Maintain Status vs. Save $$
 

I have a quick question: Should I redeem my airmiles for a trans-pacific airticket or spend $1100 on an international airticket that will earn me 20000 airmiles + an additional 50% bonus miles as a Silver Elite member and therefore, help me to maintain my Silver Elite status through 2004-2005?

This may come down to personal preference; however, mine would be to save the $1100. That's some serious loot, and I wouldn't be willing to spend anywhere near that to get status. tls

Depends. First, do you need the elite status for future travels or good karma around the house? Second, do you have an extra $1100 to contribute to the airline financial assistance program? Third, are you merely exercising your constitutional right to the pursuit of happiness (I always use this one when my S.O. asks why I have to do another MR.)?

That's a lot of money for status. I was able to get Silver for over $300 less than that last year.

Your numbers work out to 5.5 cents per mile before bonus and 3.7 after.

Tough call, but I'd consider finding domestic runs to maintain my status for less money. That way you'd keep status and travel more.

Silver for $300? I assume that's 25,000 status miles for $300? How?

He wrote $300 less, so he means $800 total. I read it first as $300, but when I re-read it, I caught the 'less' part.

Save your money! For the most part, I gave up mileage runs over a year ago. The only run I would make now would be if I were really close to the next status level and could easily make it with a single roundtrip for maybe $200.

First, miles are not as valuable as they were a few years ago. Devaluation is very real as airlines raise award levels and tighten capacity controls. That means for a mileage run to make sense it must cost LESS than it used to for the same number of miles or you have to get hold of a great bonus opportunity. In my view, airfares have increased, in some cases significantly, over the past year and good bonus opportunities are fewer. Therefore, from a mileage perspective, mileage runs are not the deal they once were.

Second, the allure and benefits of status have declined substantially. Here is my list of why status is much less important:
1. Upgrade prices have risen on many airlines. More $$ out of my pocket if I want to take advantage of that status.
2. First Class service is a shadow of what it used to be. Less offered for same/higher "cost" than before.
3. More RJs, less first class seats. More time in coach. Status doesn't matter there.
4. Electronic check-in kiosks and on-line check-in mean in almost all cases I do not have to wait in a line anymore. Status used to be great here, but now it doesn't matter.

The only real benefits to status now, as I see it, are the mileage bonuses and the priority you receive during irregular operations. In my view, those simply do not warrant spending lots of dollars for mileage runs.

Does your significant other chuckle and challenge you to locate the right to the pursuit of happiness in the Constitution? http://www.flyertalk.com/forum/wink.gif Hint: it's actually in the Declaration of Independence, not the Constitution.

But back to the point . . . I cast my vote with majority who agree that shelling out $1,100 for status is not a sound investment under the circumstances.

Doesn't sound like the original poster is doing a pure mileage run. He/she wants to go to Asia either way, and has a choice: get an award seat or buy a $1100 seat. That changes the parameters completely: it's not like paying $1100 just for status.

The decision of award vs. paid seat comes down to what your future plans are. Will you fly that airline much in 2004, thereby using your Silver status? Do you have another big trip planned down the road where you want to use the miles? Are you currently sitting on a million miles or 100,000 miles? Could you do paid seat + upgrade on this trip, thereby getting the best of both worlds (assuming you like int'l premium class...who doesn't?)? etc. etc. etc.

IMHO, buying the ticket and securing Silver in 2004 is a GOOD move if you will use it, and you will actually put your earned miles to good use at some forseeable point in the future. To me, just being able to book good coach seats, being able to check a bag in a non-kiosk airport, and being able to actually call the airline on the phone if I need to make a low-status worth it. The bonus miles and occasional upgrade are pure gravy.

Definately save the bucks! Too many things can change to quickly in this environment.

Am I the only one here who doesn't think the original question has anything to do with a Mileage Run?

Quite possibly, pinniped. http://www.flyertalk.com/forum/biggrin.gif

I always seem to be able to find a way to get the best seat on the plane (buying the cheapest ticket) and the best room in the hotel (on a deeply discounted rate).

Work the system. http://www.flyertalk.com/forum/wink.gif

All this talk of upgrading. All i want to do is for the airline to give me a whole can of soda, not just the cup. do i need elite to get the whole can? it seems like it to me. ok im off my soap box now. But i do have a better investment opportunity for you and your money. Who needs asia, when you can donate your money to my college education. who is in for this chance of a lifetime? ;-) save the money and use the miles. you cant take them with you.

p.s. punki, i have so much to learn from you, i always seem to get the crummiest seats on the plane. help!?

mitch

I agree with those who say that the decision must be weighed against future travel plans. As part of that, the $1,100 cost must be netted back against the benefits because the entire amount is not the true cost. Miles are, in effect, a rebate in the form of future travel credit.

Assuming you have the $1,100 -- and I happen to see that as a lot -- then you can subtract the value of the 20,000 miles. In my own case, I use 1.5 cents/mile, so it's $300. You should also factor in the lost opportunity to gain miles that you will be saying goodbye to by not making silver, so if you would have flown 25,000 miles during the coming year and it's a 50% bonus to be silver, then it's another 12,500 miles (or $197.50 at 1.5 cents/mile).

Alright, we have netted the $1,100 down to $602.50 and you now need to make a SUBJECTIVE judgement on the value of elite status, as well as any economic value that the status might have to you.

...Of course, the $1,100 is paid after taxes while mileage and other elite benefits are outside of taxes, so crank those factors in and you end up with about.... hmmmm.... about an $1,100 difference? http://www.flyertalk.com/forum/biggrin.gif

For Pinniped:
You are right, my intention is not for the sake of mileage run. Either way, I need to make a trip to Asia.

I did take note on the question that everyone is asking i.e. whether I will be making alot of trips in 2004-2005. The answer is 'no' unfortunately. I definitely see myself being caught in a vicious cycle of chasing after the Silver status year after year just for the sake of bonus miles and upgrades. Guess I will use the $1100 for shopping instead http://www.flyertalk.com/forum/smile.gif

Thanks to all who have so kindly responded to my question.

Cheers,