The pros and cons of purchasing airline miles

[WORLD] The question of whether to buy frequent-flier miles is a topic of much debate. While earning miles through flights, credit card spending, and promotions is often the preferred method, there are situations where purchasing miles can be a smart move. This comprehensive guide will explore the pros and cons of buying airline miles and help you determine when it makes sense to do so.

Before diving into the specifics of buying miles, it's crucial to understand their value. The worth of airline miles can vary significantly depending on how they're redeemed. Generally, miles are most valuable when used for premium cabin travel or long-haul flights.

Scott Keyes, founder of flight deal website Scott's Cheap Flights, notes, "Buying miles can make sense if you're planning to redeem them for a specific, high-value flight in the near future. But it's rarely a good idea to speculatively purchase miles without a plan."

When Buying Miles Makes Sense

1. Topping Up Your Account for a Specific Redemption

One of the most common scenarios where buying miles can be beneficial is when you're close to having enough for a desired award flight. If you're just a few thousand miles short of booking a premium cabin seat or a long-haul flight, purchasing the remaining miles could be cost-effective.

2. Taking Advantage of Promotional Offers

Airlines frequently offer bonuses or discounts on purchased miles. During these promotions, the cost per mile can drop significantly, making it more attractive to buy3. However, it's essential to compare the promotional price with the potential value you'll get from redeeming the miles.

3. Booking Premium Cabins at a Discount

For luxury travelers, buying miles can sometimes result in significant savings on business or first-class tickets. If the cost of purchasing miles and taxes is substantially lower than the cash price of a premium cabin ticket, it could be a worthwhile strategy.

Gary Leff, author of the View from the Wing blog, explains, "I've seen cases where buying miles to redeem for a business-class ticket can save you 50% or more compared to paying cash for the same flight."

4. Preventing Miles from Expiring

If you have a small balance of miles that are about to expire, buying a small number of miles can reset the expiration clock in many programs. This can be cheaper than taking a flight or making a large purchase to keep your account active.

The Downsides of Buying Miles

1. Higher Cost Compared to Earning

In most cases, the cost of purchasing miles is higher than their average redemption value. This means you're often paying a premium for the convenience of instantly acquiring miles.

2. Risk of Devaluation

Airline loyalty programs can change their award charts or partner agreements at any time, potentially devaluing your purchased miles. This risk is particularly high if you're buying miles speculatively without immediate plans to use them.

3. Limited Availability of Award Seats

Buying miles doesn't guarantee you'll find award availability on your desired flights. Popular routes and dates can have limited or no award seats, especially in premium cabins.

Strategies for Maximizing Purchased Miles

If you decide that buying miles makes sense for your situation, consider these strategies to maximize their value:

Wait for Promotions: Airlines regularly offer bonuses on purchased miles. Waiting for these promotions can significantly reduce your cost per mile.

Have a Specific Redemption in Mind: Always have a plan for how you'll use the miles before purchasing. This helps ensure you're getting good value for your investment.

Compare Cash Prices: Before buying miles for a specific trip, compare the total cost (miles purchase + taxes and fees) to the cash price of the ticket. Sometimes, cash fares can be surprisingly competitive.

Consider Flexible Points: Instead of buying airline-specific miles, consider earning flexible points through credit cards. These can often be transferred to multiple airline partners, giving you more options.

Alternative Ways to Earn Miles

Before resorting to buying miles, consider these alternative methods of boosting your mileage balance:

Credit Card Sign-Up Bonuses: Many travel credit cards offer substantial welcome bonuses that can quickly boost your mileage balance.

Everyday Spending: Use a co-branded airline credit card or a card that earns transferable points for your regular purchases to accumulate miles over time.

Shopping Portals: Many airlines have online shopping portals where you can earn bonus miles for purchases you're already making.

Dining Programs: Link your credit card to airline dining programs to earn miles when you eat at participating restaurants.

The Bottom Line

Buying frequent-flier miles can be a good idea in specific situations, particularly when topping up your account for a high-value redemption or taking advantage of significant promotions. However, it's generally not recommended as a long-term strategy for accumulating miles.

Brian Kelly, founder of The Points Guy, summarizes it well: "Buying miles should be viewed as a last resort or a strategic move for immediate, high-value redemptions. For most travelers, focusing on earning miles through flights, credit cards, and promotions will yield better long-term results."

Before making any purchase, carefully evaluate the cost, your redemption plans, and alternative earning methods. By doing so, you can ensure that when you do buy miles, you're making a smart investment in your travel future.