Should You Cash in Your Miles & More Points Now? A Practical Guide for Navigating Future Award Flight Changes
- by Niels Kruse
- 3 Min
Swift Utilization of Miles through "Miles & More" - "Miles & More": Which individuals should utilize their miles at present
Question: Mr. Lindner, what's up with the Miles & More program changing award flight calculations? What's going to change exactly?
Answer: The specifics depend on the airline you're booking with. Starting June 3, Lufthansa, Lufthansa City, Austrian, and Swiss will replace fixed mileage values for award flights with a new system based on destination, demand, and travel time. Other airlines within the program, however, won't see changes right away.
Question: Will customers profit from this change, or is it a disadvantage for them?
Answer: It's safe to expect that most flyers may end up shelling out more miles for flights compared to before, especially in premium classes. The extent will depend on the route, ranging between 10 to 25 percent.
Question: Are miles losing value, then?
Answer: Yes and no. While some routes may see lower mileage values in economy, premium airfare costs will increase. But rest assured, the mileage values for certain routes will remain comparable, potentially offering some savings in economy.
Question: So, there's no reason to rush and cash in miles immediately, right?
Answer: Years of collecting miles means you've got plans in mind. If you already have a specific trip and dates in mind, like a fall trip to Canada, it makes sense to spend your miles now to avoid cancellation or rebooking fees of 50 euros. In case prices lower, you can easily rebook. On the other hand, if you have no definite plans, it's best to keep your miles for future use.
Question: What if I'm undecided about my travel plans?
Answer: If you have a vague idea, like a dream trip to Australia or New York, it doesn't make sense to burn your miles on a less crucial trip now. The miles will retain their value, just don't expect them to retain their same purchasing power.
Question: What about upgrades and other non-flight rewards?
Answer: Upgrades remain unaffected, but they may not always be the most attractive option compared to booking award flights with miles. For example, a family member wanted a business class upgrade for a transatlantic journey, but found that an entire award flight would have cost 14,000 miles less.
Question: Why this change?
Answer: It's a trend that other airlines have followed in recent years, like Air France-KLM. While dynamic pricing can lead to increased costs on certain routes, it also expands availability for flights. However, beware of disasters like "Delta Sky Miles" in the U.S., where a business class flight from Germany to the U.S. can cost up to 400,000 miles—a situation that's been humorously dubbed "Delta Sky Pesos" due to the devalued currency of miles.
Question: Will Lufthansa follow in Delta's footsteps?
Answer: I doubt it. The Miles & More team is aware of the importance of maintaining a certain value to keep customers satisfied, and they've done well with the status program and revenue-based mile earning. So while things will change, the program will likely remain attractive, though not always and not everywhere.
Question: How many miles do you possess?
Answer: I'm not shy about it: after redeeming two first-class flights, I'm sitting on 650,000 miles with Miles & More, while I have over two million miles with American Express. It's a good feeling to have.
- Air France-KLM, like Lufthansa, is moving towards dynamic pricing for award flights, replacing fixed mileage values with a system based on destination, demand, and travel time.
- For rebooking a flight, it might be a good idea to spend your Miles & More miles before June 3 to avoid cancellation or rebooking fees of 50 euros, as the new system could potentially lead to more miles being required for flights.
- If you have no definite travel plans, it's best to keep your Miles & More miles for future use, as the mileage values might change despite retaining their value.
