When to Trade Your Miles Regardless of the Cost
 

When to Trade Your Miles Regardless of the Cost
Frequent Flyer Q&A
by Tim Winship - March 3, 2009

http://www.smartertravel.com/travel-...0&u=SL4F6B4DC5

Dear Tim,

I read last summer's article about web-based rewards programs but
there was one conspicuously absent that is a little different and I'd
like to hear your feedback about it.

I recently joined Points.com and I was able to pull together several
but not nearly all the points programs I have joined. I was a little
disappointed at how few programs were actually represented but I
pressed on. When I began to try and exchange points for a retail gift
card from Macy's, I found that they were asking for 32K points for a
$25 gift card. That strikes me as a complete rip-off. Do you see any
redeeming value to their program????

Thanks in advance for your feedback!

Tom

Dear Tom,

As you rightly point out, the problem with Points.com transactions is
the dismal exchange rate. In the great majority of cases, you will get
much better value when cashing in miles for a free ticket than
exchanging them through Points.com.
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I have brought the issue to the attention of Points.com executives,
suggesting that they would do significantly more business if they
revised the exchange rates to be more favorable to consumers. They
took the point but advised me that the rates were dictated by the
companies whose miles and points are in play.

Whatever the source of the problem, it is a serious one that
fundamentally undermines the service's value.

There is, however, a place for Points.com exchanges in the mileage-
earner's tool kit: small quantities of miles residing in inactive
accounts—what I call orphan miles. Rather than allow those miles to
languish indefinitely, it can make sense to exchange them for a gift
card, for example, or for miles in a program in which you actively
participate. A half loaf is better than no loaf at all.