Tuesday, December 6, 2016

Done with AIR MILES? Here are your other options - Part 1 Coalition Reward Programs

As many of you know the AIR MILES Expiring Miles fiasco came to somewhat of a close late last week when they finally dropped their expiry rule after threat of legislation, a damning MarketPlace report and of course 9 months of really bad press. If you watched the MarketPlace piece you'll have seen members cutting up their AIR MILES collector cards and I've heard many more stories of people letting go of the program. So what are some of your other options? In this three part series we'll look at three types of reward programs that make the most sense for Canadian but please be aware there even more options beyond these three (ie Frequent Flyer programs, Frequent Guest programs, proprietary retail programs etc.)

Be sure to read Part 2: Proprietary Credit Card Reward Programs 
Be sure to read Part 3: Cash Back Reward Programs

In part one we look at other coalition program options. AIR MILES is a coalition program and a coalition program is one where you can earn points or miles at many different merchants or partners and then have numerous options for redeeming those miles (ie a varied reward catalog). In Canada we have two major coalition programs, AIR MILES & Aeroplan with several others moving up the ranks in an attempt to become full fledged coalition programs.

Continue reading the article on the main Rewards Canada website

Due to the popularity of this topic we decided to make it a full fledged content page on the Rewards Canada site rather than just a blog post




 



150 Free Aeroplan Miles for setting travel goals


Aeroplan is once again offering some free miles for setting your Aeroplan travel goal. The 'Goal Setter' was launched earlier this year in May and it looks like they may want some more uptake in this feature so they are offering members 150 miles for setting their goal by December 16th.

Offer details
150 Free Aeroplan Miles for setting your Aeroplan Travel Goal. Full details. Until Dec 16, 16

Find a full slate of Aeroplan bonus miles offer here!

Top 5 Credit Card Sign Up offers for December

Here are the Rewards Canada Top 5 Credit Card Sign Up offers for the month of December! This is not a 'best' credit card list like our Top Travel Rewards Credit Card rankings but instead a look at cards that have very good acquisition offers. As always when choosing a card you should always take other factors into account other than the sign up bonus, but when most or all of these cards are first year free, they can and do pay off even when not taking into account insurance packages and other non-reward benefits. In fact all of the cards on this list for December are first year free so you can try them all at no cost, get over $1,000 in rewards and decide later on if the card is right for you. All the while earning the sign up bonus which can be used to subsidize your travels!  Just ensure you drop any cards you don't like before your 1st year anniversary so you don't pay the annual fee for the second year
   
This month we lose the mbna Rewards World Elite MasterCard since it is no longer first year free! However the TD Aeroplan Visa Infinite Card has its first year free waiver return so that means you can get the card's 15,000 Aeroplan Mile sign up bonus for free!  

So here are our top 5 credit card sign up offers for December (in alphabetical order)


American Express Gold Rewards Card - 25,000 Points (Apply here)
A mainstay offer here on Rewards Canada, the American Express Gold Rewards card has its first year fee of $150 waived and will award you 25,000 Membership Rewards points when you complete $1,500 in spending in the first three months. That 25,000 points is worth a $250 travel credit via Amex's TripFlex feature or can be converted to 25,000 Aeroplan Miles (1 Round trip Economy Award ticket within North America) or 25,000 British Airways Executive Club Avios (as much a 3 one way Economy Award tickets in North America, see this article for details.)


Chase Marriott Rewards Premier Visa - 30,000 Points  (Apply here)
The best no foreign transaction fee card in Canada makes it to this list due to a very strong acquisition offer. I mean who can complain with 30,000 to 50,000 points awarded on approval all at no cost as the card has the annual fee waived in the first year! They also give you a 15 night credit into the mix which automatically provides you with Marriott Rewards Silver Elite status. Please note there is a 50,000 point offer floating around that is specific for Marriott Elite members and some people are reporting that they getting the points while some others are not. YMMV but no matter what you should get at least 30K.


mbna Best Western Rewards MasterCard (Apply here)
Right now there is an offer for 40,000 Bonus Western Rewards points with this card! With no annual fee to boot! We detail the offer in this post that shows just how much value you can pull out of the card with this 40K bonus!


