Now and again I like to feature questions from readers, and I thought some in our audience might find the following exchange to be applicable to their own situation. Without further ado:
“Hi Leana,
I enjoyed your post about dumping MRs into Avios, as I was thinking about that, too. I have a related topic that I am kind of stuck on. What to do with 95,000 Citi Thank You points?
I got the Citi Prestige a year ago, and have used it well: double dipped the travel credits, used the Global Entry, and used the 4th night free once on a Hilton condo in Hawaii. However…my annual fee just posted and I don’t want to keep the card going forward.
I am unlikely to use the 4th night free this year, if it even sticks around. I am feeling more points rich and cash poor at the moment. I’ve heard that Citi isn’t giving retention offers on the Prestige right now, so I don’t want to bother calling.
I was thinking about dumping points in Virgin Atlantic program due to current 30% transfer bonus that expires on October 13th, and because my husband and I want to go to Europe in business class in 2021 for our 25th wedding anniversary. But I just read that Virgin Atlantic might add fuel surcharges to most Delta operated flights.
So I am not sure what to do or where to stick the points so I don’t lose them. Here’s a rough idea of our travel plans: we go back and forth to Raleigh, NC from Portland, OR once a year to visit family. My daughter also flies to Chicago for college. We’d also like to go to New Zealand in 2020, and there’s the Europe trip in 2021. We are going to China in 2019, but the flights are already booked. We do like going to Hawaii, and it is not a bad flight from here.”
My response (edited for clarity)
First, you may want to read this post if you haven’t already: Reader Question: to Which Program Should I Speculatively Transfer My Membership Rewards Points?
It focused on a similar situation, except it had to do with MR program. I do understand not wanting to renew Citi Prestige. I didn’t back in the day. You can always cash out the points at one cent apiece. It’s a ratio available via Citi Prestige, though not via Citi Thank You Premier.
A bit of an “out there” option is to look into Shop Your Way rewards program. The points transfer via 1,000:1,200 ratio, and would be worth $12 towards Sears purchases. Do you need to buy an expensive appliance from Sears right now? Of course, Sears is heading towards bankruptcy, so it’s something to consider.
Out of all the current options, I would personally be tempted to dump the points to Jet Blue via 1:1 ratio, but it’s probably not the best program for Oregon residents.. Do check it for flights to Chicago, though. Points are worth between 1.2-1.4 cents apiece, sometimes more.
Honestly, I would also be mildly tempted to dump the points to Virgin Atlantic. As long as you are aware of the risks, this gamble just might pay off. Or not! Right now you can transfer VS miles to Hilton on 2:3 basis, but there is no guarantee that it will still be there later on. Plus, it’s not exactly that great of a ratio even when factoring in the bonus.
As long as VS still partners with Delta, domestic flights shouldn’t come with any fuel surcharges, so perhaps this can be your back-up plan if Europe redemption doesn’t materialize. So, it comes down to how much you value VS miles. If someone offered them to you RIGHT NOW for 0.77 cents apiece, would you buy them? If not, then maybe you should take the safe route and cash out your Citi points.”
Things to consider
Any time you transfer points to miles, you take a risk that they will devalue significantly. Will the risk pay off? It might, but it’s important to have a back-up plan and not pin your hopes on one specific redemption. Personally, I would not transfer to Virgin Atlantic with the idea of redeeming miles on Delta operated flights to Europe. The partnership can fall apart and fees can destroy value in the blink of an eye. And do keep in mind that Virgin Atlantic program prices per leg, so it’s only a good option for non-stop Delta flights.
However, Virgin Atlantic flies non-stop from Orlando to London, so I could always burn my miles on that route. I have to visit my family in Europe, so I’m sure I would find some use for miles eventually. Even with ridiculous fuel surcharges it can be a decent deal. In a way, that 30% transfer bonus prices in future devaluations.
Someone who is low on savings should absolutely consider cashing out points at 1 cent apiece. I did just that few years ago when I had to cancel my previous Citi Thank You Premier card. Well, technically I redeemed points on Walmart gift card (no longer an option), but to me it’s almost as good as cash. This time I decided to burn Thank You points towards a cruise (getting 1.25 cents in value) because my husband specifically requested it.
It’s not that we’ve become wealthy or anything, it’s just that stars aligned and we could fit a cruise into our busy schedule. So why not get it for less with the help of Citi, right?
I should also point out that there is an option to convert Citi Prestige to Citi Thank You Preferred card (no annual fee). You won’t lose the points, though you will no longer be able to transfer them to miles or get an uplift on flights. The upside is that the conversion may not reset the 24-months clock, which would make one eligible for bonus on Citi Thank You Premier. Not everyone is successful when requesting a conversion, but it may be worth a shot.
Readers, what would you recommend to this person?
