Miles Wrapped with Ribbons
Miles as Gifts or as Merchandise for the Holidays

Dateline: 10/08/00

My wife likes to have her holiday shopping wrapped up by Halloween.

	WHITE CHRISTMAS Is this what you dream of? If not, consider making frequent flier miles become a gift that will take you to warmer climes this holiday season.

I was always one of those people who waited until the last minute. But she came along with a better idea: buy before the prices go up and the crowds become unbearable. If she sees something that would make a good gift for someone in June, she buys it and stashes it away in the back of a closet for five months.

Airlines have a way to save the closet space. They're offering the opportunity to buy frequent flier miles. Treat yourself or give them to a friend.

There's more, too. At least one web site is joining with airlines to turn your miles into cyber-cash that can be used to purchase merchandise.

Your Two Cents Worth

What's the going rate for a frequent flier mile? Generally, between two and three U.S. cents.

United's Give Miles program allows you to purchase up to 15,000 miles and transfer them to someone else's mileage account over the Internet. The cost is 2.5 U.S. cents per mile, plus federal taxes and a processing fee.

Not feeling that generous? How about buying miles for yourself? United's Personal Miles allows you to credit your own United account at the same prices. The maximum purchase per year is 15,000 miles.

All of these purchases, as you might expect, are non-refundable.

TWA's Appreciation Miles program sells a mile for 2 U.S. cents, but you must buy at least 50,000 miles ($1000 USD, plus a $75 processing fee). These are marketed mainly as rewards for corporations to give their employees.

Appreciation Miles expire one year from purchase date.

If you care to sell your miles for cash, there are services on the Internet like AirAwards.com. Here, you state how much you want per mile and they make you a return offer. The miles are sold to other travelers who seek upgrades and other perks for a reduced price.

Miles for Merchandise?

Every airline site you visit will tout dozens of new methods for earning frequent flier miles. Go to dinner and earn miles. Buy a house and earn miles. Use a certain credit card and get multiple miles per dollar.

Travelers are taking them up on these deals.

Analysts tell us there are actually too many frequent flier miles out there. That's why the next trend you might see will be offers for redeeming those miles that do not involve air travel.

It's already starting to happen.

Six airlines and a major hotel chain are teaming up with Internet marketers to launch MilePoint.com.

MilePoint's concept is simple. You bring in miles from the participating airlines (America West, Continental, Delta, Northwest, TWA and U.S. Airways) and they offer you merchandise from participating retailers who offer the items on the web site. Again, the two cents/mile principle applies.

They allow you to use a mixture of miles and cash. For example, if you want to buy a $100 item, you could use 500 frequent flier miles ($10) plus $90 cash or credit.

It's all planned--forgive the cliche--just in time for the holidays.