Scotiabank Gold American Express Card - 20,000 Points  (Apply here)
A very strong card in the earn category for Gas, Grocery and Dining/Entertainment purchases, the current sign up bonus for the Scotiabank Gold American Express Card is 20,000 points when you reach $750 in spending in the first three months. That 20,000 points is equal to a $200 travel credit and since this card is a book anywhere card you can book the travel how you want when you want and when the charge shows up on your account you can redeem the points against the charge. The card normally has a $99 annual fee but of course that is waived in the first year if you apply by January 31, 2017!



TD Aeroplan Visa Infinite Card - 15,000 Miles (Apply here)
Earn 15,000 Bonus Aeroplan Miles and a 100% rebate off your first year annual fee when you apply for and receive the TD Aeroplan Visa Infinite Card. You can earn an additional 5,000 miles if you hold onto the card for a year however you'll then have to pay the annual fee unless you have a TD All Inclusive Banking Plan which means you would get all 20,000 miles at no cost to you!


If you went for all these cards you ultimately could end up with over $1,000 in travel credits and hotel free nights but even if you only take on one or two you are helping your travel budget significantly at no cost other than regular credit card spend

Monday, December 5, 2016

How to get a $5,500+ Business Class flight between Toronto & Rome for less than $3,300!


Air France KLM's Flying Blue is once again offering a bonus on buying their miles less than a month after the last time they did! Usually buying FB miles isn't a great proposition but if you can tie in buying them with one of their discounted promo awards offering up to 50% off award tickets you may just be able to out some value from this promotion.


Offer details:
Up to 50% Bonus Flying Blue Miles when you buy miles online. Full Details  Until Dec 31, 16

  • 2,000 Award Miles – 10% bonus
  • 4,000 to 8,000 Award Miles – 20% bonus
  • 10,000 to 28,000 Award Miles – 30% bonus
  • 30,000+ Award Miles – 50% bonus
During this limited-time offer, you can earn up to a maximum bonus of 50,000 Award Miles! Elite members can buy an unlimited number of Award Miles. For this promotion we have reset the balances for our Ivory members. This means they can buy up to 75,000 Award Miles this month on top of their usual yearly maximum of 75,000.

Here is an example of this buy miles bonus saving you some money:


You can buy 96,000 miles for EUR 1760. Those 96,000 miles will be enough to redeem for a discounted business class award ticket between Toronto and Europe (with a few miles to spare)
Looking at Feb 7-14, 2017 in business class you can get the discounted rate between YYZ & FCO for 93,750 miles and 455.77EUR in taxes and fees. To buy the miles will cost EUR1848 (including 5% GST) and add in the taxes and fees on the award flight of 455.77EURfor a total of 2303.77 EUR. Convert that to C$ and you get C$3,290.97.
To buy the same tickets outright costs C$5,570.11. As you can see buying the miles can provide you a savings of over C$2,200 on these particular flights!

If you don't live in Canada those miles will only cost you 1760EUR saving an additional 88EURor so. And the discount for these Flying Blue tickets is only 25% at this time, sometimes its 50% off so your savings could be even bigger.

Find many more Flying Blue bonus offers here!

United MileagePlus: Up to 100% Bonus when you buy MileagePlus miles


United is once again offering targeted offers for purchasing MileagePlus Miles. If you are lucky you'll get the 100% offer, we weren't as we got only 25%. At that rate we won't buy but if you get 100% then it can definitely be worthwhile to do so!



Offer details:
Up to 100% Bonus MileagePlus Miles when you buy miles online. Bonus varies by member. Full details. Until Dec 19, 16

Find many more MileagePlus Miles bonus offers here!

