Beware of Unnecessary Taxes and Fees When Choosing an Airline Loyalty Program
Airline frequent flyer programs are becoming less and less important for free travel , but they can still be useful if you read the fine print. For example, before you join one, check their taxes and fees. This is a common way to hide additional costs.
Knowing these often hidden taxes and fees will give you an idea of what the real benefits will be when it comes time to make money. Brian Kelly, founder of The Points Guy explains:
Some programs are more naughty than others when it comes to bogus fees and “fuel surcharges”. American Airline’s major European travel partners, British Airways and Iberia, charge huge fees that often negate the value of award tickets.
For example, British Airways charges 40,000 miles and over US $ 680 in taxes and fees on return flights from JFK Airport to London in Economy Class. This makes no sense when tickets can be bought immediately for this amount. Plus, you earn miles for your tickets.
Delta will charge a “foreign origin surcharge” of several hundred dollars if the award ticket is departing from Europe. American and United charge a $ 75 commission to book an award within 21 days of departure, and Delta does not. While Delta may charge more miles, they have lower booking fees. So don’t just focus on the cost of travel in miles – also factor in the additional cost when deciding which program is best for your particular use.
You will need to read the fine print for the program, but the effort will be worth it if you otherwise end up using your rewards (or worse, paying out of pocket) for those unnecessary fees. You can also search the Internet for forums or discussions where current or former program members share their experiences with the program, which can give you an insider’s perspective on the benefits.
How to Choose the Best Frequent Flyer Program | Travel + Leisure