Marriott devaluation guts downtown Portland redemption options

This may be a bit of a niche case, but it neatly illustrates my frustration at Marriott's recently announced changes to hotel categories, as someone who typically stays at Marriott properties 3-4 times per year when visiting Portland, OR.

There are currently 4 Marriott properties in downtown Portland west of the river. Here are their current award categories:

  • Portland Marriott Downtown Waterfront: Category 6;
  • Portland Marriott City Center: Category 6;
  • Courtyard Portland City Center: Category 5;
  • Residence Inn Portland Downtown/RiverPlace: Category 5.

I usually stay at the Courtyard Portland City Center using my MegaBonus award certificates and annual free night certificates from the Chase Marriott Rewards Premier Visa.

Here are the new categories for those properties, starting April 8, 2014:

  • Portland Marriott Downtown Waterfront: Category 7;
  • Portland Marriott City Center: Category 7;
  • Courtyard Portland City Center: Category 6;
  • Residence Inn Portland Downtown/RiverPlace: Category 6.

In other words, it will no longer be possible to use any free night certificates at any Marriott property in Portland's downtown. It may as well be New York City!

East of the river, the Residence Inn Portland Downtown/Lloyd Center is moving from Category 4 to 5 and the Courtyard Portland Downtown/Convention Center is remaining at Category 5, so it will be possible to use some free night certificates at those properties.

Personally, from now on I'll be using my Hilton HHonors points to stay at the Hilton Portland & Executive Tower, which remains a terrific value for Cash + Points bookings at $65 and 16,000 HHonors points per night, including a credit towards breakfast in the restaurant as a Gold elite with Hilton.

In any case, check your own favorite Marriott properties to see whether you'll still be able to use your free night certificates there starting April 8.

Delta's war on their customers has gone too far

When I started blogging over a year ago, I used to joke, "every blogger makes fun of how worthless Skymiles are, and every blogger has at least Platinum Medallion status with Delta."

After United's devaluation, I explained the essential Delta value proposition: miles that aren't worth much, but are among the absolute easiest to earn.

Then when Delta's award chart devaluations began in earnest, I still insisted that you needed a holistic approach in order to make rational decisions about which airline to fly.

With the announcement of the 2015 reimagining of the Skymiles program, I reiterated my intention to switch my mileage earning over to Alaska, while remaining "loyal to [Delta] as an airline."

I'm done defending Delta

In case you missed it, on Wednesday Alaska Airlines shared the next phase in Delta's plan to alienate any remaining loyal customers: Alaska Airlines elites, who until now have received a reciprocal checked bag fee waiver when flying on Delta, will now have to pay to check their first bag.

Whenever a Delta customer needs to check a bag, this puts them in the untenable position of deciding with whether to credit their flight to Delta and earn a piddling number of worthless Skymiles, or credit it to Alaska to earn valuable miles but pay extortionate checked bag fees.

Think your co-branded American Express card will save you? Think again. You may be able to bluff agents at the ticket counter for a few months after the changeover, but the terms and conditions of the checked bag fee waiver are crystal clear:

"Reservation must include the Basic Card Member's SkyMiles number."

So I surrender.

Some folks in Delta revenue management apparently truly believe they can run a profitable airline with revenue exclusively from:

  • hub captives;
  • extremely casual flyers (bargain hunters without Skymiles accounts);
  • and international codeshare connections.

Maybe they're right. But I'm not going to be part of their insane experiment anymore.

Why was this the last straw?

I spent last weekend in New York City and managed to painstakingly convince my mom that her best bet for her relatively frequent regional flights on Delta and Alaska in the Pacific Northwest, and occasional longer flights to visit her children, was to status match her Delta Silver Medallion status to Alaska MVP status. That way, she'd still get her free checked bag, could cancel her American Express Delta Gold card (now that it doesn't earn companion tickets), and earn valuable Alaska miles.

Then I got on a plane to Wisconsin, and when I landed Delta had gutted that benefit.

So yeah, it's personal.