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Author: Leana
Leana is the founder of Miles For Family. She enjoys beach vacations and visiting her family in Europe. Originally from Belarus, Leana resides in central Florida with her husband and two children.
@DW Thank you so much for giving your input! As a Portland resident, you are in a unique position to provide valuable advice to this reader. Interesting that you are able to consistently utilize Virgin Atlantic program on Delta flights.
On Virgin America: my husband and I were just saying how neat it was that we got to fly that airline before it was absorbed by Alaska. I can see why so many folks were rabid fans. Decent leg room in coach, individual screens, plus ability to order food from your seats. And don’t forget that funky safety video! 🙂
These are great ideas. Singapore KrisFlyer does sound like a good option. Carole, I thought that if one downgrades to the Premier, you only have 90 days to use the points, since they are attached to the particular card you have? Is this true? If the points won’t expire, that could be a good option, too.
@Andrea It’s my understanding that your points should be safe if you convert. At least it was that way in the past. Of course, with Citi there is never a guarantee. I would get some sort of confirmation via Citi chat (take a screenshot) if you go this route. There is something to be aware of, though. If you convert to Premier, you won’t be able to apply for it for some time in order to get the bonus. Not sure if you have your eye on it or not, but just an FYI. You could convert Premier to Preferred card down the road, I suppose if that option is available.
As it stands, if you cancel Prestige right now, the clock will reset and you should be able to apply for Premier in 24 months. If you convert to Preferred, it may not reset, though no guarantees. In that case, you could possibly apply in a year or so, as soon as it’s been at least 24 months since you’ve applied for Prestige. Makes sense? I hope so!
As Erik and Dave mentioned, you do need to look into Singapore program if you decide to cancel. For Hawaii flights from Portland on Alaska Air, it will be tough to beat. I totally forgot about that! https://www.singaporeair.com/saar5/pdf/ppsclub_krisflyer/charts/AlaskaAirlines_AwdChart.pdf
Adding my $0.02, as I’m in Portland as well. GREAT input by everyone above! Singapore or VA would be good. I’ve personally gotten more value out of using VA on Delta out of PDX or SEA than trying to use Singapore on United flights for Domestic. YMMV though. I use my AS companion pass for Hawaii flights, or Avios. United flights to Hawaii haven’t been convenient out of PDX when I’ve checked in the past so look ahead of time if you plan on using that. Great option if it works for you. I have done the conversion game and it’s worked as Leanna has spelled out. I keep my Prestige because my AF is $350 and I use the 4th night a few times a year. I downgraded a Premier to a Preferred and it does keep the points alive and doesn’t reset your clock (as long as the card number stays the same). Do send Citi a chat message as suggested to confirm the points don’t expire with the card swap as Citi has one of the worst IT of any financial institution in the history of the civilized world. In fact always send Citi a chat message fore everything, sign up bonus confirmation, card conversations, etc. I’ve had to refer to chat messages several times in the past. Good luck and safe travels
I meant VS not VA, oh how I miss Virgin America:)
I just called about my Citi Prestige. I was told that I can downgrade to the Premier — and I have a specific number of days where the $450 would be reimbursed — if I choose to do that and keep my points. She told me that as long as I wait 365 days, I can in the future swap back up to the Prestige. I specifically asked and she said I can do this as many times as I would like, depending on our family’s travel plans for the year. Do call and clarify for sure, but this is what I was just told. The Premier has a lot of the benefits and good earning % for $95 fee.
I would suggest the reader consider Singapore KrisFlyer (easy online booking of Star Alliance) or they could consider Avianca. For less than 70k, they could fly US-Europe in Lufthansa First Class with no fuel surcharges. Or, likewise, they could redeem the Lifemiles on domestic United flights with no close-in fees. Heck, they could even transfer to Cathay Pacific where they’d have enough for a loung haul premium cabin one-way to/from Asia (or use on Oneworld). Lots of GREAT options that beat 1c a piece. 🙂
If I were in the reader’s position, I think that I’d transfer the ThankYou points to Singapore Airlines Krisflyer program. You do have to use those Krisflyer miles within 3 years (can’t extend expiration like other programs), but it sounds like the reader has upcoming plans where the miles could be easily used on United or other Star carriers (example: Hawaii is less miles with Krisflyer vs. Mileage Plus, although not as low as Avios from west coast). If 95K Krisflyer miles is too little for the intended redemption, all the major bank programs transfer into Singapore so it should be easy to close any gap.
@Erik As much as I’m leery when it comes to Singapore miles (due to draconian expiration policy), you make a great point. Aside form United, they can actually redeem Singapore miles on Alaska Air and pay 12,000 miles one-way to Hawaii. For Portland residents, this is really the best option. https://www.singaporeair.com/saar5/pdf/ppsclub_krisflyer/charts/AlaskaAirlines_AwdChart.pdf