Airlines

Should you take up the new Club Lifemiles monthly subscription plan?

Plan allows you to receive miles each month with a bonus after 12 months.

Lifemiles has taken the interesting step of launching a monthly subscription service that give you a certain number of miles each month, with a further bonus if you subscribe for an entire year. There are currently six subscription plans on offer that range between US$10.99 to US$129.99 per month.

Advertising

You can cancel your subscription at any time, but you only earn the bonus if you complete your subscription period (i.e. 12 months). The key question you should be asking is “what is my effective price per mile?” Here’s how it breaks down:

  • Plan 500 (US$10.99/mo)- 1.65 US cents permile
  • Plan 1,000 (US$19.99/mo)-1.6 US cents per mile
  • Plan 2,000 (US$32.99/mo)- 1.41 US cents per mile
  • Plan 3,000 (US$49.99/mo)- 1.41 US cents per mile
  • Plan 6,000 (US$92.99/mo)- 1.39 US cents per mile
  • Plan 8,000 (US$129.99/mo)- 1.39 US cents per mile

The calculations above assume you see out your subscription to term, that is, complete the 12 month period.

Advertising

I’m not sure I’m entirely sold on this concept for two reasons:

  • Lifemiles runs frequent sales throughout the year. So long as the bonus on offer is at least 140%, you’re able to buy miles at 1.375 US cents per mile or lower, which is cheaper than the lowest cost under the subscription plan. Most promotions we’ve seen (like the just-ended Milelion exclusive promo) max out at 140%, although 150% promos are not unheard of (but the exception rather than the rule, and you certainly shouldn’t base your expectations on that)
  • I’m a strong advocate of not holding on to purchased miles of any form (Alaska, United, Lifemiles etc). If you’re buying miles, you should already have identified a way of spending them and the miles should only be in your account as a transitory step. See award space–> buy miles–> redeem miles. If you subscribe to a plan like this, you’re basically committing to hold miles in your balance until you’ve reached a sufficient critical mass to cash out

More than a few people have pointed out this subscription service may be a way of getting around Lifemiles’ new 12 month expiry period (your Lifemiles expire if you do not have an accruals related transaction in a 12 month period, redemptions do not count), but to them I’d raise the same point: why are you holding your Lifemiles for so long that expiry becomes an issue?

Advertising

Others have voiced concerns that this subscription service means Lifemiles will stop doing their regular sales throughout the year. I just can’t see that happening, given how the sales must be a fantastic source of income for the program. If anything, I think this is more of an ancillary revenue stream, and we’ll continue to see sales as per normal.

Advertising

So this is definitely an innovative move by Lifemiles, but whether or not you find it useful depends on how you feel about holding miles and whether you need a way of putting a fixed monthly spend on your credit card.

P.S: If you missed out on the Milelion Lifemiles sale, do note that One Mile at a Time is offering a similar 140% bonus now that requires registration. Find out more here.

6
Leave a Reply

Please Login to comment
avatar
3 Comment threads
3 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
5 Comment authors
TroyBizflyerCodyAaron WongAsian Miler Recent comment authors
  Subscribe  
Notify of
Asian Miler
Guest

It’s akin to subscribing to a phone plan… And we all hate being locked up to a service. At any rate, the end bonus is not commensurate to the plan, i.e. the 16k mile bonus under Plan 8000 is not 8x the 3k mile bonus under Plan 1000.

Cody
Guest
Cody

i understand that there is a routing rule that prevents you from booking with >8hrs layover; so then for example, if i were to go Vancouver (YVR), can i book one return ticket via EVA (BR) from SIN to TPE on say, 5th Mar (20th Mar return), and then stay 3 days in TPE and book another return ticket via EVA from TPE to YVR for 8th Mar (19th Mar return) using LifeMiles? Do they allow that?

Cody
Guest
Cody

i dont mean the multi-cities function (cos it might not show the availability), but to redeem 2 separate return tickets. p.s i just started reading up on the miles programme game today, so please pardon me if i haven read sufficiently on the rules of the game (which im hoping i could clarify here 🙂 )

Bizflyer
Guest
Bizflyer

Getting a bit worried at the rate Avianca is selling miles. Even at OMAAT, they also got lelong offer. Is this a sustainable business model? Hope this doesn’t end badly esp for Milelioners who have spent $$ on this earlier…

Troy
Guest

it is sustainable model, as they are many area to manipulate the cost.

%d bloggers like this: