Redeeming your points for merchandise in lieu of airline tickets or other travel benefits can seem puzzling to the frequent flyer in a travel rewards program. However, there many instances where using points for merchandise makes a lot of sense.
Evaluating Your Needs
There is no right or wrong decision when it
comes to redeeming your points from a travel or frequent flyer rewards
program. The frequent flyer who travels tens of thousands of miles per
year may be more likely to put discounted or free airline tickets to
good use than the traveler who flies only a few thousand miles each
year. At the same time, the more frequent flyer also has many more
points to spare, for both travel discounts and merchandise.
Businesses often compensate or split the cost
of travel expenses for their employees on business trips and, unless
the business has its own travel rewards program membership, the
employees can take advantage of these accumulating miles for
themselves. They may not travel enough on their personal time to use
travel rewards.
It's also possible that a traveler
accumulates more points by shopping than traveling, as membership in
most airline and travel reward programs often includes the use of a
credit card, through which travelers can earn points by shopping. This
kind of rewards program member may not travel that often, and would
benefit more from free merchandise than discounted airline tickets.
More Fees
In order to combat rising costs, most
airlines now impose processing fees, reactivation fees, booking fees
and redepositing fees, even on their "free" rewards tickets. This could
total as little as $5 to $10, which is still an incredible deal when it
comes to airline tickets, but fees could also run as much as $100 to
$200, depending on the airline and the number of fees that it can
justifiably charge according to the fine print. When there are no such
fees imposed on receiving merchandise in lieu of tickets, it can make a
lot of sense not to bother with "free" airline tickets.
Fewer Seats
Even when you follow all of a rewards
program's rules and try redeeming your points for "free" tickets, you
won't necessarily be guaranteed a seat. On the contrary, you may be put
on standby (and possibly charged a fee for that), which means that if
the airline can sell all of the seats on a plane to paying customers,
you will be bumped to the next available flight with extra seats. You
may not even discover this until you show up at the airport. The hassle
of being on standby makes some people prefer to use points for
merchandise instead.
When Getting Merchandise Makes the Most Sense
When shopping for birthdays, holidays and
other special occasions, redeeming points for merchandise makes perfect
sense. Depending on how frequently you travel and how many points
you've accumulated, you'll be able to put a huge dent in your gift
shopping budget. You may not have to spend any out-of-pocket money at
all.
Redeeming your points for merchandise can be a smart idea no matter your circumstances. Be sure to weigh fees, standby status and your own travel habits in your decision.