MilesBuzz! - What percentage of FF Miles go unclaimed?

I'm trying to figure out what percentage of FF miles are never claimed - this would include those that expire as well as those that just sit in people's accounts forever.

Is this a closely guarded secret or perhaps something I could find out from a trade magazine? Any suggestions welcome!

Well obviously nobody but the programs really know for sure, but, I have had several FF agents tell me that there are a few accounts sitting there with over a million miles each that have never been touched--no awards, no donations, no nothing!!!!! Go figure. Obviously those folks aren't Mileage Junkies, like us.

From the FF gossip I've heard, the hoarders appear to be mostly business owners who fly a fair amount AND put a whole bunch of miles on credit cards--and don't claim them. (Probably working too hard to travel--I've been there).

Hub and I probably accumulate (BUT JOYFULLY USE) close to a million miles a year, so I can certainly see how somebody who wasn't partying or paying attention could just leave it sit 'til it reach a very very large total.
Bet there are also a lot of heavy business traveling boomers who are letting the non-expiring points just rack up for a happy retirement. (Makes Sense to me!)

[This message has been edited by Punki (edited 04-19-99).]

One million miles, and they are unused? Gee, if only I had that problem......

Maybe we should start a campaign to let us transfer miles to each other on this site - but only on this site. Seriously, this is probably the reason most airlines now expire miles if they aren't used. They show up on the books as a liability.

Philforest:

Humm, isn't the current trend in airlines to NOT have expiring miles. NorthWest and AmericaWest just changed their plans to non-expiring miles. In addition, Continental, USAirways, and I think Delta (and a few others) do not have expiring miles.

United has also joined the band wagon of non-expiring miles. Although only for PremEx and 1K Members.

DL and US miles do not expire as long as you take at least once flight every three years. I wish UA and AA would go to this set-up also, but I'm not holding my breath.

Another good reason I put most everything on Alaska is that their miles never expire and can be used on BA, NW, CO, KLM, TWA, AA, and a host of others.

Ten years to bulk up miles for retirment. The chances of using them are at least on a par with getting Social Security.

BradWmson:

Look no further than our own WebFlyer site for the answer to your question on the number of frequent flyer miles that expire unused.

According to Randy, in 1997 it was: 32 BILLION expired unused!

See http://www.webflyer.com/@corp/flyerfacts.htm

SF1K: How does the non-expiring miles scheme work on UA if you're PremEx or 1K some years but not others? For example, say that over the course of a decade you qualify for those upper elite levels only eight out of 10 years. Do the miles you earn for the other two years have an expiration while the miles earned the other years don't?

I'm not sure I trust UA to get it right.

(Ooo, did I say that??? http://www.flyertalk.com/forum/smile.gif )

Samantha

Correct me if I'm wrong (and I'm sure someone will) but aren't they just non-expiring as long as you maintain your "elite" status (for UA)?

That's my understanding too. Once you lose the appropraite level then the old miles previously deferred become due that non qualifing year, and mileage a year or two old are put on thye expiring chain, unless deferred by requaliflying.

Could develop quite a bundle that would need to be taken. Good thing there are so many eager takers on this site. No one would have any problem passing out such a problem!

Here's the big picture guys:

About 45% of rewards linked to some loyalty scheme expire or are never used. This is the average of all co-branded cards. A large portion of this leakage comes from people who automatically received those points/miles without being interested. This makes me believe that the ratio above is lower for airline programs. 20-25%?

The problem airlines have with these accumulating miles is that over the time they create huge liabilities in their balance sheet. Once they find an accounting solution to this it's not that much of a big deal to make them timeproof.

I will now post another interesting question within the same context.

Should point out that if you attain Million Mile status with United, your miles never expire. Storin' those nuts up for retirement, that's what I'm doing. Should be a Million Mile'er by December. Only took since 1983. Premier Executive 100% Bonus Miles and non-expiring account for life...Yipeee!

What the airlines need is a 'super' award where, if you accrue enough miles, you can exchange the miles for the airlines itself.

Then you could own United!

cheers peter

I will probably be a million miler in 2035 when I am too old to get on the plane without assistance! (I'm hoping by then space travel is in so I can go into space for my annual vacations!)

IN my case: the percentage of my FF miles that go unusued is a BIG ZERO!!!

A couple of these posts refer to the airlines' huge liabilities for unused miles in existing accounts. Actually, as of a few years ago the accounting firms were not requiring the airlines to register a liability, but were making noises about the possibility and that's one (of several) reasons the airlines went with expiring miles.

On a related note, I suspect the airlines's biggest fear WRT the IRS taxing these awards is that IRS will announce same with some future effective date. Can you picture all the redemptions prior to that date? They'd much rather IRS made it effective immediately, if they try to tax them at all.

So you love statistics, well here goes:
I estimate that there are about 3.7 Trillion miles in current liability out there among all the programs (remmber that programs like Membership Rewards and Club Rewards, and even hotel program hide huge banks of miles). There are about 107,000 people who have earned at least one million miles in an account.