If you fly a great deal, chances are that you are signed up for a frequent flyer program. Frequent flyer miles programs provide you with the opportunity to earn free airfare, seat upgrades and other perks, offered by the airline you are flying with.
These programs were originally introduced in the hopes that you would show loyalty to the airline (and its partners) since you wouldn’t gain as many rewards if you used other airline companies. Some of the more popular frequent flyer programs include Delta Skymiles and American Airlines AAdvantage.
For the most part, frequent flyer programs work by awarding you with one mile for every mile flown. So, if you purchase a round-trip ticket for a destination 500 miles away, at the end of your trip, you have 1,000 miles (500 for flying out, and 500 for your return trip). These rewards add up, and can be redeemed for various perks related to airline trips, as well as perks at partner hotels and car rental companies.
Frequent Flyer Program Fees
When you participate in a frequent flyer miles program, you will have fees. Many programs charge you a fee when you redeem your miles. Additionally, if you earn miles for staying at partner hotels and renting cars from partner companies, you might incur other costs.
Due to a 1997 law, non-airline partners have to “buy” miles from airlines in order to give them to you. This transaction comes with a tax on the partners. Some portion of this cost is passed on to you, through program fees or other charges.
Be aware of the program fees associated with frequent flyer programs. You may have to pay a premium to buy more miles, and you almost always have to pay a redemption fee when you go to redeem your miles. So, even though you may end up with a reduced price for an airline ticket, you are still paying something.
Boosting Your Frequent Flyer Rewards with a Credit Card
These days, most airlines have a branded credit card. The use of these cards can help you earn miles faster. These credit cards are often connected to a frequent flyer miles program, like Rapid Rewards, so whenever you spend money, you end up with more miles. Often, you receive one mile for every dollar you spend on most items. However, some programs will reward you with two miles for each dollar you spend for travel with the airline or its partners.
An airline-branded credit card like the Southwest Credit Card can help you boost your miles and increase the rewards that you earn, helping you receive your perks faster.
