Savvy Consumer: Booking Frequent Flier Flights

July 14, 2006 — -- It's easier than ever to earn a free trip and harder than ever to book one.

Air travel has bounced back big time since 9/11, so there aren't as many empty seats that airlines can offer to frequent fliers. Some airlines require travelers to cash in more miles to get a ticket. Others have eliminated business class seats, so it's harder to use miles for upgrades. Despite all this, I still firmly believe it's worthwhile to try to rack up as many miles as you can. After all, what other industry offers you something for nothing?

American Airlines introduced the first modern frequent flier program in 1981. Since then the idea has taken off. All U.S. airlines and most foreign carriers now have programs.

Technically, the airlines could end or cut back their mileage programs just as easily as they started them. There's no law that protects the rights of frequent flier program members. Airlines can raise the number of miles required for a flight, lower the number of seats available or cancel portions of their programs at will. That's why you should balance your desire to hoard miles for the priciest flights with the need to use miles up before the mileage program changes.

Fortunately, even if your favorite airline goes out of business, your miles don't automatically crash and burn. For one thing, competitors are likely to honor your frequent flier miles because they want your business. You'll probably have some warning before the airline goes belly up, so you can try to use up the miles first.

If booking on the bankrupt airline is dicey, you still have options to redeem your unused miles. Try to get seats on a partner airline instead. If you can't squeeze in enough flights, you can use miles to shop, rent cars or stay in hotels. You can donate miles to charity and take a tax deduction. And if you're really worried, some companies now offer frequent flier mile insurance.