Milenomics² [No Annual Fee Edition] Episode 71: Ranking Bank Points for Domestic Airfare

Milenomics ² Podcast - No Annual Fee Edition

0:55 Ranking Bank Points for Domestic Airfare

• We’re talking about deeply discounted airfare, not FREE airfare.
• Every one of these programs has a cash out path–that’s great

1:45 Overview: Highs and Lows of each Program

1:59 Chase UR

• Talked about the most online, but not as valuable as Amex to us
• Much more straightforward than Amex
• 1 Cent per Ultimate Reward point earned (easy cash out on all card)
• 5x earning on Office Supply has been around for a long time.
• Earning at high rates, transferring to a CSR/CSP

3:00 Earning Chase UR

• Easy to use Domestic Partners in United and Southwest
• Travel Portal booking is not ideal but does have uplift
• Earning with high multipliers and sign up bonuses works well
• 5/24 limits the number of cards you can get
• Can co-mingle points

6:30 Southwest (W/ Chase UR)

• Points have become less useful as Ticketless Travel Funds (TTF) have become permanent
• Less transfers from UR->Southwest because TTF are so plentiful
• If transferring , the best way to earn is still NOT on the Southwest credit cards.

7:43 Booking with the Chase Travel Portal:

• Price inflation is real (American, others) Be sure to check google flights
• Can see inflated prices on flights, issues when canceling
• 1.25 cents per point / 1.5 cents per point (20% - 33% discount on travel)
• Sometimes just taking cash back at 1 cent per point is the way to pay for travel
• These points are not ‘free’

10:53 Amex MR Overview

• Amex is so generous that they have changed subscribers’ lives
• THE most generous bank with respect to SUB, earning bonuses and referrals
• The default cash back amount for a MR is 0.6 Cents ($.006) per MR with a few exceptions
• Difficult to get rid of these points.

12:41 Booking Travel with Amex MR

• With such easy earning there isn’t a fast enough release valve sometimes
• Their travel portal is horrible, but is mandatory for the 35% rebate
• Insider fares are lower fares than anywhere else.
• Extremely high annual fee cards needed to release points at high value
• To get good redemption rates with points you have to graduate to high annual fee cards
• Either churn the card or pay the high annual fee (carrying costs) to get good value
• Delta transfers are a great option – 1.1 cents in value per point, transfer 1:1
• Holding a Delta card gives a 15% discount as well, works out to around 1.25 cents per point.

16:26 Earning Membership Rewards

• “They’ve gone crazy with the Sign up Bonuses”
• Easier to earn at a moderate level than Chase (or any other bank)
• Many high annual Fee cards, which come with many coupons/credits
• Nonstarter for someone just starting out.

18:55 Difficulties transacting with AMEX

• Need High annual Fee Business Platinum for 35% rebate (approx 1.5 cents per point)
• Need High Annaul Fee Morgan stanley (1cpp) or Schwab (1.1 cpp) to cash out MR.
• Cannot co-mingle points across spouses, which means you need 2 of each of these cards!
• 35% rebate only on airline of choice or business/first fares.
• Extremely tricky to jump through hoops with Amex.

26:30 Bank of America Premium Rewards

• Both of us have had positive experiences with these points
• Earning on the Premium Rewards Elite card ($550 annual fee)
• Cannot co-mingle with other point earning cards
• No Airline transfer partners.
• Can pool with anyone easily

27:31 Booking Airfare With Premium Rewards

• Good Value, affordable flights work well with these points
• “Earning is not nearly as easy as Chase/Amex”
• Card is churnable
• Incidentals can help remove the sting of $550 annual Fee
• 1 cent per point easy cash out
• 20% rebate on airfare, which works out to 1.25 cents per point

29:03 Unique opportunity: 20% discount

• There is a Travel portal and you can use it for the uplift
• BUT you also can find any flight, any airline and call in getting credited for the flight
• And the BofA phone reps are GREAT.
• If there’s a higher price in their portal, or the airline doesn’t show they will let you book it directly and credit you back and rebate you 20%.
• Industry Leading. All other banks should follow this lead
• Great because you can work with the airline directly

33:35 Citi ThankYou Points

• They’ve done a lot to limit the uplift on their points
• Premier use to get 1.25 CPP on travel
• Prestige is dead.
• Why would anyone use the Citi travel portal?
• Cash out path is so simple, 1 cent per point cash out on cards is easy.

34:31 Citi Travel portal

• No Uplift, or maybe negative uplift
• Now booking.com as the engine
• Pricing does not align from citi travel portal to booking.com
• Inflation causes erosion of value
• No upside on Airfare.

35:36 Citi Portfolio issues

• Strata Premier is their highest annual fee TYP card
• Complex pooling of points
• Double Cash is a great ‘all around’ card
• Thank You points as a brand

38:07 Mention: Citi Transfer Partners

• Leading Hotels of the World
• Wyndham (not as good as earning direct)
• EVA, Turkish, other random programs
• Lacks a big name domestic transfer partner, AA Transfer return is needed

40:12 Wells Fargo

• Think Fast: What are these points called? A: Wells Fargo Rewards
• Autograph Journey Card
• Visa Signature Card unlocks 1.5 cents per point on Autograph points.
• Straightforward earning in some bonus categories
• Travel portal can be inflated
• Domestic Airfare for 35% off with points earned at a high multiple.

41:30 Honorable Mention:

Capital One

• Quirky, nice SUB in some case
• Have done a great job of marketing their points as easier to use.
• That seems like an antiquated idea that people do really believe is true
• But now in order to compete Capital One has added transfer partners
• This all puts them on par with most other issuers

44:21 Rank by ease of earning and using

• You’ll just have to listen to find out!

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