There is an ethos among travelers that plane tickets are free when using frequent flyer miles to make the purchase. The truth is that taxes, which include the 7.5% excise and government fees, can amount to 15% of the face value of the ticket and even 50% or higher for international travel. Some travelers know about the fees, but do they know about the rising costs for reward seats?
The rising cost for reward seats
In an effort to improve profitability and seat selection, airlines have started to raise the maximum amount they can charge for reward seats. Travelers will have more seats to choose from but they come at a cost. Some airlines have raised the required amount of frequent flyer miles you need to purchase a ticket by 20% for international routes. That’s a significant increase considering that the number of reward seats available is only increasing 5% on average.
Ways to minimize the higher cost for reward seats
Don’t book the actual ticket with miles over the phone as most carriers will charge a booking fee. Rather, call customer support to find out as much information as possible from the reps as they have access to the most up to date pricing and seats for frequent flyer miles. If you find an affordable option, then tell the rep you want to book online by avoiding the fee.
Buying a regular ticket and then upgrading to first class may have been smart in the past, but not anymore. The fees for upgrading could add up to several hundred dollars and be greater than using miles to purchase the ticket in the first place. If you don’t have enough miles, it may also be cheaper to buy more, then to buy a regular ticket and pay the fee to upgrade.
Purchase your tickets early and fly during off peak periods. As the departure date nears, the amount of frequent flyer miles needed to fly usually rises and they also tack on a $50 to $100 processing fee. The cost for traveling during off peak periods vary, but airlines like US Airways offer specifically designated off peak rates.
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