Buy AA Miles for 2.01cpm

From now until December 31st, AA is offering bonus miles on mile purchases.  Additionally, the normal 40k/year cap has been lifted to 60k miles.  Miles cost $29.5625/1k (inclusive of taxes) for purchases of 6k miles or more, plus a $35 processing fee on the entire transaction.

The bonus system is tiered.

Purchase Bonus
5-9k 1.5k
10-14k 3k
15-19k 4.5k
20-29k 10k
30-39k 15k
40-49k 20k
50-59k 25k
60k 30k

As to best amortize the $35 transaction fee, purchasing 60k miles for $1808.75 yields 90k miles, yielding a cost of 2.01cpm.

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I Thought This Only Happened on United…

So I just went to check-in for my flight on American Airlines tomorrow.  While I’ve had mystery errors during check-in with United (particularly since 3/3), this is a first for AA:

The EXP desk says the reservation is fine (unlike those United experiences), so tomorrow probably won’t be nearly the adventure it could be.

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25% Avios Sale for US Originating Itineraries

One Mile at a Time and View from the Wing both note that the 25% off sale that I discussed yesterday is applicable to itineraries originating the United States, not just London.  As a US-originating roundtrip is far simpler than the alternatives, it’s worth examining whether this sale has any value for flights to the UK.

For comparison, a simple AA-ticketed and operated JFK-LHR flight runs 50k miles (in business class) and $2.50.  A quick glance at upcoming award availability turned up a BA-operated flight for comparison.  Thanks to BA fuel surcharges, the award has fuel surcharges baked into its cost of $435.20.

For comparison, the same award is bookable from British Airways and falls under the 25% off sale:

Based on yesterday’s analysis, booking now saves me about $75 in terms of Avios points at my cost of acquisition.  Even under optimistic assumptions about the cost of acquiring AAdvantage miles by credit card spending, there’s a gap of $245 ($225 versus $470) in acquisition costs.

This example shows the rub of the situation:  British Airways imposes asymmetric fuel surcharges for flights on the same route.  For the JFK-LHR flight, BA’s taxes and “fees” breakdown as follows:

In comparison, the total for LHR-JFK is $110.93 higher (due to UK Air Passenger Duty), but the fuel surcharge is $160.74 lower (despite eastbound flights being shorter and presumably having less fuel burn).

For eastbound flights, Avios, even under this promotion, is not a bargain if there are comparable AA-operated itineraries available.  For westbound flights, Avios is relatively competitive when considering the cost of acquisition, especially under this sale.

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25% Point Discount on Avios ex-London

View from the Wing that Avios is offering a 6 day sale for 25% off points needed for award bookings originating from London.  The upcoming 30% transfer bonus from Membership Rewards starting December 3rd doesn’t quite coincide with the promotion.

The fuel surcharges for awards haven’t been reduced, so it’s important to determine whether this promotion makes sense (from the consumer-side).  As I’m US-based, my inclination is to book a one-way ex-London (to satisfy the promotion) and book an award with AA/UA to Europe.  With more careful planning, a full-fledged roundtrip booked under the promotion could be nested within a roundtrip award (or revenue trip) booked elsewhere.

As a justification for why one might pay for British Airways’ fuel surcharges on an award, there’s currently no saver business or first class availability on AA metal across the Atlantic at least without AA.com getting more creative than it currently knows how to be.  The taxes and fees of a standard award for LHR-JFK one-way on AA metal currently run $282.80 in a premium cabin.

British Airways metal offers far more plentiful premium cabin space.  Picking a random date to book a business class award on LHR-JFK, I turned up two different prices, one with AA and one with BA:

With a 20k point price disparity, the BA-booked award is a clear winner between the two.  The $269.10 in “fees” above and beyond a standard AA-ticketed and operated award is less than ideal, but the point disparity can largely justify it.  I can routinely earn Avios points at 0.75cpp (paying a small processing fee to charge my rent to my BA Visa) but I currently earn AA miles at 1.54cpm (by flying; if I had the AAdvantage cards, I could similarly run my rent through them to achieve 0.94cpm).  This brings the implicit cost of the miles for these awards to $225 and $770 (or $470 with an AAdvantage card), covering the difference in “fees.”

A LHR-SFO one-way booking in business class tells a similar story.