One option for the brave and shameless

I'm going to be giving this a shot on my flight back to New England on Sunday, even though I'm not checking a bag. Based on what I've read, it's technologically possible for gate agents to change the frequent flyer account number on a reservation after checking in but before boarding a flight. That would theoretically allow you to check in with your Skymiles account number and receive a free bag, then switch to you Alaska account for actual earning.

I have no idea whether this works in practice. And it's certainly not something I'm going to ask my mother to do every time she flies. But it's one possibility.

The American – US Airways merger makes my decision easier

My home airport has never had really great options besides Delta. The United flights route through Chicago and are operated by United, which makes two strikes against them. There are US Airways flights to Newark, which allows you to connect onward on United or US Airways, which is not much of an improvement. And of course US Airways treats their elite members notoriously badly, such that I never saw any advantage to pursuing 50,000 or 75,000 mile status with them.

Now that Delta has gutted their partnership with Alaska, it's time to rethink that calculus, with the help of the merger between American and US Airways, and reciprocal mileage earning between those airlines:

  • For Delta flights where I need to check bags, I'll book award tickets and keep my Skymiles account number on the reservation;
  • For Delta flights without checked bags, I'll credit my paid flights to Alaska;
  • For the time being for flights on US Airways metal, I'll credit my paid flights to American. Hopefully they'll align their relationship to Alaska soon and I'll be able to credit miles there;
  • For paid flights on American Airlines metal, I'll continue crediting my flights to Alaska.

It's a little more complicated than my current system, but I book enough paid tickets using my US Bank Flexpoints and Barclaycard Arrival miles that I have a fair chance of earning elite status on a couple airlines next year. That being the case, I need to be sure I'm booking and crediting my flights strategically to maximize the benefits of status.

Who will buy Alaska?

The question on everyone's mind is how long Alaska can operate as an independent airline, give the pressure in the industry for consolidation.

I don't have any special insight on whether or when Alaska will be sold to one of the remaining big three carriers, but I follow the subject with intense interest.

Fortunately, Alaska is currently operating at a profit, and it's a lot more expensive to buy a profitable airline than an unprofitable one!

Naturally, given the recent developments at Delta, my preference would be for Alaska to continue to develop their partnership with American, while remaining independent and continuing to operate their amazing loyalty program.

Should you be buying American Express gift cards?

[update 3/27/14: I've added a link to BeFrugal below, where you can earn 3% cash back on American Express gift cards, the best offer I'm currently aware of. Thanks to @rajiv1po on Twitter for alerting me to that deal.]

One opportunity that has really taken off in the last year or so has been American Express gift cards. These are prepaid, American Express-branded cards that can be purchased online and loaded with up to $3,000 each.

American Express gift cards are not PIN-enabled as most Visa and MasterCard gift cards now available are. Instead, they can be used only as credit cards for in-person or online transactions. That means that many of the easiest methods of prepaid and gift card liquidation are not available. For example:

  • Walmart money orders;
  • Walmart bill payments;
  • Evolve Money bill payments;
  • in-person Bluebird and Gobank loads.

The only options for liquidation are those where it's possible to use an American Express credit card to begin with:

  • Purchasing prepaid reload and gift cards;
  • Loading Serve cards in-store at CVS or online;
  • Amazon Payments;
  • Kiva loans;
  • etc.

In other words, American Express gift cards are not an option to increase the amount of spend you manufacture each month, since the cards themselves consume manufactured spending bandwidth you would otherwise be able to use on credit cards directly.

So why buy them?

Use cash back portals for fun and profit

The reason you might consider paying American Express an additional fee to route your manufactured spend through their gift cards is that these gift cards are eligible for airline miles and cash back through a number of shopping portals. Here are some currently available offers, although these do change regularly:

  • Barclaycard Arrival RewardsBoost: 2 miles/$. Worth 2.22 cents towards travel redemptions;
  • TopCashBack: 2% cash back;
  • BigCrumbs: 1.2% cash back;
  • Delta SkyMiles Shopping: 1 mile/$;
  • Alaska Mileage Plan Shopping: 1 mile/$;
  • [Update 3/27/14: BeFrugal: 3% cash back.]

