Why A Cash-Back Card Is Better Than An Airline Miles Card

by Allison Kade on

For frequent travelers, it’s the Holy Grail: a free flight, a free upgrade, the ability to say, “Oh, this? I got it with my airline miles.”

But when push comes to shove, are credit cards that give you airline miles really worth it?

Let’s go point by point.

Value For Your Money
Running the math requires making a few assumptions, but here’s a rough sketch.

Option A: Let’s say your travel card gives you a mile per dollar you spend. Let’s also say that it takes 25,000 miles to get a free round-trip domestic U.S. flight, which is the going rate at airlines like American and United. Obviously, the dollar value of a domestic flight will vary, but for argument’s sake, let’s call it roughly $500.

To earn the 25,000 miles you need, you’d have to spend $25,000. If that flight is normally worth $500, you’re getting back 2 cents on every dollar you spend.

Option B: Let’s say your cash-back card gives you 5% back on certain categories of spending, and 1% back on everything else, pretty standard for its card type. For the sake of our math, let’s say, on the whole, that averages out to roughly 3% back per month.

Instead of using miles, you want to earn $500 to buy your ticket the old-fashioned way. At an average of 3% back, you’d have to spend just under $16,700. That comes out to about 3 cents per dollar.

The outcome? If these numbers hold true, you’re getting better value with a cash-back card.

Of course, not all cards are created equal. If you found a travel card offering 2 or more miles per dollar, then that card would beat most cash-back cards. Try it out with your own numbers with these basic equations:

% money back = cost of your flight / amount you need to spend to earn that flight

From there, you can compare your percent back with a travel card to your percent back with a cash-back card.

Annual Fees
Most airline mile cards waive the annual fee the first year, but then have fees ranging from about $59 (for the Capital One Venture Card) to as much as $175 (for the AmEx Premier Rewards Gold Card).

Meanwhile, with a few exceptions, most of the top cash-back cards don’t have annual fees, ever.

Flexibility
This one’s obvious. If you travel a ton then, yes, you’ll probably want to use your reward to fund your next trip. But it doesn’t hurt for there to be no rules on how you can use your reward cash, and cash-back cards are literally that: your credit card company sends you a check in the mail and you can do with it whatever you please.

Sign-Up Rewards
A lot of travel cards offer initial sign-up bonuses, like 20,000-30,000 bonus points. Cash-back cards don’t do that. This is a huge, obvious perk of travel cards.

(My) Moral Of The Story
In my experience, the best way to maximize all these different factors is to sign up for a miles card, use it just enough to get the introductory offer, and then close the account before the end of the year to avoid paying an annual fee. Once you’ve earned the introductory miles, switch to a cash-back card, which is often better day-to-day money value and has better flexibility. (A quick caveat: for the sake of your credit score, try not to close more than one card in a year.)

Final verdict? A miles card sometimes, a cash-back card always.

[Image credit: Flickr user The Consumerist]

5 Tips For Holiday Travel With A Baby

by Meg Nesterov on


With Thanksgiving days away, ’tis the season for screaming infants and squirming toddlers packed onto planes, right? Flying with a baby doesn’t have to be a nightmare, even during the very busy holiday travel season. Whether you are flying home to introduce your baby to the grandparents, or taking a much-needed island vacation with your newly-expanded family, here are some tips to help you (and your seatmates) cope with flying with a baby:

