To spend or not spend, that is the question...
Oct 17, 2001 | 7:48 pm
#1
Original Poster
Join Date: Jul 2000
Location: AUH
Posts: 8,637
To spend or not spend, that is the question...
I am currently sitting on a dilemma which is, whether to use my banked miles as soon as possible or to leave it for later.
Even though it's only 160k (paltry sum compared to some AA flyers with 4MM, 5MM etc) it could get me some decent tickets.
So, I think should keep collecting because:
1. I don't know when I'll need the tickets more urgently than now.
2. I can save up for better awards for more people.
But then, I think I should spend because:
1. Any airline can go bust if things get bad enough, and with them the miles.
2. Service on airlines (especially in the front cabins) can decline drastically in the next few years, perhaps even reaching a level where the difference is not much more than a bigger seat.
Now, would you collect or spend? I bet there are a lot of people who are thinking the same and I ought to make a decision pretty soon...
stargold
[This message has been edited by stargold (edited 10-17-2001).]
Even though it's only 160k (paltry sum compared to some AA flyers with 4MM, 5MM etc) it could get me some decent tickets.
So, I think should keep collecting because:
1. I don't know when I'll need the tickets more urgently than now.
2. I can save up for better awards for more people.
But then, I think I should spend because:
1. Any airline can go bust if things get bad enough, and with them the miles.
2. Service on airlines (especially in the front cabins) can decline drastically in the next few years, perhaps even reaching a level where the difference is not much more than a bigger seat.
Now, would you collect or spend? I bet there are a lot of people who are thinking the same and I ought to make a decision pretty soon...
stargold
[This message has been edited by stargold (edited 10-17-2001).]
Oct 17, 2001 | 9:03 pm
#2
Suspended
Join Date: Jun 2000
Location: I am usually found in YYC or GIG
Programs: UAL Premex
Posts: 1,858
Here's how I look at it.
I "pay" for about 6 trips a year to Brasil and earn enough points to take 2 free trips there with AC.
At year end I always empty out my FF account, especially since I like to travel over New Year's and hate it when the mileage gets split between years on a paid ticket...especially since I only accumulate 50-60,000 per year...so another 10,000 or so isn't going to get me to another status level and they become in effect "wasted" if they post before December 31.
I would say use your miles now.
If you are short on reaching status mileage you obviously will pay for the ticket. If it doesn't matter...use the miles you've accumulated and save the paid tickets for next years status...that's how I think about it.
Also, the current financial state of the airline industry has made me decide to stick to this plan.
[This message has been edited by Carioca Canuck (edited 10-17-2001).]
I "pay" for about 6 trips a year to Brasil and earn enough points to take 2 free trips there with AC.
At year end I always empty out my FF account, especially since I like to travel over New Year's and hate it when the mileage gets split between years on a paid ticket...especially since I only accumulate 50-60,000 per year...so another 10,000 or so isn't going to get me to another status level and they become in effect "wasted" if they post before December 31.
I would say use your miles now.
If you are short on reaching status mileage you obviously will pay for the ticket. If it doesn't matter...use the miles you've accumulated and save the paid tickets for next years status...that's how I think about it.
Also, the current financial state of the airline industry has made me decide to stick to this plan.
[This message has been edited by Carioca Canuck (edited 10-17-2001).]
Oct 18, 2001 | 12:01 pm
#6
Original Member
Join Date: May 1998
Location: Escondido CA USA
Programs: AS, UA, HY, Hil, Merr
Posts: 3,332
Plan. Goal.
Like money, points should be part of your financial plan.
Life should have so planning and goal setting, YES personal goals. Is there somewhere you want to go? Plan for it and do it with your points. Except for a special redemption now and again, points depreciate. They earn no "interest" and from time to time are rendered less valuable by changes in the programs. As airlines reduce their flights, the destinations that your points will take you deminish. The availability may or may not do the same.
Do the things you have high utility for as soon as you can, and it is "reasonable" for your means. Life is short, and for some much shorter that they plan.
Like money, points should be part of your financial plan.
Life should have so planning and goal setting, YES personal goals. Is there somewhere you want to go? Plan for it and do it with your points. Except for a special redemption now and again, points depreciate. They earn no "interest" and from time to time are rendered less valuable by changes in the programs. As airlines reduce their flights, the destinations that your points will take you deminish. The availability may or may not do the same.
Do the things you have high utility for as soon as you can, and it is "reasonable" for your means. Life is short, and for some much shorter that they plan.
Oct 18, 2001 | 1:01 pm
#7
FlyerTalk Evangelist
Join Date: Sep 1999
Location: Toronto, Ontario, Canada
Programs: OWEmerald; STARGold; BonvoyPlat; IHGPlat/Amb; HiltonGold; A|ClubPat; AirMilesPlat
Posts: 38,190
Consider the following:
1. Would the Q-miles earned paying and flying on this trip get you to the next tier of your elite status, or maintain you at the current level, by the end of this year?
2. Or are you in a program which has extended your current elite status even though you haven't earned the required number of miles, or you have already this year moved to the next tier of status?
