Pelago offering 30% discount for KrisFlyer miles redemptions

Pelago has launched a 30% discount on KrisFlyer miles redemptions, valid for any of the 10,000+ activities available on SIA’s activities booking platform, including attraction tickets, tours, SIM cards and ground transportation.

This boosts the value per mile from the usual 0.67 cents to 0.95 cents, and while this is still poor value compared to booking a redemption flight, those with expiring miles and no plans to travel will certainly prefer some value to no value at all.

For context, this is even better than the promotion we saw back in February to celebrate KrisFlyer’s 25th anniversary, which offered a 25% discount (0.88 cents per mile). 

30% off KrisFlyer miles redemptions with Pelago

From 16-30 April 2024, KrisFlyer members can redeem miles on Pelago at 30% off the usual requirement.

KrisFlyer miles	Pelago value
150 miles 105 miles	S$1

Instead of the usual 150 miles = S$1 (0.67 cents/mile), the revised rate is 105 miles per S$1 (0.95 cents/mile).

A 30% discount is the highest we’ve seen Pelago offer, and while it can’t compare to an award flight, it’s still the best way of spending your miles on the ground. 

With KrisFlyer miles expiring once again from July 2023, those with expiring balances and no intention to travel might want to consider cashing out with this offer. 

The catch: all or nothing redemptions!

One drawback of redeeming miles with Pelago is that it 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 4,620 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 plan to pay with cash instead of miles, do remember that Pelago rewards you with 3 mpd on all bookings, capped at 5,000 miles per booking.

On top of this, you can stack additional miles from your credit card. All Pelago transactions code as MCC 4722: Travel Agencies and Tour Operators, so you can pay with the following cards to earn an additional 4 mpd.

Card	Earn Rate	Remarks
UOB Lady’s Solitaire Apply	4 mpd	Max S$2K per calendar month. Must choose Travel as bonus category Review
UOB Lady’s Card Apply	4 mpd	Max S$1K per calendar month. Must choose Travel as bonus category Review
DBS Woman’s World Card Apply	4 mpd	Max S$1.5K per calendar month Review

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 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. You will only earn the usual 1.2 mpd, though I hear this will soon change. 

Conclusion

From now till 30 April 2024, Pelago is offering a 30% discount on KrisFlyer miles redemptions, the highest discount ever offered. This boosts your value to 0.95 cents per mile, which is low compared to an award flight, but the best option for spending miles on the ground.

The catch here is that Pelago redemptions require you to pay for the entire amount due with miles, so unless you’re very lucky, you will probably end up having to burn some non-expiring miles in the process too.