Don’t scrimp on the extras and factor them into your travel budget. Pre-baby, you might have been able to deal with a red-eye flight with multiple connections on a bare-bones budget airline in order to save on ticket airfare. When you are flying with a small child on your lap, there are certain upgrades you may wish to make that will pay off in spades. Check your luggage (though pack light anyway), so you have as little to carry on the plane as possible (and while we’re on the subject, always have a carrier/wrap/sling as you can’t always take your stroller to the gate). Add on extra legroom or the airline’s “economy plus” so you have a little more room to maneuver. These days, only some long-haul or international flights have baby bassinets, and even then, they will only fit up until one year or so. Do your homework: depending on the airline and route, it might make sense to purchase a seat for your infant (often with additional baggage allowance), especially if they are happy to sit in a car seat for the flight. Trust me, these things will be worth the extra $50 or so, but factor it into your ticket cost and budget accordingly.Be resourceful and creative about in-flight entertainment. Many new parents feel they have to pack a separate suitcase full of toys to entertain a child on a plane, but you want to keep your carry-on items to a minimum. You’d also be surprised with what you already have in your purse or diaper bag can be endlessly interesting to a baby: your keys, your bag of small toiletries, even your wallet. At one year, my daughter became fascinated with pulling things out of my wallet, so I now carry a cheap card wallet for her to play with containing all of our old hotel key cards. She’s also spent hours packing and unpacking my make-up bag, and since we’re in a small space, I can make sure she’s not eating my lipstick or stashing my Amex card between the seats. Even the seat has fun buttons to press (as long as they aren’t controlling your neighbor’s seat); magazines to leaf through; and plastic straws, ice and cups from drink service. Carry some actual toys too, but keep them pocket-sized: a small pouch full of IKEA finger puppets is one of the best investments I’ve ever made and has often appeased other kids on the plane too. Anything that won’t make a mess or an annoyance to other passengers is fair game to me. There’s always the failsafe cellphone, or tablet computer if you have one (check out Best Apps for Kids for recommendations); once it’s safe to use approved electronics, of course.

Don’t be afraid of the back of the plane. I used to dread the back of the plane, especially as I was loathe to check luggage and therefore wanted early access to the precious amount of overhead bin space. Now since I’m usually checking anyway, I don’t mind being in the back; it’s close to the bathroom and the flight attendants, often less crowded than the premium seats in the front, and when we land, I have more time to collect all the things the baby has pulled out of my purse. Most airlines have discontinued early boarding for families, but even if it’s offered, you may want more time in the relative comfort and space of the gate area before boarding. The only drawback to the back of the plane is other children, especially if yours tends to be influenced by the cries and sounds of other babies. In case of another child’s meltdown, it might be the time to distract yours with a video, and hand your finger puppets over to the other parents.

Dress naturally and for comfort. A few years ago, I read that because of breathability, it’s more comfortable to fly in a wool dress suit than a polyester track suit. This especially makes sense in winter when you are going from cold runways to overheated airports and erratic cabin temperatures, often rushing to make a plane and laden with baggage. Babies will sleep more comfortably in a cotton or other natural fabric one-piece pajama and it’s also easy to change diapers, and light to pack a spare in your diaper bag. Dressing baby in pajamas can also help feel it’s time for a sleep rather than running around the cabin. I’ve seen many small children traveling in fleece outfits (fleece is essentially code for polyester), and those same children are often sweaty and restless once the airplane’s heater kicks on. For me, I tend to feel much warmer trekking through an airport with a 20-pound person strapped to me, so I try to ditch my coat as soon as possible. My favorite is a lightweight down jacket from Uniqlo that packs down into a tiny bag that I can stash under the stroller or in a suitcase until I’ve reached my final destination. Finally, while baby might look cute and comfy in PJs, you are better off in two pieces with a spare shirt, in case you need to change mid-flight after an accident.

Go with baby’s schedule. No one really has the definitive answer on how to fight jetlag but when it comes to traveling with a baby, you may have to just give in to their schedule demands rather than force them to conform. In the early months, they’ll adjust to time changes easily since they sleep constantly, but older babies might just force you to stay on your usual time zone and adjust slowly. Look for flights that suit your schedule best: my baby does best on early morning or overnight flights when she tends to sleep, even if it means less rest for me. You might be off your game for the first few days when you arrive, but isn’t sleeping late and taking mid-day naps what vacations and time home with family are for? Letting the baby sleep when she wants can also help her stay healthy: you are more prone to illness if your body is exhausted. I also let her eat on demand and find breastfeeding ideal for travel, especially to keep her ears from getting clogged on take off and landing, and provide immunities to ward off sickness. Older or non-breastfed babies can have a pacifier, bottle, or sippy cup for takeoff. I’m personally not a big fan of anti-bacterials, but wash hands and anything baby touches frequently with soap and water.

We’ve survived over three dozen flights and twelve countries with no tantrums or crying, read more tips and advice in the “Knocked Up Abroad” series.

Is There A Perfect Way To Board A Plane? Researchers Say Yes

by Allison Kade on

It’s little surprise that China is crowded. Given a booming population that can afford to fly – and without an equally booming plane population – researchers in Beijing have been examining ways to make boarding planes most efficient.

The idea is to accommodate the heightened Chinese flying demand and relative scarcity of planes. Western Australia’s ScienceNetwork reports that researchers are doing something new by looking into boarding patterns, as opposed to just luggage congestion and takeoff scheduling.

