Points Broker Tickets - How does it work?

 


Have you seen the google ads, or heard about friends getting cheap business class tickets, buying points from someone to fly?

FAQ - I'll explain how this practice works.

While this technique has worked for many people in the past, the game has changed. With the growing popularity of data-mining - these techniques will face hurdles and potentially be stopped in their tracks.

First: They are not illegal, Second: They use a loophole.


They are called points brokers.

Online websites who will sell you a business class bargain, seemingly using points sourced from some corporations who ‘don't need them’. Some may sell you the points to be deposited into your own account. It’s an interesting business model, one with a few questions unanswered.


Note: iFLYflat is independent and we do not purchase points. We help our clients with strategies to collect more of their own legally owned points, and to use them smarter.

We often talk with airlines about their frequent flyer programs, and with banks about their reward loyalty programs. This is my opinion on what is coming.

 

With data-mining, the game has changed.

 

#1 You have no control

Using points brokers you are buying points to fly from someone else, that means you are not the legal owner of the points.

Any travel disruptions or cancellations may result in trouble, because you may not be able to make changes. This potentially leaves you stuck at some foreign airport, where the airline is unable or unwilling to help you.

Sometimes the only solution is to pay full price to book a new flight to get home.


#2 Whose points are they? Check the authenticity.

Most times you won't know whose points they are - who is the legal owner? The risk is that the points are not legitimately authorised for your use.

There’s a chance some points may been accrued through account hacking, stolen from family members or other methods. 

 

#3 Airlines could catch you out either intentionally or unintentionally

While US-based airlines do allow for bookings to be made in names other than the account holder, it is strictly against the terms and conditions to receive any form of payment or barter.

With the increasing popularity of frequent flyer programs mining their data for more personalised marketing offers, and tracking booking behaviour - the airline could, whilst doing this, unintentionally discover a breach of their terms and conditions.

Such tickets eat into the airline’s revenue and may be automatically cancelled without recourse.


At the end of the day, the key is to understand that the airline is running a business. Whilst it operates a frequent flyer program to provide award seats to its members and ensures their obligations to their members are met, they draw the line when members selling their frequent flyer points at their expense.

Here are some references for further reading on the subject: FlyerTalk Pointhacks TripAdvisor Forum LifeHacker  + United T&C's Delta T&C's KrisFlyer T&C's Qantas FF T&C's

Please google for your own research.

 

How do you spot the tickets

  • The taxes are the only thing shown on the itinerary
  • The tickets do not accrue mileage or points

 

In summary...

At iFLYflat, our model is helping you use your own legal points to fly. If you experience any disruptions or issues with the flight, you are the legal owner and can negotiate the best outcome with the airline/s and get home.

You can fly with confidence.

 

The final question: If you are stuck at the airport through a points broker and you are denied boarding - what are you going to do? 

You can decide what is best for you, but at least now you know how it works.

 

AUTHOR
Steve Hui is the Founder and CEO of iFLYflat. Learn more about him here
Twitter @iflyflat | Email steve.hui@iflyflat.com.au

 
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