Frequent flyer programs

Main article: Airline alliances

Airlines that are part of an alliance generally allow passengers to both accumulate and use points or miles on other carriers within that alliance, however some restrictions may apply. Offering frequent flyer benefits to programme members across the alliance is one of the founding ideas of an airline alliance.

Furthermore, some programmes are common within smaller groups of airlines, for example, the Miles & More programme is shared by Lufthansa Group airlines (including Austrian Airlines and Swiss), and by other Star Alliance members in Central Europe (while other Star Alliance members run separate programmes). Other airlines, such as Emirates, offer co-operative programmes despite not being part of an airline alliance. Airlines also often have bilateral agreements separate from airline alliances that allow passengers to accrue miles on each other's frequent flyer programmes. One such example would be Singapore Airlines and Jetblue, which allow points on their flights to be claimed in each other's frequent flyer programmes even though Singapore Airlines is in Star Alliance and Jetblue is not in an alliance.

While the programmes within an alliance offer reciprocal recognition of flights flown on each member airline, each programme has its own rules regarding points earning and redemption. It might happen therefore that a flight on the airline you fly the most will earn you more miles with its alliance partner airline than the airline you fly itself. On the other hand, miles are not equal both ways - one programme can require many more miles than the other for a similar benefit or award. Veteran frequent flyers engage in arbitrage exploiting those imbalances to their benefit.

Most frequent flyer programmes include partners beyond airlines, most often service providers such as hotels, credit card and car hire companies. Therefore, you do not have to fly to acquire miles, although the number of miles you can get from these partners is not usually high, and status points are almost never provided.

The most straightforward way of collecting miles is by completing flights with the airline running the programme. Some programmes, as stated above, allow participants to collect miles by flying with selected other airlines as well, especially ones that participate in the same airline alliance.

You are generally awarded miles only after your flight has been completed, and it may take a few days for them to be credited to your account. If flying with a partner airline it might take even longer for your miles to appear. If you pay for a ticket but do not board the plane for any reason, whether you cancelled your booking or not, you do not get the miles.

Every flight has a predetermined number of miles it will add to your account once completed. The airline's booking system will usually show you the number of miles per flight and booking class when you are arranging your travel, so that you can factor this in when deciding on a particular connection.

Most frequent flyer programmes allow you to collect miles for the services of their partners, most travel-related, such as hotels, car rental companies, airport retailers and such. Many of those partners maintain their own loyalty schemes and you are allowed to collect points on either of them - i.e. collecting miles for booking a hotel will not allow you to collect points in the hotel chain's loyalty scheme, so read the small print carefully.

Some companies such as public opinion or survey firms have the option of rewarding frequent flyer miles to your account when you answer their surveys. This is a way to earn miles without spending money and to keep the account in active status.

A popular offshoot of frequent flyer programmes are affiliated credit cards, i.e. credit cards that allow you to collect extra miles by using them for payment, and often also simply by opening and maintaining the credit card account. This is done by the issuer of the credit card, usually a bank or other financial institution, paying the airline to credit you with the miles. Using a credit card costs the customer (in higher annual fees and interest paid than "non-branded" card) and the retailer that accepts the card (who pays to the operator an amount undisclosed to the customer), which is what the miles are funded out of.

In many programmes, award miles or points do "expire" (disappear from your account) after a certain period of time passes, counted from when they were earned. This "expiration period" is often prolonged for frequent flyers who fulfill a certain condition, e.g. acquire a status or use the affiliated credit card. Some programmes offer the possibility of earning the privilege of "non expiring" miles.

Some programmes also close your account after a period of long inactivity (such as two years) and the points are lost. Check the conditions carefully.

Utilizing miles is the sweetest part for flyers. Usually the best value for miles are award flights but always watch out for special offer of affiliate partners of the programme. Individual programmes allows also points/miles and cash tickets. If that is interesting depends on the ratio miles/cash in comparison to the cost spent for miles.

An award flight is a flight that is "awarded" to you in exchange for a certain number of points. Basically, it means that you can pay for your flight using the accumulated miles rather than money. This is the most common way of utilizing one's air miles.

