There have been a lot of important developments in the miles and points universe in the last few months. Nancy and I have mentioned them in passing or via recaps. But in this post I wanted to add a quick commentary on some of the news items that have generated a lot of discussion in the community.
1. Changes to Hyatt status earning and perks
You can see all the details in this post on AwardWallet blog. In short, this development will have zero effect on my family’s travel plans. We don’t chase status unless it’s free or very, very cheap. I honestly don’t get the obsession with being a Hyatt Globalist. Occasionally, I lurk on Hyatt Reddit, mostly to see reviews of various Hyatt properties. Almost daily there is a thread from someone asking if they should do a mattress run because they are “only” 15 nights short from becoming a Globalist. That sort of thinking seriously makes me cringe.
Why would you spend $1,000 to $1,500 now only to MAYBE get some lucrative benefits in the future? I just don’t get it. I like Hyatt as much as anyone else in this hobby (hence the lurking on Reddit), but I don’t want to be locked into one chain and do mental gymnastics to convince myself to stick to only locations with Hyatt footprint. And believe me, I would be compelled to do just that if I dropped a grand of our hard earned money to achieve top-tier status.
But hey, to each his/her own. People are entitled to spend their money however they want.
2. Alaska program changes in 2024
You can see the highlights in this post on Thrifty Traveler blog This one I’m actually very excited about. It’s true that people who like to redeem Alaska miles on low-haul premium partner travel will be very disappointed by this development. But I couldn’t be more happy. The main reason? Cheaper redemptions on AA from Florida to Caribbean and Central America. It looks like we will be able to fly from Miami to Liberia, Costa Rica for only 7,500 miles one-way, as long as there is saver availability on American. That’s considerably less than what it costs now. I promised my husband to go back to Rio Perdido resort at some point in the future, and my Alaska stash may help me with this goal.
I’m also hoping to take my kids to Saba, and flying from Miami to St. Maarten will also cost only 7,500 miles, which is quite cheap. In fact, it’s less than American charges for the same type of flights via AAdvantage. All in all, if you are based in Miami (or another AA hub) and don’t mind flying coach, your Alaska miles just became much more valuable. This is Avios-ization I can get on board with.
I recently booked Miami-Cusco award and paid 25k Alaska miles one-way in economy. This ticket should reprice at 17,500 miles in March of 2024. So, I may be able to rebook at a lower rate. Winning!
3. Unannounced award rate changes via programs like British Airways Avios
Nancy already wrote about Avios program no-warning devaluation on AA redemptions last week There are other offenders, but this is probably the most notable one for those who live in the US.
This is a concerning trend and the reason I wouldn’t speculatively transfer points to Avios even if there is a juicy bonus. I used to do that, but not anymore. Right now I have 300 Avios left, and that’s it. The program is just too unstable, and I wrote about this fact a year ago. It’s ironic that recently some of our readers have accused us of turning a blind eye to all the problems with Avios because of affiliate commission (LOL). Nothing could be further from the truth.
Is Avios program still valuable in certain circumstances? You bet. There are decent deals left, especially if you time your redemption when there is a transfer bonus going on. But it’s not what it used to be, that’s for sure. I certainly wouldn’t hoard Avios. The same goes for Virgin Atlantic program that recently devalued certain redemptions on Delta flights. Though to their credit, unlike Avios, at least they gave their members heads up.
Last year I paid 27,500 Virgin Atlantic miles for Delta flight from Tokyo to Seattle. Now the same flight costs 44,000 miles. That’s brutal, there is no other way to describe it. I’ve said many times that individual mile is a very fragile currency. If you choose to hoard it, you better be prepared for this type of developments. Your stash may lose 50% of its purchasing power overnight. Will you be OK with it?
I subscribe to “earn and burn” philosophy because I have enough stress in my life already.
Readers, how are these changes affecting you?
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.
@Boris It was 35k Avios + $150 in tax per person. BA gives you an option to cover YQ via Avios, which is what I did. It’s not a great redemption value-wise, but it’s the exact flight we needed on a weekend in July. I only needed to transfer 4k Amex points, the rest was already in my account.
@Christian I’m sorry these changes will affect you negatively. As you’ve said, YMMV
What is a positive development for me might be a total bummer for another person in the hobby.
Hyatt Globalist is a very lucrative status as long as you can earn it organically via stays or credit card spending. I’m sure you’ve done the math and determined it’s the best deal for your situation.
IMO, when someone asks if they should do a 15-night mattress run, the answer is an automatic No. If you are going to spend that kind of money and effort, you better be darn sure it will pay off. If you are asking strangers, that means you are not sure.
@DJG Yes, 100%! I just made several reservations on Booking.com due to Lufthansa miles promo. I don’t particularly need these miles, but might as well earn them if they are free. Even the weakest currency can be leveraged advantageously on certain routes. As long as you accumulate miles on the cheap (or for free), devaluations don’t sting as much.
I’m a bit saddened with the impending limitations on Hyatt Guest Of Honor bookings because those offer me a lot of freedom to make things better for friends and family. The program is still by far the best for me, in part because I can legit spend to get the rest of the way to top status, but YMMV for others.
The Alaska devaulation is a more bitter pill to swallow. I’ve been using their miles to fly first and business class to SE Asia. Now the price of JFK to Bali has more than doubled and those are mimimum prices. There are some winners but passengers to Asia are not in that group.
Totally agree. Best prep is being as prepared to jump on earnings opportunities of all types as being prepared to jump on deals.
@DJG Sure. It can be a good deal, especially when booking last-minute. My point is, your miles can significantly devalue overnight, often without any warning. It’s a very volatile “investment”, so it’s best to be mentally prepared for downsides of hoarding.
“Last year I paid 27,500 Virgin Atlantic miles for Delta flight from Tokyo to Seattle. Now the same flight costs 44,000 miles. That’s brutal”. Naw, seriously, an extra 16,500 miles is nothing to travel about 1/5th of the way around the Earth on a magical hulking metal tube.
@Russ Absolutely. It was a good Avios ride for me as well! I’m grateful for all the memories. Just burned the rest of the stash on London-Tampa flight for my family. I got lots of value from this program over the years, but I think it’s time to move on. And it looks like Alaska is stepping in to fill the void. Plus, it has free award cancellations, a very valuable perk.
@ Leanna, are you paying YQs on London – Tampa redemption? Thanks
Leana, I totally agree on Avios. I have 1,809pts and they will expire. I blew the stash on a trip to Barbados for the grandkids this Jan/Feb and that will be it for Avios and me. Adios. Avios were my first “currency” back in the Vanilla Reload-AMEX days. That said, it was a good ride. 🙂