chicago seminars 2012 presentation: transferable credit card points

Transfers and Bonus Category Credit

Cards

Transferrable Point Programs

American Express Membership Rewards

Pros:16 airline partners

4 hotel partners

Transfer bonuses – Delta, British Airways, Virgin America

Transfers post instantaneously (mostly)

Has added some partners like British Airways, Virgin America (bad ratio)

Cons:Losing transfer partners – Continental, Southwest, Airtran, Priority Club

6/10 cents per point for transfers to US airlines

Earning portal shut down


Star Alliance• Aeroplan 1:1• All Nippon Airways 1:1• Singapore Airlines 1:1

OneWorld• British Airways 1:1• Iberia 1:1• Asia Miles 1:1

Skyteam• Aeromexico 1:1• Alitalia Airlines 1:1• Delta 1:1• Air France/KLM 1:1

Other• El Al 50:1• Frontier 1:1• Hawaiian 1:1

Airline Transfer Partners

JetBlue 1.25:1Virgin America 2:1 Virgin Atlantic 1:1

OneWorld

• Positives: Instant transfers, transfer bonuses, some great values from distance-based awards, no last-minute booking fees

• Negatives: High fuel surcharges, segment pricing on awards, hard to search for some awards

• Good awards: Expensive short- and mid-haul flights. Ex: New York to Toronto

British Airways

Star Alliance

• Positives: Star Alliance has 27 members, instant transfers, flexible routing

• Negatives: Recently increased award requirements, expensive one-ways, fuel surcharges on Air Canada flights, Lufthansa, ANA, Adria, Asiana Airlines, Austrian Airlines, LOT Polish Airlines, TAP and THAI.

• Good awards: US to Western Europe 60/90/125, short-haul awards

• *A Tips: ANA good for distance-based 63,000 NYC-London, Singapore for one-ways

Aeroplan

SkyTeam

• Positives: Instant transfers, flexible routing, miles don’t expire, no last-minute fees, upgrades on awards for Gold Medallion and higher, non-alliance partners

• Negatives: Broken website, stealthily increased award requirements, no one-ways, no last-minute changes, international origination charge, 3 award tiers, no international first class redemptions

• Good Awards: US to Africa with a stopover in Europe for 120k in business, 150k in business to Australia

Delta

• Positives: 50% off promo awards, one-ways possible, instant transfers

• Negatives: Huge fuel surcharges• Good Awards: Most promo awards, Israel (included as

Europe)

Flying Blue


• Best Western 1:1• Choice Privileges

1:1• Hilton HHonors

1:1.5• Jumeirah Hotels and Resorts

23:1• Starpoints

3:1

Hotel Transfer Partners


Earn 1 point per dollar spent (Premier Rewards is 3x on airfare and 2x on gas & groceries, 4x per dollar with Amex Travel)

Points go into pending status for a month after statement close (can be expedited)

Cannot combine Membership Rewards points

Transfer to anyone!- Link (not enroll!) their account to your account membershiprewards.com -> Points Summary -> Bottom right

- Advance points for free, just earn them back- Up to 60,000 for Platinum

- 15,000 for most other cards (not corporate)

- Buy points at 2.5 cents each, up to 500,000 a year!


Pay With Points

Easy, but fixed value: 1 cent (1.25 for Platinum/Centurion)

- A $5,000 business class ticket would require 500,000 points!

- Could be an okay decision for cheap domestic tickets

Earns elite status just like a purchased ticket


My Top Amex Cards:

Premier Rewards Gold: 3x on airfare, 2x at gas stations and grocery stores, 1x on other purchases, $175 annual fee waived 1st year. Current bonus 25,000 points after $2,000 in 3 months, 15,000 points after $30,000 in one year.

Platinum: Access to over 600 lounges, no foreign transaction fees, Global Entry discount, Fine Hotels & Resorts Program, $450 annual fee. Current bonus 25,000 after $2,000 in 3 months.

