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Old Dec 15, 2000 | 1:59 pm
  #1  
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"Laundering" miles...

There has been much discussion about "laundering" miles in other threads, and was wondering how one goes about this? I have about 70,000 miles in various other stagnant FF accounts that I'll probably never use, and wouldn't mind taking a penalty on them if I can get the remaining into an account that I use actively.

I took a brief look at the HHonors program, and so no mention of "laundering" miles (maybe I didn't look too hard). Does one have to be an active member with HHonors to do this? Is mileage "laundering" legal? Do I just sign up for HHonors and let the laundering begin, or do I have to actually stay in their hotels to get this thing going?

Are there any other programs that allow such "laundering"?

Many thanks in advance for any help.

Cheers.

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Old Dec 15, 2000 | 2:12 pm
  #2  
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It's legal, and you need not stay, but will be taking it on the chin "value" wise - like being "taken to the cleaners!"
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Old Dec 15, 2000 | 2:13 pm
  #3  
PG
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This question has been asked so many times that I think it deserves a special mention in the FAQ.

You can transfer miles from some airlines to Hilton points, and Hilton points to some airlines, but the penalty is extremely high (you lose a lot in the process).
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Old Dec 15, 2000 | 6:54 pm
  #4  
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Chuckdee - Perhaps the term "laundering" is not the one you really mean?

You are consolidating "orphan" miles I take it? Rather a nicer term.

Yes you do it at a cost via Hilton, but you CAN do it.

And seeing you are not a HH member already, start here, sign up, add your profile (twice) do it again Jan 1, and get 5000 points towards what you will "lose" on the roundabouts:

http://www.hiltonhhonors.com/profile/

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Old Dec 15, 2000 | 7:00 pm
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HILTON HHONORS REWARD EXCHANGE PROGRAM
EXCHANGE RATE CHARTS

Converting BETWEEN all Airlines
except American and Virgin

5000 mi --> 1500 mi 70% penalty
10000 mi --> 3500 mi 65% penalty
25000 mi --> 10000 mi 60% penalty

To LanChile:
10000 mi --> 6500 km 57% penalty
17500 mi --> 10000 km 62% penalty
25000 mi --> 15000 km 60% penalty
(note that it's cheaper to move 10000 miles than it is to move anything more)

From LanChile:
10000 km --> 1500 mi 77% penalty
20000 km --> 3500 mi 74% penalty
50000 km --> 10000 mi 70% penalty


Converting FROM All Airlines except American, Virgin, and LanChile
TO American Airlines

5000 mi --> 2000 mi 60% penalty
10000 mi --> 4000 mi 60% penalty
25000 mi --> 12000 mi 52% penalty


Converting FROM American Airlines or Virgin
TO All Airlines except American

10000 mi --> 1500 mi 85% penalty
20000 mi --> 3500 mi/6500 km 83% penalty (78% penalty to LanChile)
35000 mi --> 10000 km (81% penalty to LanChile)
50000 mi --> 10000 mi/15000 km 80% penalty (80% penalty to LanChile)

Note that it is cheaper to convert 20000 AA miles to LanChile than it is to convert 35000 or 50000 AA miles to LanChile! Is my math wrong? (1 mi = 1.5 km)

Converting FROM Virgin, LanChile, and American Airlines
TO American Airlines

10000 mi/km --> 2000 mi 80% penalty (70% penalty from LanChile)
20000 mi/km --> 4000 mi 80% penalty (70% penalty from LanChile)
50000 mi/km --> 12000 mi 76% penalty (64% penalty from LanChile)

Note that the above conversion amounts are for moving points from Hilton to the airline program (Hilton points are actually 2X the above listed amounts). The penalties are not applied until you transfer the points from Hilton to the Airline program. That means that you can transfer points from the Airlines into Hilton in multiple transactions of any size, pool the points together, and then transfer them out in large amounts to get the best exchange rate. You can transfer into Hilton a minimum of 5000 miles, except for Virgin and LanChile, which have a 10000 mile/km minimum.

The LanChile conversions assume that 1 mile = 1.5 kilometers.


[This message has been edited by anthonyanthony (edited 12-16-2000).]
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Old Dec 15, 2000 | 8:50 pm
  #6  
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ChuckDEE --

I highly recommend that you use the "search" link at the top of the page to get more information on the subject.

I say this not to discourage asking questions, but because this topic has been discussed so many times over the last few years that the old threads could likely provide you with a more comprehensive answer than anyone can provide here.

That said, you may also want to take a peek at another "laundering" thread that's currently active: http://www.flyertalk.com/forum/Forum1/HTML/003828.html
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Old Dec 16, 2000 | 1:05 am
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Oops! I accidentally overwrote my previous message (two messages above) with my new message, so read the the one two messages above


[This message has been edited by anthonyanthony (edited 12-16-2000).]
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Old Dec 16, 2000 | 8:09 am
  #8  
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Many thanks for the replies. And many apologies if I annoyed anyone as to the repetition of this subject. In my haste I seemed to have totally overlooked the seach option available at the top of the page.

Penalties are indeed stiff, but may prove to be worth it. Once again, thanks for everyone's help.

