Redeem Frequent Flyer Miles Easier

Do you have thousands of unused frequent flyer miles, and don't know what to do with them? Now might be the best time to cash them in.

Travel expert Peter Greenberg appeared on "The Early Show" Monday with some good news for people trying to redeeming those miles.

For the first time in recent memory, he said redeeming miles has never been easier.

"The good news is you can earn miles for everything short of dying, right?" he said. "The problem is you die trying to redeem them."

But why is it so difficult?

Airlines make it difficult, he explained, because no airline ever wants to give away a seat for free if that free seat will displace a paying customer. He added that's why airlines have always kept redemption levels so low.

So why has this recently changed?

Most people don't know this, Greenberg said, but airline frequent flyer programs have become the most profitable division of the airlines -- in some cases worth more than the airlines themselves. After all, he pointed out, what other business allows you to print the currency and at the same time, not only control the redemption, but the value of that currency?

As a result, he said, more and more of us discover -- all too painfully -- that we can't get from here to there very easily if we want to use our hard earned miles. Or, if we do want to get from here to there, it's going to cost us more miles, and in some cases, miles and money.

However, a bad economy and a desperate time for the airlines have combined -- for a very limited time -- to create a window of opportunity for us to finally be able to redeem those miles for flights when -- and where -- we want to go.

Over the past year, Greenberg explained, the airlines, confronted with high fuel prices and a steep drop in passengers, did the only thing they could. They cut capacity. Fewer planes, fewer flights, and yet, as much as the airlines cut back, the number of passengers dropped even more.

Greenberg said the airlines are hoping that as they cut capacity, the number of available seats will decline, and if the number of passengers stabilizes, then at some point the drop in capacity would intersect with a rise in relative demand -- and at that point, the law of supply and demand would take over and airfares would then rise. And of course, at the same time, Greenberg noted, availability of frequent flyer awards would evaporate.

But that intersection hasn't happened yet.

Since airlines have to carry unredeemed frequent flyer miles as a liability on their books, he said, they are now -- for the first time in recent memory -- starting to make those mileage tickets available. Some are even having mileage "sales." Not just for summer travel, but fall and holiday travel.

For the first time in recent memory, travelers can not only earn miles, he said, but they can also burn them.

But how long will the window of opportunity stay open?

Greenberg said the window will stay open as long as seats remain available. But as soon as the number of passengers stabilizes, and there are not as many available seats, the window, he said, will slam closed.

Greenberg recommended booking flights soon, predicting in three weeks the opportunity will end.

Some of the added incentives from major carriers include:

United MileagePlus
As of July 27, Greenberg said, United announced that it would eliminate the last-minute ticketing fee for frequent-flier tickets. The original fee was $100 to book awards tickets within six days, and $75 to book between seven and 20 days.

United, he said, had one of the lowest redemption levels, based on a study by IdeaWorks that answered the question, "Which airlines offer the most online availability for transatlantic reward travel?" United had an 18 percent redemption rate, compared to Continental (36 percent); Delta Northwest (44 percent); American (58 percent).

American AAdvantage
American introduced its new Flex awards for AAdvantage members, a program that allows travelers to purchase one-way tickets using mileage, at exactly half of the round-trip rate. With other airlines, he said, you don't get the full value of that half-measure.

With this, Greenberg said, travelers can combine their mileage choices. For example, if your outbound flight is more flexible than your return, you can book one direction with a MileSAAver Peak award-which is economical but subject to availability-and the return with an AAnytime reward, which allows you travel anytime, with no concern about blackout dates or limited award seats.

Delta Northwest SkyMiles
The new SkyMiles Award travel structure offers a three-tiered structure to allow customers to combine dates and cabin seating at various mileage levels. Tiers start at 25,000, 40,000 and 60,000 miles round-trip, instead of the old 25,000 and 50,000 mile model. (But honestly, Greenberg said, good luck finding tickets at the lowest tier!).

The biggest news of this new program, Greenberg said, is the "rollover plan." Any miles you fly over the minimum 25,000 can be rolled over into the following year to reach the next level of elite status. So if you flew 40,000 miles in 2010, you're above and beyond Silver status, but not quite at Gold -- so those extra miles can be applied in 2011 to help you reach the Gold level.

A current promotion is offering SkyMiles and WorldPerks members miles for getting LASIK. Earn 5,000 miles for a free Lasik eye exam, and 20,000 for the procedure. (Not valid in New York or Virginia.)

As of July 1 through December 31, Delta SkyMiles AmEx members can get double miles.

JetBlue TrueBlue
JetBlue announced on August 3 that its revamped TrueBlue plan will launch Sept. 28, 2009.

JetBlue will make every seat on every flight available for TrueBlue redemption, with NO blackout dates. The points required will vary by flight, day of the week, season and booking window. One-way flights start at 5,000 points, and will increase in increments of 100 based on the varying factors.

US Airways Dividend Miles
Award flights to Europe generally costs 50,000 to 60,000 miles in coach, but between January 15-February 28, 2010 (slow season), you can redeem a coach ticket to Europe for 35,000 miles coach, 60,000 miles business.

Through August 15, US Airways is offering a 100 percent bonus on Dividend Miles purchased online.
That means the cost of one mile is 1.25 cents, as opposed to 2.5 cents. You can purchase 25,000 miles for $342.50, but again, good luck getting a ticket for that amount of miles. However, the pricier the ticket, (i.e. long-haul flights), the more value you can get out of these miles.

Virgin Flying Club
Virgin's 25th Anniversary Redemption sale launched at the beginning of the year and expires August 22, 2009. Flying Club Members receive a 20 percent saving on the number of miles needed to book Economy Redemption Seats on key routes worldwide.

American Express
Double membership rewards on gas and grocery purchases, thru March 15, 2010. Gas and grocery per month up to $1,000 get double points.

But how long will these programs be available?

Greenberg said there will always be offers and bonus mileage deals out there because it doesn't really cost the airlines anything to offer them. Earning bonus miles is easy, but in general, redeeming them is tough.

Greenberg recommended using mileage partners. Mileage partners, he explained, accept miles from each other. If you earn miles with United, for example, he said those miles are good with any of the Star Alliance airlines including Air Canada, Lufthansa, US Airways, etc.

So if you're looking to fly from New York to Los Angeles, and there are no flights available on United, he suggested checking out any of their partner airlines and chances are you'll be able to find a seat.

Greenberg added alternate airports may be a few minutes out of the way, but could end up saving you big in the long run. Many of the online sites, he said, even allow you to search multiple and nearby airports.

Another way you could try to redeem those miles is to get connecting flights in other cities that have more seats than nonstop flights.

"As weird as this sounds," he told CBS News, "if you want to go from Los Angeles to Honolulu, you might actually get seats going from Los Angeles to Las Vegas and then to Honolulu, instead of trying to fly Los Angeles to Honolulu nonstop."

Greenberg said booking in advance is always a good idea. Airlines post fares 330 days in advance, he said, so it's a good move to book as far out as possible to get a better chance of finding available seats.