Airlines will often publish a fixed table of award flight "prices", listing the number of miles required to fly between particular destinations or regions (e.g. between Europe and Middle East - 30,000 miles). Apart from that, there are often "mileage promotions" that offer particular connections at lower mileage values than usual. Award flights can be most often booked both as return or one-way flights, and with a choice of travel class, both affecting the mileage value of the flight. Many airlines that are part of airline alliances allow redemption for flights within the own alliances.

Most airlines include only the airfare part in award tickets. There are more components to the ticket price, such as security and ground handling surcharges, airport fees, taxes and so on. Therefore, especially on short flights between busy airports, there can still be a considerable sum to be paid for an "award flight". Some airlines allow this part of the ticket price to be paid with air miles as well, usually under a separate scheme - so you may have to spend twice as much or more miles on a ticket than the offer stated - this is generally available to purchase tickets with the carrier's sister airlines or subsidiaries but not with other members of the airline alliance.

Some airlines have simpler frequent flyer systems, where accumulated points go towards prices of regular tickets - you can purchase a ticket once the value of the points accumulated is equal or higher to its price. Other airlines allow for a purchase of the ticket with combinations of points and money.

The availability of seats on a flight that can be booked as "awards" is usually limited - you may find that some flights with seats still open are not available for award bookings. This is because airlines reserve only a certain number of seats for award tickets on all flights. Depending on the expected demand this number of seats will be decreased or completely closed. The best option is to either book very early or to check the load factor (i.e. what percentage of available seats is sold) for short-term bookings. Tools like KVS or expertflyer are only a good investment if you use award tickets often. In general the availability for award flights is better for own flights than with other alliance carriers. Usually award flights can be booked 365 days in advance.

Do bear in mind that, appraising the amount of money needed to gain a certain number of miles, and checking versus the prices you can pay for a regular ticket on a given route, short-haul award flights and generally award flights in Economy Class may not be really good deals. You may be able to purchase the same ticket at a very attractive price using cash and with less restrictions, if the given airline runs frequent promotion and the route is generally either highly competitive or underutilized. The best value for miles in most programmes are First or Business class long-haul award flights.

Another way to use your award miles is to "upgrade" yourself to a higher travel class. This is done by purchasing a regular ticket in a lower booking class and then using a certain number of points to book an upgrade, depending on availability.

It is usually only possible to upgrade yourself one class up, e.g. from Economy to Business or from Business to First. On flights that offer "enhanced Economy Class" (called "Economy Comfort", "Economy Plus" or the like - usually a costlier Economy class seat which offers more legroom, better location on a plane or some other enhancements), you can usually only upgrade to Business Class if you purchased your ticket in said "enhanced Economy".

Airlines sometimes also "upgrade" their frequent flyers with high status at no cost, both to offer them an added benefit and to open seats in Economy in cases of overbooking. If on your connection it is usually full in Economy and empty in Business and/or First, chances are high you will be upgraded if you are a "status" frequent flyer. Those days, however, most airlines have sophisticated revenue/load management systems and rather offer upgrades for lower mileage amounts to all frequent flyers rather than do it for free.

If a frequent-flyer programme has a partnership with a "third party", such as a hotel chain or car rental company, it is usually a two-way one. Not only can you earn miles using the "third party's" services, but you can also use your miles to purchase their services, e.g. book a hotel room or rent a car. The value for miles of such offers is often rather low, as the airline has to pay the "third party" for the services, rather than just give you a free seat on a flight.

Some frequent flyer programmes with extensive membership run special "travel shops", were frequent flyers may purchase certain goods with their miles, and often also with money or a combination of miles and money. The goods on offer are usually airline-branded travel accessories and luggage, as well as certain gadgets such as model airplanes, stuffy toys or even limited-series Swiss watches. Such shops may be an interesting option of using your miles if you do not have enough for your dream flight and your miles are about to expire, or to procure a unique gift.