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Old Dec 16, 2000 | 2:34 pm
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Originally posted by ChuckDEE:
Penalties are indeed stiff, but may prove to be worth it. Once again, thanks for everyone's help.
If you have and use an AAdvantage account, your best bet would be to put all your miles there, as the penalty is only 52%.

I did a quick check of the American Express and Diners Club program, and they're no good. While those programs allow you to move points FROM their program into the Airlines, they don't have many options for getting points out of your airline programs. The only exception to that rule is that Diners Club allows you to move points from UA into their program.

Looks like HHonors is the only game in town.

Happy Laundering!
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Old Dec 16, 2000 | 3:10 pm
  #10  
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Another thought. I see you are a student (assumption youthful, but even if not). Study the forfeit rules. Some are extremely liberal. For those perhaps holding on may bring additional points as travel allows or suggests.

Naturally, all points transferred to Hilton do not then need to go to another airline program. Hilton does run several hotels worth staying at, and these points can do that!!

I am at the other end of the travel arena, having early retirement. I found with a cc card here, some "web" programs points there, a car rental, hotel rental, deposit into a web bank, etc. you can round up those odds and ends into free travel.

Good luck.
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Old Dec 17, 2000 | 12:19 pm
  #11  
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I think ranles has the right idea. Most of the penalty as anthony*2 has pointed out is transferring OUT of HHonors. Transfering in really does not lose much value. So if you have a need for free hotel stays use the HHonors points for that, adding to you account by signup and profile update hints you can find on this site.

Hope this helps,
Loren
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Old Dec 17, 2000 | 4:31 pm
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I cleaned up the chart I put together and made it a little bit more digestible. If there's a FAQ for this stuff somewhere, this chart might be a good addition.

HILTON HHONORS REWARD EXCHANGE PROGRAM
EXCHANGE RATE CHARTS

GROUP 1 AIRLINES:
Continental Airlines, Delta Airlines, TWA, United Airlines, Aero California, Hawaiian Airlines, LatinPass, Mexicana Airlines, Midwest Express Airlines, South African Airways

GROUP 2 AIRLINES:
American Airlines, Virgin Atlantic Airways

GROUP 3 AIRLINE:
LanChile

mi = airline miles, pt = HHonors points, km = airline kilometers

CONVERTING BETWEEN ALL GROUP 1 AIRLINES:

5000 mi -> 10000 pt -> 1500 mi 70% penalty
10000 mi -> 20000 pt -> 3500 mi 65% penalty
25000 mi -> 50000 pt -> 10000 mi 60% penalty

CONVERTING FROM GROUP 1 TO AMERICAN AIRLINES:

5000 mi -> 10000 pt -> 2000 mi 60% penalty
10000 mi -> 20000 pt -> 4000 mi 60% penalty
25000 mi -> 50000 pt -> 12000 mi 52% penalty

CONVERTING FROM GROUP 2 TO GROUPS 1, 3, AND VIRGIN:

10000 mi -> 10000 pt -> 1500 mi 85% penalty
20000 mi -> 20000 pt -> 3500 mi/6500 km 83% penalty (78% penalty to LanChile)
35000 mi -> 35000 pt -> 10000 km (81% penalty to LanChile)
50000 mi -> 50000 pt -> 10000mi/15000km 80% penalty (80% penalty to LanChile)

CONVERTING FROM GROUPS 2 AND 3 TO AMERICAN AIRLINES:

10000 mi/km -> 10000 pt -> 2000 mi 80% penalty (70% penalty from LanChile)
20000 mi/km -> 20000 pt -> 4000 mi 80% penalty (70% penalty from LanChile)
50000 mi/km -> 50000 pt -> 12000 mi 76% penalty (64% penalty from LanChile)

CONVERTING FROM GROUP 1 TO GROUP 3:

10000 mi -> 20000 pt -> 6500 km 57% penalty
17500 mi -> 35000 pt -> 10000 km 62% penalty
25000 mi -> 50000 pt -> 15000 km 60% penalty
(note that it's cheaper to move 10000 miles than it is to move anything more)

CONVERTING FROM GROUP 3 TO GROUP 1:

10000 km -> 10000 pt -> 1500 mi 77% penalty
20000 km -> 20000 pt -> 3500 mi 74% penalty
50000 km -> 50000 pt -> 10000 mi 70% penalty


You can transfer as little as 5000 miles (10000 mi/km for Virgin and LanChile) at a time out of the airline programs and into your HHonors account without yet suffering the penalty. That means that you can pool points from various airline programs in your HHonors account, and then transfer them out to one airline program to get the best exchange rate. But once you transfer the points out of the airline, you cannot put them back without suffering the penalty.

You might also consider that using the points for a stay at a Hilton Hotel is a better value than transfering the points to an airline, especially if you stay at Hiltons anyway. Consider that if you used 20000 pts to stay 1 weekend night at a "Executive" class Hilton Hotel that would have cost you $100/night, you can use your points and get a value of 0.5 cents per point. If you transferred those same points to an airline, and redeemed 25000 miles for a ticket that would have cost you $400, you would only get a value of 0.32 cents per point. Thus, in the above example, you would be getting nearly 40% more value using the points for a hotel stay.

The LanChile conversions assume that 1 mile = 1.5 kilometers.

[This message has been edited by anthonyanthony (edited 12-17-2000).]
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