what is a rewards program?
To win customer loyalty, airlines and hotel chains (and sometimes other service-oriented businesses, like restaurants) offer point programs that reward patronage. Typically, enrollment in such programs is free (although some have nominal costs, so you need to weigh those more carefully). Essentially, you gain points by making purchases.If it's an airline, you usually get a point per air mile flown. If it's a hotel, points may be based on dollars spent. Rewards can be redeemed with the company, but partnerships between airlines and hotels sometimes allow for point redemption with companies with which you didn't do business.
Typically, an airline or a hotel has a specific rewards desk to help you claim your points. You can use your points for a variety of services, which include everything from free flights to upgrades. If you're a really good customer (meaning, you're a frequent flyer), your total number of points might entitle you to a customer status, which means benefits without redeeming points, such as free upgrades and preference against being bumped on oversold flights.
1- Apply for all the clubs you can
If it's free, there's really no harm in joining. However, it is best to be aware of the rules before you join, so check the fine print. Different programs require different degrees of participation, so not all of them are worth it.2- Focus on key programs that work for you
Being a member of a ton of programs can be great, but having a ton of points in one or two programs, such as with frequent flyer programs, is ideal. As a general rule, the more points you have, the more you're entitled to -- but don't spend money just to get more frequent flyer miles. It's tempting, but you'll go broke fast.3- Get the right credit card for you
Credit cards are a great way to earn miles from your frequent flyer program (typically one mile per dollar charged), assuming that you pay off your credit card before the interest takes its toll. However, you need to make sure that the card is worth your money. Don't forget to factor in the card's annual fee and interest rates (the miles program probably shouldn't be the deciding factor in selecting the card). Also, remember that most cards cap mileage rewards. That's not a hard cap and you can also go for a platinum or gold card and avoid the cap, but unless you're charging around $60,000 or more annually, experts suggest that it's just not worth it.4- Double & triple dip on your cards
Some designated retailers (like grocery stores or gas stations) offer a mileage reward program. It's possible to get double your miles (or at least miles from two sources in the same transaction) by using a mileage credit card to shop at those locations. Triple dipping is a little more difficult, but a good way to pull it off is by booking airline tickets online using a mileage card. You'll get the card miles, the miles for the ticket itself, and sometimes, because you're buying online, you'll get a few extra miles -- say 1,000.5- Look for rewards in unlikely places
Home lending is a competitive business and more than a few lenders offer miles and rewards. The good news here is that you're likely to get a bunch of miles all at once. Typically, you'll get 1,000 miles per $10,000 lent or refinanced. Just remember that miles rewards are an added bonus on top of a financial deal that makes sense for you, not a reason for choosing a lender.6- Funnel your miles into one account
Mergers and corporate alliances can be your best friends when it comes to making the most of the miles you accrue with your frequent flyer program. Always be sure to ask if your points or miles are good with any of the hotel's or airline's partners.7- Watch for special promotions
As a rewards club member, you're likely to be offered deals not available to the general public. Like any promotion, some of them are good and some of them will end up costing you more in the long run, so check the fine print. But it's important to look at these promotions often if you want to participate, since most are time sensitive. Virtually every company with a rewards program will send you e-mail updates of their promotions.
8- Manage your miles
Stay on top of your miles as you would a bank account. Compare your expenditures with your mileage statement to make sure that you're getting what you're entitled to. And read the fine print to stay abreast of any changes in your frequent flyer program.9- Cash in alternative awards
Not all rewards come from programs. When you're booking a flight or a hotel, ask if they're offering any special promotions. Some airlines occasionally offer a fourth flight free, while some hotels will give you an extra night for a certain amount of days.10- Use miles when the tickets would be expensive
Redeeming miles is subject to certain limits, called blackout dates, when you can't book. The idea is to force you into buying tickets on days when the airline can charge more. But the reverse is also true. If you find a great deal, don't use your miles (even if you have a ton -- unless they're going to expire). Rather, pay for the ticket and earn even more miles at a discounted rate.11- Avoid point conversions
Some companies offer a virtual marketplace for rewards points. In theory, it's a cool idea, but in practice it can really wipe you out. Points.com, for example, can cost you up to 90% of your miles.12- Use miles before they expire
Few miles last forever these days. Stay on top of expiration dates. The worst thing you can do is let them expire without using them. Take a trip, even if it's last minute, or book a fancy hotel room for you and your girl for a romantic getaway -- even if you don't leave town. Losing points is like throwing money away.use those points to shop
It's easy to get mile crazy, but you need to keep one thing in mind: companies aren't in the business of giving away free rewards. Mile and rewards programs offer a competitive edge to any business, an edge that you can take advantage of.The trick is to keep doing what you're already doing, but to make sure that you're getting as many rewards as possible.
Resources:
http://www.answers.com/"frequent%20flyer%20miles%20company"
http://www.rewardscanada.ca/maximizemiles.html
http://www.smartertravel.com/advice/ff/advice.php?id=4984&page=2
http://www.roadandtravel.com/traveladvice/frequentflyermiles.htm
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