As long as you don't make the purchase with a Citi-issued credit credit card, then in addition to the points you earn through whichever shopping portal you choose to use, you'll also earn your credit card's rewards currency.

Limits and warnings

Frequent Miler has done the lord's work compiling some frequently asked questions about American Express gift card purchases. Some highlights:

  • Don't use Citi cards [or US Bank Club Carlson - update 3/28/14: see the comments for more datapoints] credit cards for your purchase, as they'll incur cash advance fees and won't earn rewards;
  • Log into your American Express account to see the option to buy gift cards up to $3,000 in value (otherwise you're limited to $500 cards);
  • Personal gift card orders are limited to $5,000;
  • Business gift card orders are limited to $75,000;
  • There are undisclosed time limits on orders as well.

As they say, read the whole thing.

My shopping portal ritual

Historically, I've had terrible luck getting my shopping portal purchases to track correctly. Here's my system for increasing the likelihood of receiving my portal bonuses (I use an Apple computer):

  • Close all open Safari windows and tabs;
  • Turn off private browsing;
  • In the top left corner, click "Safari" and select "Reset Safari..."
  • Make sure all the boxes are checked, and click "Reset;"
  • Open the shopping portal and click through to desired merchant, making the purchase immediately;
  • If I have to remove any items from my shopping cart, I start the process over from scratch.

It's certainly a little bit paranoid, but since I've started using this system all my portal purchases have tracked successfully.

My Experience with Barclaycard RewardsBoost

In the spirit of this month's manufactured spending competition, I decided I'd do my first experiments with American Express gift cards. The best available portal offer I found was for 2 Arrival miles per dollar, so I decided to click through the Barclaycard RewardsBoost portal. Now that my miles have posted, I can share the timeline of my purchase so my readers will know roughly what to expect if they do decide to pursue this opportunity.

  • March 8: order placed for $2,0xx, including $9.95 shipping fee. Used promo code "SYNCGIFT" to waive purchase fee. Received order confirmation;
  • March 8: pending charge appeared in my online banking;
  • March 10: received e-mail from American Express saying my order had been approved;
  • March 10: pending charge disappeared from online banking;
  • March 14, 3:08 am: received e-mail from American Express saying my order had shipped;
  • March 14, 9:39 am: delivery received from UPS;
  • March 15: charge posted to my online banking and Arrival miles received for amount of transaction;
  • March 26: RewardsBoost miles posted to my account and I received an e-mail notification from RewardsBoost. I received miles for the amount of the gift card, but not for the $9.95 shipping fee.

There were a couple weird things that are worth drawing your attention to. Usually when you make a purchase with a credit card, it appears as a "pending" charge, then clears as a "posted" transaction within a few days. In my case, the charge disappeared completely for several days, reappearing as a posted transaction almost a week later. If you are using a credit card with a preset spending limit, you should be sure to keep enough available credit on your account to allow the charge to post.

Most problems with the American Express gift card process seem to occur during the interval between an order being "received" and the order being "approved." No one knows exactly what goes on during that interval, but it causes many, many orders to be cancelled and there doesn't appear to be any way to generate consistently successful transactions.

For what it's worth, for a second transaction I made early today, I received the "order approved" e-mail just 3 hours after the "order received" e-mail: as we say in the business, your miles may vary!

