Pelago offering 25% discount for KrisFlyer miles redemptions

Pelago is marking KrisFlyer’s 25th anniversary by offering a 25% discount for KrisFlyer miles redemptions, valid for any of the 16,000+ activities on its platform.

This boosts the value per mile from the usual 0.67 cents to 0.88 cents, still poor value compared to booking a flight. However, if you have expiring miles and no plans to travel, then poor value is better than no value at all.

Redeeming KrisFlyer miles on Pelago

From 15-29 February 2024, KrisFlyer members can redeem miles on Pelago at 25% off the usual requirement.

KrisFlyer miles	Pelago value
150 miles 113 miles	S$1

Instead of the usual 150 miles = S$1 (0.67 cents/mile), the revised rate is 113 miles per S$1 (0.88 cents/mile).

While Pelago periodically offers discounts on miles redemptions, they max out at 20% (0.8 cents/mile), so this would be the largest discount we’ve seen yet. That said, it’s still not great value by any means, especially compared to a flight redemption.

If you have expiring miles and don’t want to book a flight, then I suppose Pelago would represent the highest value for miles on the ground. 

There is one problem, however: Pelago forces you to pay the entire amount due with KrisFlyer miles; there’s no option to mix cash and miles!

For example, suppose I want to buy an attraction ticket that costs S$44. At check-out, I can select KrisFlyer miles as my payment method, but the system forces me to pay the entire balance with 4,972 miles. 

This means that unless you can find an activity that costs exactly the amount of expiring miles you have, some non-expiring miles will also have to be burnt in the process. 

A few other things to note about redeeming miles on Pelago:

• A minimum redemption of 1,050 miles is required; the KrisFlyer miles redemption option won’t appear if the activity costs less than this
• Pelago bookings redeemed with KrisFlyer miles must be made under your name, or the name of one of your redemption nominees
• Pelago bookings redeemed with KrisFlyer miles can be cancelled, subject to the activity’s T&Cs. If so, miles will be refunded within two weeks. They’ll still have their original expiry date tagged to them, so you won’t be able to use this as a roundabout way of extending miles.

Other uses for expiring miles

If you find yourself with expiring miles on your hands, don’t forget that there’s other options for spending them!

I’ve written a detailed guide that analyses each option, though ideally you’ll be burning your miles for flights well before expiry comes into the picture. 

What to do with expiring KrisFlyer miles

What card to use with Pelago?

If you prefer to spend cash instead of miles on Pelago (good for you!), remember that Pelago transactions code as MCC 4722: Travel Agencies and Tour Operators.

You can pay with the following cards to earn an additional 4-6 mpd.

Card	Earn Rate	Remarks
UOB Lady’s Solitaire Apply	6 mpd	S$3K per calendar month. Must choose Travel as bonus category Review
UOB Lady’s Card Apply	6 mpd	S$1K per calendar month. Must choose Travel as bonus category Review
DBS Woman’s World Card Apply	4 mpd	S$2K per calendar month* Review
*Reduced to S$1,500 per calendar month from 1 March 2024

Avoid using the Citi Rewards Card, as MCC 4722 is classified as a travel transaction and explicitly excluded from earning the bonus 4 mpd rate for online transactions. Also, the HSBC Revolution Card is no longer an option, following the January 2024 removal of MCC 4722 from its bonus whitelist. 

For avoidance of doubt, the KrisFlyer UOB Credit Card will not earn 3 mpd on Pelago transactions, because Pelago is still not part of the SIA Group- at least as defined by the T&Cs. 

Conclusion

From now till 29 February 2024, Pelago is offering a 25% discount on KrisFlyer miles redemptions. While this is slightly higher than the 20% discount we periodically see, it’s still relatively low compared to what you’d get when redeeming miles for flights.

Moreover, Pelago redemptions require you to pay for the entire amount due with miles, so you won’t be able to use this to selectively burn a particular number of expiring miles. 

There’s nothing wrong with earning miles through Pelago though, so be sure to check out their selection for an extra 3 mpd compared to Klook or KKday.