Author: matt

There’s lots of follow-up news to go over today:

  1. AA’s shopping portal finally has a back-to-school bonus for 2,000 miles after $1,200+ spend through August 8, which was predicted by my made up sources a week ago. That makes those sources right half of the time.

    Giftcards.com remains absent from major airline shopping portals.
  2. As you’ve no doubt heard since just about every news outlet in North America picked up the story, Southwest announced a few things:

    – They’ll soon offer assigned seating
    – They’ll soon offer extra leg room seats
    – Red-eye flights *shudder* start in February 2025

    They still won’t charge for checked bags. Will this make me fly Southwest more? Actually, definitely. (Thanks to Brian M)
  3. The personal American Express Gold revamped. The quick reference card:

    – $325 annual fee (up from $250), existing cardholders pay the new price after 10/1
    – 4x dining is now limited to $50,000 spend per calendar year
    – $50 semi-annual Resy restaurants credit (gaming info here)
    – $10 monthly dining credit shifts to 5 Guys from Shake Shack
    – $7 monthly Dunkin’ Donuts credit (lulz)

    The new card is available via both referrals with a 90,000 Membership Rewards sign-up bonus or through luck and a random number generator you might get 100,000 Membership Rewards by applying directly. Just try different browsers, incognito, a VPN, mobile instead of desktop, or going through different search engines until it shows up.
  4. Do this now: Register for new American Express Gold card credits: $50 semi-annual Resy credit and $7 Dunkin’ Donuts monthly credit (lulz)
  5. Kroger has a 4x fuel points promotion running today only on third party gift cards and fixed value Visa and Mastercards, excluding Amazon cards. GCG notes that there’s also a coupon for $8 off of two $100 Visa gift cards.

    Fuel points and gift card rates remain more or less steady with last week.
  6. Pepper Rewards, which has effectively tanked most bulk gift card resale rates, has finally devalued its program. As of today, most major brands will earn 1% back in points, rather than the 5% or 10% that they’ve been earning since the beginning of the year.

    My made-up sources say bulk gift card rates will recover by the end of August, and we all know how good they are.

Follow-up recipe from “Churning, Travel Hacking, and Selected Croissant Recipes”.

Last week we had a brief interlude about how an unredeemed point is worth nothing. It’s definitely true, but there’s a corollary for travel hackers:

Outsized Value Requires a Baseline Stash of Points

Chapter 6 Title from MEAB’s fictitious book, “Churning, Travel Hacking, and Selected Croissant Recipes”

Most bank points can be converted to cash for around 1 to 1.5 cents each, and most airline points have a baseline value in the same ballpark too. With that metric it’s easy to say that a credit card sign-up bonus of 90,000 points is worth somewhere around $900 to $1,450.

When you get a stash of points, it’s almost never a bad idea to cash out, invest that cash or use it in your velocity roll, and start earning a new stash. Then the value of your cashed out points grows with other investments.

You can take cashing out too far though. What if, for example, you’re in Germany on vacation and looking to fly home in the nose of a 747-800 in Lufthansa First? You could buy a ticket for over $10,000, or if you’re lucky you can grab a First Class award ticket for about 90,000 points with Avianca Lifemiles; but only if you haven’t cashed out all of your points. That redemption is rather outsized at more than 10 cents per point in replacement cost value, obviously more than the 1 to 1.5 cents value on a cashing-out basis.

It’s easy to see a strategy emerge: Keep a baseline of points big enough to meet your short term travel needs, and cash out the rest. What does short term mean? That depends on how quickly you earn points I suppose.

Happy Thursday!

A sample recipe from “Churning, Travel Hacking, and Selected Croissant Recipes”.

  1. Wells Fargo quietly launched two new Mastercards that pay Expedia One Key rewards:

    – One Key+: $600 One Key rewards after $3,000 spend in three months, $99 annual fee
    – One Key: $400 OneKey rewards after $1,000 spend in three months, $0 annual fee

    I think these aren’t paying commissions to credit card bloggers so you won’t hear much about them, but both cards earn 3% at gas, grocery, and dining which can easily be parlayed into airline airfare credit at most airlines.
  2. Chase Offers has 5-10% back at several IHG properties on up to $570 in spend each through August 14:

    – 5% or 10% back at Holiday Inn
    – 5% or 10% back at Holiday Inn Express
    – 5% or 10% back at Candlewood Suites
    – 5% or 10% back at Staybridge Suites
    – 5% or 10% back at Indigo

    They’re all gameable too. (Thanks to FM)
  3. Hy-Vee stores have $10 off of $150 or more in Visa or Mastercards through Saturday, limit one per transaction.

    These are Pathward gift cards.
  4. Giftcards.com has vanished from most airline shopping portals, though it’s still available on Virgin, JetBlue, and Emirates portals, all of which aren’t run by the same conglomerate as the other guys as far as I know (Cartera). It’s also available on Capital One shopping and Rakuten so we haven’t reached the heat death of the universe (yet).

A churner takes a road-trip to Hy-Vee land in a specially designated manufactured spend vehicle.

