Expert: Stephen Tanenbaum - 9/20/2010

Question
QUESTION: I love your blog, I'm currently doing the British Airways VISA thanks to your advice!  Keep the tips coming!  You might want to check out Alaska Airlines Visa card:
https://wwwa.applyonlinenow.com/USCCapp/Ctl/entry?sc=UABG5D&mboxSession=1284673049711-730280

It says that 25K Points is enough to go to Alaska.  Lemme know what you think.

I'm writing to ask if you know if any good deals for a cheap/free flight to Asia.  I checked KoreanAir and Japan Airlines websites but didn't see anything.  Anywhere in Asia (Phillipines to Russia, anywhere!)  I'd like to try somewhere in the east.  Let me know, thanks!

-Jason

ANSWER: Hi Jason:

Thanks for the kind words. I checked the Alaska deal, very similar to others but it is for a signature card. I have received some good deals
like FREE Fandango movie tickets if one uses a signature card.

On the other hand, just as we were about to apply for it I checked the route map and noticed that our need, SFO to Ft. Lauderdale or Palm beach won't work. Unlike the major airlines ALASKA is more limited and if only flies to Miami and Orlando. So often destinations are a determining factor given the $75 yearly fee which is not waived the first year.

We are living in Florence, Italy for a month, seven weeks total in Italy and all still using Free flights, this time on British Airways.

For now its just a matter of accumulating miles for free flights. Sorry, but don't know of any direct deals to your destinations.

Have you applied for Business cards for like Ameerican Airlines? Two such cards could get you about 50,000 instant bonus miles.  And you likely know it does not matter that you do not currently have your own business. More on that if you need the info.

Steve T.



---------- FOLLOW-UP ----------

QUESTION: Thank you for your reply!  One other card I wanted to ask
your opinion on was the Discover Escape.
http://www.discovercard.com/escape/

Perhaps you could give me an idea of what sorts of things I
should look for before choosing a card?  So this way I can
figure it out myself, instead of emailing you every time I
find a new card.

I thank you kindly for all your valuable advice.
-Jason

Answer
Hi Jason:

Not all that easy to answer but I will give you some thoughts. You want to look for:

1. We like programs that give us real milies, like American Aadvantage and unlike say Capital One or your Discovery offer.

2. Good miles to usage ratio. Often Capital One etc. will require you use much higher amounts of their ‘points’ then equivilent miles on say American.

3. Your Discovery example: After I finally, found  the details I learned Discovery gives you CASH so you can buy tickets on any airline without restrictions. Sounds great BUT they give you $100 for 10,000 points which would equal 10,000 miles on like American or British Airways. For 20,000 American miles one can fly one way to Paris or most of western Europe.  Discovery will give you $200 for you to go out and buy the same ticket. Imagine trying to buy a ticket from LA to Paris for $200. It may be possible but is VERY unlikely.  You will likely find current prices about $400 each way or more.

4. At one point not long ago Capital One devalued its points so those who spent years accumulating points lost like 40% of their value. That has not happened with frequent flyer airline programs though they have on occasion increased miles needed to fly.

Our formula all these years has been to stick with deals issued by major airlines like American, British Airways, Hawaiian Air, United etc. We also use cards like Diners club (also amex) that let you transfer their points into our airline accounts for real miles. Every year for almost 10 years we’ve done a Diners club deal transferring our Diners points for a bonus of double and more recently 50% bonus. Ex. We call diners in August and transfer 20,000 points which become 30,000 american miles.

Hope this helps.

Steve