It may be best to take a flier and exit a mileage program
Maybe there’s no 12-step program for it, but there are plenty of ways to leave your travel loyalty program. And plenty of people want to get out.
Steve Danishek, a travel agent from Seattle and million-miler, is one of them. He says airlines have added new fees, made it harder to get an award seat and continue to dilute their programs.
“The programs are in decline,” he adds.
But how to leave? There’s no better time to ask than right now, when many loyal frequent fliers are taking end-ofyear mileage runs designed to help them reach elite status. But before answering, let’s take a quick inventory of the recent program declines – and there are many. It turns out leaving your loyalty program may be the easy part of the equation.
Why you should leave your loyalty program
During the last few years, frequent traveler programs have taken a nosedive, as far as many travelers are concerned. The latest trick: “Dynamic” award pricing that changes based on demand, which makes many award seats out of reach for the average traveler. Also, instead of rewarding loyalty, travel companies are giving their best perks to the big spenders. That makes the loyalty game almost unwinnable for many travelers.
If you have lifetime status on one of the airlines or are a business traveler on an expense account, it might be worth sticking around. Otherwise, there may be better ways to spend your time and money than chasing the next elite level, says Steven Ryals, owner of Notiflyr, a travel deal site.
“You have to look at your situation and analyze it,” he says.
Remember, points and miles almost always lose value. In other words, a “free” award ticket that cost 25,000 points last year may require another 10,000 points next year. You also might have to pay a fee to redeem the miles.
And one other thing: Check the terms of your program, which are absurd. For example, did you know that your miles don’t really belong to you? Your travel company can change the rules at any time, for any reason. It’s all buried in the fine print. Why collect something that doesn’t even belong to you?
Here are your options if you want to quit
Unfortunately, there are no recovery clinics for people who want to leave their loyalty programs (though maybe someone should start one). But like a clinic, you have lots of options for detoxing from your loyalty program.
If there’s a nicotine patch for frequent fliers, it’s shifting to a pointsbased credit card. Your credit card might offer a points-based program that offers rewards that are as good as or bet
ter than your airline or hotel. So you can move your spending to a points-based credit card and keep some of the perks.
Cash-back cards also are great for kicking the habit. That’s what Bud Nykaza, a retired marketing researcher from Maui, recently did. He stopped participating in his airline loyalty program and moved to a Costco Visa card for travel.
“They give you a 3% rebate on all of your travel purchases,” he says. “That is worth more than the value of a mile earned with a credit card.”
Credit card programs are just a temporary fix. The real problem is that you’re collecting points that lose value, that don’t belong to you and that may be unusable. Worse, you may be spending more money than you otherwise would. Only the travel company or credit card is really benefiting from that kind of purchasing behavior.
In fact, experts say you’re better off finding a credit card with a lower interest rate and no annual fee. Then buy a ticket or book a hotel room at the lowest price, without regard for the points or miles you might earn. Over time, that strategy will save lots of money.
Here’s how to leave your loyalty program
The process of quitting is simple. Take the rest of your miles and book a flight to a warm-weather destination. Burn your hotel points on a suite overlooking the ocean. Go enjoy your vacation. Then take a pair of scissors to your loyalty card – and never look back.
“It makes no sense to participate in loyalty programs anymore,” says Mike Gnitecki, a recent loyalty program quitter who works for a hospital in Tyler, Texas. “Most of the major airlines and hotel chains have gutted their loyalty programs. I now shop almost exclusively based on price.”
There you go. Now you’re on your way to recovery.