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By
Patrick Sojka - CEO RewardsCanada.ca | Posted Jan 23, 11 (Edited version seen
in Macleans Sep 2009) | ||||
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Trillions of banked miles and points
in travel reward programs worldwide have led to many of these programs enacting
expiry dates on the miles and points held in the accounts of millions of people.
Frequent Flyer programs in particular are the proprietors of expiring miles and
the majority of airlines in the world will now remove miles from your account
due to periods inactivity. On top of inactivity several have also put a lifespan
on miles even with ongoing account activity. For hotel and shopping programs the
opposite tends to be true with the majority of them having no point expiry or
inactivity limitations. Periods of between 12 to
36 months of inactivity are the most common seen in frequent flyer programs however
some do go further out to 4 or 5 years. The general definition of activity means
any addition or deletion of miles or points in an account. To keep an account
current, collectors just need to have one earning or redeeming action within the
period set out by the program. Many collectors are being caught by the inactivity
rule due to a lack of knowledge. Many collectors tend not to read the terms and
conditions set out by programs or simply delete emails of any changes that the
program has tried to advise them of. | ||||
| The tougher expiring mile condition set by some programs is the set lifespan for miles or points. More popular with Asian Frequent Flyer programs, the lifespan limitation was set in use by Aeroplan at the same time as the inactivity rule. Think of this as a best before date, the lifespan rule is an absolute expiry on miles, so even if you have activity in your account, the miles or points are time stamped and will be removed from your account if they are not redeemed by the best before date. Miles from frequent flyer programs like ANA Mileage Club and Cathay Pacific Asia Miles have a short three year lifespan whereas Canada's largest frequent flyer program, Aeroplan, has set a seven year lifespan. WestJet dollars earned in their frequent guest program have a five year lifespan. Canada's other large travel rewards program Air Miles, has no life span on the reward miles earned. The
airlines made these mileage expiry and inactivity rules to lessen the liability
on their books with all the unused miles but have put the burden of keeping track
of the dates of the miles or pointsearned on the collectors. Some programs do
send out notice of expiring miles or list the expiry date when viewing accounts
online but many do not. Collectors have to do their due diligence to make sure
the miles in their travel rewards accounts do not expire by keeping an eye on
the dates of their last activity and ensuring they perform an activity at least
once within the period set out by the program. |
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