  1. The last horse may have crossed the finish line on back-to-school airline portal bonuses for spend through August 12:

    – Delta SkyMiles Shopping: 2,000 miles with $800+ in spend

    My made up sources last week said that Delta wasn’t going to have a bonus, so clearly I shouldn’t trust those sources ever again. In other news, AA hasn’t released a bonus, and my sources are silent on whether they will.
  2. Staples has fee-free $200 Visa gift cards through Saturday, limit eight per transaction. These are Pathward gift cards.
  3. Citi ThankYou Points has two transfer bonuses through August 17:

    – 25% bonus to AirFrance/KLM FlyingBlue
    – 20% bonus to Wyndham Hotels

    The Wyndham one is slightly more special given its rare appearance and the programs (decreasing) gameability, especially if you’re Barclays banned and can’t get the Wyndham Business Earner as a result.

The Delta horse finally crosses the finish line.

Introduction

After Delta was Crowdstruck, which caused massive delays and cancelations that continued for days, an AA flyer was overheard saying “at least I’m flying American and not Delta”. In case it’s not immediately evident, this phrase is more rare than finding Earth rocks on the moon’s surface or than John Hodgeman throwing socks at an audience.

Self-Insurance

Could you have predicted this outage and pivoted away from Delta early? Probably not this one in particular, but in general it’s safe to assume that a US airline will meltdown at least a couple of times a year and if you fly a lot, you’ve got a reasonable chance of getting caught up in a meltdown.

We’re lucky though, because travel hackers are uniquely positioned to insure themselves against events by realizing:

  • Most non-basic economy award bookings are easily refundable

To insure yourself against meltdowns, book a backup flight on another airline at least a few hours after the flight you really want to take, then refund it when your original flight looks like it’s going to work out. If there’s a meltdown, refund your original flight and take the backup.

It’s really that easy, but of course there are a few failure modes, specifically:

  • Sometimes points bookings have a cancelation fee
  • Sometimes you have to pay a few extra points for your backup to be cancelable for free
  • You might forget to cancel your backup or original flight

If you’ve got a lot of points though and can set a reminder in your phone, none of those probably matter that much.

Conclusion

Booking a backup award ticket on another carrier before a meltdown saves you after the meltdown.

Happy Monday!

What’s the backup plan when your pizza joint has a “vendor technology issue” and your pizza shows up with Kiwi though?

Introduction

Since 2021 or so, an odd brokerage named Moomoo let crafty churners earn several thousand dollars with relatively convoluted promotions and bonuses, the kind that needed a few pages worth of text or 10 minutes worth of talking to wade through; also known as “A Churner’s Delight.”

Moomoo has now become semi-mainstream, so much so that they’ve appeared on DoC three times this year, with less convoluted promotions to bring more funds into the FinTech which is simultaneously part bank and part brokerage.

Safety

Churners are good at probing the most dank, web ridden, smelly corners of the financial world. They’re often emboldened to do so because they’ve got protections like:

  • CFPB for credit instruments
  • FDIC for deposit account insurance
  • SIPC for brokerage account insurance

For most financial products if everything fails, you’ll get everything you’re owed paid back in full thanks to the above.

FinTech Weirdness

FinTechs lean on the perceived safety to give you confidence in working with them, but as the Synapse shutdown and bankruptcy has shown, just because there’s an FDIC or SIPC insured account somewhere, you’re not necessarily protected in the event of failure. A few nuances that you should know:

Remember, “we keep all your funds in an FDIC insured account” doesn’t necessarily mean that you have any protection. Check the FDIC website to be sure.

Have a nice weekend!

Few know that the original Churner’s Delight recipe came from a cafe in Portland. (Thank to Elaine)

  1. Kroger has a 4x fuel points promotion on third party gift cards and fixed value Visa and Mastercards in-store tomorrow only. Amazon gift cards remain excluded from the promotion.

    Fuel point rates and some bulk resale rates are increasing slightly as we enter crop harvest season, despite Pepper’s continued dominance depressing rates.
  2. Alaska has a back-to-school shopping portal bonus for 1,000 bonus miles after $550 or more in online spend through August 5. As my made up sources confirmed, Delta still hasn’t pushed bonus, though I still expect AA to release one joining United and Southwest’s versions.
  3. American Express Offers has a $250 statement credit with $1,250 or more in US originating airfare with Qantas through August 27.
  4. The Capital One Venture card has a 75,000 point and $250 Capital One Travel Statement credit sign-up bonus after $4,000 spend in three months. The card’s $99 annual fee is not waived in the first year.

Preparing for the fall harvest.

If there were a “Churning and Travel Hacking 101” textbook, one of the first chapter titles would be:

The Value of an Unredeemed Point is Zero

Chapter 3 Title from MEAB’s fictitious book, “Churning and Travel Hacking 101”

The reason this book doesn’t exist though is because I’m not sure what else to write about the topic; if you never redeem a point, it never had any monetary value and you probably should have earned cash instead.

Happy Wednesday! #tiniestblogpost

Shining example of a pulitzer class chapter title, for future reference.