The BA-operated fuel surcharge across both carriers widens to about $301.  The gap in the implicit costs between AA-ticketed and operated and BA-ticketed and operated narrows to  an optimistic $188.75 to a realistic $488.75 ($281.25 versus $770/$470).

As I lack status with British Airways, the redeposit fee of 40 USD deters me from speculatively booking to my heart’s content (as I might with AA/UA awards), but this promotion leaves in inclined to firm up my plans more quickly than I would otherwise.

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Another Enhancement to Global Entry

US CBP recently entered into a partnership with the Australian Customs and Border Protection Service to permit Global Entry members (as well as NEXUS/Sentri members with GE) to use Australia’s electronic passport gates.

While I’m obviously 16 years of age, my 7 year old passport is showing its age… by lacking the RFID chip necessary to use the electronic gates.

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Off-Peak United Awards to Europe

United is offering 20% off the redemption cost of coach bookings made between now and November 15th to Europe for travel dates between January 15th, 2013 and March 13, 2013.  This brings the total for a US-Europe roundtrip to 48k miles from 60k miles.  The offer is restricted to United-operated flights and applicable to one-way tickets.

American’s off-peak period to Europe runs between October 15th and May 15th annually, bringing the total mileage cost down from 30k miles for a coach one-way to 20k miles.  Rather usefully, the off-peak price is applicable to British Airways-operated flights as well.  BA flights still carry the customary British Airways fuel surcharges, so an “award” with BA transatlantic segments could easily run as much as an outright revenue ticket.

US Airways offers its own off-peak awards for US Airways metal for itineraries between January 15th and February 28th.  In addition to their discount coach roundtrips for 35k miles, US Airways offers business class roundtrips for 60k miles.  While coach inventory seems plentiful, business class is a bit more disappointing:

 

 

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Sheraton La Jolla

The next leg of my business trip adventure involved a single night at the Sheraton La Jolla.

While property is visible from La Jolla Village Drive, its actual driveway is on a side street with minimal markings.

Like a few other Sheratons that I have stayed at, guest rooms were scattered among a few standalone buildings.

Most, but not quite all, of the doors to the right were “enhanced” rooms.  As an SPG Gold member, I received an “upgrade” to one of the rooms on the right with a view of the pool.

While my room was comfortable, I couldn’t help but shake that dated feel when contrasted with Westin.

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Westin Pasadena

In a rare business trip, I found myself spending 3 nights at the Westin Pasadena.

As I was checking in at 11AM, having made my way from the first flight in from New York, I did not have especially high expectations for my room.  The front desk found me a high floor room, 921.

At the door, I tried my keycard.  Nothing.  Figuring my swiping technique was somehow lacking, I tried a few more times.  Nothing.  To see if the lock was even powered, I swiped a Starbucks card.  Still nothing.

Thoroughly confused, I went back to the front desk.  The apologetic front desk clerk realized that I was actually supposed to be in room 912 and that the rate card was incorrectly marked for 921. My return to the 9th floor was far less eventful.

Lately, I’ve been noticing that I’ve been spoiled by the decor of Westins.  I’m perfectly willing to admit that it could just be an elaborate marketing gimmick (or success, for that matter), but the rooms at Sheratons lately have felt much moretired.

Before I find myself taking back everything I said about Westin, the white balance of my camera was off.

While I didn’t choose the hotel, Starwood’s current Better by the Night promotion, offering triple points on 3+ night stays, worked out nicely.  Ordinarily, I’m much more stay rather than night-driven, as I tend to make only brief stops in locations and to try to maximize stay-based bonuses (and progress towards elite status).

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Best Points Purchases

I’ve started a listing of the best options for purchasing points outright.  While these are only occasionally a good value, the option to buy points can often be useful in topping up  an account for a specific award redemption.

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Buy Club Carlson Points for $7 per 1.5k

Club Carlson is offering a 50% bonus on points purchases from now through November 10th, 2012.  As points are normally priced at $7 per 1k points, this brings the cost to $4.67 per 1k points.  Club Carlson imposes a 40k points per year purchase cap (or under this promotion, effectively 60k points).

Carlson’s top-tier properties normally run 50k points.  While there have been far cheaper ways of obtaining 50k points historically, purchasing points can be cheaper than paying the nightly room rate.  For one night in Paris, July 12th-13th room rates for the Radisson properties are hovering around $410+.  In comparison, buying 50k points would cost $233.33 under this promotion.

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