Mid-week roundup from around the web

I periodically like to clear out my RSS reader and pass along the most interesting news that has recently crossed my desk:

  • Marriott's April 8, 2014 devaluation sucks, putting the Courtyard Portland City Center and Residence Inn Portland Downtown/RiverPlace in Category 6 and therefore out of reach for Megabonus and annual free night certificates;
  • Frequent Miler makes me laugh, since I can't bear to spend any money on Amazon unless I've redeemed Plink points for gift card credits;
  • Chasing the Points reminds us to not just manage hard credit pulls, but also utilization ratios;
  • Frugal Travel Guy wants you to sign up for a card that offers just 50,000 HHonors points and a $50 statement credit, and that you'll never use again (don't do it);
  • View from the Wing wants you to sign up for a card that offers 75,000 HHonors points and has a $75 annual fee. Instead, apply for the no-annual-fee version and then upgrade the card to Surpass and earn a total of 90,000 HHonors points for the same annual fee;
  • Frugal Travel Guy gets upset about your whining;
  • Milenomics does the shuffle;
  • PFDigest tells you to watch what you write in your PayPal message boxes (I usually go with "March rent").

Good work today, team.

This blog is not free

I started blogging over a year ago because I was growing more and more serious about travel hacking and was disappointed with the quality of the blogs I was reading. After just a few months I had already noticed a lot of problems within the blogging community:

  • Blogs are repetitive. There are many more-or-less permanent features of rewards programs, and I was reading post after post repeating the same information. The Southwest Companion Pass is a great deal, but it's also a deal that hasn't changed in years: it doesn't require a new blog post, it requires a working search function;
  • Blogs are boring. I love reading about tips and tricks for booking award tickets, but I have an incredibly low threshold for staring at pictures of every meal a blogger ate in Milan;
  • Blogs are shills. In the United States of America in the 21st century, the finance industry is an all-consuming behemoth, swallowing everything it touches — and blogs are no exception. Credit card affiliate links are so lucrative it is simply impossible for a person of average quality to resist the kind of payday aggressive pitching of those links can provide.

That last point brings me to a post I read today on Matt's blog over at Saverocity. Matt asks the question:

"Can we create a new paradigm, where bloggers put the readers first, cut out the affiliate companies altogether, add value, and everybody wins?"

Why blog?

Obviously, there are a lot of people who think the travel hacking community would be better off without blogs and bloggers. While they undoubtedly have some legitimate concerns about blogs targeting people who don't have the financial responsibility to make it lucrative, those concerns are usually mixed with a self-interested belief that the fewer people who know about various techniques, the longer those techniques will remain viable for those in the know.

Personally, I blog because I want as many people as possible to have the same opportunities I do to travel the world for next to nothing, stay in 5-star hotels for the price of youth hostels, and make money taking advantage of credit card rewards programs. If 100 people find out about a technique thanks to my blog, then each month that technique continues to exist is worth 100 months of my taking advantage of it alone. My readers are my force multipliers.

This blog is not free

It's natural to think of everything available on the internet as "free," and that's certainly something I'm guilty of from time to time. But it's not true, and that's the fact underlying Matt's argument. If you want to read fresh, original content, someone has to be paying for it:

  • It might be Google or another display advertising network paying the blogger for your surfing and click data, as well as any personal information stored in your cookies;
  • It might be a credit card company hoping the blogger will provide less-than-objective analysis of a product if the payout is big enough;
  • Or it might be the blogger paying for it by donating their money to pay hosting costs and their time to produce the content you value.

In none of those cases is the content free, just because access to it is.

Pay for content worth reading

Over 500 readers visit this site each day, and hundreds more follow me on Twitter, through my RSS feed, or receive e-mail updates with new posts. That's how they find out about techniques I've covered in detail, like:

I don't currently have display advertising, and I don't have affiliate links, and I'd personally like to keep it that way. That's why rather than having Google pay for my content, or have the credit card companies pay for my content, I introduced the unprecedented opportunity for my readers to support the site directly by signing up for PayPal subscriptions.

A weekly or monthly contribution of $2, $5, or $10(!) goes directly to keeping this site proudly independent.

So if you've learned any tips or tricks from this site that have increased your ability to earn money and generate value, please consider signing up for a subscription or making a contribution directly to freequentflyer@freequentflyerbook.com (also accepted: Amazon Payments contributions!).

If each of my readers made a contribution of just $2 each month, that would guarantee this site's sustainability and independence for years to come. That's my goal, and I hope you'll join me in getting there together.