If the answer is "Yes" to the first question, then by all means buy the ticket and bank the miles. You should try and get to the next level of status, or maintain your current status. If "No" [or "Yes" to the second question], then save any purchased tickets until next year and start earning Q-miles towards elite status for 2003/4.
Depending upon which airline program you belong, the likelihood of the points vanishing in a bankruptcy is slim. Neither UA or AA are going to go out of business completely. Maybe reorganize, but neither could afford to alienate their best customers by dissolving FF accounts. And if smaller carriers go down, I believe the TWA/AA or CP/AC models will be followed whereby one of the larger carriers takes over most of the assets of the smaller ones.
1. Would the Q-miles earned paying and flying on this trip get you to the next tier of your elite status, or maintain you at the current level, by the end of this year?
2. Or are you in a program which has extended your current elite status even though you haven't earned the required number of miles, or you have already this year moved to the next tier of status?
If the answer is "Yes" to the first question, then by all means buy the ticket and bank the miles. You should try and get to the next level of status, or maintain your current status. If "No" [or "Yes" to the second question], then save any purchased tickets until next year and start earning Q-miles towards elite status for 2003/4.
Depending upon which airline program you belong, the likelihood of the points vanishing in a bankruptcy is slim. Neither UA or AA are going to go out of business completely. Maybe reorganize, but neither could afford to alienate their best customers by dissolving FF accounts. And if smaller carriers go down, I believe the TWA/AA or CP/AC models will be followed whereby one of the larger carriers takes over most of the assets of the smaller ones.
Oct 18, 2001 | 2:47 pm
#8
FlyerTalk Evangelist
Join Date: Jan 2000
Posts: 15,854
Are you the kind of guy that gets paid on Friday and is broke on Monday???
I know someone who always had a lot of miles and gave them away like a drunken sailor, he never kept more than enough for a free trip or two in his account. After all, he was always travelling, so so what??
This guy has been out of work for awhile now and can't really afford to pay for the tickets he needs to get back on his feet. Guess what?? He really wishes that he still had those miles, as the people he gave them to long ago forgot his generosity.
As for me, I bank them all for one purpose. UPGRADES, I fly way too often and on flights way too long to stay in the back.
Also considering how cheap tickets are at the moment, make sure that your getting a good deal if you decide to use the miles.
I know someone who always had a lot of miles and gave them away like a drunken sailor, he never kept more than enough for a free trip or two in his account. After all, he was always travelling, so so what??
This guy has been out of work for awhile now and can't really afford to pay for the tickets he needs to get back on his feet. Guess what?? He really wishes that he still had those miles, as the people he gave them to long ago forgot his generosity.
As for me, I bank them all for one purpose. UPGRADES, I fly way too often and on flights way too long to stay in the back.
Also considering how cheap tickets are at the moment, make sure that your getting a good deal if you decide to use the miles.
Oct 18, 2001 | 5:48 pm
#9
Join Date: May 2001
Location: NWA Platinum, PC Platinum, HH Gold, Radisson elite, Hertz #1 Gold; National Emerald, Wausau, WI
Posts: 1,482
My response is that if you have the time and resources, you can do both. Since I have my status locked for 2002, I've taken advantage of the empty seat situation over the past month and a half to book some nice seats on award tickets. At the same time, I booked five paid trips going into next spring that will replenish the miles at fabulous fare sale prices. I also booked hotel rooms at favorable rates. It would have been a greater chore (maybe impossible for me, without great sacrifices) to afford what I bought -- and I would not have been able to book what I did on award travel -- without the confluence of events that has occurred. Simply put, there are opportunities on both sides of the ledger and frankly, the situation is going to be unsustainable over the longer term. So my advice would be to make your choices now and then hope for the best. Better times for travel will mean an end to the rare opportunities that have surfaced of late. We need that to happen, but I don't want to be kicking myself for not having made use of this very strange period of time.
Oct 18, 2001 | 6:40 pm
#10
Join Date: Nov 2000
Location: Seattle, WA
Programs: None, but flying a lot more Delta these days
Posts: 708
I've been out of work now for about 8 months now, and boy am I glad I held on to my ff points. It's nice to be still be able to travel around and see friends and family (and sleep on their couches!).
My current strategy is to use points for all flights that are not on sale or don't have a great price/mileage ratio. Unfortunately it means I will suffer next year as I'll just barely make premier by the end of the year.
I had always saved my points for a rainy day and it paid off, so my recommendation that if you can keep accumulating, do so. This of course reflects my belief that the miles will be good for many years to come.
My current strategy is to use points for all flights that are not on sale or don't have a great price/mileage ratio. Unfortunately it means I will suffer next year as I'll just barely make premier by the end of the year.
I had always saved my points for a rainy day and it paid off, so my recommendation that if you can keep accumulating, do so. This of course reflects my belief that the miles will be good for many years to come.
Oct 18, 2001 | 8:34 pm
#12
Join Date: Sep 1999
Location: Agoura Hills, Ca USA
Posts: 470
I have just had the same dilemma. I am using a One World award to fly to Auckland Where a five continent One World round the world explorer ticket is quite cheap. I will be splitting my trip up into three segments earning the maximum amount of miles next qualifying year.