|The Wait For An Award Can Seem Interminable|
Monday, March 3, 2014
Australia, Credit Cards, & Frequent Flyer Miles
Americans have it pretty good in the miles game, even with recent devaluations. There is ample competition and a myriad of ways to earn miles. The best bang for the buck is through credit card sign up bonuses. Many miles cards give generous bonuses for a little spending in the first three months; some even waive the annual fee for the first year. Canadians have it rough; I looked up options for a friend and cards came with low sign up bonuses and high fees. It wasn't really worth while because a basic cash back card would deliver better value.
Australians have it even worse because many merchants charge a fee on credit card transactions, so each swipe is a losing proposition unless the card earns stellar rewards. Add that to long distances and limited competition and the points game is not the best value proposition. CreditCardCompare.com.au put together an interesting info-graphic on the costs of business class flights out of Australia. Round trip to London costs between 102,000 miles and 281,608 That is a ridiculous spread and understanding the cheapest way to reach an award goal, say round trip in business class, can greatly decrease the costs of the award. The research did not look at award availability, partner possibilities, or difference in business class quality. It is important though to do some research before earning miles to optimize award possibilities and value for miles.