Buying American Airlines Miles - Is current bonus offer a good deal?

[hightownCO]

Am looking at accumulating miles for TA in October 2012. I'll be transferring SPG miles in which will give me enough for one way STL to BCN but would be so, so nice to travel Bus or First for that distance.

 

AA has a current 20% bonus if purchasing 20k or more. If I'm figuring right, that puts it at 2.2cents per mile. Is that a good deal?

 

How often do they do this? Just wondering if I should grab it now or wait?

 

Don't want to open a credit card just for miles so not looking at that option.

 

Thanks for any advise.

[Gardyloo]

It seems they do it pretty often. 20% is around the lowest bonus level I've seen - 33% or even 40% is not uncommon, but it's unpredictable.

 

Don't forget the 7.5% (I think) excise tax and the $30 admin. fee they tack onto it. Do the math on that basis.

 

As to whether 2.2cpm is good, IMO yes, but only for redemptions for business or first class. Remember you still have to find availability of seats on the day(s) you want, so there's still something of an uncertainty principle to consider. But yeah, a one-way business class ticket to Europe would be a couple thousand dollars, vs. 50,000 miles at 2.2c each? Deal.

[PennyAgain]

I am an eager beaver for ff miles, but don't buy them that way unless I have a sudden need for them.

 

There are many other ways to get AA miles including AA eshopping, AA dining rewards and hotel stays.

 

I would do some studying on the issue before buying miles.

[hightownCO]

thanks for the responses and advise.

 

Thing is I'll need to get this ticket probably as soon as the window opens at the end of November, beginning of December. So don't think I can every accumulate 20,000 miles by those other ways - shopping, dining etc.

 

So with 6 months between now and then, is it likely that this 20% bonus will come out again or have you seen better?

[grandma*knows*best]

If I'm figuring right, that puts it at 2.2cents per mile. Is that a good deal?

 

Not really. It is never cost effective to buy miles; their cost is higher than their value.

[Twickenham]

Thing is I'll need to get this ticket probably as soon as the window opens at the end of November, beginning of December. So don't think I can every accumulate 20,000 miles by those other ways - shopping, dining etc.

 

Just getting the CC gives you 30,000 miles. Add to that CC spend, and that alone could give you the miles you need.

I would look at the possibilities given on the AA website and compare that with your usual spend patterns, and see where you can maximize your miles accummulation.

[Gardyloo]

Not really. It is never cost effective to buy miles; their cost is higher than their value.

Never is a strong word; I guess I disagree.

 

Assume you can buy 40,000 miles (with bonuses) for $900.

 

Redeem them for two one-way tickets between, say, Los Angeles and, say, Rome, where you're catching a boat returning to the US.

 

That's $450 per person for a ticket that would cost at least $800 even if you're using Aer Lingus. You're already $700 ahead.

 

The difference is even greater if you look at business class redemption/fare comparisons.

 

So I don't know about "never."

 

Or, say you're sitting with 950,000 lifetime AA miles. 50,000 more miles (say $1000) puts you over 1 million lifetime miles, which confers lifetime Gold elite status. Never pay another checked bag fee again. Pick exit rows or the best aisle seats ahead of time. Use the priority check-in line. Get free upgrades on domestic flights if available. And so on. In my view that $1000 is leveraged big time.

 

You certainly can get another credit card with signup bonus, pay the CC company the $75 or $100 a year fee, and be ahead on that score. Your credit score, well, who knows?

[6rugrats]

Or, say you're sitting with 950,000 lifetime AA miles. 50,000 more miles (say $1000) puts you over 1 million lifetime miles, which confers lifetime Gold elite status.

 

 

I know nothing about AA's program. Are you saying that purchased miles count toward status?

[Gardyloo]

I know nothing about AA's program. Are you saying that purchased miles count toward status?

Purchased, credit card, elite bonus miles, transferred... the whole magilla. But ONLY toward lifetime status - 1MM= life Gold, 2MM = life Plat. You can't buy your way into annual elite status - gotta have the old butt in seat for that.

