To upgrade or not to upgrade? That is the question ...

Upgrades are the wild card in the airline industry. Be nice when checking in, and you just might get upgraded.

In the airline industry, the available business or first class seat is often used to upgrade an economy class passenger. This is typically done because the freed up economy class seat can be re-sold to someone who is willing to pay a higher fare for that seat.

The person receiving the upgrade is chosen from amongst many factors, namely, frequent flyer status, the ticket class and how sold out that flight is.

In my experience, I've been upgraded because I am a frequent flyer. I've also used stickers for upgrades.

Now this needs an explanation. Different airlines have different methods that they utilize to define their upgrades. American Airlines uses stickers. After you fly a certain number of miles, you are awarded 4 upgrade stickers. Each sticker is worth 500 miles and so a trip of 1600 miles would need 4 stickers. You can also buy stickers and use them for an upgrade, if seats are available. Even there, it depends on the ticket class.

On other airlines such as NorthWest and Continental, so long as seats are available and you are a frequent flyer with status, you get upgraded for free.

Automatic and complimentary upgrades on international flights don't happen. This is mostly because international travel is generally more expensive, less competitive than the domestic market and not really open to scrutiny by the general public.

There is, however, the option of spending miles on upgrades. This, however, required you to hold a Y or H class ticket, meaning that it's a full fare refundable ticket. In this case, capacity allowing, you can spend some of your hard flown frequent flyer miles to move up a class, and the reward is worth it.

Let's think about this - a complimentary upgrade on a 4 hour flight feels good. Business class in a bed you can actually sleep on over a 15 hour flight - good sense. The only thing is the cost. That, unfortunately, boils down to your wallet.

Hence the dilemma ... To upgrade or not.

The Status Race Part 2

Who's heard of the Flight 317 Pajama Party? It's a Victoria Secret party on Virgin America Flight 317 from JFK to LAX on November 28th, and apparently it's by invitation only, and it has models in lingerie and music and all the bells and whistles that Virgin usually lays down. .

With new airlines coming into service, the one trump card they all have is their frequent flyer program. Each have their own nuances but generally they're about the same - you fly - you earn that many miles plus bonuses.

However the value of those miles are a lot like the US Dollar used to be in the 1800s - dependent on who's issuing them.

Each airline allows customers to gain status for less than the status costs. To do this, one only need ask the airline, at which time they enroll you in a sort of challenge, which if met, earns you the full status for a year.

In my experience, climbing the status ladder is more about intelligence gathering than about brute force flying. Airline nerd as I am, I've accumulated miles in a combination of the following ways:

• Flying a lot
• Finding steeply discounted fares to ridiculously far away places on flights that leave at odd hours of the night, only to turn around shortly after I land and return
• Buy gifts for people I don't care about using my credit card that gives me miles
• Having my brothers and my dad fly around using my frequent flyer number
• Donating money to causes for which I really don't care (save the Swedish Underwear Models)
• Write complaint letters to the airlines, which has resulted in some very nice bonuses
• Gain status, after which the airline typically doubles the miles that you fly

When it comes to using your miles, there are two distinct value propositions. They are, namely, domestic and international travel.

Domestic travel is a standard 25000 miles (20000 on a few), even if you wish to fly across the lake. For me, spending my miles on domestic flights is a very bad deal. The ability to spend miles on international flights is what, in my opinion, truly defines the quality of the plan.

The best programs are through American Airlines. Their redemption costs are lower, at 75000 miles for a coach class ticket. Continental is at 90000 miles.

The one notable difference is that American and their partners in OneWorld will only let you use your miles on a certain quota of seats. If those seats sell out, you're out of luck. Continental, on the other hand, has the same policy, and for a higher cost in miles, will sell you any unsold seat. However the cost is pretty high and not worth it.

United/Lufthansa plans are the hardest to gain status on.

Next, about upgrades ...

The Race To Gain Status (Frequent Flyer, That Is)

In our democratic, capitalistic society, status is everything. The car you drive, the house you live in, even your spouse are indicative of status.

With airlines having their glut of issues, the only real status one has in the air is when they fly their own Citation jet, or the closest equivalent. Unfortunately most of us aren't so lucky or wealthy to have one of those so we have to settle for less.

Enter the frequent flyer program. What American Airlines started out as a marketing gimmick has grown into a whole economy. You can now earn, spend, gift, buy, trade, donate and do much more with your program miles.

The result of this is the race to accumulate miles. Sure, it's not a neck on neck race to the finish, but a race to gain a one up in the status ranking over the other frequent flyer. Towards this end, numerous methods have been introduced that allows the flyer to accumulate miles.

For those who don't fly often, the value of this status may be muted. With the security concerns of today and the finite nature of the day, every benefit offered by the program is well worth the effort.

Let me explain ... In a later post.