To subscribe, just visit freequentflyerbook.com and look for the drop-down box that looks like this:

And thanks in advance.

Come hang out at the #milemadness DO!

My favorite part of blogging is hearing from readers, whether they're passing along a tip, thanking me for some counter-intuitive analysis, or violently disagreeing with me.

The only thing better than reading your e-mails and comments is hanging out in person, which is why I'm so excited about the recently announced manufactured spending 'DO.'

Basically, a whole bunch of the players in this month's manufactured spending tournament, as well as Frequent Miler, the competition's judge, are going to get together to talk about the techniques and tools we use to travel the world for next to nothing.

There's going to be lunch, there are going to be speeches, cocktails, and of course a ton of networking opportunities, where you can learn from the best and share your own secrets (or not!).

The Details

  • When: Saturday May 10th, starting at 11 am;
  • Where: HYATT House Charlotte Center City, 435 East Trade Street, Charlotte, NC 28202;
  • Tickets: $65 until March 31, then $75;

We even have this easy widget you can use to buy your tickets!

Getting there

Charlotte's a US Airways hub, and I was able to find a pretty cheap non-stop flight down there, so I just clicked through the Ultimate Rewards mall to Travelocity and put the charge on my Barclaycard Arrival World MasterCard. I'll redeem 25,000 Arrival miles against the purchase sometime in the next 90 days and end up paying about $100 for the flight.

Alternatively, you could redeem either US Airways or American Airlines miles for an award flight on US Airways, although that ended up not being worth doing in my case.

Staying there

The scheduled events are taking place on Saturday, so you could theoretically fly in Saturday morning and leave late Saturday night. I knew I wanted to spend at least one night in Charlotte, so I talked to Matt at Saverocity who let me in on a little secret: any part of our event deposit we don't spend during our lunch and cocktails on Saturday is going towards Saturday night's festivities. So I decided to stay over Saturday night and leave mid-day Sunday.

We have an event rate at the HYATT House Charlotte Center City of $119 per night, plus taxes, which works out to $137.15. That's slightly higher than the AAA rate of $133.69 after taxes, if you're a AAA member. Both rates are cancelable until 4 pm the day of arrival.

If you want to use Hyatt Gold Passport points to reserve a room, it'll cost 12,000 points per night, giving you just 1.11 cents per point in value. That might be worth it if you already have a stockpile of Gold Passport points, but it certainly wouldn't be worth transferring points in from Ultimate Rewards.

If you're making a reservation through Hyatt.com, remember to click through a cash back portal and earn 3% (TopCashBack) or 4% (EBates) cash back on your room rate.

See you in Charlotte!

Chase Freedom bonus categories and the Sapphire Preferred

I assume everyone who carries a Chase Freedom card has already received their quarterly text message telling them to register for next quarter's bonus categories of "restaurants and Lowe's home improvement stores."

So instead of reminding you to register for 5 Ultimate Rewards points per dollar spent on the Freedom in those categories next quarter, let me take the opportunity to continue my fruitless war against the Chase Sapphire Preferred.

The Sapphire Preferred, with its $95 annual fee, has 2 permanent bonus categories: restaurants and travel.

But neither category alone, nor both together, is worth a $95 annual fee. Here's why.

You should put non-bonused spend on a 2% cash back card

In non-bonused categories, a no-annual-fee 2% cash back card is clearly superior to a dollar spent on the Chase Sapphire Preferred. You would need to get over 2 cents per point in value from every Ultimate Rewards point earned in non-bonused categories in order to work your way up to a loss of only the $95 annual fee.

Just use the 2% cash back card instead.

You should put eligible travel purchases on the Barclaycard Arrival

As I reported back in December, the Arrival's definition of "travel" purchases doesn't align exactly with the Sapphire Preferred's. Namely, while Chase bonuses taxi fares, Barclaycard does not allow Arrival mile redemptions against them. That's a real difference, but of course its significance depends on how frequently you take taxis.

