The Best Ways To Use Your Miles

Miles are great for three things: status, upgrades and (sometimes) budget airfare.

But for the majority of Americans, they remain a fuzzy concept. Although two-thirds of Americans are part of frequent flyer programs, most don’t pay attention to their point accrual, with 25% of folks letting their miles expire before using them.

Started in 1982 by American Airlines, loyalty or frequent flyer programs are a big boon to airlines, raking in billions in revenue. However, in the last few years, many airlines have devalued their programs, requiring more miles than ever for the same routes. And since 2011, these shifts have hurt regular fliers more than folks who fly the most or those who spend big on miles rewards credit cards.

So what does all this mean for the average consumer? You have to start taking advantage of these frequent flyer programs. STAT.

How to Earn Miles

The most important thing to do to accrue miles is to sign up for the loyalty programs of all the airlines you fly, and then pick a select few to focus on. Usually, people either don’t sign up in the first place or they spread their points across too many programs to actually gain anything of value.

Pick a program that offers routes where you fly to and from, and also that fit your style. Are you a business traveler or mostly flying for vacations? Do you jet frequently between Chicago and New York or are you a long haul voyager between the West Coast and Asia? Depending on your answers, you’ll figure out which frequent flyer program is best for you.

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If you’re planning on using a few programs, it can help to think about what each one will actually help you achieve. Some travel hackers will maintain multiple loyalty programs in order to snag first-class long haul flights on one airline while using others to gain perks while they fly. Here’s how different programs break down in terms of points-per-dollar earned, best overall loyalty programs and best budget flights.

Use Your Miles for First-Class Flights

Most miles convert to one to two cents. So if the main way you are accruing them is through actually flying, it will take you a long time to score a free ticket.

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Many who play the mile game use travel rewards cards to garner big sign-up bonuses (anywhere from 30,000 to 80,000). Credit cards can also generate double, triple and sometimes even quadruple points on expenditure categories like restaurants or groceries.

It is well-known within the travel hacking community that in terms of a point-to-dollar conversion, you get the best bang for your buck if you use your points to book business and first-class travel. Although it seems like it would take a gigantic amount of points, it would cost more in dollars. Most travel experts and road warriors pretty much use their points only for upgrades or long haul flights.

One of the best mile reward programs is the one offered by Alaska Airlines, thanks to its quick point accrual and ability to transfer between 17 partner airlines including Emirates (the airline whose first class has a shower in the sky). American Airlines also offers a loyalty program with many long-haul partners, operating flights to Asia, Australia, the Middle East and Europe.

Use Your Miles for Status and Perks

Although we are all for using miles to get places, there’s another school of thought when it comes to frequent flyer programs. For some people, usually consultants or other road warriors who spend a good 30% of their time in the air, it’s important to maintain a “bank” of miles with a certain airline so that then you receive specific perks like upgrades, free bag check or early boarding.

In general, Delta’s rewards program is thought to be the best in terms of perks offered to loyal flyers. The airline offers one of the worst points-to-dollar conversions, and caught a lot of flak for devaluing its points a few years ago. But they take care of their frequent flyers. If you like the VIP status, this could be a good airline program for you.

United Airlines also offers great perks for loyal members.

Use Your Miles for Budget Flights

In general, travel hackers won’t advise you to use your miles to book budget flights. But if you have accrued miles with a budget airline like JetBlue, converting your points into a flight is actually the best use of them.

The airline’s points never expire, which means that you can accrue them over a long time. Their point-to-dollar conversion is fairly high as well. However, they do not serve every city and only offer one level of elite status.

Southwest Airlines is another good loyalty program for budget fliers.