Travel shops are usually operated as online webstores, where you can pay both with your miles and cash, or a combination of both (and the goods are then delivered to a specified address). Many airlines who offer on-board shopping (items for purchase during the flight) have it integrated as well, so that you can pay with miles when purchasing mid-flight, and often buy the same items. You can also usually order some items bought online for on-board or at-gate pickup. Finally, some airlines give their travel shops an extra physical presence, e.g. Lufthansa runs a network of their WorldShops (for Miles&More members) at German airports.

Finally, many frequent flyer programmes cooperate with one or more charities and offer the option of "donating" your miles to them, which basically means the airline will pay a certain amount of money to the charity per every mile you donate.

Award flights can most often be searched on the different airlines' websites or through the airlines' call centers. There are also several third-party tools and search engine that help frequent flyers search and explore award flight availability across different frequent flyer programs, and for multiple dates simultaneously. Many of the tools also monitor specific routes or awards and notify via email when the awards become available.

Some of the available tools are (sorted alphabetically):

• AwardFares
• AwardHacker
• Award Nexus
• ExpertFlyer
• KVS Tool
• Point.me
• SeatSpy

Many of the benefits you can attain by acquiring a certain status in the frequent flyer programme are the benefits usually given to passengers flying business and/or first class. The difference is that "status" frequent fliyrs get them, in principle, every time they fly, regardless of whether they fly first, business or economy. Other benefits can only be acquired by attaining the "status".

The benefits you can attain by acquiring a certain status in the frequent flyer programme may typically include:

• Fast-track boarding — you will be allowed to board the aircraft at the gate before other passengers, and often be able to use a separate (quicker) security clearance beforehand.
• Lounge access — you will gain constant access to business- and first-class lounges at airports, regardless of whether you fly first, business or economy. At the higher tiers, you will often also be allowed to bring a guest into the lounge with you. The exception is in the U.S., where you will not receive lounge access for domestic flights regardless of status; you will need to purchase separate lounge membership for that.
• Security line priority — you get to join a much shorter line when going through the security checkpoint, which typically leads you to the front of the line.
• Booking priority — you will gain the privilege to be able to book a seat on a flight even if it is "full" (meaning that somebody will be "bumped off" the flight to allow you to fly), although usually only in certain, more expensive, flight classes and under certain conditions.
• Waiting list priority — even if the flight is full and there is no way for you to book a seat, you will usually be given a priority on the waiting list over non-status hopefuls should a booking be cancelled or a passenger fail to check in.
• Dedicated customer service — a separate customer service team, mostly call centre staff, takes care of "status" passengers. This may come in handy whenever there is an unexpected disruption to your travel, and the dedicated call centre will quickly set up alternative arrangements. It also typically includes specially-marked check-in desks/areas exclusive to these passengers.
• Allocation of exit row seats — if you want extra legroom, then having a higher status may allow booking of an exit row for free. Typically this is available with airlines that charge extra for such seats.
• Upgrade possibility — if there are open seats in a higher class (premium economy, business or first), an airline may decide to upgrade you to one of those seats at the last minute, even if you paid to travel in a lower class. In most programmes, this is solely to the airline's discretion and may or may not happen at any time. This is usually done if the lower class is overbooked, but there are seats available in the higher classes. In this instance, passengers with elite status are typically given priority for upgrades over other passengers.
• Priority baggage — at the higher tiers, your check-in baggage will receive a priority tag so it will come out together with those of the first and business class passengers before everyone else's, even if you fly in economy. In the U.S. and Canada, where passengers are charged a fee to check-in baggage, higher status will also result in the fee being waived.

The service you experience inflight is still dependent on the class of seat you are occupying. If you have a high 'Gold' status, but are travelling Economy then meals and other creature comforts will be exactly the same as Economy level. On the other hand, services before and after the flight (airport lounges, showers etc) will still be available to you at your status level, regardless of the class of ticket.

Frequent flyers with an enhanced status usually also earn a "mileage" bonus over regular programme participants on all flights, usually in the form of a fixed percentage of miles (anywhere between +25% and +100%, depending on status and programme) over the ones awarded regularly.

Your status with the frequent flyer programme changes when you reach a certain number of status miles earned, flights or flight segments completed on your account. Your status is usually updated automatically, you should require a notification and a new shiny card reflecting that shall usually be sent your way. Your status changes whenever the miles or flights are booked to your account, which may take days or weeks after you complete the flights earning you those.

