3 ways to avoid the newest travel ‘gotcha’

by Christopher Elliott on September 1, 2009


Kenneth Miller thought he had squirreled away more than 100,000 Delta Air Lines frequent flier miles, which he planned to use for a special 20th anniversary trip.

He thought wrong.

When he checked with the airline, it claimed he had no miles.

“My balance was at zero,” he says. “It turns out that even though I used to have points with no expiration date, Delta had made changes to its program, and because of inactivity on my account, my points were deleted.”

Why hadn’t the airline told him? A company representative explained that Delta had gone “green” and stopped sending customers account notifications by mail. How about a friendly warning? No, a Delta agent said, adding that it was Miller’s responsibility to keep up with the program rules.

“I feel like our dream anniversary has been shattered,” says Miller, who lives in Albuquerque, N.M.

Delta is by no means the only airline, or for that matter the only travel company, to do this. One of the travel industry’s favorite new tricks is waiting to tell you about onerous new terms until it’s too late — whether they’re trying to modify a reservation or redeem their loyalty points. This kind of late notification seems to benefit only the travel company, never the traveler.

Perhaps the most accomplished at this troubling new practice are airlines. They like to play what my colleague Janice Hough calls the “expiring mileage game.” Hough, who is a travel agent, recalls the case of two clients who lost their miles on American Airlines, more or less the same way as Miller. “Only after they lost the miles did they get an e-mail asking if they wanted to take advantage of a limited-time offer to reinstate the miles for 1 cent per mile plus 7.5 percent tax and a $30 processing fee,” she says.

I asked Delta about Miller’s case. Katie Connell, an airline spokeswoman, said Miller could have avoided his account deletion by signing up for e-mail notifications from Delta’s SkyMiles loyalty program. Connell fixed Miller’s account “as a goodwill gesture,” adding that this was “definitely a great opportunity to reiterate how important it is for our customers to keep their SkyMiles information current.” (I’ll have more on Miller’s case and how he could have prevented his mileage loss in a future column.)

Whether these “gotchas” are an intentional new policy adopted by travel companies to increase their revenues — or decrease the number of outstanding frequent flier miles — or just a case of a few careless travelers being on the wrong side of a new rule, is debatable.

But you can avoid late notices. Here’s how:

1. Assume nothing
That’s a lesson Lena Mandala learned when she tried to buy business class tickets from New York to Milan using American Express rewards points on Delta Air Lines. “In the past, this would be an 80,000- to 90,000-point ticket,” she told me. “Now I’m being charged 200,000 points.” The revelation came as a shock to Mandala, a frequent flier. Travel companies probably count on you making assumptions such as hers — otherwise they would warn their customers that redemption levels had more than doubled. But no. They wait until they’ve selected their seats (or worse) before springing the surprise.

2. Double-check your terms
Deborah Novak-Godden, a travel agent based in Chicago, booked three airline tickets for her clients through a ticket consolidator (a company that buys tickets directly from airlines and resells them to travelers and agents at a discount). The wholesaler claimed the tickets were refundable. “But three days before their departure, I found out that the ticket was nonrefundable,” she says. Checking with the airline would have confirmed the terms of the ticket, and allowed her clients to make an informed decision about buying them. The problem is that there’s no requirement that the full ticket tariff — the rules governing the use of the ticket — be disclosed in a meaningful way. You have to ask for it.

3. Read all of the fine print
Geraldine Smith wishes she had before buying tickets from London to Seoul on Lufthansa. But then the miles to which she believed she was entitled never showed up in her account. “After numerous attempts to get credit for the miles, I was told we had paid ‘too little’ for the tickets,” she says. “I had never been given that information before we purchased or traveled. This would have been a lot of miles for each of us, so we were very upset to learn this after the fact.” Travel companies don’t volunteer such details when you’re booking a ticket or hotel room. Only later, when you try to collect award miles or change your reservation do they say, “Oh, did we forget to mention … ?”

Bottom line: expect a surprise the next time you travel. Talking directly with the airline, car rental company or hotel — and reviewing the contract — will only get you so far.

Travel companies should clearly disclose all relevant terms right up front. No surprises.

At time like this, when travel spending has plummeted and companies are trying every trick in the book to make an extra buck, this “gotcha” strategy appears to be gaining in popularity. Why? Largely because people aren’t protesting them loudly enough. They feel they’ve gotten such a deal, what’s a few extra dollars?

But what happens when prices go up again, and travel companies feel as if they can continue broadsiding their customers at every turn? Worse, what if the government looks the other way while they do it?

We probably won’t have to wait long for the answers.

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  • OTC

    Is Mr. Miller really that stupid? Honestly, he should be ashamed to have his name published and should be mocked by friends and family.

    Log on to the Delta website, click on SkyMiles, and what does it tell you, why it tells you when your miles are going to expire.

