What is a frequent flyer program

Flying with the same airline or alliance can earn you points, which can increase your status within the program and be redeemed for future flights. Sign up now. There are a no restrictions on how many programs you can sign-up for, however, they all require you to fly frequently to retain your status.

Traditionally, programs work based on mileage alone. Some programs have now focused on the price of the flight so points are based on how much you have spent rather than how far you have travelled.

Once you have earned a certain number of points you can choose how to spend them. The most common option is upgrading a flight to a premium cabin. The rental car industry initially participated by becoming a partner with the airlines. As the costs of the relationships with the airlines rose, Hertz, the early leader, withdrew from the FF relationship. However, when their market share dropped drastically, they rejoined. Hertz now collaborates in more than 60 FF programs domestic and international partners combined.

In today's market in addition to the many airline partner programs, there are several airline alliances more about these alliances a little later. Another perk in today's frequent flyer market is that you can also earn "miles" or "points" points can be redeemed later as miles for other travel and non-travel transactions.

Travel transactions can include hotel stays, rental cars, and more. Non-travel-related awards include credit card purchases you earn at least one mile, if not more for every dollar charged , long-distance telephone services , even mortgages and stock trades! Finally, shopping at certain stores, both brick-and-mortar and online, also provides an opportunity to "rack up" those miles.

Your frequent flyer miles reside in your account -- much like your dollars in the bank. They accumulate as you travel, although unfortunately they don't earn interest. At this time, most of the larger domestic airlines use a fairly uniform policy: mileage does not expire, but there must be some activity in your account once every three years.

The airlines may change their mileage expiration policies, so you should read their most current guidelines. When the mileage total reaches a certain amount, you can "redeem" them for an award, usually air travel.

Frequent flyer programs are the beginning of a relationship -- hopefully long and loyal -- between you the consumer and the airline. If you choose to apply online using a Web site such as WebFlyer , your information will reside in several airline databases in a short amount of time.

You can call the airlines on their toll-free telephone numbers during which you'll instantly get a member number , sign up while at the airport not advisable if you are in a rush , or send in the registration form using the old standby -- U.

There are several things to consider when deciding which frequent flyer program to join. First and foremost, look at the overall quality ratings of the program that you are considering. One way to obtain information about the quality of frequent flyer programs is to read a survey, such as InsideFlyer's Freddie Awards. If you truly are a frequent flyer, join the program that will allow you to consolidate your miles. This would usually be with the dominant airline in your region i.

The chosen airline should be convenient for you and the one that has the most flights to the places that you frequent. This is your number one consideration, because when you rapidly accrue miles and reach the critical "25," mark, you can qualify for elite status. However, if you are an infrequent flyer, compare the programs and choose the one that allows you the greatest opportunities to earn miles or points for all your non-flight activities.

Consider your patterns of purchasing hotel rooms, renting cars, and general shopping. Look at the airline's partner roster and decide whether that particular frequent flyer program is for you. If you are in this last group, you should compare the total rewards package offered for both flight and non-flight activities before choosing your primary frequent flyer program.

And, finally, you want to pay attention to the little things - the tiny print at the bottom or on the back of the enrollment form. Therein expect to find quite a few key terms and conditions, such as:. Although the programs started with U.

Foreign carriers initially resisted using frequent flyer programs; they theorized that it "reduced" the value of their service. However, their resistance resulted in a significant loss of market share to the U. In the end, they formed their own programs. When selecting a frequent flyer program, airline alliances are something else to consider. The ability to schedule seamless travel is important -- airline alliances help make it possible.

An alliance is a business relationship, often between U. Its purpose is to allow foreign carriers access to the U. The goal of alliance growth is twofold:. Airlines code share so that travel can be organized to flow from one carrier to the other. Code sharing is the industry practice in which an airline puts its code on a flight operated by another carrier.

The airline then sells and issues tickets for the flight. For example, American may place its code on a flight that British Airways operates and then sell it to the customer. This is how air carriers get around restrictions to expand their market presence.

In today's global economy, this truly benefits the frequent traveler. When you travel using alliance carriers, the miles are credited and can be used interchangeably. This allows rapid accrual of miles so you can reach elite status quickly and receive the extra awards at that level. Elite status is a division of the awards programs that separates the frequent traveler from everyone else. In order to achieve this status, a customer must clock 25, frequent flyer miles.

But it is also stratified -- the three levels of elite status are silver , gold and platinum. Each subsequent level requires more mileage and thus, more paid business for the airline. Elite status provides a wide range of benefits, such as preferred boarding, lounges, gratis miles added to the regular number usually awarded, etc.

Within the levels of elite status, there are three tiers of upgrades. These benefits are rewards in addition to those listed above. As you enter this level of status, you should review: the minimum number of miles required to upgrade, and what mileage threshold is required to receive a bonus.

Second-tier consumers may receive unlimited domestic and some international upgrades along with lucrative mileage bonuses. Top-tier members qualify for the works. Awards include companion tickets, international flights, lounge privileges and, as in the case of Air Canada, no blackout dates.

Keep in mind that not all elite programs are created equal. Each year, WebFlyer reviews all the frequent flyer programs, rates them, and declares a top program. If you are looking for the best all-around program to enroll in, this is the place to check. Redeeming your miles is typically a straightforward process. You should always have your frequent flyer number handy when speaking with the airlines. You purchase a ticket with miles the same way you do with cash. They will use your number to access your account and subtract the appropriate amount of miles as you purchase the ticket.

Tickets are available in paper form via regular mail or shipping carriers, and, of course, as an e-ticket. But before you redeem, there are a few important issues that you should consider. They could affect how and when you use your miles. The actual monetary value is typically 2 cents per frequent flyer mile reportedly the airline industry average.

As some industry researchers have noted, it may be smarter to save your miles and purchase a lower cost ticket to your destination.

Furthermore, the airlines have a notorious reputation for blackout dates and limited seat availability for frequent flyer customers. One of the most important parts of your conversation with the ticket agent will be the answer to the question, "What's available for the dates and flights that I want? Finally, you don't always have to use your miles for additional travel. You can use miles and points to purchase other goods and services with certain merchants.

For example, registered users of Points. And don't worry, the list isn't a who's who of obscure store names. And, for an even broader selection of goods, you'll even find Amazon and eBay. In fact, the main feature is that you can create one central location for monitoring several award programs. Let's say you're a member of three frequent flyer programs and you're thinking about joining a hotel program, too.

But it's already a hassle to keep track of your miles and points as it is.