RANDY PETERSEN

Rewarding Travel
Randy Petersen answers reader questions about how to maximize travel-related loyalty programs.
by Randy Petersen – Executive Travel – 09/01/05

Dear Randy,

I have long been a Northwest WorldPerks traveler and found the program to be solid for travel across the Americas. However, I recently started flying the globe, and I know that both Delta and United will give international upgrade tickets to their premium flyers. I was wondering what you thought is the best for the worldwide traveler, both from an international upgrade perspective and an overall program.

From my perspective, United is the better of the two choices for the worldwide traveler, solely based on my belief that the Star Alliance is a better global alliance than is SkyTeam. Frankly, they can both cover the globe with ease, but there's something about the quality of the partners in Star that eclipses those of SkyTeam. Delta, in particular, relies much too heavily on Air France for the SkyTeam partnership, and while Air France is a huge airline, its uncanny ability to be disrupted by striking employees leaves much to be desired.

However, that said, my personal advice is to look closely at Delta because of the alliances they have formed with Northwest, Continental and Alaska Airlines. You may find that you can still leverage the solid travel of Northwest here in the Americas with the addition of Delta and other SkyTeam partners, including Continental, internationally. If you'll be heading to major cities, then you can remain on these airlines and never be disappointed. However, if you are heading into Eastern Europe or the provinces of China, you will likely be disappointed with the service of SkyTeam partners.

As far as benefits, Delta is actually hard to beat. They provide free lounge membership for their Platinum Medallion members, and that's not something to ignore. Also, they are competitive with international upgrades versus United. If you fly business class internationally, you won't be disappointed by partner Continental's BusinessFirst (better than Delta's BusinessElite), and you probably already know something of the business-class product of Northwest.

Dear Randy,

I am getting ready to make a major purchase (approx. $15K) and would like to use a credit card to take advantage of rewards credit. Do you know a credit card reward program that would give me the most "bang for my buck" in this situation? I currently use a Hilton HHonors American Express for my purchases.

If you are purchasing something from a home improvement store, such as The Home Depot or Lowe's, there's really every reason to use an American Express credit card from Delta SkyMiles, because you earn double miles for these types of purchases.

But let's say your purchase is more utilitarian; which card then? It depends on your additional purchasing power. Almost all the cards will give you a signup bonus (much like the Hilton American Express card you have) and it doesn't matter if your first purchase is $15K or $1.50. Fifteen thousand will get you a free weekend night with most hotel programs, if you are looking for that type of reward for a single purchase.

But if miles are your game, you might consider getting the Starwood American Express card, which is free for your first year, and take advantage of the $15K purchase. Then, with their various signup bonuses, you'll be at the magic 20,000-point level (one point per dollar spent) from which you can convert your 20,000 points spent into 25,000 frequent flyer miles—a free ticket with most programs, with just that single $15K purchase. This will work with Frontier Airlines EarlyReturns program as well, since its domestic award is only 15,000 miles.

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