Tag Archives: advice

Cashback Dominates Miles for Most People

Whenever people find out about my involvement in this “hobby”, one of the first questions that comes up is, “what credit card should I get?”, or some variant of that.

And really, my advice to almost everyone is that they should just focus on cashback credit cards. 2% cashback is probably a better value for 95%+ of people I talk to than trying to accumulate miles. (Of course, the best strategy is to apply for lots of credit cards and get the sign-up bonuses and then close the cards after a year so you don’t have to pay the annual fee, but many people are unwilling to apply for lots of credit cards.)

Reasons why cashback dominates miles for most people:

  1. Cash can be used to purchase any flight that’s available. Miles are subject to the whims of award availability. While this might not be a problem for those of us with extremely flexible travel schedules (and/or those of us willing to fly circuitous routings), many people are beholden to strict vacation schedules. It honestly is not that feasible to rely on miles to travel to popular destinations during popular travel periods (e.g., summer, New Years), particularly if you have specific destinations in mind or specific dates you must fly on.
  2. Similar to #1, but it’s significantly harder to fly on miles if you’re looking for more than one ticket.
  3. Redeeming miles can be extremely complicated, particularly if you want to get lots of value out of your miles. Unless you are willing to invest a lot of time in terms of understanding how different programs work, what routes are likely to have availability, the best times to book, etc., (or you are willing to pay someone else to do this for you) you will likely be frustrated when trying to redeem your miles.
  4. Miles can be devalued at any point in time. Cash does devalue, but not nearly in the same way. You can start saving miles two years in advance for your honeymoon, but then a program announces a devaluation, and then you realize you need twice as many miles as you thought you did.
  5. Airfares are increasingly affordable, even in business class. It is increasingly common to see things like sub-$600 airfare to Asia and sub-$500 airfare to Europe. At these cash prices, it is very hard to justify using miles for economy class.

This calculation changes if you’re looking to fly business class or first class, as using miles makes these much more attainable than paying cash, but with the devaluations that we’ve seen in the main US frequent flyer programs, this is becoming harder to take advantage of unless you are a business traveler who earns tons of miles or are willing to manufacture lots of miles.

Of course, I will continue to accumulate and redeem miles, but I have an extremely flexible schedule, usually don’t have specific places I need/want to go, am usually only booking for one person, and have already invested a lot of time in terms of gaining the knowledge needed to redeem miles. But there are very, very few people I encounter in real life who I think would get more value out of accumulating miles instead of 2% cashback, particularly when you take into consideration all of the time and effort needed to learn enough to earn and redeem miles effectively.

FAQs about a Long Layover at Doha Airport (DOH)

I recently had a lengthy layover at the Doha airport, and while there’s a lot of information out there about long layovers, I wanted to consolidate some of the information into one post.

Can you go to the lounge (i.e. clear transit security) before heading out into the city?

Yes! You can use the lounge before heading into the city (e.g., if you want to grab breakfast or a shower in the lounge). To get to immigration once you’re past transit security, there’s an elevator you can take to get back to the transit security level (the escalators only go down). This elevator also goes to the Al Mourjan lounge. Walk to the end of transit security, and people will wave you through so you can get to immigration.

Can you leave your luggage in the lounge?

Yes! There are places to store your luggage in the Al Mourjan and Al Safwa lounges. You can stop by the lounge to drop off your luggage before heading into the city. In the Al Mourjan lounge, the luggage room is to the right after you enter the lounge. In the Al Safwa lounge, the luggage room is straight ahead and to the right after you enter the lounge.

What are my options for getting into the city from the airport?

You can take Uber, a taxi, or a bus. There’s a counter at baggage claim (BEFORE you clear customs) between baggage claims 5 and 6 where you can buy bus tickets. And you can pay for the bus tickets at this counter with a credit card. At the beginning of 2018, 10 riyal (~$2.75 USD) was enough for two one-ways on the bus (20 riyal is enough for unlimited trips in a 24-hour period). Once you clear customs, you need to head to the right to get to the bus stop (it’s a little bit of a walk, but there are lots of signs). The 747 and 777 buses go to the Souq Waqif, with the 777 bus heading all of the way to the Pearl by way of West Bay.

Do I need a visa?

If you’re a US citizen, not anymore! You can now get visa-free entry for 30 days upon arrival.

What about the stopover tours organized by the airport? 

I have not been on one of these at the Doha airport, but I have done one at the Changi airport in Singapore. If you just want to take a picture or two of things, these tours are fine, but you usually don’t get to spend much time at any one place, so if you actually want to explore places, you probably want to organize your own stopover tour.

What should I do during my layover?