    Of course, what you don’t say is that any mileage activity resets the expiration fro 2 years, so this tells me he didn’t earn any miles for 2 years and didn’t check his balance for 2 years. Does he do that with his bank accounts? I doubt it.

    All of these stories are stories of ignorance, made worse by people publishing their idiocy for the world to see. If it was me, I’d be ashamed of being so dumb.

  • Todd

    I don’t think there is anything wrong with the airlines terminating a users frequent flyer account after several years of inactivity. Frequent Flyer programs, after all, are for frequent flyers who should have some sort of activity each year. As long as activity occurs within the account, memberships do not expire. If three years pass and no sort of activity has occured, then I think it is fine for the airlines to terminate the account since they are clearly not a frequent flyer. It is also up to the members to manage their frequent flyer programs and stay on top of any mileage expirations. If the miles are so important, then log in every few months to find out the status of your account.

  • kelley

    I’m not fan of statements that start with “what you shoulda done…”, but here it comes. Although it would not have resolved the communication issue, most programs I’m familiar with make it easy and cheap to retain miles. Just do something to create activity every once in a while. I recently had miles at risk of expiring, so I narrowed down my choices to a couple of options – rent a car for a day or send someone a basket. My daughter liked the edible fruit basket surprise, and by spending that $50, I protected my miles. Win-win. In a lot of cases, you can also go back through your activity over the past year and see if you can find an older car rental receipt or something similar that wasn’t posted to your account and get them to add it. It will post on the date of the transaction, not the date you call them, and could save your miles.

  • Frank

    Question for Frequent Flyers:
    When the airlines decided to expire Miles that sat in accounts that were inactive, did they forewarn you of this program change??????

  • Laura Townsend Elion

    I only wish I had these problems – even though I (and many of my colleagues) fly millions of miles for our employer (a large international humantiarian agency) – we fly under the missionary/humanitarian aid rate when we fly commercial, so no miles. And don’t even think of asking the UN for frequent flyer discounts when you use their planes!

    Of course the latest problem is that the IRS is considering making them taxable in some circumstances.

  • Arizona Road Warrior

    It cost a grand total of $ 53.75 to reactivate expired miles at Delta. I think that is very fair given that someone has no activity for two years.

  • John.M

    Let me see if I understand this correctly, Mr. Miller signed up (a contract) with Delta Sky Miles, that at the time he signed it and earned the miles, stated that the miles earned didn’t expire or at the very least it didn’t state that they did expire. Then Delta decides to change the terms of the agreement (contract) and then doesn’ both to notify Mr. Miller and then people wonder why he would be upset. Hmmm, it seems pretty obvious that Mr. Miller had a written agreement with Delta (and I’m sure in the fine print there is a clause that allows Delta to change their terms, probably without notice, which makes it legal) and thus had the expectation of getting what he had agreed to.

    As for the use of consolidator tickets, when I have flown on them, no one at the ticket counters or at the airline reservations desk have any idea what the terms are on them. I’ve been told that I had to go back to the agency that I purchased them through in order to make a change or the ticket agent at the counter just made the change at no fee because he didn’t know what else to do.

    I do find that travel vendors tend to have a lot of fine print and hidden contract language that permits them to do just about anything. While it may be legal, it certainly isn’t moral or ethical and rarely is it good customer service.

  • Ed F London

    It will be redundant of me to say, but I agree with OTC. Anyone who pays any attention at all to travel issues would know that miles expire, miles needed to fly suffer from inflation — as does nearly every other “commodity” — and to be shocked is naive.

    Then, again, there are those like my ex-wife who gets on a plane maybe once every 3 years and doesn’t do much on the PC other than email.

    I guess that make it all a tie.

    Kudos to Delta though.

  • http://jeannea1@charter.net Jeanne

    Upon learning that I had Delta miles due to expire in Sept. (yes, they emailede me and told me that), I fretted for a few days, then went to my American Express Membership Rewards account. I transferred 1000 miles (the minimum) to my Delta Skymiles account. And voila, I now have another two years before they expire!

  • Susan

    Living in Salt Lake, my only choice for years was Delta. Last week, for the first time in 22 years I will fly on another airline. That’s right, 22 years, domestic on Delta. I’m no million-miler but I certainly was loyal.

    Delta no longer shows me the love, why bother? They’re all “options of last resort” ( I posted recently about no more bi-monthly flights to San Deiga to see my boyfriend, we now each drive to Las Vegas) and I no longer have any brand loyalty. It didn’t pay off.

  • Poley

    It helps to keep your frequent flyer profile (address and email) up to date. Several airlines US Air, Northwest & Delta have sent me multiple letters saying my miles are about to expire and that i can use them up on magazines. My USAirways email statement tells me my mileage expiration date. Its really important to pay attention to things the airline sends you. Not everything they send is a credit Card offer

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