Others To Consider:

Business Gold Rewards: 3x points on airfare, 2x points on advertising, gasoline, and shipping, 1x on other purchases, $175 annual fee waived 1st year. Current bonus 50,000 points after $5,000 in 3 months.

Mercedes-Benz Platinum: Delta SkyClub and US Airways Club access, $1,000 reward certificate towards purchase or lease of Mercedes-Benz, 5x on eligible Mercedes-Benz purchases, $475 annual fee. Current bonus 50,000 points after $1,000 in 3 months.

Chase Ultimate Rewards

Pros:

Adding partners

Most transfers instantaneous

No transfer fees

Transfer points to anyone else, combine points with anyone else

Points post right after statement closes

Good customer service

Cons:

Limited number of partners

No transfer bonuses yet

Chase Ultimate Rewards Transfer Partners

• British Airways 1:1• Korean Air

1:1• Southwest

1:1• United 1:1

Airline

• Hyatt1:1

• Priority Club1:1

• Marriott 1:1• The Ritz Carlton 1:1

Hotel

• Amtrak 1:1Other


• Positives: One-way awards, low fees, lots of Star Alliance and non-alliance partners, good website

• Negatives: Close-in booking and change fees, post-merger glitches

• Good awards: Business/First Class flights on partners like Lufthansa and Asiana

United


• Positives: Low points requirements for free nights, great elite perks

• Negatives: Just over 400 properties worldwide

• Good awards: Top-tier redemptions for 22,000 points like Park Hyatt Paris Vendome, only 6,000 points to upgrade paid stays for up to 4 nights

Hyatt

Chase Ultimate RewardsMaximizing Ultimate Rewards Points

Sapphire Preferred: 2x points on travel and dining (airfare, hotel, rental car, taxi, parking, subway, etc.), no foreign transaction fees, $95 annual fee waived 1st year, 7% annual points bonus. Current offer 40,000 points sign up bonus.

Ink Bold: 5x points on first $50,000 spent at office supply stores and on utilities, 2x points on first $50,000 spent at gas stations and hotels, no foreign transaction fees, $95 annual fee waived 1st year. Current sign-up bonus 50,000 points. Also available on Ink Plus.

Others To Consider:

Freedom: Quarterly bonus categories, no annual fee. Current 5x bonus categories: hotels, airlines, Kohl’s, Best Buy up to $1,500 per quarter. Current sign up bonus $100 cash back after $500 in 3 months.

Chase Checking + Chase Freedom = 10 points per transaction + 10% bonus on all purchases.

*Old Ink Bold: Keep it open. 20% bonus on all spend and up to 47,500 points spend bonuses on spend up to 100,000. Basically 1.67 points per $1.


Pay With Points:

1.25 cents per point in travel

Transfer to anyone: ultimaterewards.com -> Manage Ultimate Rewards -> Combine Points -> Transfer To Other -> Enter credit card number and last name

Chase Experiences

Starwood Preferred Guest

Pros:

Over 1,100 properties

Cash & Points

Reward stays count toward elite status

30 airline partners

5,000 point bonus on transfers of 20,000 points

Cons:

Member can only transfer to own accounts

No other transfer bonuses

Posting times vary greatly

No shopping portal


Airline Transfer PartnersAeroplan 1:1Air Berlin 1:1Air China 1:1Air New Zealand 65:1Alaska Airlines 1:1Alitalia 1:1ANA 1:1American Airlines 1:1Asia Miles 1:1Asiana Airlines 1:1

British Airways 1:1 China Eastern 1:1China Southern 1:1Delta 1:1Emirates 1:1Etihad Airways 1:1Flying Blue 1:1Hawaiian 1:1Japan Airlines 1:1King Club 1:1

LAN 1:2Mexicana Frecuenta 1:1Miles and More 1:1Qatar Airways 1:1 Saudi Arabian 1:1Singapore Airlines 1:1Thai Airways 1:1US Airways 1:1United Mileage Plus 2:1VARIG Smiles 2:1Virgin Atlantic 1:1