Depending on the amount of time you have, I might check out the Souq Waqif and the Museum of Islamic Art and then walk along the Corniche.

How to Survive Long-Haul Flights (Advice from a Management Consultant)

Editor’s Note: This post was not written by me, but was instead written by a friend who travels a lot for his job. I am posting his note with his permission, and I have to agree that wearing a medical face mask is a life changer on airplanes (I tried it for the first time on an ANA flight a number of years ago, and now I don’t fly long-haul without one). The only thing I’d add is that a neck pillow is required if you’re flying coach (I use this one: http://amzn.to/2xVPHGP).

So, I fly a lot. And, false humility aside, I’ve gotten pretty good at it — particularly long hauls. After giving one-off advice to friends too many times, I’ve decided to codify what I’ve learned. For best results, do all of the following. Just trust me. Do everything. I’ll explain why at the end.

Two+ weeks before you travel, go online and buy:
1) Medical face masks — regular face masks that doctors or nurses use to cover up their faces. Buy the cheap ones — they’re fine for what you need them for. E.g. http://amzn.to/2xV3qgR
2) Low dose, extended release melatonin pills (5). Extended release means that they should last about ~6 hours. This is critical because melatonin passes out of your system relatively quickly (~30 minutes), so you need a constant dosage. Also, buy a low dose — 300 mcg (that’s micrograms) is plenty. Most commercial melatonin products are way, way too strong. Here’s the one I buy: http://amzn.to/2xUY0Tc
3) Regular strength NyQuil pills (yes, the regular over-the-counter cold medicine): 3 full doses (6 pills) — see full description below
4) If your flight doesn’t provide (though most long hauls do): buy eyeshades and earplugs (Editor’s note: here are the eyeshade (http://amzn.to/2flBFX6) and earplugs (http://amzn.to/2yvoGaa) that I personally use); consider also getting noise-cancelling headphones like the Bose QuietComfort25

Before you head to the airport:
* Take a shower and wash your face well
* Put on a very thin layer of facial cream
* Wear loose fitting layered clothes. It’s a good idea to being extra socks or a light jacket in your carry-on, particularly if you’re in an exit row
* Wear glasses, not contacts

At the airport, after security:
* Buy a Gatorade and a water bottle. If it’s available, Vitamin Water Revive (purple) flavor (only) is even better than Gatorade
* I’d also recommend buying a deli sandwich as these flights frequently don’t feed you enough
* If you forgot to buy NyQuil pills earlier, you can often find them in the gift shop

As you board:
* Look in the overhead bins for extra stacks of blankets. If you see them, grab them. Use them to pad your seat and provide lumbar support for your back
* Most important of all: put on your medical face mask soon after getting on board, and keep it on for basically the entire flight, pulling it down only to eat/drink
* Drink small sips of the Gatorade / Vitamin Water Revive frequently, and “finish” it with your water (so you don’t rot your teeth over the very long flight)
* No alcohol or coffee under any circumstances

When you are ready to sleep:
* First, consider your sleeping time carefully. Some people adjust better to “big bang” adjustments (trying to switch to the new time zone completely, immediately) — I’m like this. Some people try to adjust a few hours per day. Either way, have a considered strategy. Once you’ve decided that you need to get your 8 hours…
* Take 2 of your NyQuil pills (1 full dose = 2 pills) and your 1 melatonin pill. Make sure you have at least 7 hours to sleep as the medications will leave you disoriented and sick if you try to get up and do too much. Remember that flight attendants will wake you up about an hour before the flight lands, so make sure you’re doing this at least 8 hours before landing!
* Use the bathroom, and while there, grab some tissues and jam them in your pocket — just in case you need them
* About 20-30 minutes after taking the medication, you’ll start to feel sleepy. When you feel it coming, put the earplugs in and then put on the eyeshade. Take your glasses off and put them in the seatback in front of you. If you have noise-cancelling headphones, now is the time to put them on. Your medical face mask should already be on. Try to make sure that it’s relatively sealed around your mouth. It’s better if there’s some slack in the mask as you’re trying to create space for moisture to accumulate inside the mask.

Then sleep!

So, what on earth is this strategy all about? It’s based on two key ideas:
1) Hydration levels are critical. Airplanes are dryer than the desert. They are kept artificially dry so that the aluminum alloy the planes are made from don’t rust. The impact of this choice is that you will constantly dehydrate over the course of your flight, and you will be very dehydrated by the time you land, which is one of the main sources of discomfort. Wearing a mask will help dramatically at counteracting this effect. The mask will trap in your own moisture and help keep you much more hydrated. This is also why you are buying a Gatorade or Vitamin Water Revive — they are loaded with potassium, which helps your body absorb water more effectively. It goes without saying, then, that you should not drink alcohol or coffee on your flight — this will just dehydrate you further. Also, the alcohol may help put you to sleep, but it won’t keep you asleep. In fact, it makes you more likely to wake up!

