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Airline Loyalty Schemes Explained

By Derek Lakes
Jun 15, 2009
But with so many frequent flyer programmes out there to choose from, you could be forgiven for being confused into inactivity. However, if you allow this state of affairs to continue, you are pouring money down the toilet. But never fear, because your old friend the world wide web is here to clear up the fog of your air mile-related confusion.

Perhaps the most crucial factor when deciding on an air miles scheme is the type of journeys that you most frequently make by air. Find out what airlines operate the most flights between your city and your most likely destinations, and investigate the terms of their frequent flyer programmes.

So if you're travelling with a load of different airlines and picking up small amounts of air miles each time, you may not be able to cash any of them in before they expire. If you want to get the best value from your frequent flyer programme, you would be well advised to stick with the same operator and their scheme partners for the vast majority of yout flying needs.

Many airlines have sharing agreements with other airlines when it comes to their loyalty programmes, so it's worth finding out which airlines have these agreements, and whether those agreements are appropriate your own specific travel needs.

Each frequent flyer programme has a different logic and set of circumstances that determine the way in which points are earned. However, there are three main types: per pound/dollar, mile for mile and per trip.

Mile for mile is by far the most common arrangement, and the most flexible and transferable. However, they are often the poorest value, with five or more trips being required for each freebie, as opposed to the four or even three that are required by more rigid loyalty schemes.

The most recent entrant to the frequent flyer arena has been the per dollar/pound reward scheme. With these, you can earn points proportionate to your total outlay with operators participating in the scheme. These schemes are thought by many to represent the future of the airline loyalty scheme scene, as they are not subject to the time and usage restrictions of competing models.

If you are making the same journeys again and again, schemes that operate on a per trip basis can often represent the best value.
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