Reap The Benefits Of Frequent Flyer Programs 

A frequent flyer program is a service offered by many airlines to reward customer loyalty. Accrued miles can be redeemed for free travel, other goods or services, or for increased benefits such as airport lounge access or priority bookings. 

The first frequent flyer program was launched in 1981 by American Airlines; to date, it is still the largest program. 

The primary method of acquiring credits is by air travel, but most programs now include the option of acquiring credits through the use of certain credit cards and lodging at choice hotels, or even renting a car from a specific agency. 

Some airlines in Europe, and Southwest Airlines in the United States, use a system of segments flown or a flat  number of points for flights flown regardless of miles. 

Redemptions also vary, airlines such as Southwest Airlines redeem strictly for additional free tickets. Others will allow redemptions for upgrades from coach to business or first class seats or additional air travel, or merchandise from their catalog or vendors. 

American Airlines passengers can accrue miles flying on American Airlines flights, but also on flights by their partners in the “one world” alliance. Members can redeem miles accumulated for tickets, upgrade service class, or obtain free or discounted car rentals, hotel stays, merchandise, or other products and services through American Airlines’ partners.  

The most active members, based on the amount and price of travel booked, are designated AAdvantage Gold, AAdvantage Platinum, and AAdvantage Executive Platinum elite members, with privileges such as separate check-in, priority upgrade and standby processing, or complimentary upgrades. 

Southwest Airlines offers a different type of point accrual system. Modeled like its European counterparts, its system is based on segments versus miles. Each one way trip earns you “one point.” After a set number of points you qualify for a redemption, or a round trip ticket to the areas served. Typically, the number for redemption has been sixteen points. In 2006, Southwest Airlines joined with ATA airlines and, now, travel on both airlines can count toward Southwest's frequent flyer points. Redemption can also be made on both airlines’ service area as well beginning in the third quarter of 2006. 

Although the programs vary from airline to airline and partnership to partnership, the consensus is that customer loyalty has its benefits. Whether you choose to fly on the airline that induced you to join their program or on a partner airline, stay at a partner hotel or even rent your car from a partner agency, the benefits are yours. Also, if you are a member of a frequent flyer program, you want to check and make sure that the credit card you are using to book your travel is a partner of that airline and/or registered with your frequent flyer program so that you can get credit for the miles and for the dollars you spend. This is a double benefit. Here’s how it works: 

You purchase a ticket from one location to another with your credit card. You’ll get the frequent flyer miles for the distance between the two cities. If the credit card you used to purchase your ticket is a partner with that airline then you’ll also get frequent flyer credit for the purchase of the ticket. Presto! Double benefit.  

If you work for a company that reimburses you for your business travel then it gets even better. You still get the frequent flyer miles and a free ride. 

The standard thinking is that the bonuses from the programs are simply a perk to make up for the inconvenience of business travel unless you work for a government entity in the United States. Some government agencies have tried to prevent employees from accruing miles and benefits. While the companies paying for travel may have no problem with the perks and benefits of frequent flyer miles for business travel, the Internal Revenue Service has consistently looked askance at the programs. They have yet to make a decision on whether these perks are a taxable benefit. Other governments, such as Canada, have decided that the benefits are taxable. 

For now the traveler is rewarded for the travel, whether it’s in the form of free travel for the family vacation or in merchandise. As the old adage goes, loyalty definitely pays.