 

The "lifetime" program may be changing soon, so anyone on the cusp should look at the numbers.

[vjmatty]

Just getting the CC gives you 30,000 miles. Add to that CC spend, and that alone could give you the miles you need.

I would look at the possibilities given on the AA website and compare that with your usual spend patterns, and see where you can maximize your miles accummulation.

 

Question, does the Citibank AA card still not give double miles for using the card to buy AA tickets? It seemed to be the only FF card that doesn't give double for anything including AA purchases so I demoted it to a balance transfer card when they offered 0% interest for a year.

[TrqoisWtrs]

Just getting the CC gives you 30,000 miles. Add to that CC spend, and that alone could give you the miles you need.

 

I'm not positive, but I thought I saw something in the small print on the last offer I got that the bonus miles are only good for travel in the continental US.

[greatam]

Question, does the Citibank AA card still not give double miles for using the card to buy AA tickets? It seemed to be the only FF card that doesn't give double for anything including AA purchases so I demoted it to a balance transfer card when they offered 0% interest for a year.

 

Depends on what kind of Citi AA card and what program was in effect at the time you got the credit card. There are so many-World Mastercards, Business World Mastercards, another AA branded card offered by Citi, etc., etc.

 

One of my business Citi cards has the double miles purchasing flights, hotels, etc. off the AA website. One of my personal cards does not. I also believe it has to do with how much spend you have on a card. The business card racks up a LOT. The personal card pays my cell bills, other utilities and groceries.

 

Here is a pretty good list of bonuses offered by AA just for flying certain flights + other opportunities. http://www.frequentflyerbonuses.com/aadvantage.html

[Twickenham]

I'm not positive, but I thought I saw something in the small print on the last offer I got that the bonus miles are only good for travel in the continental US.

 

Maybe this is what you saw:

 

2 A total of 25,000 AAdvantage® miles may be redeemed for round trip coach class Continental U.S. / Canada MileSAAverSM awards.

 

This is a footnote to the claim that the 30,000 bonus miles 'are more than enough for a domestic round-trip flight'. I do not believe it is a restriction that those miles have to be used for a domestic flight.

[greatam]

Never is a strong word; I guess I disagree.

 

Assume you can buy 40,000 miles (with bonuses) for $900.

 

Redeem them for two one-way tickets between, say, Los Angeles and, say, Rome, where you're catching a boat returning to the US.

 

That's $450 per person for a ticket that would cost at least $800 even if you're using Aer Lingus. You're already $700 ahead.

 

The difference is even greater if you look at business class redemption/fare comparisons.

 

So I don't know about "never."

 

Or, say you're sitting with 950,000 lifetime AA miles. 50,000 more miles (say $1000) puts you over 1 million lifetime miles, which confers lifetime Gold elite status. Never pay another checked bag fee again. Pick exit rows or the best aisle seats ahead of time. Use the priority check-in line. Get free upgrades on domestic flights if available. And so on. In my view that $1000 is leveraged big time.

 

You certainly can get another credit card with signup bonus, pay the CC company the $75 or $100 a year fee, and be ahead on that score. Your credit score, well, who knows?

 

I agree, I agree, I agree.

 

While I rack up a lot of AA miles every year and don't buy for myself, I often purchase for employee upgrades to business class for long haul international flights. Sure can't purchase a business class ticket most of the time for what miles + co-pay cost.

 

And I also purchase Starpoints. VERY, very valuable for upgrades on certain foreign airlines (Qatar, Singapore and Emirates particularly because I don't fly Star A* enough to accumulate the miles). Definitely not as cheap as buying AA miles, BUT you can buy twice as many yearly, can have someone else buy 79,000 for you and get the 5000 mile transfer bonus. I am flying back to the USA in May on Qatar in their new "suites". 1/2 the price of purchasing even the most heavily discounted first class ticket.

[hightownCO]

Well, I thank you all for your comments. Again, want nothing to do with another credit card. But with the other's input, I think for this purpose, it's not a bad idea. Between that and my 25k from starpoints, will be ready to jump on a business class one way when/if they are available.

