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Why Convertible Reward Points Are Better Than Airline Miles

airlines don't deserve loyalty

In case you haven’t noticed, the U.S. airlines don’t care much about you as a customer. Even the people who fly so much that they are at the top elite level status don’t always get upgraded, so even they are grumbling about the lousy service, the cramped seats, and the bare-bones amenities on the big 3 legacy airlines.

Plus the airlines are hitting you with every fee that they can legally get away with. You can no longer assume even international flights will get you a free checked bag unless you are on a superior foreign airline or on Southwest. They intentionally make it hard for you to figure this out too in the booking process, then hide the rules, ones almost guaranteed to result in a “gotcha fee.” On American Airlines, for example, a flight to Panama includes a bag, but one to Costa Rica does not.  For El Salvador it depends on the time of year. For Mexico and Colombia it depends on what city you’re landing in. No joke.

Having the airline’s credit card won’t get you out of the fees either. If you pull it out on an international flight with a bag fee, the airline agent will shake their head and say, “No, that’s only for domestic flight bag fees.” Why does the destination matter? Because you don’t matter, that’s why.

Airline Loyalty Doesn’t Pay

The only way to strike back at this system is to forget loyalty and either go for the best fare (Allegiant and Southwest will actually treat you better than American these days anyway) or to fly for free whenever possible.

It used to be rewarding to fly with a single airline and rack up frequent flyer miles. But now you don’t earn many miles from actually flying. Here’s what I earned on a recent flight all the way to Central America and back via Houston—for flying thousands of actual miles.

hotel miles versus airline miles

Notice that Houston to Tampa is 635 miles in one direction, but a paltry 235 “miles” the other direction. Driving 235 miles from Tampa would not even get me to Atlanta, but now the “miles” are based on airline revenue and fare class, not distance, a change that has drastically weakened how much you can earn for your loyalty. So now most airline miles come through credit card spending, not flying, because it’s a simpler penny per mile or more for spending, not a complicated formula that’s great for the airlines but terrible for the customer.

This is why you’re far better off collecting points and miles that can be used across multiple programs. Some credit cards allow you to do this, such as the Amex Membership Rewards program and the Chase Sapphire/Venture program. For the former you transfer the points in chunks whenever you want, topping off your airline miles account to get to a specific mileage level or transferring large enough amounts to get your whole ticket. For the Chase program, you simply use the points’ value to book any ticket, without going through the airlines.

Bonwi points work the same way as the Chase ones during redemption. If you have 30,000 Bonwi Rewards points, you purchase a $299 ticket and have a buck to spare. No blackout dates, no restrictions. You also don’t get dinged for taxes and fees like you would redeeming airline miles since that’s part of the ticket price. (I recently paid $77 for my “free” ticket to Belize on Delta and American Air once wanted nearly $300 in taxes and fees for an even less free ticket that stopped for a layover in London. Instead I flew Singapore Air through another airport instead with United miles and paid $49 in fees.)

Bonwi rewards points Chicago

Here’s the advantage though: it’s not simply a point per dollar or maybe two points you could get from Chase. You could conceivably spend $200 per night on a hotel but get more than 10,000 Bonwi Rewards points for a two-night stay. It’s not uncommon to see a payback of 15 to 30%.

If you really want to play this game right, pay for that hotel stay with a premium Chase card on top. Then you’re double-dipping without giving loyalty to an airline that doesn’t earn it. You won’t earn a paltry amount of airline miles that are hard to cash in, but a hefty amount of reward miles that have real value for redemption. Just one vacation can pay for another weekend away.

Vote with your wallet—instead of nostalgic airline loyalty—and reap bigger rewards for more travel with Bonwi Rewards!

Contributor Tim Leffel is author of one of the leading books on living abroad and is also author of Make Your Travel Dollars Worth a Fortune. See his regular rants on the Cheapest Destinations Blog