New TD Aeroplan Visa Infinite Offer - Up to 20,000 Aeroplan Miles & First Year Free

http://click.linksynergy.com/fs-bin/click?id=rePwQEjA0OI&offerid=465117.138&type=3&subid=0
On Friday the offer of up to 30,000 Aeroplan Miles and 50% off your first year annual fee for the TD Aeroplan card ended and this morning the new offer launched. In some ways this offer is just a little less attractive but not by much. This time you'll get 15,000 Aeroplan Miles on first purchase (same as the last offer) and then 5,000 more upon keeping your account active for one year. The last offer provided 10,000 for doing that second action but also charged you $60 in the first year of having the card. This time you can get the card for free in the first year. Depending on how you value Aeroplan Miles that difference between saving $60 this time versus getting 5,000 more miles last time is about $15 or so on the side of the miles offer. Still getting 15,000 Aeroplan miles at no cost at all shouldn't be ignored. In this world of miles and points any mile at no cost especially on a card you can churn is a good offer as a churner will drop the card before the first anniversary, foregoing the additional 5,000 miles but saving the $120 that would be charged on that anniversary.


TD Aeroplan Visa Infinite Card
• Receive a Welcome Bonus of 15,000 Aeroplan Miles with your first Purchase 
• Receive another 5,000 bonus Aeroplan Miles if you keep your Account open, active and in good standing for one year after your Account is opened
• 100% Annual Fee Rebate for the first year (Primary Cardholder only) – that’s $120 in savings!
• Offer Valid until March 5, 2017
• Earn 1.5 miles for every $1 spent on eligible gas, grocery, drugstore and aircanada.com Purchases made with your Card.
• Earn 1 mile for every $1 you spend on all other Purchases on your Card.
• Earn miles twice when you pay with your TD Aeroplan Visa Infinite Card and present your Aeroplan Membership Card at over 150 Aeroplan partner brands and with 100 online retailers
• Your Aeroplan miles will not expire as long as you are a TD Aeroplan Credit Cardholder
• Enjoy an extensive suite of travel insurances for peace of mind on your next getaway.
Apply online

Friday, December 2, 2016

AIR MILES drops its unpopular expiry policy!

 I'm pretty sure most of you have seen this news that came out late Thursday afternoon! What a ride it has been over the past 9 or so month! After so much backlash, bad press, a class action lawsuit, the potential bill to make expiring points illegal and just a day before a scathing report to come out by CBC Marketplace, AIR MILES has finally succumbed to the pressure and dropped its very unpopular expiry rule (read the press release here). This is great news in that the expiry is gone but it may be a little too late for the company to save face.

This is a win-lose for the consumer. A win in that those who haven't redeemed and get to keep their hard earned miles. A lose for those who have rushed to redeem so that they don't lose their miles and ended up redeeming for something they really did not want. Looking into the crystal ball there may be a change to the class action lawsuit now to cover this 'forced hand' by AIR MILES. There are also those of you have switched over to cash rewards, in our household we went from 100% dream miles to a 50/50 split in September and have already earned over 200 Cash Miles and redeemed twice although I would have preferred to earn and use those as dream miles. AIR MILES is a secondary program for Rewards Canada but still significant since the balance has been growing steadily.

Related: When and why secondary loyalty programs can prove to be valuable)

For AIR MILES, the damage is done. Yes they got a lot of miles off the books with everyone rushing to redeem but they didn't get as many off the books as they had hoped on January 1st, 2017. The majority of customers are not happy. If was to guess I would say 1 in 10 of people we have talked to via email, social media or on the numerous call in radio shows we have been on were happy with the program. The long waits on the phone to reach customer service, the fluctuating reward options that showed better rewards for new members than those who have been active for years, the having to make an appointment to have a travel advisor call you back to book travel and never having them call you back cannot be erased. It will take many years for AIR MILES members to regain confidence in the program if they ever do. Many of you have redeemed and cut up your cards. Switched to other programs, switched to cash back (cash is king) or are done with loyalty programs in general.

