Points and Miles: May

I don't know whether you've noticed or not, but it seems that over the last six months or so, points and miles offers, especially from hotel chains have become less lucrative.

One possible explanation for this is that the improving American economy (yes, it really is improving, at least for businesses) has resulted in lower hotel vacancy rates, and thus higher room rates, meaning less need for the chains to offer incentives to fill otherwise empty rooms.

As for airlines, competition has been reduced by mergers (Delta took over Northwest, United merged with Continental, Southwest bought AirTran), and the carriers have been cutting routes and retiring older, less fuel-efficient planes in response to high oil prices. This has meant fewer seats to fill, and combined with the improved business climate, less need to entice fliers.

On the credit card front, credit has gotten tighter, not just in the U.S., but in Canada as well; and reduced competition (BMO took over Citi's Canadian credit card portfolio and TD acquired MBNA's) has meant that rejections are more common, annual fees higher, and sign-up bonuses more meagre.

Throw in the fact that both Aeroplan and AirMiles, Canada's two most popular "loyalty" programs, recently devalued their programs and it looks like the glory days of point and mile travel bargains are behind us.

This may partly explain the current popularity of such "buy-a-deal" sites as WagJag and Groupon, but pitfalls abound with these deals, so buyer beware.

Anyway, points and miles programs aren't going away: they're hugely profitable for one thing. It just means we have to work harder and smarter to get the best value from them. So here are a few good offers for this month.

The Choice Privileges MasterCard usually offers a sign-up bonus of 8K points, but until June 13, you'll get 16K. That's enough for two free nights at many Choice Hotels. All the details are here.

Starwood Hotels (Sheraton, Westin, etc.) is offering CAA/AAA members a range of discounts and special offers at properties in the southern U.S. and Caribbean through the end of 2012. Check them out here.

And for Aeroplan members, earn either a 1500 mile or 16 500 mile bonus when you complete a range of partner activities during the month of May. You have a head start if you have an Aeroplan-branded credit card and/or are flying Air Canada during the month. This page will tell you what you need to know. I love this one, because it's a challenge to see how I can maximize my activities with a minimum of spending.

I'll let you know how I did when the points post.

Follow me on Twitter: @AeneasLane

More Winter 2011 Points and Miles Offers

With Family Day long weekend and the March Break fast approaching, I thought I'd highlight some hotel and points offers that have come my way the last few weeks.

You can earn 250 American AAdvantage miles just for joining Best Western Rewards. The offer is valid until April 11, 2011.

Priority Club's (Holiday Inn, etc.) first promotion of 2011 lets you earn 3,000 bonus points for every three nights you stay, up to 30,000 bonus points for 30 nights. It's good for hotel stays from February 1 to April 30, 2011. You have to register via this link: Priority Club 2011-Q1 Bonus Points Promotion registration link.

Priority Club is also offering an easy 500 points for completing three simple surveys. Click this link to find the Flyertalk post with links to the surveys and anwers. Points post right away.

Until April 13, 2011 Choice Privileges (the loyalty program of Comfort Inn, EconoLodge, Clarion, Quality, and several others) is awarding triple points after your second stay. If you're planning a road trip south and back in the next few months, this is potentially a very valuable offer as these are generally budget properties common at Interstate exits. You can join and register for the offer via this link.

Carlson Hotels' Radisson chain is offering 10,000 bonus Goldpoints through February 28, 2011 for booking the "Experience the World of Radisson" promotion. Here's the link.

Air Canada's Winter Extravelganza lets Aeroplan members earn double miles and other bonuses if they register and fly selected routes between now and April 30, 2011. Details are available here.

Marriott Hotels Weekend Bonus offers a $100 Bonus Bucks coupon good toward a future two-night weekend getaway as well as up to $100 off airfare. Just spend a Friday or Saturday night at participating JW Marriott or Marriott Hotels & Resorts. Book by February 11, 2011, and stay from February 10 through March 27, 2011. Details are here.

I haven't written about Wyndham Rewards before. It's the loyalty program of such well-known chains as Ramada, Super 8, Howard Johnson, Travelodge, and Days Inn. Until April 30, 2011, members earn double points with their second stay, triple points with their third, and quadruple points with their fourth. Like the Choice Hotels offer, this one also has great potential for Florida-bound snowbirds, as these hotels are also common along the Interstates. You can join the program and register for the promotion here.

And for the truly adventurous, Hyatt is offering 2,000 bonus Gold Passport points for a stay at the Grand Hyatt Cairo. The offer is good until April 15, 2011. Details are available via this link.

Safe travels.

Points 3: Starwood Preferred Guest American Express Card

The problem with collecting Aeroplan miles is that millions of other Canadians do too. So when it comes time to redeem that flight on Air Canada or one of its Star Alliance partners, you're competing with a lot of other people for a few seats. Of course you can always pay more points for "extra access", but that could end up costing more than twice as much as a regular award.

