Chris Elliott: "Frequent flier programs are a scam"
 

The latest screed from Chris Elliot

Ignore the disclaimer and read on: http://www.linkedin.com/today/post/a...w?ref=linkedin

Agreed, and the biggest scam of them all are bloggers with credit card links.

I think you'd get better advice from this guy

http://gothamist.com/attachments/nyc...007Elliott.jpg

[QUOTE=Stoughton;19717136]I think you'd get better advice from this guy

LOL. Seriously, LOL.

Andyandy

"My article isn't stupid. To prove that, I'm going to predict that people in the comments will call it stupid. Abracadabra!"

I think scam is going a bit far, but for most once-a-year travelers who like to use a debit card most of the frequent flyer programs do not make much sense.

I also think "scam" is too strong a word, but it definitely takes a lot of work to earn and redeem miles efficiently. As someone willing to do the work to research how to get the most out of these programs, I actually like it because I end up getting better value than those who don't take the time to learn.

I actually think some of his complaints are valid - like advertising a 25K signup as a free trip, when availability may be very limited and redemption comes with unavoidable booking fees, and that a careless consumer may end up overspending on flights to stay on a preferred carrier - but I disagree with his conclusion that this renders the programs valueless or worse.

worst case you get some free magazines or something.

The main thing is to not overvalue miles, particularly if your accrual rate is slow. No point in leaving them on the table.

Exactly my feeling. This is a game, with some areas working very very well, and others not working at all. For some people they earn their miles very slowly, and once they hit 25k they make the incorrect assumption that they can then fly anywhere they want, at any time of year for free. I've always said with miles you get to pick any 3 of the following:

1)Destination
2)lowest mileage redemption
3)dates
4)class of travel.

People who get hung up on not getting to pick all 4, every time they go to redeem are being pessimists.

If there are no seats left for miles I can either decide to pay cash or not go. Miles are not a magic wand that give you everything you ever wanted in travel--they're a tool that goes along with cash to help save me money, give me travel flexibility to change dates, or let me fly in more comfort than I can afford with cash.

That said, I hope people everywhere read this article and get turned off. More miles/seat availability for me.

These scams just got me $73 round trip tickets to Europe. (not to include the $100 in statement credits for opening the cards) So technically I spent $23 per ticket in the overall picture. What a scam. :)

To be honest in my 'pre-FT' life I would have instinctively agreed with him. The entry level status I held just wasn't giving me much and I redeemed miles for Economy flights only. I had no idea about spacing out credit card signups and multi-carrier tickets on an alliance.

Of course the article is garbage and not based on facts but most peoples' gut will agree with him (not with FT)....This might be a good thing as it leaves more room for us here.

It seems like a good segment of the population gets the card and:

1) Doesn't really know how to cash in an award (looks for peak travel season, defined dates, multiple people, a month ahead of said planned trip)

2) Gets the card, uses it here and there, is disappointed in mile accrual. (It takes xxx years to get to an award) I have a friend with an AA card that wanted to go to France... "Oh," she says to me, "I have TONS of miles! I've been using this card for years!" Turns out she doesn't even have the 40K needed for r/t off peak. That was a stark realization for her.

3) Has a British Airways card and realizes, "Hey, I might as well just buy a ticket"

4) Pays renewal fees year after year without cashing in an award "Hey, I might as well just buy a ticket".

5) Lets miles expire -- concludes the whole thing was a major "FAIL"

6) Doesn't want to change a thing in order to play the game... won't use credit cards for all purchases, won't order online, won't get a second card for spouse or self, won't read MMS about how to do it, etc. Wants free miles and redemptions to be easy...

"Frequent flier programs are a scam"
 

Same scam has paid for every one of my vacations, including my wife an I recently flying First Class on BA and AA from New York to Johannesburg. Though, like most elite fliers, I accrue miles by flying for business, so by adding an AA credit card, it nicely pads my account. Plus, if you have a citi gold checking account they waive the annual fee...every year.

The credit cards are marketed in a deceptive way, and unless you're a hardcore frequent flier or a big spender, probably not worthwhile.

I think he's confusing status and frequent flyer points. Points are nothing more than a currency. They can be made worthless (like if a airline were to liquidate) but so can real currencies. The question is if there's value to the points and surely the points are definitively worth >0.