The programmes usually impose a period during which you have to complete the status-earning flights or collect status miles to earn a status. Some airlines require it to be done within one calendar year (so if you start in December you have very little chance of earning the status), and reset your status account at the start of every new year (which usually does not affect your award miles). Other airlines have a rolling status period, usually also lasting 12 months, during which you can earn your status. This means flights and status miles older than 12 months are not counted towards your status, but all other are, regardless of the calendar year they were earned in.

The status is usually awarded for a year or two years, during which period you are usually required to fulfill the same requirements (number of status miles or flights) to retain it as you would to gain it. Some older and more complicated frequent flyer programmes had included the possibility of earning statuses for a lifetime after amassing a very large number of miles, but this is becoming a very rare case.

As programmes evolved to allow frequent flyers to collect many miles by means not related to the airline's core revenue business, airlines started to distinguish between "status" and "award" miles. While every "mile" earned with the programme is, by default, an "award" mile, which means it accumulates on your account and can be redeemed for a reward/award, only some of those miles are "status" miles that count towards your status. This means that the airline will maintain two accounts for your miles, one for your "award miles", and the other for your "status miles".

Typically, only miles for flights with the particular airline who runs the frequent flyer programme yield status miles. All auxiliary means of attaining miles (purchases with non-airline partners in particular or miles for using an affiliated credit card) usually yield award miles only and no status miles. Travelling with a partner airline in the same alliance will usually yield status miles, while travelling with one outside the alliance may or may not, depending on the specific bilateral agreement. That said, many airlines also impose a requirement to fly a certain number of flights or miles with that specific airline, in addition to having the required status miles, in order to attain a higher status.

Status miles are, in almost all cases, award miles at the same time, so a flight that adds 100 miles to your status mile account will also add 100 miles to your award mile account. This does not work the other way around, so a hotel booking that adds 100 miles to your award mile account will probably add nothing to your status mile account.

Unlike many simpler loyalty schemes in other industries which, in principle, simply reward you proportionally to the amount of money spent with a given retailer or brand, airline frequent flyer programmes evolved into more complicated systems, involving other dimensions such as number of flights flown and miles covered. This means that you can accrue the same benefits (by flying the same number of flights or "air miles") by spending very different amounts of money, or put the other way around, find oneself having very different benefits when spending the same amount of money with an airline.

Many airlines distinguish between flight segments and flights, i.e. a direct flight with no stopovers or changeovers from London to Warsaw is both one flight and one segment, but a flight from London to Warsaw with a changeover in Copenhagen is one flight but two flight segments. For status purposes, the number of segments flown is often counted rather than the number of flights. There is also often a fixed number of miles per every flight segment, especially on short-haul routes, so multi-segment short-haul flights will yield more miles than direct ones.

Frequent flyers will often choose multi-segment flights over direct, if they can, to accrue more miles and flight segments to their accounts.

If you have to cancel a trip that you have booked with miles due to illness etc, you may find that your travel insurance gives you no compensation for the cancelled flight.

If you earn miles when travelling on business, with the flight paid for by your employer there are some potential catches. These are unlikely to impact most travellers but are worth being aware of.

1. Your employer may regard the miles earned as the employer's property. You could be required to use the miles to buy flights for business trips, or they might want a donation to be made to a charity before you use your miles for leisure travel.
2. Large employers may have special corporate rates with specific airlines. Tickets under these rates may provide fewer or no miles at all.
3. It is possible that the tax authorities could consider a leisure flight made using miles earned on business to be a "benefit" on which income tax is charged.

If you are travelling on official government business, you might not be allowed to collect air miles. Check your policy beforehand. For example, United Kingdom, Germany and Australia have such restrictions to prevent government employees from favouring a more expensive airline ticket. This restriction usually does not extend to personal travel.

Unlike bank accounts, your account will usually be cancelled and balance voided once the programme operator is notified of your death. That said, any person (e.g. a relative) who has access to the member's online account can perform most operations, such as transfer points or simply use them, before this happens, as no personal identification is required to perform those actions.