In the end we still hope the private members bill in Ontario passes on Monday as it would ensure that this won't happen again in the future, from AIR MILES, Aeroplan or any other program. Technically speaking the passing of the bill will only affect WestJet Rewards, Starbucks Rewards and MyHusky Rewards as those are the only three major programs in Canada left with expiry rules. Remember the bill does not touch inactivity rules, a rule that almost every program in Canada including AIR MILES who will still close your account if you don't accumulate or redeem a single mile within a 24 month period.

Related: Expiry and Inactivity Rules of Canadian Loyalty Programs


Let's hear it people! What are your thoughts? Did you breathe a sigh of relief? Are you fuming as you redeemed miles for something you did not want? Please have your free for all in the comments below!


Thursday, December 1, 2016

December 1 Update: Thank you to all our readers, listeners, subscribers and sponsors!

News, Tips & Tricks
First off we want to thank everyone for participating in the Rewards Canada 15th Anniversary Celebrations! The past 5 weeks have been amazing with 5 contests, 1 booking promotion and 1 free points promotion.  Thank you also to all our sponsors: WestJet Rewards, Aeroplan, Points.com, Marriott, American Express and Starwood! Without them the celebration wouldn't have been this successful!  Here's to the next 15 years!

The past 48 hours has seen a lot of press about the proposed point expiry legislation in Ontario! You know that AIR MILES Rewards Miles mean a lot to Canadians. I mean the program is ingrained in all of us, no other program has the feel and pull like they have or had. Even though they are getting the brunt of the bad press right now we actually have to thank AIR MILES for what they did to the loyalty industry in Canada. Before AIR MILES, loyalty programs were limited to frequent travellers and Canadian Tire Money collectors. Rewards Canada wouldn't be here without such a large industry in Canada and that can be attributed to AIR MILES. No where else has a coalition program done what they have done here. The U.S. barely touches coalition programs (Amex's Plenti is having a hard time south of the border) as does most of the world outside of Canada. Any growth in those countries can also be attributed to the Canadian market (heck we own or partially own programs in Brazil, Mexico, Italy, and the U.K. the name the least!) We have always been loyalty industry leaders with Aimia and LoyaltyOne being at the forefront loyatly globally but ight now it is unfortuante what is happening with LoyaltyOne's AIR MILES progarm. They are going to take even more flack when
 CBC's MarketPlace looks into the program's expiry and difficulty redeeming for rewards this weekend. The downward spiral for AIR MILES does not seem to have an end in sight at the moment. We'll try to get to updating our guide to AIR MILES expiry by tomorrow with all the latest articles from the Canadian media as well as our latest blog posts about.

Posts since our last update:


Canadian Bonus Offers

N/A

Other Bonus Offers

Air France / KLM Flying Blue
- December Promo Awards - Save 20% to 50% on the Award Miles usually required for an award ticket. Destinations vary by each promotional period. More... Book by Dec 31 for travel Feb 1 - Mar 31, 17

American AAdvantage
- Earn up to 120,000 Bonus AAdvantage Miles when you buy or gift miles online. More... Until Jan 3, 17

Le Club accorhotels
- 4X Le Club Accorhotels Points for stays at new Accor Hotels Worldwide. More... Book by Jan 3 for stays until Jan 3, 17

Marriott Rewards
- 500 Bonus Rewards Points PER NIGHT for stays at the Renaissance Lucerne Hotel. More... Until Jan 8, 17
- 5,000 Bonus Rewards Points for stays of 2 or more nights at any one of 10 Marriott Hotels in London. More... Until Jan 8, 17
- 1,000 Bonus Rewards Points for stays at the Courtyard Topeka. More... Until Jan 8, 17
- 1,000 Bonus Rewards Points PER NIGHT for stays at the Fairfield Inn or Residence Inn Oklahoma City South/Crossroads Mall. More... Until Jan 8, 17