2) Do whatever it takes to sleep. Sleeping on an airplane is hard. This is why you should A) have no shame in taking drugs to sleep on the plane, and B) use all the sensory deprivation you can. For A), look, these drugs are harmless if you take them infrequently. So do it. Melatonin is a naturally occurring chemical in your brain that triggers your body’s nighttime readiness. Use it shamelessly to counteract jetlag. (Obviously, don’t take it more than a few days, but it is very safe to take over the short term.) Speaking of safe, NyQuil is fantastic for flights. When you look at the active ingredients of NyQuil, the container will note that it has an antihistamine. Funny — that “antihistamine” is also the active ingredient of Unisom, an over-the-counter sleeping drug. Look, again, don’t abuse it, but the combination is very useful. Literally the only time I ever take sleeping drugs is for flights. Use them. For B), you have the eyeshades to block your sight, and the earplugs (and ideally noise-cancelling headphones) for sound. I particularly like the Bose headset because it goes over and around your ears, making them comfortable to wear for hours at a time. Plus, you can wear both earplugs and the headset at the same time for double noise cancellation. The medical mask is also critical here, because without it, you will take up every hour gasping for water because the air has dried out your throat. Wear the mask and you’ll be able to sleep 6-7 hours without waking up and gasping for water because your throat is dried out.

Again, the single most important piece of advice in this entire note is the medical face mask. It really does make a huge, huge difference. If you feel weird about wearing a face mask in public, what I often do is bring a bunch of extras with me (they’re cheap!), explain what I’m doing to the passengers around me to reduce their concern that I’m sick in some way, and then offer them the extra face masks. They often take one!

If you use this strategy, when you land, you will be 1) rested, and 2) not dehydrated. You’ll arrive feeling 85% instead of 30-40%. And, the grogginess from the NyQuil will pass in a couple hours.

Also, once I land, I tend to keep using the drugs to help with the jetlag:
* Nights 1+2: Melatonin pill + half dose NyQuil (1 pill)
* Night 3: Melatonin pill only
* Nights 4+: Nothing (What to do with the last NyQuil dose and Melatonin pill? They’re for the flight back!)

Practical Money Advice and Tips When Traveling in a Foreign Country

Some practical advice and tips around money when traveling abroad:

Tip #1: Wait until you get to the country before getting any local currency. You generally shouldn’t exchange money at home before you leave for your trip because your home bank will almost certainly offer a worse exchange rate than what you’d get if you had waited until you got to your destination.

Tip #2: Get your local currency from ATMs. Unless for some reason you need lots of local currency in cash and can’t withdraw that much from the ATM due to daily limits (e.g. you need to pre-pay an apartment rental in cash upon arrival or something), you should just withdraw money from an ATM to get local currency. Your bank will generally give you the prevailing exchange rate for the day, while currency exchange counters take a fee (even if they advertise as no fee, their fee is taken through giving you a worse exchange rate). Caveat #1: Most places most people will go will have ATMs; not all places do. But if you’re going to one of those places, you probably don’t need any of my advice.

Tip #3: Use a bank that doesn’t charge you any fees to withdraw money abroad (and ideally one that refunds all ATM fees). One popular choice is Charles Schwab (which is currently offering a $100 incentive for new members). Tip #2 doesn’t make sense if your bank charges you $5 per withdrawal in addition to paying whatever ATM fee that’s charged. Getting ATM fees rebated is particularly helpful in places that charge exorbitant ATM fees (Siem Reap, I’m looking at you).

Tip #4: If for some reason you’re too lazy to use a bank that doesn’t charge fees for foreign withdrawals and rebate ATM fees, check if your bank partners with other banks to see if you can withdraw money fee-free. For example, Bank of America is part of a global ATM alliance with banks like Barclays and Scotiabank, so they don’t charge a $5 non-BofA ATM usage fee (although they still charge a foreign transaction fee of 3%). But really, you should use Charles Schwab.

Tip #5: Get a credit card that doesn’t charge foreign transaction fees. There are so many cards that offer this perk nowadays. I’m partial to Discover and Mastercard, as I feel like they have better exchange rates (based on a very limited sample size).

