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Should I Use Mileage Brokers to Buy Discounted Flights?

March 27, 2016
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3 min read
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Should I Use Mileage Brokers to Buy Discounted Flights?
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TPG reader Adam emailed me to ask about buying discounted travel:

"What do you think of buying airfare from a points and miles broker?"

In January, I cautioned readers against selling travel rewards to mileage brokers, but when Adam's question showed up in the TPG inbox, I realized I hadn't addressed the other side of the equation.

The most valuable award redemptions (on a per-point basis) tend to be for premium flights and top-tier hotels. When a first-class flight that normally costs $12,000 can be had for 70,000 points and around $500 in taxes and fees (rates are a hair higher after Aeroplan's recent devaluation), there's tremendous value to be found. Even if you wouldn't be willing to pay the normal cost, it's clear that award travel creates opportunities to explore the world in ways that might otherwise be unaffordable.

Mileage brokers capitalize on this by purchasing points and miles (generally for much less than what they're worth), and then selling premium awards at a steep discount from the retail price. For example, a broker might pay $1,000 for those 70,000 points mentioned above, and then sell that first-class ticket for $4,000. That seems like a pretty good deal for the buyer, and I'll admit that purely in terms of value, buying from a broker is definitely better than selling to one. However, the downside is very much the same, and once again I advise strongly against it.

Loyalty programs frown on mileage brokering; if you're caught, you may be penalized no matter which side of the transaction you're on. For example, consider this section of the Delta SkyMiles rules and conditions:

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"... tickets obtained through prohibited sale or barter transactions are VOID, invalid for travel, and will be confiscated. Persons trying to use such tickets will not be permitted to travel unless they purchase a ticket from Delta at the applicable fare."

If you buy airfare through an unauthorized channel, it could be canceled. When that happens, you'll be left with no ticket and the prospect of trying to get your money back from the broker. The discount doesn't look nearly as attractive from that angle.

Instead of dealing with a broker, learn how to maximize your own travel rewards and cut out the middle man.

It's easy for me to say this because I've been honing my award travel skills for years, but I think you're way better off learning the ropes and figuring out how to book those premium awards for yourself. As the saying goes, if you sell people international first-class tickets for $4,000, they'll fly wherever they want for a day; if you teach them how to play the award travel game, they'll fly wherever they want for a lifetime!

If you have any other questions, please tweet me @thepointsguy, message me on Facebook or send me an email at info@thepointsguy.com.

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at American Express's secure site
Terms & restrictions apply. See rates & fees
Best for dining at restaurants

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TPG Editor‘s Rating
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.

  • Annual Fee

    $325

  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.