Selling Frequent Flyer Miles

[NeSX]

Has any of you ever delt with a mileage or points broker? I have heard of people being able to monetize their frequent flyer miles / hotel points by working with a broker to sell them to others. I am sitting on a bunch of airline and hotel points and need to raise some cash.

Anyone on here every participate?

 

[Macster]

What kind of trade value are we looking at here?

 

[NeSX]

I have seen it range from 1.5 to 1.8 cents per airline mile depending on carrier and quantity being sold.

No idea on hotel points.

 

[NsXMas]

I am the highest elite level on United airlines, as well as highest levle (platinum) with Marriott hotels and highest elite level with a rental car agency as well.

I have never sold points but I have used my points to fly my friends and family around, as well as get them a place to stay. I never ask for anything in return, but generally, my friends and family repay me with some nice favors.

You probably know that it is generally against the rules of the frequent traveller programs to sell or trade points. If the airlines find out they may confiscate your points/miles and make the buyer pay full fare for their flights. Starwood hotels has made good examples out of a few unlucky individuals.

 

[NeSX]

Very interesting to hear.

 

[matteni]

When TWA was purchased by American they allowed us Executive Platnum members to cary over on American and they sent us 8 oneway SYSTEMWIDE upgrades. In other words if I was flying to China I could upgrade one full way for no charge (a $10,000 value).

Well I wasn't doing any international traveling and I knew they would expire in 1 year so I sold pens on Ebay. If you bought one of my pens you would get - free of charge - a transferable one way upgrade!

I made $3600 in a week.

Then trouble...

American forced Ebay to give them my information, suspended my platnum account and miles, and made me admit to everything I had done in writing and promise to never do it again in writing.

I got off pretty easy I thought and the $3600 was a welcome bonus that year but watch out - they can and will go after you.

 

[NSXF1]

Cashing miles

As has already been stated this is illegal, so the people you have to deal with are questionable to begin with. Should you find one, the going rate a year or so ago was $250 for 40K miles, (different on many airlines), or 1 round trip ticket in the US. The airlines have tried to clamp down on this hard, but it is still being done, just more difficult to do. Not that I have any first hand knowledge.

 

[X-spdfrk]

So why not just donate your miles to a good cause like the MAKE A WISH foundation or others and write them off your taxes as a monetary value that way?

Guess it depends on how badly you made need the cash or whatever it is your seeking for them.

 

[NeSX]

The make a wish foundation is a great idea.

I am trying to pull together down payment money on a house, but I am thinking that as a tax management strategy that could be a worthwhile alternative.