Originally Posted by
guv1976
Wirelessly posted (BlackBerry: BlackBerry8530/5.0.0.1030 Profile/MIDP-2.1 Configuration/CLDC-1.1 VendorID/417)
"Back to the OP's point: Anyone pursuing low-to-mid tier airline status and doesn't need free bags is probably wasting time and money with an airline-affiliated card."
Not necessarily.
Holders of qualifying AA credit cards get a 10% rebate on mileage redemptions -- up to 10,000 rebated miles per year. Those cardholders can also redeem for reduced-mileage awards to a rotating set of U.S. destinations for just 17,500 miles roundtrip in Coach (before the 10% mileage rebate).
In my experience, the destinations that provide for reduced mileage spend offered by AA are few and not exactly on the top of my "I want to visit" list. I have the card for seven years, so have been trying to take advantage of that savings, but never found anything worthwhile. With regard to the 10% rebate, this is a nice feature, but is that enough to make the miles worth more? At the end of the day, I suppose it is all about how much value you place on an AA mile. If I assume they are worth 1.5 cents, even with the 10% bonus, that raises the value earned to 1.65 cents per $1 spent on the credit card. Compare that to the earning 2 cents per $1 spent on other "cash back" credit card and you lose. That's my 2 cents....
Originally Posted by
anime333
Working off the assumption that most people with status fly a lot for work, you could get great value off of the card if you use that card to buy the tickets. Some cards give 3x back for doing so, and that is hard to beat. Of course, people experienced with CC cards know that there are other cards out there with equivalent return on "airfare/travel"...but those very often have annual fees as well.
Personally, I do fly a lot, but every company I have worked for directly pays for flights, so I lose out bonus from the spend.
Agree, that would be awesome if I could book my work related travel airfares with my personal credit cards, but like you - the company pays for it out of the corporate account.