system and now have it more simply tied to the amount you pay for the ticket.

    For example, so you might have a program that allows you to get 10 points for every euro you spend, or similar things. Again, there are often then bonus systems for long-haul flights and/or elite customers anyway.

    On the site and In the regulations of the various programs, however, you will always find a summary table of storage systems of miles.... take a look at them, and beware that they may vary based on whether they are flights made with the airline itself or with other partner airlines.

    #2 By purchasing other services through the company.

    Airlines are spas, they love it when you spend money on their portal, and to entice you to do so, many, also reward you by offering points for the purchase of other services they sell through their website. In fact, many companies now also allow you to purchase other services such as hotel stays, car rentals, or other goods and services not always exclusively related to travel.

    In this case, the miles you get are indicated at the time of purchase; you evaluate whether it is worth it. You certainly do not get billions of points, however if the rate is competitive, why not? Better ten more miles than one less 🙂 Once again, check the site of the program you have signed up for well and see if it offers an online shop.

    #3 Using services of other partners

    Practically all frequent flyer programs have partnerships with major car rental companies and hotel chainsand and often with other companies not related, or not exclusively related, to the travel industry.
    By using their services and indicating your frequent flyer code you can from time to time get 'free' miles on the program you are interested in.

    Attention, small note regarding hotel chains. The latter almost always have their own loyalty program on which you get points by staying (and not only) at them. If you sign up many allow you to choose whether to get points on their program, which you can then eventually at your option (or not) convert to airline miles or receive airline miles directly. You evaluate what you prefer. And similar discourse applies with various car rental companies.

    For other partners, again, I refer you to your program's website, check out what they are and what they offer, and keep checked periodically, over time they may change.

    Among the very interesting partners with whom points can be obtained are 'credit cards.' In fact, by using certain credit cards for normal everyday spending you can earn points, which you can then convert into miles on your frequent flyer program.

    The discussion is very interesting, but unfortunately a bit limited in Italy compared to other countries, and basically comes down to American express cards and a few other exceptions. But it is something that needs to be explored in more detail in its own right, and it is probably for most people one of the best, easiest and fastest ways to get a significant number of points to be able to afford even long-haul flights in business classes or higher.

    #4 One-time bonus

    Companies often offer bonus points in the form of various promotions. For example, many give you a gift of miles if you make at least one flight with them within a certain time of enrolling in the program.
    In other cases, however, they are more targeted bonuses, linked perhaps to certain routes, or certain classes of flights, or a number of flights to be made in a certain period.

    Flying, "introduce a friend" is back: here's how to get €50 off your next ITA Airways ticket
    Flying, "introduce a friend" is back: here's how to get €50 off your next ITA Airways ticket

    In some cases they are very interesting promotions, but they are very varied, difficult to talk about them here, you just have to keep an eye on the program's newsletter (which I recommend you subscribe to), or even better the TFC website, where you always find the updated info and, it happened to me in some cases, posted before the notification on the newsletter.

    # 5 Buy miles

    The last method of obtaining miles is to purchase them directly from the program site. All allow them to be purchased, paying cash for them, possibly limiting them to a maximum per year, maximum however relatively high.
    Personally I don't find it a very clever system, in fact I would say that it is probably, at least in my opinion, the worst way to get air miles. It is, however, a way that should be kept in mind and well in mind because in some cases it might make sense to use it. There are three cases in particular.

    Booking the Conrad Rangali in the Maldives without spending 28 thousand euros: the success story of Joseph
    Booking the Conrad Rangali in the Maldives without spending 28 thousand euros: the success story of Joseph

    The first, you are a few miles away from claiming your award and you have no other way to get them. Okay then it makes sense to spend some money, maybe 100/200€ to claim a 5,000€ award flight why not?
    The second case is if you have expiring miles (more on this later) and therefore need to 'move' the account.
    The last case, and all in all it is not that uncommon, especially in recent years, is if the company makes some attractive offer by offering for example a bonus of 50/75/100% of the miles purchased so by paying, say 10,000 miles, you actually get 20,000 miles. However, you do the calculations from time to time if it makes sense and is beneficial.

     

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