[vjmatty]

Sure can't purchase a business class ticket most of the time for what miles + co-pay cost.

 

That is when it is most worthwhile.... I have often had to buy or exchange the last 10 or 15 thousand miles to get two reward RT business class tickets to Europe. While I may spend around $1000 in copays, buying miles or exchange fees, it is still much cheaper than the cost of the tickets outright.

[Desert Cruisers]

Never is a strong word; I guess I disagree.

 

Assume you can buy 40,000 miles (with bonuses) for $900.

 

Redeem them for two one-way tickets between, say, Los Angeles and, say, Rome, where you're catching a boat returning to the US.

 

That's $450 per person for a ticket that would cost at least $800 even if you're using Aer Lingus. You're already $700 ahead.

 

The difference is even greater if you look at business class redemption/fare comparisons.

 

So I don't know about "never."

 

Or, say you're sitting with 950,000 lifetime AA miles. 50,000 more miles (say $1000) puts you over 1 million lifetime miles, which confers lifetime Gold elite status. Never pay another checked bag fee again. Pick exit rows or the best aisle seats ahead of time. Use the priority check-in line. Get free upgrades on domestic flights if available. And so on. In my view that $1000 is leveraged big time.

 

You certainly can get another credit card with signup bonus, pay the CC company the $75 or $100 a year fee, and be ahead on that score. Your credit score, well, who knows?

 

Just a point of clarification. Lifetime Gold Elite status does not get you "free upgrades on domestic flights if available". I have lifetime Platinum Elite status and I must pay for my upgrades either with miles or cash.

[Gardyloo]

Just a point of clarification. Lifetime Gold Elite status does not get you "free upgrades on domestic flights if available". I have lifetime Platinum Elite status and I must pay for my upgrades either with miles or cash.

You will continue to earn 500-mile "stickers" as Gold - 4 per 10,000 EQM. You can buy more if you need them.

[Eurobikefan]

Aadvantage is celebrating the 30th anniversary of the program and is offering new deals daily for the 30 days from April 18 forward.

 

Today's announced deal is "Save 30% on buyAAmiles® Purchases". This deal is good for 3 days---today thru Sun Apr 24.

 

https://secure.fly.aa.com/30promo/index.aspx?cc=8&anchorLocation=DirectURL&title=aadvantage30th

[wrp96]

If you need AA miles, definitely take advantage of all the 30 days of Advantage deals offers. For example you can register daily for the sweepstakes, in addition to the various miles offers. This may get you some of the miles you need without having to buy any miles.

[hightownCO]

Aadvantage is celebrating the 30th anniversary of the program and is offering new deals daily for the 30 days from April 18 forward.

 

Today's announced deal is "Save 30% on buyAAmiles® Purchases". This deal is good for 3 days---today thru Sun Apr 24.

 

https://secure.fly.aa.com/30promo/index.aspx?cc=8&anchorLocation=DirectURL&title=aadvantage30th

 

If you need AA miles, definitely take advantage of all the 30 days of Advantage deals offers. For example you can register daily for the sweepstakes, in addition to the various miles offers. This may get you some of the miles you need without having to buy any miles.

 

Thanks for posting this! 30% bonus beats 20% bonus. Even with the fee and tax, comes out to 2cents per mile. If I can leverage this into business class award, I think it will be money well spent.

[wrp96]

Thanks for posting this! 30% bonus beats 20% bonus. Even with the fee and tax, comes out to 2cents per mile. If I can leverage this into business class award, I think it will be money well spent.

 

 

Don't forget to register daily for the 30,000 miles giveaway. Slim chance of winning, but you never know.:p

[Desert Cruisers]

You will continue to earn 500-mile "stickers" as Gold - 4 per 10,000 EQM. You can buy more if you need them.

 

Yes, you are correct. I hit the send button too quickly. However, I don't consider my earned upgrades "free". Only get them when buying tickets. Didn't want folks to think that lifetime status give you a space-available upgrade by flashing your card.

 

Having lifetime status is wonderful after years of traveling - a well-earned retirement benefit.