Other

Amtrak 1:1

Starwood Preferred GuestAirline Transfer Time In Days

Delta 1

Aeroplan 3

Air Berlin 4

ANA 4

Virgin Atlantic 6

American Airlines 8

US Airways 8

Alaska Airlines 8

British Airways 9

LAN 9

United 11

Asia Miles 15

Asiana N/A

Flying Blue N/A


• Positives: Low fees, one-way awards, free stopovers in your destination

• Negatives: Ticketing fees, no international stopovers

• Good awards: 40,000 Off Peak awards to Europe October 15-April 15; Cathay Pacific First Class North America-Asia for 67,500

• Alaska: 115,000 SPG Points = Cathay Pacific First roundtrip to Asia for 140,000 miles roundtrip. Other partners: Icelandair, Emirates (soon)

American


• Positives: Star Alliance partners, flexible routing, ability to buy miles cheaply through Miles Multiplier, Share and Buy Miles Promos

• Negatives: No one-ways, terrible website, ticketing fees

• Good awards: 90,000 Business Class to North Asia; 110,000 Business Class to Australia, 50,000 for 3-class United First Transcontinental; 60,000 Off Peak award to Europe in Envoy

US Airways


• Transfers at a 1 : 2 ratio, so 20,000 SPG = 50,000 LAN kms

• Distance-based award chart. • Ex: Lima-Cusco 16,000 kms roundtrip• Ex: North America-Northern South

America 48,000/100,000 coach/business• Ex: North America-Deep South America,

70,000/150,000 coach/ business • So 28,000 Starpoints for coach to Deep

South America, 60,000 for business class roundtrip

LAN


Membership levels: Preferred, Gold, and Platinum (50, 75 and 100 night)

Free Night Awards: On standard rooms, no blackout dates

Cash and Points: Ability to book rooms with a combination of cash and points

5th Night Free: Redeem 5 nights and the 5th night is free at category 3 – 7 hotels

SPG Moments: Bid Starpoints on experiences


Credit Cards:

SPG Personal: 2x points per $1 at Starwood. Use points for hotel awards, transfer to airline partners, $65 annual fee waived 1st year. Current bonus 25,000 points after $5,000 in 6 months.

SPG Business: 2x points per $1 at Starwood. 1 Starpoint for every dollar of eligible purchases, no blackout dates, $65 annual fee waived 1st year. Current bonus 25,000 points after $5,000 in 6 months.

Credit Card Spend Thresholds and Bonuses

Goal: Earn more than one point

COMPANION TICKETS

British Airways Visa: Travel Together Ticket after $30,000 spent in 1 year, smart chip technology, no foreign transaction fees, $95 annual fee. 50,000 Avios after $1,000 in 3 months.

Southwest Rapid Rewards Visa: Southwest Companion Pass when you fly 100 one-way flights within a calendar year or accrue 110,000 points in a calendar year. Hotel transfers count, Chase Ultimate Rewards don’t. 2x points on Southwest Airlines purchases, Rapid Rewards Hotel and Car Rental Partners, 3,000 points every anniversary.

Delta Reserve Card: Bring companion on a roundtrip first/business or economy ticket with the purchase of an adult roundtrip fare on domestic routings. Tickets must be purchased with the Delta Reserve Card

Other Cards: Alaska Airlines Visa Signature, US Airways Premier World MasterCard

Elite Miles and Perks

Delta: Delta Platinum get 5,000 MQM’s at sign-up, spend $25,000, get another 10,000 MQM’s. Spend $50,000 and get 10,000 more MQM’s. Delta Reserve get 10,000 MQM’s at sign up, 15,000 MQM’s when you spend $30,000, and another 15,000 MQM’s at $60,000.

Citi Executive AAdvantage: 10,000 EQM’s after $40,000 in a calendar year.

Barclay’s US Airways Premier World MasterCard: Offers up to 10,000 Preferred miles with $25,000 in a year.

chicago seminars 2012 presentation: transferable credit card points

Economy & Finance