However, few Canadians belong to the plans of the major U.S. airlines – American, Delta, United, and US Airways – so flights from Canadian cities are often readily available at the lowest rate, typically 25K points for a return economy class flight in North America.

That brings me to the Starwood Preferred Guest (SPG) American Express card. Starwood is the chain that includes Sheraton and Westin hotels, among others, and SPG is their loyalty program. You earn 2 SPG points for every dollar spent at Starwood hotels (bonus offers let you earn faster) and free nights start at 2,000 points, with most hotels in the 7-10K range. For example, both the Sheraton Centre and Westin Harbour Castle in Toronto are 7K points for a free night.

The SPG Amex card earns 1 SPG point for every dollar spent. MBNA used to be Starwood's partner, and the card was no-fee, which was a terrific deal, but early this year they switched to Amex and now their card costs $120 a year. Given Amex's limited acceptance and the less generous insurance benefits, it's generally not as good a deal as the Aeroplan bank cards.

Except SPG has one really big advantage: you can trade its points one for one with almost any airline's. And if you swap 20K points, they give you a 5K bonus, resulting in 25K airline miles. This amounts to 1¼ miles for dollar spent. So if you have the annual spending to justify a $120 annual fee card, the 25% extra miles and ability to redeem with virtually any airline might make this card worthwhile to you.

You can apply online, there's a 10K point sign-up bonus, and you'll be automatically enrolled in the SPG program.

I accepted the card last spring because Amex waived the annual fee for former MBNA card holders for the first year. They also offered an 11K point sign-up bonus and my wife got a card too. We recently swapped 20K of those points for 25K American Airlines Advantage miles for free return flights from Palm Springs to Toronto.

I plan to cancel the card next year unless Amex lowers the annual fee (in the U.S. it's only $65 a year) or offers a hefty renewal bonus. Otherwise, it won't be worth it to me. I'll bring the Club Sobeys MasterCard out of mothballs and focus on earning free Aeroplan miles with it.

The SPG card enables you to benefit from membership in a host of airline plans. In Points 301 I'll explain why you should join the plan of every hotel chain you stay at as well.

Points 1: Canada's Favourite Points Programs

A couple of conversations with friends lately about my points and miles collecting hobby (obsession?) led to requests for me to post on the subject. So over the next few weeks, I'll try to cover the basics of how to get the most out of loyalty programs. Keep in mind, these are my preferences; they may not always be suitable for you, but I hope you'll find something of use here.

For starters, many points experts advise that you focus on one program so you can achieve rewards quickly. I take the opposite view. I believe in signing up for almost any program, focusing on several, and taking a patient, long-term approach. There are a number of reasons why, but one is that I collect with the goal of travel rewards (hotels stays and flights), rather than merchandise or cash-back rewards. That takes a lot of points and that takes time. I find the dream of travel to be more inspiring than cash-back, and the value of travel rewards greater than merchandise.

I'll begin by discussing three of the programs most popular with Canadians.

PC points are earned through a variety of activities with President's Choice Financial, chiefly through the use of its credit and debit cards. Points can also be earned through bonus offers at supermarkets that sell President's Choice products. Rewards come in the form of groceries and other products sold in the stores and are redeemed right at the checkout, using your credit or debit card. No separate membership card is required. Ease of earning and redeeming makes this program the right one for many people.

I do have a PC Financial chequing account, but not a credit card, so my point earning is minuscule. The reason I don't focus on this program is because $20 off groceries doesn't inspire me (see paragraph 2, above), and because I can use a different credit card at the supermarket to earn points in another program that has more value to me.

Air Miles can be earned through a variety of retailers and affiliated credit cards offered by the Bank of Montreal and American Express. It is perhaps the most popular loyalty card in Canada. It seems almost everyone has one. Except me.

The main reason Air Miles has little value to me is that few of their partners are located in my town, so I have little chance to earn. But if you're a BMO customer and can shop at Air Miles retail partners, this program can be valuable to you, especially if you like merchandise or grocery certificate rewards.

That brings me to Aeroplan. Though a separate company, Aeroplan is essentially Air Canada's frequent flier plan and offers reward flights not only on Air Canada, but also on its partners in the Star Alliance, such as United, US Airways, Lufthansa, Singapore, Air New Zealand, and many others. As well, points can be redeemed for hotel stays, car rentals, cruises, and merchandise.

Aeroplan miles can be earned through flights, retail and travel partners, and affiliated credit cards and other products at a range of financial institutions. Aeroplan's gas and grocery partners (Esso and Sobeys) are located in my town, and that's a big reason why I collect Aeroplan miles.

Next time, in Points 201, I'll take a look at points-earning credit cards, with the emphasis on earning points and miles without having to pay an annual fee.