Executive Travel SkyGuide

ON BOARD WITH RANDY PETERSEN

USE OR LOSE MEMBERSHIP REWARDS POINTS?
March 2003
by Randy Petersen

Question:

Dear Randy,

I have a little over 20,000 Membership Rewards points accumulated on my Corporate American Express. My employer just announced they will be canceling these cards at the end of the month. I need to transfer those points quickly, and I would prefer to use them for future air travel. My domestic choices through Membership Rewards are Delta, Continental, US Airways and Southwest.

I have roughly 40,000 points currently in US Airways' Dividend Miles. I would like to transfer the Membership Rewards points to Dividend Miles to use for a future trip with my family, but I question the wisdom of such a choice due to US Airways' current bankruptcy. I think my other good choice might be to get an Award Ticket from Southwest, but then I will need to use it or lose it in the next 12 months. I do not know if I will be doing any personal air travel in the next 12 months.

Do you think it is still fairly safe to accumulate miles in US Airways, or should I even use the ones I have as soon as possible? Of the many choices I have, what would you recommend?

Thank you, Eric

Answer:

Dear Eric,

There's actually a better solution that will give you time to enjoy what you have earned as well as time to mull over and appreciate all the many opportunities you may have.

Here goes: At the time of cancellation of a Corporate American Express card, you will have 90 days to either get a personal American Express card (and the points you have with the corporate card will be transferred) or to use your points. I would not hesitate at all to suggest you acquire a personal card and have the points moved into your new "personal" account.

Why this advice? During the last year, Membership Rewards has begun a series of bonus redemption opportunities with various frequent flyer and hotel guest programs. These promotions allow you to transfer points into miles with up to a 20-25% bonus. For instance, let's say you were to want to transfer 20,000 points into your Continental OnePass account. Now through March 15th there is a 25% bonus for these transfers, which means rather than just getting 20,000 OnePass miles, you'll actually get 25,000 miles-good for one free ticket on Continental. But you may want to wait until there is a similar Delta or other airline promotion such as your favorite US Airways or Southwest.

As for US Airways, they have made acceptable progress toward their goals of emerging from bankruptcy, so I have no problem with adding miles to your Dividend Miles account at this time. The best advice I can offer you at this time is to not rush into redeeming your miles and points. Free travel should be there for enjoyment—not forced redemption.

Good Luck, Randy

You can contact Randy Petersen at randy@insideflyer.com.