Saudia Alfursan
- 50% Bonus Alfursan Miles on all your hotel stays booked via Kaligo. More... Book by Jan 31, 17 for stays until Dec 31, 17

In reality only a few programs will be affected by the proposal to make points expiry illegal


It has been quite the frenzy over the past 24 hours (we've completed 7 interviews and 1 more to go) in regards to the the proposed bill in Ontario that would make the expiration of points and miles illegal. In our post yesterday we wondered if the bill would cover both Expiry and Inactivity Rules or just Expiry. We hoped for the latter and Aeroplan reached out to us to let us know that:
"as currently drafted, the proposed legislation carves out an allowance for activity policies such as Aeroplan’s.  It will only affect programs with date-stamping policies.  Aeroplan’s activity policy, which requires that members conduct one transaction every 12 months, whether swiping your card at a partner brand or redeeming for a gift card or a flight for example, will remain unchanged from this legislation"
This is good news, if you have heard any of our interviews over the past day or so or later today you'll know that we agree with inactivity rules but not mileage/point expiration. What this means is that if the bill does pass and becomes law in reality it only affects 4 Canadia programs and hitting only 1 hard. Those four programs are AIR MILES, Starbucks Rewards, WestJet Rewards and MyHusky Rewards. Why do we say only one will be hit hard? Well Starbucks Rewards Stars expire after 6 months. That's not a lot of time. But it isn't hard to go to a Starbucks and redeem that Star for that free drink or food. Really easy and there should be no reason to hold onto a Star for 6 months. WestJet Rewards operates like a cash back program. You don't need a lot of WestJet dollars to redeem for a discount on your travel. All you need is 25 WestJet dollars if you don't hold their credit card. As soon as you hit 25 dollars you can redeem for 25 dollars off of a ticket. Again no need to hoard those dollars. There will be some people who maybe join WestJet rewards and have earned 1 dollar here and then three years later earn another that would stand to maybe lose a couple of bucks after 5 years. MyHusky Rewards also works like a cash back program and you only need 130 points ($65 - $130 in spending) to redeem those points for a coffee. So those three programs, you really shouldn't need to worry about expiration.

That leaves AIR MILES. They are the only program that will be seriously impacted by this bill passing. We can only assume there are several millions of AIR MILES Reward Miles set to expire at the end of this month based on the stories we have heard of members who have 5,000 miles to well over 25,000 miles that will be erased from accounts. Is this the fault of the members? No. We've heard countless stories of people planning to use their AIR MILES as a retirement travel fund, one couple that is set to retire in the next 2 or 3 years stand to lose over 25,000 miles that they had banked on using for that retirement. Its not that they have been absentee members, they have been active in the program and really really active to get to 25,000 miles as we all know it is quite hard to earn that many AIR MILES! The fact of the matter is AIR MILES made money on those miles that these members are holding. It isn't like a frequent flyer or frequent guest program that awards points or miles for being loyal (ie WestJet giving you up to 5% on their flights is coming straight out of WestJet's pocket, there is no merchant buying those dollars from them), AIR MILES are sold to merchants for more than the value at which you redeem them at. They have made money on them and are looking at making more money by trying to expire them.

The one question we don't have an answer to yet is for international based programs. Many European and Asian airline programs do have expiry rules, in fact they have had them longer than we have here in Canada. Are you a member of Lufthansa's Miles & More program or Cathay Pacific's Asia Miles? Both programs expire miles 36 months after you have earned them. Numbers wise the membership in these programs in Ontario is probably only in the four or maybe five figures so it won't have as much impact as AIR MILES does. Butwhat jurisdiction do they fall under? Germany, Hong Kong or Ontario?  Typically contracts state they are governed by the laws of the province/state/country that the program resides in. So does that make the Ontario bill not valid for them? We are not legal experts so perhaps one of our readers who is could chime in!

Ultimately this new bill in Ontario only affects AIR MILES. No other program will feel the pain if it passes.