2 flexible Ultimate Rewards points are strictly more valuable than 2 Arrival miles, being worth a minimum of 2.5 cents towards paid travel through the Ultimate Rewards portal, compared to the 2 Arrival miles' value of 2.22 cents.

So why don't they justify putting your travel purchases on the Sapphire Preferred? Because of the annual fee.

Consider how much you'll have to spend in order to recoup the Sapphire Preferred's $95 annual fee:

  • At 2.5 cents back per dollar, you'll need to spend $3,800 in travel categories in order to earn back the value of the annual fee.
  • But it'll take another $3,040 to recover the $76 in value you would have earned from putting the initial $3,800 in travel spend on a no-annual-fee 2% cash back card!
  • With the conservative valuation of 2.5 cents back per dollar spent in bonused travel categories, you'll need to spend $6,840 before you start showing a profit.

What makes the Barclaycard Arrival World MasterCard different? Redeeming Barclaycard Arrival miles against the same $6,840 in travel purchases will yield at least $752 in excess value over the 2% cash back card, with an annual fee of just $89:

  • Redeeming 684,000 Arrival miles against a single transaction will yield a 10%, 68,400 mile, dividend, worth $684 towards a future redemption;
  • That future redemption will yield a dividend of 6,840, redeemable for up to $68 towards a third purchase.

To rephrase this point slightly differently:

  • The Barclaycard Arrival isn't superior in earnings to the Sapphire Preferred for travel purchases;
  • It's superior to the Sapphire Preferred for travel purchases because that's how you can leverage its dominant 2.22% cash back earning rate on all non-bonused (manufactured) spend.

Lots of cards bonus restaurant spending

Earning 2 Ultimate Rewards points earned per dollar spent at restaurants with the Sapphire Preferred is a nice touch, but it's hardly revolutionary. Check out Frequent Miler's list of cards giving bonuses in various common categories to see why.

The no-annual-fee Chase Freedom offers 5 Ultimate Rewards points per dollar spent at restaurants this quarter.

So for 25% of this year you would be downright insane to put restaurant charges on your Sapphire Preferred card. And for the rest of the year, you can simply select restaurants as one of your US Bank Cash+ bonus categories to secure 5% cash back year-round on up to $2,000 per quarter spent at restaurants.

Conclusion

Leave the Sapphire Preferred at home.

Reflections on week 2 of #milemadness

This post is coming a little late, since week 2 of #milemadness ended last Friday, but I wanted to share my thoughts before the week 3 results are tabulated and released.

My War on CPD

Since I started travel hacking, and in particular manufacturing spend, I've had my eye trained on a single metric: cost per dollar of manufactured spend, or CPD. It's important to note that this is a minority view — the traditional metric thrown around is CPM, or cents per mile. It's basically the difference between judging the tool of manufactured spend versus judging the outcome of free travel.

A simple example will illustrate this difference. The new TD Go Visa Buxx card allows you to pay $1 to load up to $1,000 from any Visa or MasterCard credit or debit card, which can then be unloaded using PIN-based debit. This tool gives you a fixed CPD of $1 per $1,001 in manufactured spend, or $0.001. The CPM, on the other hand, depends entirely on which card you use to load the TD Go:

  • the Bank of America Alaska Airlines debit card earns 1 Alaska mile per $2 spent on the card, leading to a "traditional" CPM of 0.2;
  • the Chase British Airways Visa Signature earns 1.25 Avios per dollar spent, generating a CPM of 0.098.

My point is, it doesn't make any sense to judge the TD Go based on what cards you happen to carry or how you happen to value their respective rewards currencies. That's going to depend on your travel goals, your credit limits, your bank relationships, and spiritual factors known only to you.

