Selling your frequent flyer miles?
Spouse has noticed a slew of Craigslist posts offering to buy FF miles. Apparently airlines will let you purchase additional FF miles for upgrades at a "retail rate" of 2-3 cents per mile, which has led to a gray-market business among individual consumers & brokers.
eBay actually hosts a number of brokers of FF miles. The airline industry has taken eBay to task but eBay rebuts that "against airline policy" is different from "illegal". Since the airlines don't seem to prevent the transfers from taking place, it would appear that they don't really care about enforcing their own policies.
It also seems that all of the risk is on the buyer. The buyer has to fork over a payment, wait for the seller to transfer their miles to the buyer's account, and then persuade the airline to comply. In this case my spouse is delighted to be offered $500 to sell her 60,000 FF miles.
Has anyone else done this? Is it too good to be true? Any recommendations for actually executing the transaction?
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
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