WestJet Rewards tweaks elite tier status qualifying and related earn for 2017


WestJet Rewards revealed their 2017 changes to the program which will see the program become more rewarding for those who travel frequently (or earned status via their status matches) while becoming less rewarding for those who tend to travel not as much. There are tweaks to earning elite status, Silver, which now becomes easier to earn and earning WestJet dollars changes in terms of how they are awarded on spend and the rate at which they are earned for Teal and Silver members.

These are WestJet's current requirements to reach status and what that status will earn:

As of February 6, 2017 it will change as follows:

First off you can see that now to reach Silver Elite status you only need to spend $3,000 with WestJet on flights within a 12 month period. That's down $1,000 from the current requirement. This should allow more people to hit the lower elite level status sooner.


Teal or regular WestJet Rewards members are the ones who take the loss with these new changes. Gone is the increased WestJet dollars earn rate after hitting $1,500 as is the 35 WestJet dollars bonus when hitting the $1,500 Milestone award level.

Silver Members also see a reduced earn rate of 3% instead of 5% leaving only Gold members earning 5% on spend. There is one big caveat with this however, when you have Silver or Gold Status and you hit your 12 months reset date on spending you earn rate will not drop down to 1% anymore. As long as you have Silver status you will always earn 3% and if you are Gold you will always earn 5%.

WestJet provides the following chart showing the reduced 3% earn rate will actually earn you more since you earn it on all spend and not just on the portion above $4,000 in the current requirement:

This in reality only works well for those in that $4,000 - $5,500 range, spend more than that and you'll actually earn less until you hit that Gold Elite status at $6,000.

For example if you spend $5,800 with WestJet, current Silver members would earn 180 WestJet dollars while under the new earn rate you would earn 174 WestJet dollars. This means a small portion of people in that $5,500 to $5,999 range will earn slightly less.

The good news is that if you are already a WestJet Rewards members or join before February 6, 2017 they'll extend the current earn rates if you are Teal or Silver:
To show our appreciation to our valued members and transition them into the new earn rate structure, we will be temporarily honouring the higher earn rates on WestJet flights for members enrolled in the program prior to February 6, as follows:
  1. Effective February 6, 2017 and until January 31, 2018 Teal members with qualifying flight spend between $1,500 and $2,999 will receive 3% earn on that portion of spend, which is the earn rate they would have received had the change not occurred.
  2. Effective February 6, 2017 and until January 31, 2018 Silver members with qualifying flight spend between $4,000 and $5,999 will receive 5% earn on that portion of spend for their current qualifying year, which is the earn rate they would have received had the change not occurred. Silver members who requalify for Silver when their qualifying year ends will automatically earn the constant 3% under the new program rules instead of the 1% they would have previously started with had the change not occurred.
Members who enrol any time after changes come into effect on February 6, 2017 will be immediately subject to the earn rates.
Overall these changes are primarily good as the constant higher earn rate when you hold Elite status will mean you will be earning more WestJet dollars towards those future redemptions (except for that 5,500 to 5,999 spread for Silver) and the fact that you can hit Silver status with only $3,000 in spending will definitely see the ranks of that level expand and more people should enjoy the benefits of Silver like first checked bag free, 4 airport lounge vouchers and 4 advance seat selection vouchers. However a good proportion of flyers who won't reach those elite levels will take a hit as Teal member if they are in that 1,500 to 2,999 spend range with the loss of the Milestone benefit and the increased earn rate. To me it looks like a move to get those semi-frequent WestJet travellers who won't hit elite status to get onboard witht the WestJet RBC MasterCard as it provides some of the benefits seen in Silver (first checked bag free). Heck they even put it in the FAQ of these new changes:
Of course if you join the program now you'll at least benefit from the 3% earn rate on 1,500 to 2,999 spend for one more year. So join now!

As a current Gold Elite member I am looking forward to keeping my earn rate at 5% for the next year and bit. How about you? What do you think of the changes?