Bloggers v. The Community In The Great Mileage War

by Grant Martin on

There’s a lively discussion going on among feisty members of the MilesBuzz! forum on Flyertalk about a blogger’s role in the mileage and airfare deal community.

At issue is a group of bloggers who have been scouring the forums at sites such as theirs, identifying the best deals and then publishing the information in their blogs. Built for a wider audience, the blogs bring enormous traffic, often leading to a change in terms or cancellation of the deals.

Think of it like a trampoline. If two or three people discover the trampoline and take a jump, everyone has a good time. But if the entire town is invited, the trampoline breaks.

As an example, a recent loophole discovered by members of the forum found that prepaid spending cards could be loaded for no fee with a credit card, meaning one could charge two thousand dollars to a prepaid card, earn reward points and then pay off everything with no fee. The result was a way to effectively earn points for free, something that any budget traveler would swoon for.

Once the blog community caught wind of the deal, however, the financial companies got wise and changed their terms. Members of Flyertalk were enraged.

Further inflaming the situation is the income that many of the bloggers are earning from their sites. A blogger can poach a deal from Flyertalk, several community members pointed out, earn thousands of hits to their site and then burden the reader with dozens of potentially profitable credit card ads. Each credit card application processed from a referral link could score the blogger up to $200. Need an example? Count the credit card ads here. With a popup blocker enabled, I still count 20. Another blogger meticulously shows that with credit card offers he can make about $4000/month in extra income.

On the other side of the coin, bloggers point out that they do a service to the masses by distilling complex info into a simple, easy to read format. But are they putting their pocket books in front of the community?

It’s a grey area. On one hand it seems that the credit card companies have so much influence over the bloggers that they’ll post anything that they think will drive traffic. But on the other hand, public data is public data, and if they want to do the work to build the articles then traffic should dictate success. Whether they can do it with class is up to each blogger respectively. My guess is that when the axe man (ie FTC) comes calling all dues will be paid.

[Flickr image: sfbaywalk]

Travel Bargains: Some Of The Best Go To Loyal Subscribers

by Chris Owen on

Presenting their service or merchandise as a “travel bargain,” airlines, hotels, cruise lines, makers of travel gear and more are looking to catch our attention with a fabulous offer. Sometimes these offers have little extra value, come with restrictions or are good only at a time when it is not convenient to buy. Still, there are some coming out this year that do offer good value and have few rules, prompting savvy consumers, who wait for the best deal, to buy.

TravelSmith online travel accessories had a “buy one, get one for 50% off” sale, one-day only, the day before Thanksgiving. Proving how important it is to subscribe to email updates from preferred providers, only subscribers to TravelSmith’s updates got the offer. Restrictions still applied, the offer was only valid on regular-priced items and to redeem, customers had to click through to the deal via that email.Now that holiday shopping season is officially here, look for more offers like these from other suppliers we can get preferred status with, just by adding an email address to their list.

Don’t want a lot of junk email? Set up a separate email account just for this sort of offer. That way, they can give your email address away all they want to and it all goes to the same place.



[Photo credit- Flickr user Mat Honan]

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]

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]

China Airshow To Feature Acrobatic Team

by Chris Owen on

Airshow China 2012 is scheduled to run from November 13 to 18 and will feature over 600 exhibitors from 39 countries. Promising to be bigger and better this year, the show hopes to become more recognized by the international aviation and aerospace community. To help make that happen, the show will feature a variety of airborne daredevil fliers.

Officially titled the China International Aviation & Aerospace Exhibition, Airshow China is the only international aerospace trade show in China that is endorsed by the Chinese government. That’s significant because China is looking for 5,400 new passenger aircraft between now to 2031. To get that many aircraft, China wants to make its own plane, the C919, which has attracted international aviation manufacturers to the show.

“We had to close for entries last month as we did not have any space for more,” said Yang Xiangang, vice general manager of Zhuhai Airshow in a South China Morning Post report.Airshow China, held in Zhuhai, features a display of aviation products, hosted trade talks, a technological exchange and a flying display of acrobatic teams from Europe.

This year, the Breitling Jet Team, Breitling Wingwalkers and Yves “Jetman” Rossy are scheduled to participate.

To get to China, they will fly through Eastern Europe, into Russia passing through Siberia, then on to Mongolia and down through China to reach their destination as we see in this video.




[Photo Credit: Flickr user doniphon]