Wednesday, June 13, 2012

I want to get to Greece, and I want to get there for free…



Ok. First, let’s discuss what “free” means. It can mean something different for everyone. Couponers for example post their “free” deals, and it often includes 9 of the same coupon (purchased from 9 different papers) and an out of pocket expense (which yields cash back for a return visit to the store). Was it free? Not exactly. Was it inexpensive? Sure. And the next tube of toothpaste bought at that store WILL be free.

Let’s talk about free travel. Does it exist? Not exactly. Can it be inexpensive? By all means! First, let’s explain some methods people use to snag “free” flights.

Some people use the method of overbooked flights to try and ensure a bump where the airline will offer up free travel vouchers. This method means you need to pay for a flight. You can get bumped on an award flight as well, but the point is – you have some sort of out of pocket cost to start with (dollars or miles) Then you do the wash rinse repeat action with your travel vouchers, meaning that the travel vouchers are used to book another fare on an overbooked flight which you plan to get bumped from. This method is not fool-proof, and it’s hard to travel this way with companions. You also have to know how to assess which flights will be overbooked. There are some tools such as this one. But you also will need to know how to evaluate the information provided. (More on that at a later time)

Another way to score a “free” flight is with companion fares. These often require the purchase of full -fare ticket. Full- fare means non-discounted…which is not the way most people purchase their fares. Companion fares can be had with certain airlines credit cards, which come with a fee, so take a good look at the rules of the companion ticket rules before you decide if this route is to your benefit. 

One airline to note for their companion fare is Alaska Airlines. It’s a $99 companion fare that is good on all published fares. The companion gets a seat in that fare class AND they earn miles for their flight. The best value is in booking a first class ticket when available – though this may or may not be of benefit to you.

One of the more reliable ways to get “free” airfare is to use frequent flier miles. Typically most individuals think of frequent flier programs as hopeless. The amount of flights (and money paid for such flights) to get just one domestic ticket seems unattainable - or perhaps not worth the hassle, as many people fly only once a year and not always on the same airline. But there are ways to boost mileage without flying. Credit card offers can give bonuses of 10’s of thousands of miles. Shopping online thru portals will also yield miles, and some programs have mileage earning promos throughout the year on flights, miles bought, transfers, etc.

So, what is “free” travel? For me, free travel is travel I accomplish that I would not have been able to otherwise. Scenario: A credit card bonus yields enough points to fly 2 of us to Orlando, making up the difference that we had lacking in our vacation fund. 69 dollars for the credit card annual fee – 10 dollars per ticket in taxes and fees – total cost of “free” travel =  $45 for a round-trip flight. Not free, but inexpensive enough to get our family out the door and on an adventure. (I will talk more on the value and maximization of miles at a later time)

Now, how do we get to Greece for free? As we’ve learned, there is no completely free way to do this. But, we can try to do it inexpensively. In this particular scenario, it’s tricky because there is no accrued mileage, and the planned departure is about 3 ½ months away. After analyzing all the credit card offers and reward redemption's for all the mileage plans, I determined that the best option was to try for the Chase Sapphire or Chase Ink card. These cards offer Ultimate Rewards Points, and can be transferred between accounts quickly. These points can be used in a variety of ways, but in this scenario, they would be used towards the purchase of a ticket to Athens. With 2 cards and all the points transferred to one account, the cost of a round-trip to Athens should be decreased from 1800 to 600 dollars as the points can be used as cash towards the purchase of travel. (Just a note – this is not the best value for these points – but free travel isn’t always about the best value, it’s about getting where you want to go for less $$)

Without a current mileage plan, and very limited time to accrue the miles/points, this was the best route. But what if we aren’t approved the cards instantly? (This happens, but you may call for credit reconsideration which often results in approval – but this can take some time, especially if you wait for your letter of denial) And, what if it really takes a full 8 weeks to receive the points after required spending? (Always read your fine print before you apply for credit cards – they usually say points will post 6-8 weeks after fulfilling the requirements – in this case it was 3,000 dollars in purchases) This could potentially put the points we need in our account just weeks before departure.

In the end, there just wasn’t enough time to prep a mileage account with the miles/points needed. The miles and points game is not something that happens overnight, accrual happens over time, and travel sometimes needs to be planned far in advance to get the flights you desire. There was potential in this situation to be able to decrease the amount out of pocket, but it would add stress as one would need to play the waiting game until the points posted – and this had potential to fail in yielding savings from the current fare. Better in my opinion to seek the best airfare with the best itinerary, and start accrual of miles/points for the next trip to be “free”.

So, up next I'll be talking about how to search for the best airfare.

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