1. REWARD PROGRAM NEWS
 

Drop in value?

Check out our discussion board for the latest goss and advise from fellow travellers. Here�s one from one of our regulars, who worries about a drop in value of reward flights:

�Well the value of our points are decreasing yet again, with the recent increase in taxes and charges. Once upon a time a Mel-Syd return was 20,000 points + $4 noise tax. Then we had the Ansett levy ($10) + security levy (~$13) making it 20,000 points + $27. Then we added the "passenger screening charges" (~$6) making it 20,000 points + $33. Now the latest addition is the "private airports levy" ($12) making it now 20,000 points + $45.

�Using the Mel-Syd example, if originally your 20,000 points (with no charges) got you a $200 airfare, now (with the extra charges) they effectively get you a $155 airfare, which in my books is a devaluation of my points. This is a frequent flyer website and I think it is worth pointing this out to other frequent flyers. This is pertinent when deciding where to transfer points from Altitude/Amex type rewards programs - frequent flyers, hotel programs or other �rewards�.�

United soldiers on

United Airlines has officially filed for bankruptcy last month. A familiar story for ex Ansett travellers, but the difference here is that the world�s second largest airline is continuing to fly and, at least on the face of it, appearing to look after its frequent fliers. It hasn�t ceased offering bonus miles and continues to honour award flights despite the administrative shake-up.

BA Exec Club reshuffle

As of next month, British Airways will no longer offer the annual half-price upgrade for Silver and Gold members, and round-trip Companion Awards.

United and Virgin

Don�t forget about the United and Virgin Blue team up on international flights. Earn 500 miles or more on the Virgin Blue portion of a United and Virgin Blue code-share flight. Mileage Plus miles can be redeemed on partner carrier flights for award travel to over 700 airports worldwide.

Business costs up

In the US, the National Business Travel Association says this year�s business travel costs will increase by five percent.

2. MORTGAGE MILES
 

First Credit Cards, now its Mortgages �

Did you know that you can earn frequent flyer points on your home loan?

Macquarie and ANZ offer special Frequent Flyer Home Loans. The specifics may differ slightly, but the deal is basically the same: You take out a home loan and receive a whole bunch of Qantas points on settlement. Then - every year - you receive more points based on the size of your outstanding balance.

Sounds great. For example, Macquarie claims that you can earn 690,000 points on a �standard� $250,000 mortgage. See their website for details. Before you rush out and refinance, read on �

If it sounds too good to be true � it probably not!

Using the Macquarie Flyer 1st Choice as an example, we figure that the 690,000 points costs about $65,000 (Calculation Notes).

What is the value of 690,000 points? It depends entirely on how you use the points. Blow them on hotel rooms and each point is worth about half a cent; redeem them for international upgrades and you are looking at up to 9c per point. These are extreme cases, the more common scenario would be a combination of domestic travel, international travel, and some upgrades (if you can get them!) � this amounts to about $15,000 of travel.

So, you are paying $65,000 for $15,000 worth of travel! Not a good deal in anyone�s language.

Your opinion please (and save $10)

We believe that a DECENT Frequent Flyer mortgage provides a great way to boost your points balance.

What do you think? Please spend a few minutes to complete this simple 8 question survey.  In appreciation of your time, we are offering all those who complete survey a $10 discount off our Frequent Flyer Club subscription.

** Calculation Notes **
A $250,000 Macquarie Flyer 1st Choice loan at 6.4% has a monthly repayment of $1,563.  Instead, take out a discount �No Frill� home loans (available from most lenders) for about 5.95%. This equates to a monthly repayment of $1,491. But instead of paying $1,491, pay the higher Macquarie Flyer value and pay off the loan 3.5 years earlier and save $65,000.

What are some of the strategies to earn and redeem points? When do you claim award flights and when is it better to pay for the ticket and save the points for later? Is it better to use the points for upgrades only?

Many regular frequent flyers have a habit of paying for their tickets, if the flights are reasonably priced and saving their points for later redemptions, such as family holidays.

One strategy is to only use points for travel if you have to change airports mid-journey, which tends to raise the price of the tickets. One regular traveller has told me that her plan of attack is simple � if a trip seems expensive, she uses the miles, if it�s cheap or reasonably priced, she pays for the ticket and saves the miles.

Another thing to remember is that it pays to maintain your frequent flyer status to reap as many benefits as possible. That means buying enough flights each year to maintain that membership level.

For regular travellers, it might be a good idea to buy your domestic or regional flights and save up points for far-away destinations.

Buying flights but using accumulated points for upgrades seems like a popular practice for many frequent flyers we�ve spoken to. Do you have any tips on the best way to redeem and save points? Share it with us on the bulletin board.

4. REWARDS AND SPECIALS FOR JANUARY
 

Singapore Fly-Away

Some great New Year Fly-Away specials (such as flights to Europe for under $1 800!) are available from Singapore Airlines this month. Check out the details on their website.

Book online and earn Bonus KrisFlyer Miles. And remember, you can even join KrisFlyer for free!

Qantas

Escape the summer heat with Qantas and go skiing in Steamboat Colorado. The Skimax package will earn you 10,000 bonus points per Qantas Frequent Flyer travelling. That's 10,000 points in addition to the 2,000 points you normally earn on Skimax packages to the United States. Valid for departures 27 January - 27 March, with travel completed by 14 April 2003. Must book and pay before 17 January

Horizon Airlines is offering you triple Qantas Frequent Flyer points when you fly between Sydney and Cooma until 28 February. Horizon Airlines operate two return flights between Sydney and Cooma each weekday and a daily return service on Saturdays and Sundays.

Kiwi extras

Earn up to 1000 bonus Air Points when you book a flight with Air New Zealand online. You must book before 15 February and this offer is for Aussies only.

United on-line bonus

Purchase and fly a United round-trip between Australia and the US, and reserve and book your travel online at United and you�ll receive 1,000 bonus miles for first-time booking and 1,000 bonus miles for subsequent tickets you book online until March 31. This offer is valid only for Australian residents and for tickets sold in Australia.