Playing Against Myself

At this point I'm hopelessly behind the front-runners, who have been leveraging 5% cash back credit cards to run up huge scores buying PIN-enabled gift cards at drugstores and office supply stores. Meanwhile, I've stayed laser-focused on driving down my CPD, and am very pleased with the results. Here's my CPD calculations from the first two weeks of the competition:

  • Week 1: $19,861 in spend, $170 in fees, 0.86 cents per dollar of spend;
  • Week 2: $10,357 in spend, $91 in fees, 0.88 cents per dollar;
  • Running total: $30,218 in spend, $261 in fees, 0.86 cents per dollar;
  • Week 3 estimate: $9,060 in spend, $63 in fees, 0.7 cents per dollar.

I'm truly satisfied that I've been able to scale my manufactured spending activities as much as I have without giving very much up on the CPD front. I'm remaining well below what I consider my unofficial "ceiling" of 1 cent per dollar — the maximum I'd be willing to pay for a dollar of manufactured spend.

My Extracurricular Activities

One funny side effect of the way the manufactured spending tournament is being scored is that it almost completely discounts my favorite way of earning miles: using my Bank of America Alaska Airlines debit card. The reason is somewhat technical, but basically goes like this:

  • Each day, we're only allowed to count towards the competition the spend that we do within our remaining "bankroll;"
  • Therefore, in order to count my Alaska Airlines debit card spending, I would have to have that amount remaining in my bankroll at the end of the day;
  • However, if I had money remaining in my bankroll at the end of the day, I'd be better off using it on credit card spending (earning 1 or more mile per dollar, or 2% cash back) rather than debit card spending (earning just 0.5 miles per dollar).

So even though I've already earned 7,000 Alaska miles this month, just a tiny fraction of them count towards my official score!

Reminder: Using Alaska miles for Delta BusinessElite

I love my complimentary Medallion upgrades as much as the next Delta flyer, but back in August of last year I threw together a quick explanation for why you and everyone you know should be crediting your paid Delta flights to Alaska's Mileage Plan, rather than to Delta Skymiles. Namely, the same Delta flights, on the same Delta aircraft, on the same Delta days, in many cases cost fewer Mileage Plan miles than Skymiles.

Of course, the changes to Skymiles earning rates coming in 2015 make the point even more convincingly than I ever could.

Still, I want to point out one additional wrinkle that I came across the other day: Alaska doesn't know or care that BusinessElite exists.

In case you, like Alaska, have never heard of BusinessElite, it's Delta's long-haul preimum international and transcontinental product. It features a curated wine list, lie-flat seats, and some other features you're more than capable of reading about on Delta's website.

Most importantly, redeeming Skymiles for BusinessElite seats on transcontinental routes costs more than redeeming them for domestic First Class.

A non-stop round-trip itinerary from New York's JFK airport to Los Angeles in BusinessElite costs 65,000 Skymiles:

The same trip in domestic First (without the fancy wine or lay-flat seats) with a layover in Detroit or Salt Lake City costs just 50,000 Skymiles. But both trips cost 50,000 Alaska Mileage Plan miles:

Conclusion

I don't consider redeeming miles for domestic first class a great deal under most circumstances.

But if it's ever a great deal, it's a great deal for premium transcontinental service.

That was fast: Hawaiian changes Hilton transfer rate

At the end of January I responded to the surge of posts about changes to the ratio at which Virgin Atlantic Flying Club miles could be transferred to Hilton HHonors points by pointing out that the Hawaiian Airlines transfer ratio hadn't changed.

Unfortunately, Hawaiian quickly followed suit and devalued their transfer ratio, so that Hawaiian Airlines mile can now be transferred to Hilton HHonors only at a ratio of 1 HawaiianMile for 1.5 HHonors points, in increments of 10,000 HawaiianMiles (for 15,000 HHonors points).

I don't like to play armchair industry analyst, but it was obviously problematic for Hilton's co-branded credit card issuers, American Express and Citi, that the Barclaycard-issued Hawaiian Airlines co-branded credit card was giving a higher signup bonus — in terms of HHonors points — than HHonors' own co-branded credit cards.

That problem has now been finessed, by reducing the appeal of the Hawaiian Airlines card for those interested only in transferring their miles to Hilton HHonors points, without devaluing Hawaiian's own award chart.