The findings? Move over, screaming children and slowpokes.

The researchers found that there is an “optimal” way to board a plane, and it involves categorizing passengers by their “individual properties.”

Under our current model of assigned seating, passengers at the front can reach their fastest possible boarding speed, but after that things slow down. The “optimal” system would categorize you by your luggage type, timeliness at the gate and other factors, and sort you into boarding order that way.

Although this is nice in theory, there are some obvious problems. Math can’t, after all, account for factors like passengers’ personalities, how distracted they are or even how large they are. Oh, and the fact that humans aren’t generally as predictable as variables in an equation.

[Image credit: Flickr user Reuben Whitehouse]

Gogo Unveils New In-Flight Wireless: Boasts 3X Improvement In Bandwidth

by Dan Morgridge on

Gogo’s jet-propelled test lab took flight yesterday with several reporters and one very important fin added to the underbelly of the plane.

On the quick flight across western Illinois, CTO Anand Chari showed off the significant speed increases and signal stability of their new ATG-4 (Air To Ground – 4) wireless system. Initially using the current ATG wireless, pages loaded slowly or timed out completely when a crowded plane was simulated. Switching to the new technology showed speeds reaching closer to the estimated max of 9.7 Mbps. When an additional 15 users were simulated on the plane, loading of pages slowed, but never stalled.

“This is a significant tech advancement,” said CEO Michael Small. “We can serve considerable larger number of passengers – over half the plane [before degradation of the service]. The sky is going to keep growing. We’re on a path to getting full service to a full plane of users.”

Streaming services like Hulu and Netflix are still too big of a burden for in-flight connectivity, but the company’s recent release of Gogo Vision offers a nice compromise – 100+ titles to watch streaming on your wireless device for $4.99 a movie or 99 cents a show.

Over 40 planes are already equipped with the ATG-4 technology, with Virgin, Delta and US Airways on board (launches for service on American Airlines and United are expected next year). The company plans to have over 500 planes equipped by the end of 2013.

How do you tell if your plane is equipped with the latest tech? If possible, look under the first third of the plane, near the door – if you can see two fins, the smaller will be the old ATG modem, and the larger will be the ATG-4. In addition, two directional antennae and a second modem will provide another clever bonus – by checking for signal in several directions, the plane will choose the strongest one to use, while the other keeps searching for the next best signal.

[Photo Credits: Dan Morgridge]

How To Fly If You’re A ‘Customer Of Size’

by Allison Kade on

Given the ever increasing, uh, size of air passengers (not least American air travelers), airlines are cracking down on passengers who may just rather roll up their armrests and encroach a little on the space of other passengers next to them.

The ongoing debate has been around whether larger passengers are, and should be, required to buy extra seats for themselves, and the jury is coming back with a definitive “yes.” Yahoo! News rounds up policies from major airlines on “passengers of size,” whether there are special provisions, if fees are required, and, basically, what the deal is.

After going through the options, we can weigh in on the best and worst.

The winners? Customers of some size may want to opt for JetBlue, which has slightly larger seats than most other airlines. Usually airlines provide about 17 inches between armrests, but JetBlue provides 17.8 inches.

If you’re a customer of the next size up, your best bet may, surprisingly, be Spirit. Although Spirit is known for nickel-and-diming its customers with loads of different fees, paying extra for a Big Front Seat may actually be worth your while, rather than buying a whole extra seat like you’d have to on another airline. In addition to offering 6 extra inches of legroom, Spirit’s Big Front Seats are 18.5 inches wide.

If you’re a customer of a larger size than that, your best bet may be Delta, which doesn’t require you to buy an extra seat. Delta will simply give you an extra seat next to you … if one is available. Obviously, the downside is if you’re in a rush and there are no spare seats on the plane. They’ll put you on another plane with extra room, but you may have to wait. In that case, it’s your choice to buy an extra seat for yourself in advance.

The loser? United. If you fly on United, you have to prove the armrests go down and stay all the way down – even if you’re seated next to family. While I totally understand (and agree) that it’s inappropriate for strangers to intrude on other passengers’ spaces, other airlines make an exception if you sit next to family members who don’t mind. No such luck on United. You can purchase your extra United seat in advance, and if you don’t, you may be charged additional walk-up fees later.

[Image credit: Flickr user sbamueller]