Tip #6: Get a debit card that has a chip. Almost all credit cards issued in the US nowadays should have a chip, but they’re almost all only enabled for chip and signature. This means that you sometimes can’t use these credit cards in automated machines that request a PIN (e.g. train ticket machines in Europe). But your debit card has a PIN, and if it also has a chip, then you can use it when you must have a chip and PIN card.

Tip #7: Never pay in your home currency aka always pay in the local currency aka decline dynamic currency conversion. When you pay for things by credit card in a foreign country, you’ll sometimes be offered the choice to pay in your home currency or the local currency. Always choose the local currency. If you do the math, you’ll see that the amount they’re charging in your home currency is based off a terrible exchange rate, and even if you choose to pay in your home currency, your credit card still might charge you a foreign transaction fee. I can’t think of any reason why you would want to pay in your home currency (so tell me if there is one! I’m genuinely curious).

Tip #8: To get rid of your local currency at the end of your trip, go to a place that accepts credit cards and say that you want to pay part in cash and the rest on credit. For example, if you need to settle a hotel bill or you have one last dinner, you can often pay part by cash and part by credit card. This lets you get rid of all of your leftover local currency–including coins!

Have any favorite tips or advice on dealing with money in a foreign country?

Need to Send Money to a Foreign Bank Account? Try TransferWise

I’m currently planning a trip to Malaysia this summer. One of the primary purposes of this trip is to spend a couple of days on a durian farm where I’ll just gorge myself on durian. I’m excited. (I’ve also got flights booked on Qatar’s and Etihad’s A380s in first class, so those reviews will eventually appear on this blog).

But to confirm my stay at the durian farm, I needed to transfer money to the durian farm’s bank account. It’s just a guy and his family running this place, so they don’t have any infrastructure to take credit cards or do online payments.

At first, I was at a bit of a loss about how to accomplish this. I initially thought of wiring money, but wiring money is generally pretty pricy, much less wiring money internationally. I use a credit union for my primary banking purposes, and they charge $35 for an international wire. I looked into money transfer services like Western Union, but they too were not cheap.

And then I came across TransferWise (warning: that’s my referral link). TransferWise is a relatively new company that gets around some of the traditional fees associated with sending money across borders by making it so that no money actually crosses borders. If you want to send money from bank account A in the US to bank account B in Malaysia (as was my case), rather than directly sending money from bank account A to bank account B, they find other people who want to transfer money in the opposite direction (i.e. from Malaysia to the US) and just transfer the money within each country individually to settle everyone up. Pretty ingenious, if you ask me.

Because the money doesn’t actually cross borders, they can offer much lower rates, and I was able to send my money at the prevailing exchange rates for a fee of only $3. Pretty good if you ask me! The fact that you get the actual exchange rate is a big deal, as many money transfer services advertise low fees but gouge you on the exchange rate.

Anyway, if you find yourself needing to move money across borders, you might want to consider TransferWise. If you sign up with my link, you get your first transfer for free (up to $750).

Newbie Question: “What Credit Card Should I Get?”

All of them. As many times as you can.

People frequently ask me which credit card they should get (and every time I die a little on the inside because I don’t have any affiliate links to make money off of them). But it’s a question that I find challenging to answer because I don’t think that there’s a single credit card that people should get–people should get them all. The best credit card strategy is to apply for new cards as quickly as you can meet the minimum spend requirements on your previous cards so you’re constantly earning sign-up bonuses. Sign-up bonuses are currently the single best way to earn points in the current environment.

For example, the Chase Sapphire Preferred–which seems to be the gateway travel credit card for many people–currently offers 40k points after spending $4k within the first three months of having the card. This isn’t even the best the offer has been (it can go up to 50k points, ignoring the 5k points you can get for adding an authorized user). But that means that for the first $4k you’re spending on the credit card, you’re essentially earning at least 11 points per dollar spent. Or the Citi AA card which offers 50k miles after $3k in spending. That first $3k spent is earning over 17 miles per dollar. You’re not going to get anywhere close to those numbers on ongoing everyday spend.

In addition, by applying to credit cards as quickly as possible, you’re also resetting your clock on when you can then churn those cards. Chase cards are churnable 24 months after receiving the sign-up bonus, so applying for and meeting the spend earlier means that you have to wait less time to earn the bonus again in the future. Granted, there are some banks that are cracking down on this, but this game always evolves, so you should take advantage of opportunities as they arise.

Now, I’m a bit of a hypocrite because I’m not really following my own advice: I haven’t been applying for as many new cards as I could be, but this is mostly driven by the fact that I’m sitting on more miles than I can redeem so I haven’t been too focused on earning. But I’ve accumulated many of those miles from applying for (and subsequently closing) lots and lots of credit cards.

Frequent Flyer Miles Aren’t for Everyone

And by everyone, I mean most people.

