Adam Ruins Everything - Frequent Flyer Miles Are Actually Costing You Money
#1
FlyerTalk Evangelist
Original Poster
Join Date: Aug 2009
Location: ZOA, SFO, HKG
Programs: UA 1K 0.9MM, Marriott Gold, HHonors Gold, Hertz PC, SBux Gold, TSA Pre✓
Posts: 13,811
Adam Ruins Everything - Frequent Flyer Miles Are Actually Costing You Money
While I express no opinion regarding the YouTube video, I believe this is a wake up call or a pause of second thought to some of us here.
Enjoy.
Enjoy.
#3
FlyerTalk Evangelist
Join Date: May 2002
Location: Pittsburgh
Programs: MR/SPG LT Titanium, AA LT PLT, UA SLV, Avis PreferredPlus
Posts: 31,008
Nothing in the video supports the claim that "Frequent Flyer Miles Are Actually Costing You Money"
Nothing new that an aware consumer doesn't know..
Nothing new that an aware consumer doesn't know..
#4
Join Date: Aug 2015
Location: YYJ
Posts: 111
The argument is that high CC fees are now baked into prices meaning everything is 2% more expensive because of it. If there were no frequent flyer miles CC fees would be lower and fewer people would even use CCs making everything cheaper.
#5
Original Member
Join Date: May 1998
Posts: 2,505
Well, they actually do cost us money if they are acquired via credit card. See this flyertalk discussion.
#7
Join Date: Oct 2017
Location: London
Programs: BA Gold / OW Emerald
Posts: 753
I get 1.5% cash back as miles and a 0.5% fee to be able to pay with credit card is entirely acceptable to me. I guess it's only an issue if you decide to leave that cashback option on the table
#8
FlyerTalk Evangelist
Join Date: Mar 2013
Programs: DL PM, MR Titanium/LTP, Hilton Diamond
Posts: 10,130
Every once in a while you see a gas station out there that gives it back to you as a discount if you use cash but that's about it
As to whether I lose money? Well if I can redeem for more than 2% the short answer is no, or if I can generate more than 2% in points (like Chase Freedom 5x categories) the answer is no.
You can generate at least 2% back in most instances these days (AMEX EveryDay 2x groceries, Chase Reserve 3x Restaurants and Travel, AMEX Plat 5x Airfare) and then use something like the CFU for 1.5% on all else. Combined with strategic redemptions it's pretty easy to clear the 2% cost being baked into prices -- and as noted above, using a debit card or cash doesn't typically lead to removal of the 2%, you just end up paying the same 2% baked in CC fee without reaping the benefits.
#9
A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 52,574
Basic premise:
- Lots of people don't know how to use their miles.
- Airlines sometimes devalue the programs.
- Some people use airline credit cards for leverage at high interest rates.
- Credit card fees are already baked into stuff.
In other words, n00b stuff.
- Lots of people don't know how to use their miles.
- Airlines sometimes devalue the programs.
- Some people use airline credit cards for leverage at high interest rates.
- Credit card fees are already baked into stuff.
In other words, n00b stuff.
#10
Join Date: Nov 2017
Posts: 3,359
-James
#13
Join Date: Nov 2013
Location: PHL
Programs: AA - Plat, HHonors - Diamond, IHG - Plat, Marriott - Gold, National - Exec, Amtrak - Select, NEXUS
Posts: 1,075
They also did a segment on airport security in Season 1. Primarily about the theater of the effects and person inspections, the fact that the hardening of cockpit doors and passenger revolts are what has halted hijackings, and and that checkpoints are just creating soft targets, that episode also didn't enlighten anyone that's been over to TS&S. It did open the eyes of Mrs. pa3lsvt, who flies no more than 4-6x per year (mostly with me) and had trouble understanding my frustration with the whole security process.