United Offering Frequent Flier Miles for Gift Cards

Feb 22
07:56

2012

Steve Robinson

Steve Robinson

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As highly valued as cheap airplane tickets and cheap vacation packages are, travelers love redeeming frequent flier miles and flying for free whenever possible. United Airlines is now making that a little easier.

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With United’s new MileagePlus Gift Card Exchange program,United Offering Frequent Flier Miles for Gift Cards Articles its frequent flier members will be entitled to exchange gift cards from one of over 60 major retailers, including Home Depot, Starbucks, and Target for United frequent flier miles.  Members must have no less than $25 in unused credit in order to trade a gift card for miles.

United’s move is an attempt to give it an edge in competing for loyal fliers, particularly business travelers.  Historically rewards programs have proven to be major motivators in which airlines customers choose.

Websites including “Points” and “PlasticJungle” help users buy, sell and swap gift cards between people.  United is the first airline to break into this market in such a direct way.

Up until now airline miles have been used to redeem free airline tickets, converted into gift cards, or purchase general merchandise.

The market United is trying to tap is potentially a large one given that U.S. gift card purchases in 2011 exceeded $100 billion.

Gift cards used to lose value as they aged and billions of dollars went used.  In 2009 holders lost approximately $6 billion in the value of their gift cards.  A new federal law has extended the expiration date on gift cards to a minimum of five years from the purchase date.

United frequent fliers who want to participate in its new gift card exchange program must log into their accounts online, select the gift card retailer whose card they want to trade in and then enter their gift card information.  United will convert gift cards into miles and deposit them in members’ frequent flier accounts.