According to one study, nearly 60 percent of Americans with frequent flyer miles admit they don't know how
airline reward programs work.
Understanding how
airline rewards programs work — Airlines have changed the structure of their reward programs, but still have great offers if you know how to earn miles.
See related: Understanding how
airline rewards programs work, 7 ways to track your reward cards like a pro
Understanding how
these airline rewards programs work is a slightly longer and more complicated answer.
Not exact matches
For this example, I'm going to focus on United
Airlines — a partner of Chase's Ultimate
Rewards program — and the way that its MileagePlus frequent flyer
program works.
A. Frequent flyer
programs work in conjunction with your
airline or travel
rewards credit card.
Because Capital One
works on a cashback or travel reimbursement - style
reward system, rather than transferring points to
airline and hotel
programs, the value you get with this card is fixed.
To get the most value out of an
airline rewards program, the best advice is to familiarize yourself with the details of how it
works, says Brian Kelly, founder of ThePointsGuy.com, a blog that helps people maximize their award miles and points.
Chase spokeswoman Gail Hurdis says it depends what customers are looking for:
Airline or hotel cards are «best for accelerating their
rewards in a loyalty
program,» while a bank
rewards card «may
work better for someone who is looking for more general
rewards, such as points or cash back.»
Because
airlines control so many aspects of flying, it's hard to outdo them on travel
reward cards, says Jay Sorensen, president of IdeaWorks, a Wisconsin
airline consulting firm that
works on loyalty
programs.
So, there you have it, a lesson of how Citi's AAdvantage
program works, and how it would have a similar, but much different ending with another
airline rewards card.
Casino loyalty
programs work the same way as hotel or
airline loyalty
programs; the more «loyal» you are to their brand (i.e. the more you spend with them), the more
rewards you earn.
As part of my Baltic Explorer trip, I participated in a number of hotel and
airline promotions to make the most out of my membership in
reward programs (read Power of Promotions — Baltic Edition)-- and all of them
worked out great, showing again, how much value there is in those promotions!