In an unconventional move to attend the 2024 Summer Olympics in Paris, Tracy Ren secured her flight on Singapore Airlines using purchased airline miles, demonstrating a growing trend among travelers. Instead of earning these miles through traditional avenues or buying them directly from the airline at set prices, Ren opted for a more cost-effective strategy by purchasing them through Carousell, a popular Asia-Pacific online marketplace. This marketplace, primarily known for new and used goods, has increasingly become a platform for trading loyalty points and rewards. By acquiring miles from alternative sources, Ren claimed her travel expenses reduced by nearly half compared to directly purchasing the ticket.
Although this method raises questions concerning legality and policy compliance, Aaron Wong, founder of the travel and loyalty site The MileLion, clarified that buying and selling airline miles online is not illegal. However, it might conflict with some airline policies. Carousell, for instance, does not inhibit the sale of airline miles but leaves regulation to the terms set by individual airlines. Singapore Airline’s KrisFlyer program explicitly forbids the sale or barter of its miles, which complicates matters for sellers on platforms like Carousell while revealing a potential loophole for savvy travelers.
Wong notes that the crux of the issue lies not in the legality but in the risk of repercussions from the airlines themselves. Should an airline discover a traveler engaging with purchased miles through third-party sources, it could lead to the forfeiture of those miles or even the closure of the participating member’s account. Furthermore, buyers risk potential scams, losing their money entirely if transactions go awry.
Various methods exist for circumventing these hurdles, such as transferring credit card points or using the nomination feature within Singapore Airline’s KrisFlyer program. Wong explains that selecting a “nominee” allows members to redeem flights for others within a predefined group, though this can lead to complications when ensuring account accuracy and adherence to guidelines.
Supporting this trend, one Singapore-based KrisFlyer member shared with CNBC his experience selling miles through Carousell. Priced at $17 Singapore dollars per 1,000 miles, he employs a process involving personal information exchange to enhance security and trustworthiness in these transactions. Despite occasional challenges, like last-minute flight changes, the seller emphasized that Singapore’s reputation for low crime and societal compliance eases concerns over the arrangement.
A different seller openly discussed his motivation, which spurred from amassing excess points through credit card spending. For him, converting these miles into flights for family on more economically practical airlines offsets high costs associated with flying Singapore Airlines itself. He avoids using points to purchase products, believing the exchange rate doesn’t offer substantial value.
It’s important to note Singapore Airlines maintains a firm stance against this practice, strictly prohibiting the sale of miles and actively monitoring platforms for violations in collaboration with relevant authorities. Violators risk cancellation of benefits and account privileges.
Despite these risks, a cottage industry of “miles broker” businesses has flourished online, known for outsmarting enforcement efforts. Airlines concentrate on mitigating larger broker activities while managing not to burden legitimate members with restrictive policies. Wong suggests alternatives for earning miles legitimately, like utilizing Citi PayAll and CardUp, which accrue miles on various essential payments including rent and education expenses, offering a legal path to travel rewards without resorting to under-the-table exchanges.
In the evolving landscape of air travel, this emergence of a secondary market for loyalty points sparks conversations about ethics, legal boundaries, and consumer resourcefulness in maximizing travel budgets.
Original Source: https://www.cnbc.com/2025/03/20/buying-singapore-airlines-miles-what-it-costs-and-is-it-allowed.html
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Publish Date: 2025-03-20 04:01:00
