In Episode 16 of Miles Ahead: The Canadian Points Podcast, Daniel, Jeff, Josh, Quentin, Kirin, and Reed from FrugalFlyer.ca talk about how the world of miles and points has changed in recent years.
The team delves into the history of the Canadian miles and points game, comparing pre-pandemic, pandemic, and post-pandemic changes in the market. There is an in-depth discussion about the shift to dynamic pricing, changes in welcome bonuses, the rise and fall of specific loyalty programs, and strategies to maximize points.
The team also shares their thoughts as to what the future of miles and points holds, and if they think it still is a hobby worth starting today.
(01:08) Guess That Card!
Daniel shares hints about a certain credit card, while the rest of the team attempts to guess the card that he is thinking of.
- Read More: BMO Porter Airlines VIPorter Mastercards Have Landed
- The Best New Card in Canada: BMO VIPorter World Elite Mastercard
(04:56) How The Canadian Miles & Points Game Has Changed
Between the pre-pandemic, during the pandemic, and post-pandemic phases of miles and points, welcome bonuses, redemption opportunities, and even loyalty programs shifted significantly, for better or for worse.
(09:20) Aeroplan’s Golden Era
Aeroplan’s golden era was a massive win for those who understood the ins and outs of the program. While it was much more difficult to secure complex bookings, as you had to feed an agent your itinerary one segment at a time, you could also string together up to 16 segments in business class at a flat rate based on their regional award chart.
- Aeroplan Today: Air Canada Aeroplan Guide
(13:05) Alaska Airlines & Other Missed Opportunities
MBNA used to issue Alaska Airlines co-branded cards that were the best (and only) way to earn valuable Alaska Miles in Canada. Great redemptions via the Alaska Mileage Plan are still available today, but there isn’t really any effective way for Canadians to earn them.
- Read More: Alaska Airlines Mileage Plan
(17:58) Pandemic Impact on Miles & Points
The pandemic had a wide-reaching impact on miles and points. Welcome bonuses were higher as financial institutions competed for a smaller potential consumer base, as consumers weren’t as focused on earning travel rewards and traveling in general.
It was also much easier to get approved for cards, as banks were keen to approve anyone as lending standards dropped.
(23:32) Fintech Boom During the Pandemic
We saw many fintechs launch during the pandemic, and with these launches came many unique opportunities to generate spend on credit cards at a very high velocity.
- Read More: Mogo Manufactured Spend & Revolut Manufactured Spend
- Related: The Rise & Fall of Canadian Prepaid Credit Cards
(24:57) Credit Card Benefits & Using Points During The Pandemic
Many loyalty programs offered extensions of benefits, including free night certificates and status, as a way to retain and keep driving customer value.
Loyalty programs and financial institutions also came up with unique opportunities for members to redeem their points; for example, American Express Membership Rewards points on the American Express Platinum card could be cashed out at 2 cents per point on any purchase, which was an unreal value.
(28:13) Air Canada Aeroplan’s Pandemic Launch
The new Aeroplan program launched at the start of the pandemic, with a variety of new co-branded cards with very high welcome bonuses, including lucrative spending opportunities.
(30:15) Changes in Welcome Bonuses
Aeroplan welcome bonuses have become more restrictive as to how many can be earned. We’ve also seen welcome bonuses becoming more difficult to earn, as welcome bonuses are broken out into multiple requirements, with many requiring cardholders to keep the card past the first year to earn the entire bonus.
- Read More: Aeroplan New Card Bonus Rules Explained
(33:43) “Couponization” of Credit Card Benefits
Annual fees have been increasing on some cards, but additional credits are being implemented to offset them. As the “couponization” of credit card benefits continues to get worse, are these credits even worth trying to maximize? It depends.
- Read More: Getting the Most from Hilton Honors Card Credits
- Read More: Amex Platinum $200 Travel Credit & Amex Platinum $200 Dining Credit
(38:01) Dynamic Pricing in Loyalty Programs
Dynamic pricing is what the majority of frequent flyer and hotel loyalty programs have moved towards. This is problematic, as it makes it harder to know how much your desired redemption will cost, and dynamic pricing often results in redemptions becoming more expensive.
- Read More: Avoid Air Canada Aeroplan Dynamic Pricing
- Read More: Partner Award Space in Frequent Flyer Programs
- Free Download: Points Path
(43:37) The Future of Miles & Points
Miles and points will still always be worth it, and it is one of the most rewarding hobbies out there, but we do think it will continue to become more difficult. It will always require time and learning, but if you are dedicated, you can get outsized value from your time invested.
(52:10) Conclusion
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Really enjoyed this trip down memory lane, thanks guys. Surprised you did not talk about the legendary SPG program and cards. Recall redemptions like 3,000 Starpoints per night + $30 copay for awesome hotels in Southeast Asia. Aeroplan Mini RTWs… Old BA Avios had amazing short haul redemptions. Old Alaska program was incredible, CX J t-pacs for 50K, Europe to HKG for only 42.5K was an amazing deal.