Loyalty programmes and rewards schemes are inestimable to travellers who want luxuries in the skies without having to pay premium fares. Two of the most common methods of saving on the air travel cost are the direct purchase of Airline Miles with the airlines or the use of credit card points that can be redeemed to airlines partners. Both the approaches can lead to discounted flights, upgrades and availability to business or first classes cabin, however which approach is more economical? This would depend upon your traveling habits, schedule and objectives.

Understanding the Concept of Buying Airline Miles

To fill their loyalty accounts, travellers are able to buy more miles, usually at packages, with airlines. The purchase of Miles is in essence the purchase of the power to redeem tickets much earlier than you had been able to do by flying alone. Several airlines have promotions in which bonus miles are added with a maximum 100 percent added value. This makes this alternative interesting to those who have already gathered the number of miles but require some additional miles to upgrade to a better-class ticket.

As an illustration, passengers can buy krisflyer miles at Singapore Airlines or Buy Asia Miles at Cathay Pacific to gain access to the complicated cabins on the long-haul flights. Purchasing tickets directly with the airline is a sure way to be legitimate, but the dollar worth of a mile will depend on redemption decisions. Redemptions in business and first classes tend to be higher than those found in economy class.

How Credit Card Points Work

Modern travel hacking is based on credit card reward programmes. The cardholders earn points by making purchases of daily purchases which can subsequently be transferred to airline loyalty programmes or can be redeemed directly into flights. The advantage of this approach is that it is a two-fold one: you are getting paid and at the same time you do not have to pay any additional money initially to get miles.

Some of the high end travel cards do offer transfer bonuses, such that your credit card points can be converted into more airline miles than they are worth. To those who travel a lot or have considerable business costs, this may quickly accumulate and be valuable as compared to cash purchase of airline miles.

Comparing Value

The actual value of each approach is one of the most significant to take into account. Buy Airline Miles is paying a standard rate which is paid to the airline. Most flights incur a price of 2 to 4 cents per mile but with offers, the price may go considerably lower. When you use those miles in an expensive ticket - 120,000 miles in first-class on a ticket worth $5,000 - the price per mile might decrease to a little more than a nickel, and the value will be monumental.

On the other hand, credit card points are worth different amounts depending on the redemption process. Other cards may have low redemption rates when the points are redeemed in the form of statement credits or merchandise whereas airline transfers are usually worth the most. The trick is to spend enough to get the points and this requires discipline and premium card annual fees to be increased at times.

Flexibility and Redemption Options

Another point of difference between the two methods is flexibility. Purchasing miles commits you to the programme of an airline. When you buy krisflyer miles, you can redeem them only with Singapore Airline or its partners belonging to Star Alliance. Likewise, when you use Asia Miles to make purchases, you will be bound to Cathay Pacific and Oneworld. Although alliances increase your choices, you are still limited to some extent as compared to credit card points.

Rewards using credit cards have more flexibility. American Express Membership Rewards or Chase Ultimate Rewards programmes can transfer to a number of airlines and even to hotel partners. This is because you are not bound to one loyalty program since you can use any airline offering the highest redemption rate on your planned trip.

Timing Matters: Promotions vs. Spending Habits

The other factor of difference is time. Limited time offers are often made by airlines and it would be wise to buy miles. An illustration of this is a case when a sale of bonuses happens at 50 percent, the price of purchasing miles in bulk is much lower than purchasing a ticket directly. This will be a chance to save huge amounts of money to the travellers who have a particular itinerary in mind.

In the case of credit card points, value is determined in terms of spending in the long term. When you are a person who spends money frequently on traveling, eating out, or any business costs, you can manage to accumulate a good balance. Nevertheless, when you are a modest spender, you may want to take longer to spend money to amass enough points to get a meaningful redemption than to go and purchase the miles you require at an opportune time when a promotion is offered.

Risks and Limitations to Consider

There is no disadvantage of both approaches. Purchasing of miles involves initial investment and in case the airline dumbs down its programme, which most of the times happens, then you may end up buying miles at a higher price only to lose your value before you actually travel. Besides, not every fare class as well as flight is always offered to redeem miles, which narrows down your options.

Credit card points are also prone to devaluations although they are flexible. Transfer ratios are subject to change and certain programmes will impose an increase in redemption requirements over time. Another risk is excessive spending to score points that might result in unwarranted debts. The trick is in using both sources as the means of making the traveling better, rather than as the reason of spending more money than needed.

Which Option Is Better for You?

This choice between purchasing miles and your credit card points will always be based on your circumstances. Considering that you are a frequent traveller and you have an idea of premium cabins you want to visit, you can use the offers of Buy Airline Miles to unlock unbelievable offers. The ability to replenish your account rapidly and be able to get a business-class ticket at a fraction of the retail price is an enormous advantage.