Monday, November 21, 2016

How to save money on airline taxes and fees


Had dinner with a friend the other night and he was telling me how he scored 4 round trip tickets from the US to Italy in business class with points.  I got really excited because I love when people travel for almost free. But then he said he paid almost $2500 in airline taxes and fees. Bummer! 
Here's the lesson. You don't have to use your miles on the airline that you earned them on. For example, my friend had Avios points. Now he could have used those Avios points on a partner airline and avoided the fees. British Airways has one of the highest fees and taxes in the industry especially if you stop over in London. But British Airways is in the One World Alliance so it partners with American Airlines, Iberia Airlines and dozens of other airlines so he could have used those Avios to book on another airline and saved a ton of money in fees and taxes. 
When I went to Peru this past summer, I used my Avios to book plane tickets on LAN Airlines. This is great use for Avios because most flights in South America are considered short haul. Short haul flights cost just 7,500 Avios. So  for 37,500 Avios my family of 5 was able to fly from Cuzco to Lima. If I had paid for this flight, it would have cost me at least $650. I earned 100,000 Avios by applying for the British Airways credit card when they offered their bonus last year. 
Remember using your points is often like playing a game of detective, but it can pay off huge. 

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.