$69k 1st class trip for $500 odd

[SOPOOR]

How to travel around the world cheaply: Man gets $70,000 trip for $540

ok, for the experts how is this possible?

obviously depending on how many points you can earn, in this guys case he used business expenses which is great

how did he get away with paying virtually no tax???

what am Imissing here??

 

[Boca68]

How to travel around the world cheaply: Man gets $70,000 trip for $540

ok, for the experts how is this possible?

obviously depending on how many points you can earn, in this guys case he used business expenses which is great

how did he get away with paying virtually no tax???

what am Imissing here??

Probably not the correct section for this thread tbh.

But to answer your question, what are you missing?

It might help to read the article in question first. It supplies lots of hints to this guys methods. Most obvious being the 40+ credit cards he signed up for. And the minimum spend he had to do, (30k+ if I remember) So, in reality the headline is in no way accurate. He's a blogger, trying to sell his website. Enough said, I think.

Just try to read between the lines! In reality, he did not do it for $540. In reality, he did it for a heck lot more. But, that won't sell his blog too well.

 

[ozjuice]

i read 54 credit cards when i read the story last week. How does anyone get 54 credit cards was my first thought. OK it's 45...but still.

 

[andyhui01]

i read 54 credit cards when i read the story last week. How does anyone get 54 credit cards was my first thought. OK it's 45...but still.

My understanding is the credit rating system in the US is completely different to Australia. You don't get penalised for applying/owning 45 credit cards. You actually improve your credit score by doing so as you will have over $200k of credit line available but only used a small percentage.

I think you would completely destroy your credit score by the time you've hit your 10th application in Australia

 

[burmans]

I think you would completely destroy your credit score by the time you've hit your 10th application in Australia

I think you may find there are people on AFF with more than 10 and still applying. Their credit rating may not be brilliant but the banks still seems to give them more cards!.

 

[MEL_Traveller]

How to travel around the world cheaply: Man gets $70,000 trip for $540

ok, for the experts how is this possible?

obviously depending on how many points you can earn, in this guys case he used business expenses which is great

how did he get away with paying virtually no tax???

what am Imissing here??

The major point is that no one would spend that much money in the first place. Plenty of round-the-world fares in First class that would be a fraction of that cost. Pricing sector-by-sector is misleading.

 

[andye]

How to travel around the world cheaply: Man gets $70,000 trip for $540

ok, for the experts how is this possible?

obviously depending on how many points you can earn, in this guys case he used business expenses which is great

how did he get away with paying virtually no tax???

what am Imissing here??

One of the factors is that he used 'travel credits" obtained with the CC to offset the taxes which as you have noticed are lower than you would expect with SQ. I suspect he forgot to include the CC annual fees in his calculations too. AA miles have low taxes so that is credible and there are usually no taxes on the hotel redemptions.

 

[SOPOOR]

One of the factors is that he used 'travel credits" obtained with the CC to offset the taxes which as you have noticed are lower than you would expect with SQ. I suspect he forgot to include the CC annual fees in his calculations too. AA miles have low taxes so that is credible and there are usually no taxes on the hotel redemptions.

hmmm i ve never heard of these travel credits thing,

I know for a fact that if you get enough credit card points and convert them to QFF (I know nothing about the krisfyler program) you still have to pay taxes and for a aus to EU trip is $1k alone,

I suppose with the other programs you could buy the concierege and chauffer that was mentioned in the article, not sure if its possible on the QFF program, but it would be hideously over priced

 

[SOPOOR]

The major point is that no one would spend that much money in the first place. Plenty of round-the-world fares in First class that would be a fraction of that cost. Pricing sector-by-sector is misleading.

obviously the aveage person might only spend $1-3k per month on bills etc

and chances are they cant afford to pay cash for rtw first class,

I gathered the point of the article is that the impossible 1st class for most people becomes a reality

I know normal people that have been saving for 15 years with 500,000 qantas points banked up

 

[andye]

Travel credits are available on multiple Amex cards here but none can be used for taxed to my knowledge. US cards (eg Chase) are not so restrictive
Qantas are one of the higher taxers (as are SQ) but US programmes usually have very low taxes

 

[SOPOOR]

Travel credits availanle on multiple Amex cards here but none can be used for taxed to my knowledge. US cards (eg Chase) are not so restrictive
Qantas are one of the higher taxers (as are SQ) but US programmes usually have very low taxes

ahhh thank you
so travel credits are different to amex reward points?
or just another name for it

 

[andye]

ahhh thank you
so travel credits are different to amex reward points?
or just another name for it

They are different from points. They are an additional sweetener to signing up to the card. For example the Amex Explorer card offers $400 of travel credit to be spent with Amex travel

 

[MEL_Traveller]

obviously the aveage person might only spend $1-3k per month on bills etc

and chances are they cant afford to pay cash for rtw first class,

I gathered the point of the article is that the impossible 1st class for most people becomes a reality

I know normal people that have been saving for 15 years with 500,000 qantas points banked up

If people are only spending $1000-3000 a month... do they have the credit rating to be able to churn dozens of cards?

Buying miles is easy and cheap through a variety of programs including Lifemiles and United Miles. Plenty of deals in first class leaving from Colombo or Cairo - cheap as chips. But if you want to construct a phantom fare comprised of single sectors at full price then you can make a good story.

 

[bsb]

If it sounds too good to be true, then...

but the headline line makes us read his blog.

 

[JohnK]

I think you may find there are people on AFF with more than 10 and still applying. Their credit rating may not be brilliant but the banks still seems to give them more cards!.

I am one of those people but haven't applied for a while. Should really start applying and get some free points.

But what does a credit rating mean? Most of my cards are maxxed out mainly on low interest balance transfers. I receive a letter offering credit limit increases almost every week.

I'm guessing I am a very good customer. Will be interesting to see what happens once I start applying for some new credit cards.

 

[lovetravellingoz]

ok, for the experts how is this possible?

obviously depending on how many points you can earn, in this guys case he used business expenses which is great

how did he get away with paying virtually no tax???

what am I missing here??

Well when I flew Melbourne to Nairobi in J by redeeming, inclusive of free limo to the airport, the total taxes and charges were only $57.

 

[SOPOOR]

Well when I flew Melbourne to Nairobi in J by redeeming, inclusive of free limo to the airport, the total taxes and charges were only $57.

hmmm. how did you manage that please?

im just looking for an aus to EU/USA logn haul with as little taxes as possible

 

[Lemon_Party]

hmmm. how did you manage that please?

im just looking for an aus to EU/USA logn haul with as little taxes as possible

Depends on your FF program and the redemption partner. I'm travelling Etihad PER-LHR in J and the taxes were $77, booked with 110k VA points.

That said, there is now an additional premium Etihad tax that gets added to these awards, but choose SQ instead through VA and the taxes would be similar I imagine.

 

[lovetravellingoz]

hmmm. how did you manage that please?

im just looking for an aus to EU/USA logn haul with as little taxes as possible

Booked Etihad with VA points.

 

[SOPOOR]

damn this is so confusing,im
trying to work out which program is better
looking at long haul EU/USA , business class trips

one world seem to be ok, but you have to pay tax on every flight

I did a AU to CDX return last year and paid $1100 tax and 280k odd points

is the VA program better?

itrs really hard to comapre and get a straight answer