Boring But Superior – The Only AA Loyalty Point Rewards I Choose

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AA Loyalty Point Rewards

Like the current version of their overall mileage program, the AA Loyalty Point Rewards scheme is one of the more diabolically genius inventions in the points and travel hobby.  In addition to achieving progressively higher levels of American Airlines status, big earners can pick from a solid list of additional rewards.  (And AA’s gotten even more travelers hooked along the way.)

While some small but considerable perks reside at lower LP thresholds, many more lucrative options start arriving at the 175k level.  But individuals can only pick one or two (depending on the threshold) from the list.  We’ve debated these options plenty within the MtM Diamond Group, but I keep coming back to the same conclusion for my situation.  Starting at the 175k level, I pick the same AA Loyalty Point Reward each time – redeemable miles.  Today, I’m getting into why I do so, but first, I’ll summarize the list of rewards that start showing up at that threshold.

AA Loyalty Point Rewards Options

Here’s an overall sample of AA Loyalty Point Rewards which begin appearing at the 175k threshold:

• Systemwide Upgrades
• 20k Bonus Redeemable Miles (25k for primary AAdvantage credit cardholders)
• Admirals Club One-Day Passes
• $200 Trip Credit ($250 for primary AAdvantage credit cardholders)
• Carbon Offset
• $250 Donation to a Select Nonprofit Organization
• 15% Award Rebate
• Two Gifts of AAdvantage Gold Status
• 35k AAdvantage Miles toward a Mastercard Priceless Experience (cardholder exclusive)

At the 250k threshold and above, a few more options appear, like Bang & Olufsen products, Flagship Lounge passes, and gifts of Platinum or Platinum Pro status.  Starting at 250k, individuals can choose two rewards, including the same one twice.  Certain basic rewards, such as redeemable miles and miles toward Mastercard Priceless Experiences, increase as one progresses up the scale.  Flagship First Dining passes appear as a choice starting at 400k.  Check out all the options here.

Why I Always Pick Redeemable Miles

I find the overall list of options quite attractive.  Admittedly, I’ve had fun considering many of them, but over and over, I come back to the somewhat-boring bonus redeemable miles as my choice.  Why?

Avoiding Breakage

Many of the options seem attractive, but without definite travel plans there’s no assurance that I’ll use them (whether they expire or not).  Knowing I can get into a Flagship First lounge is great, but I currently don’t have any specific travel goals requiring them.  And others are more difficult to use.  I’ve heard horror stories from other AA enthusiasts about their systemwide upgrades expiring for that reason.

Investing in My Travel IRA

Consistently, I enjoy contributing to a variety of hotel point, airline mile, and even Amtrak point balances to pad what Randy Petersen calls a “travel IRA.”  I shamelessly hoard these balances for multiple reasons, including the peace of mind that I can primarily rely on award travel for the indefinite future.

I Already Have or Do Some of That Other Stuff

Of course, I applaud AA for offering Admirals Club passes to many travelers who may not have access to those or other lounges.  But as a Citi AAdvantage Executive authorized user, I’m able to leverage its generous Admirals Club benefits.  Giving to charity via AA Loyalty Point Rewards is another useful option, but I already do that in other, more tailored ways.  With a bit of flexibility, I’m still able to find solid deals on AA award tickets, so that rebate doesn’t do much for me.

Redeemable Miles Are More Flexible…

…than some of the other Loyalty Point Reward options.  For instance, in their relatively recent updates, AA has underscored that miles can be used for Flagship First passes.  I’d rather take the miles now and have the flexibility to use them for redeemable flights or Flagship First access when I actually need it, instead of speculatively redeeming for rewards I may not end up consuming.

It’s What I Know

Perhaps you have heard some version of this cliche:  if you’re not learning, you’re dying.  Sure, we can reach a new level when we learn more.  Adapt and overcome, right?  That’s good and all.  But hey, I also like routine.  I’m fine with more of something I already know and benefit from, so I’ll take those redeemable miles.  Meanwhile, I don’t have much interest in learning how to redeem AA miles for a Mastercard Priceless Experience.

Conclusion

So there it is.  I’ve chewed on the variety of AA Loyalty Point Rewards options, and I largely end back up where I started – more redeemable miles.  Indeed, I’ve gone so far that I’ve incorporated these redemptions into my overall earning and cost considerations.  Not long ago, AA helpfully confirmed that redemption rates for Loyalty Point Rewards would stay the same as the previous qualification year, and they even improved some at the lower levels.  I’ll keep riding the wave while it’s tasty.

What AA Loyalty Point Rewards have you chosen and why?

Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.

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