How to Get the Most Travel Out of Your Dollar

Experts provide tips on how you can save while air travel costs soar.

ByABC News
February 10, 2009, 3:44 PM

Feb. 14, 2008— -- Airline passengers already suffering through packed flights and record delays may now have something new to gripe about: airlines are cutting back on some of the few perks that are left.

US Airways today became the first major carrier to end a practice that customers have come to count on. Previously, any flight on the airline earned travelers enrolled in US Airways' Dividend Miles program a minimum of 500 frequent flier miles, no matter how short the journey. Now the carrier will award actual miles flown.

For example, beginning March 1, customers flying the heavily traveled shuttle flights between New York and Boston will earn just 185 miles instead of 500 miles. It's a small change, with big implications.

This comes just one week after United Airlines announced it would allow non-elite status passengers to check only one bag for free. A second bag will cost $25, and a third and fourth bag will cost a whopping $100 each.

United says the change will bring in an extra $100 million a year, but there will almost certainly be a negative cost in customer relations.

US Airways spokesman Morgan Durrant explained that high oil prices have kept plane ticket prices up.

"Fuel is our number one cost. If fuel stays where it is, it will cost us $800 million more in 2008 than it did in 2007," Durrant said. "If you have that kind of operational reality, then you've got to look where you can generate revenue, and this was one area that was identified."

Durrant pointed out that travelers can still save money by signing up for a Dividend Miles credit card that would accrue frequent flyer miles with each purchase made. He also said that travelers can save by making purchases from third-party companies such as Netflix, i-Tunes or 1-800 Flowers, through the Dividend Miles Web site or mentioning a member number at the time of purchase.

But Expedia travel expert Erin Krause suggests that spending money elsewhere isn't necessarily the best way to save money on flights.

"We're finding that it's not about having to spend money to save money," she said. "It's about being smart and maximizing the travel you get for your dollar."