economics 200: how we travel hacked three flights

For the last couple years Jessie and I have made it a mission to learn all we can about travel hacking. If you’re like us, you don’t have the bankroll to afford being constantly on the move or flying all over the world every year. But with travel hacking, you can!

Ask yourself this: if you could vacation anywhere this year, and money wasn’t an issue, where would you go? Peru? Thailand? Paris? No matter what your answer is (unless you picked somewhere ridiculous like Mars), you can do it! I learned about travel hacking two years ago and I’ve already saved thousands of dollars with very little upfront costs.

Originally we found out about travel hacking through a website called The Art of Nonconformity owned by a front runner in this field, Chris Guillebeau. He has an ebook called Frequent Flyer Master highlighting all the facets of travel hacking. It sells for $49. Quite expensive, I know, but the savings we’ve gotten from applying the information has made it well worth the cost. Plus, the book comes with a 25,000 mile or your money back guarantee. It’s true that you can find all the information for free on the web, but you’ll have to do a lot of searching. Chris’ book pretty much has it all in one place. You can check it out here!

One of the biggest misconceptions about frequent flyer miles is that you have to fly a lot to accrue enough miles to actually use them.  In truth, the greatest portion of my miles have come from opening up credit cards with huge rewards. I’m always keeping my eyes open for high mileage payouts. For instance, right now two great deals are going on. 1) Delta is offering 50,000 miles for signing up for their AMEX card. The catch is you have to spend $1,000 on the card within the first three months. I’ve linked to this deal here. 2) U.S. Airways is offering 30,000 miles on their Premier World MasterCard for making just one purchase. The catch with this one is the annual fee of $89 isn’t waived for the first year. I’ve provided the link to this one here. (The website says 40,000 miles, but 10,000 is only available if you make a substantial transfer balance to the card!)

***Important!: Before you open the credit card make sure you’ve gone to the airline’s website and signed up for a frequent flyer account. It’s free. Once you sign up they’ll give you a member number, which you can enter in the application for the credit card. You need to do this in order to get your miles!***

If you keep your eyes open you can get some really great deals just about any time of the year. The first card we got was the CitiBank AAdvantage VISA. We applied mid-December 2011 on a promo in which we earned 45,000 miles and also $150 spending money. The terms: 1) spend $1,000 within the first three months to get 40,000 miles, and 2) add an authorized user to your account to receive 5,000 miles. I signed up for an account and Jessie signed up for a separate one. Then we added each other later as authorized users. Most people living at home easily spend $500 a month on rent/mortgage, food, gas, gifts, car payments and insurance. But we don’t use credit cards very much when we’re not in America, so we asked around to our family and friends if anyone was about to make a big purchase. It just happened that some friends were buying flights from New Zealand to Canada. They put the money in our account and we bought the tickets on our cards. And just like that, for very little effort, we had 90,000 miles between us.

In case you’re new to mileage programs, 90,000 miles is more than enough to get one person a roundtrip to anywhere in the world flying coach. We used those miles to fly home from Thailand to Chicago on American Airline’s partner, Cathay Pacific Airlines, which is consistently ranked in the top 10 airlines of the world. That trip, even on a budget airline, would have cost us at least $2000 for two people. Instead, we paid $50 in phone booking fees and $325 for airport taxes (unfortunately these aren’t included in reward flights). That’s right, we saved at least $1600! AND, we scheduled a free 17-hour stopover in Hong Kong on the way, which was a great amount of time to get a nice taste of the city!

We applied for the Chase United Mileage Plus VISA at the end of December 2012 . For this card, we received 40,000 miles after $500 of purchases. We’ve already used our miles to book a flight from Kathmandu to London, and then a second flight a month later from Krakow to Detroit, in the fall of this year. These tickets would have cost us over $2500 to purchase. The total amount we spent: $247. That’s literally 1/10 the price.

The mileage credit cards usually have an annual fee, which they waive for the first year. Since we don’t use our cards much, we call up the companies after 11 months and ask to cancel them. CitiBank wanted to keep us bad enough that they deposited $89 into our accounts to offset the annual fee! They also gave us a mileage multiplier opportunity!

Many people have said to me that they don’t trust themselves with credit cards. Fine! Get an accountability partner you trust, spend the minimum amount you need to make the miles, pay the credit back immediately and cut the card up! Another thing I hear people say is they don’t want to destroy their credit by having too many cards. Since we’ve taken our cards out our credit score has improved by 50 points. As long as you make the minimum monthly payments on time or keep the balance at zero you build trust with the card companies. And if you can keep ahold of the card for a year or two it shows you are responsible, whether you use it or not.

Besides credit cards there are many other ways to make miles. I’ve tried a good handful of them. Every mileage program seems to have a legitimate survey site where you get paid in miles for taking surveys. I made 500 miles on American Airlines in 3 weeks. Another way to earn miles is to purchase things you already buy online through the airline’s website. I purchased an electric razor from drugstore.com for $50, but first I clicked through to the drugstore from American Airline’s shopping site. Because of this, I earned quadruple (200 miles). I also receive emails every once in a while that ask me to do some quick task in exchange for miles. (The best was to “Like” the company on Facebook for 250 miles!) And there are many, many more opportunities.

I hope this explains enough to get you started on that dream vacation! If you have any questions the comments section is open. Happy hacking!

A cloudy night on our free 17-hour stopover in Hong Kong

A cloudy night on our free 17-hour stopover in Hong Kong

Advertisements

2 thoughts on “economics 200: how we travel hacked three flights

  1. Thanks for the marvelous posting! I genuinely enjoyed reading
    it, you may be a great author.I will remember to bookmark your blog and
    will come back later in life. I want to encourage you
    continue your great writing, have a nice holiday weekend!

    Like

  2. Pingback: footnote: five year anniversary | student of travel

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s