Don’t get me wrong–I love my miles, and they’ve enabled me to do lots of awesome things that I’m super grateful for. But for the average person, focusing on frequent flyer miles doesn’t make much sense.

In my mind, there are two main reasons why you should collect miles:
1) You value premium cabin travel
2) You have a lot of flexibility, mostly in terms of time, but also in terms of where you’re willing to go

In the first case, frequent flyer miles are the obvious choice, given that you can get access to first class or business class travel for a much cheaper price using miles than by paying cash. In some cases, it’s even cheaper to buy frequent flyer miles using cash to book an award than paying for the ticket in cash outright (I’m looking at you, Alaska Airlines). This is the main reason why I pursue miles.

In the second case, frequent flyer miles generally can get you where you need to go, provided that you have flexibility in your dates and a willingness to take perhaps circuitous routings to get there. That being said, frequent flyer miles can be awesome in that they can allow you to visit many more places than a normal cash ticket would. United roundtrip awards are a great example of this, given that they allow you to have one stopover and two open jaws, which means you can potentially visit five different places on a single ticket (assuming you count your origin as a place).

But most people don’t fall under either of these buckets. I have gotten so many requests IRL along the lines of, “I want to go to Paris in June and need four tickets and just want to fly in economy class and it has to be on these exact dates because I want to maximize my vacation time and I want to take nonstop flights–how do I do this using miles?” And the answer is you don’t. You pay cash for that ticket because what you’re asking is completely unreasonable from a miles perspective. And if you’re going to be paying cash for that ticket, then you should be accruing points on a 2% cash back card instead of a miles credit card.

Of course, you should still collect the miles that you’ll naturally accrue by flying, but you shouldn’t keep spending on your Chase United card or Chase Sapphire Preferred or Citi AA card or whatever unless you have a good reason to, since you’ll almost always be better off with 2% cash back.


So British Airways Sent Me An Email Saying My Account Was Compromised…

And this was their explanation:

This appears to have been the result of a third party using information obtained elsewhere on the internet, via an automated process, to try to gain access to your Executive Club account.

We understand this was login information relating to a different online service which you may have also used to access your Executive Club account.

This is complete BS. While yes, I realize that it’s common for people to reuse passwords, I use a password manager to generate unique passwords for each of my online accounts, so it’s impossible for “login information relating to a different online service” to have provided access to my British Airways account (well, okay, it’s not completely impossible, but I can’t imagine that there’s an underlying predictability in the randomness of the passwords generated by my password manager that allowed hackers to generate the password that I would have used for my BA account).

Of course, it’s much more convenient for them to blame someone else rather than admitting that they themselves were hacked, which is what they’re doing.

Two thoughts on online security:
1) You really should use a password management system. Reusing passwords is kinda a big deal. It can’t always help you (like in this case), but it does give me confidence that none of my other online accounts were hacked since I haven’t used my BA password for any other accounts.
2) You should use two-factor authentication for any service that offers it. For example, email, Twitter, Facebook, financial accounts, etc.

Okay, I’m done preaching and ranting.

A (Shameless) Way to Charge Your Devices While Traveling

I don’t always travel in premium cabins and stay in super nice hotels; in fact, I often fly in coach and stay in hostels or the equivalent. And oftentimes, that means that charging your devices can be a strategic game. For example, it’s still rare for all coach seats to be equipped with electrical outlets, which can be problematic on long international flights.

In addition, while most of the devices I bring with me are equipped to handle 230 volts (i.e. my cell phone and laptop chargers), my toothbrush charger is not. This generally doesn’t matter on shorter trips as my toothbrush lasts about 2 weeks on a single charge, but comes up when I’m traveling for longer periods of time.

So what should you do if you’re out of juice on an international flight and you don’t have a power outlet at your seat? Or if you need to charge a device that’s only rated to handle 120 volts? Answer: go to the bathroom.

Yes, I did this once

Yes, I did this once

Airplane bathrooms are equipped with electrical outlets. I’m not entirely sure why, but they’re a potentially unknown power source if you’re flying in coach. Granted, it’s a somewhat selfish thing to do if the flight is full and there’s a long line for the bathroom. In my defense, the above picture was taken on a Malaysia Airlines flight that was maybe 20% full, and I could have sat in the bathroom for the entire flight and no one would have cared.

If you’re staying at a hotel, the bathroom is also the most likely location to find an electrical outlet that provides 120 volts, as many hotel bathrooms are equipped with switches to go between 230 volts and 120 volts (this is for electric razors). I also now generally travel with one of those mini portable chargers that you can get for less than $15.