The Extra Mile

Miles, Miles, Miles

Earn frequent flyer miles for... well, just about anything

September 1, 2005 - From mortgages to meals, from flowers to phone service, from designer jeans to chocolate donuts, if a product or service can be bought in the marketplace, there's probably a way to earn frequent flyer miles for the purchase.

That wasn't always the case.

The industry-wide shift from frequent-flyer programs to frequent-buyer programs is epitomized by the evolution of American Airlines' AAdvantage program.

Launched in 1981 to recognize and reward the airline's best customers, AAdvantage soon expanded to include a handful of hotel and car-rental companies, allowing program members to earn miles for all the major components of a typical trip. In 1987, American partnered with Citibank to issue a credit card which rewarded users with one frequent flyer mile for every $1 charged on the card. And having moved beyond the realm of travel with miles-for-charges, it wasn't long before American began adding phone service and other mainstream consumer products to the list of mileage-earning purchases.

Today, members of the AAdvantage program can earn miles at more than 1,200 companies, the great majority of which are not travel-related. While American's program boasts the world's largest partner network, other mainline carriers have developed extensive networks of non-travel partners as well.

The change has benefited both frequent and infrequent travelers. With the expanded earning opportunities, road warriors can add considerable extra miles to those earned for flying and hotel stays. And occasional travelers can earn free trips without taking a single paid flight.

Want miles with that?

Adding substantially to the airlines' networks of mileage partners: online mileage malls.

Now a regular feature of all the large airlines' programs, mileage malls are groups of online merchants, all of which award miles in a particular airline's program. Since the merchants' prices are the same whether miles are earned or not, it's effectively free to bundle miles with purchases.

Continental's ShopOnePass mall, for example, allows OnePass members to earn miles at more than 30 online retailers, including Barnes & Noble, Best Buy, Chef's, Circuit City, drugstore.com, Gap, Macy's, Sears, Staples and Target. In most cases, the earning rate ranges from one to five miles per $1 spent.

In order to earn miles, shopping must begin at the airline's portal to insure that the shopper's frequent flyer account number is tracked and miles are properly credited. To visit an airline's mall portal, look for a link in the earning section of the frequent flyer program area of that carrier's website.

Miles are on the menu

Every bit as pervasive as mileage malls, and potentially more lucrative, is the miles-for-dining program operated by Rewards Network (formerly iDine) on behalf of ten of the larger airlines, including American, Delta, and United. By charging meals to a registered credit card, diners can earn up to 10 miles per $1 spent, including tax and tip, at more than 10,000 participating restaurants.

As of July 1, the program was modified to reward participants according to their level of activity.

So members who eat 12 or more times at participating restaurants during a calendar year earn five miles per $1 spent, plus an additional five miles per $1 through June 30, 2006. But those who participate less frequently earn between one and three miles per $1.

Credit card miles

All major airline and hotel programs feature credit cards which earn miles directly in their programs. And increasingly, the programs of smaller airlines do as well. JetBlue, for example, last month began offering members of its TrueBlue program a credit card issued by American Express. The opportunity to earn credits for charges is a quantum leap forward for TrueBlue members, who previously were awarded credits only for actually flying on JetBlue.

While they have been fixtures on the travel rewards scene for many years, competition among program-affiliated cards remains fierce, spurring continual escalation of card-related benefits and promotional offers.

United's new Mileage Plus Platinum Visa card aims to entice prospective cardholders with a sign-up bonus of 15,000 miles, free annual companion ticket, an upgrade certificate, and the ability to earn up to 15,000 miles per year which count toward elite status.

Hilton recently relaunched its HHonors Platinum card -- which already included a 10,000-point bonus for new users, automatic Silver elite status, and no annual fee -- to include up to 10,000 more bonus points for Hilton stays, bonus points for bookings made online, and Gold elite status after $20,000 in annual charges.

In May, Delta introduced a second card linked to its SkyMiles program. In contrast to the original SkyMiles card, which awards miles redeemable for free flights, the new SkyPoints card rewards users with points redeemable for discounts on Delta tickets. Three thousand points may be redeemed for a 10 percent discount off the first $500 of a ticket's price; 7,500 points get a 25 percent discount; 15,000 points equals a 50 percent discount; and 20,000 points redeem for a 75 percent discount.