In February I wrote about how Avianca’s LifeMiles program introduced “Club LifeMiles.” Through this offering you can sign up for a subscription that gets you a certain number of miles every month, and then a further bonus if you stay subscribed for an entire year. When this was first introduced there were six different subscription plans, and the cost per acquired mile was anywhere between 1.39 and 1.65 cents.
While I appreciated the creativity of this concept, personally this isn’t something I’d take advantage of. That’s because I generally like to buy miles with a short term use in mind, as there’s a cost to holding onto miles long term. Personally I’d want for there to be a significant discount over the usual sale price in order to lock myself into a subscription service like this over the course of a year. However, I’m sure others feel differently, especially since this is basically a way to acquire miles while spreading out the purchase price over time.
For those who were generally interested in this but thought the pricing was a bit steep, the cost of a Club LifeMiles subscription has been marginally lowered as of April 5, 2018.
Here are the details of the new Club LifeMiles pricing:
- For $9.99 per month you can receive a total of 8,000 miles after a year (1.5 cents per mile)
- For $19.49 per month you can receive a total of 16,000 miles after a year (1.46 cents per mile)
- For $38.49 per month you can receive a total of 32,000 miles after a year (1.44 cents per mile)
- For $56.99 per month you can receive a total of 48,000 miles after a year (1.42 cents per mile)
- For $91.99 per month you can receive a total of 80,000 miles after a year (1.38 cents per mile)
- For $125.99 per month you can receive a total of 112,000 miles after a year (1.35 cents per mile)
To compare, the cost of packages under the previous plan was 1.39-1.65 cents per mile, while under the new plan the cost is 1.35-1.5 cents per mile. As you can see, in four of the above six packages, the cost per acquired mile is being lowered, and for those who max out the promo, the cost is decreasing from 1.39 cents per mile to 1.35 cents per mile.
While the lower cost per acquired mile is good, my overall view of the value proposition remains the same. Historically when LifeMiles offers a discount on purchased miles, prices get as low ~1.32-1.47 cents per mile. I’d rather acquire all the miles at once so I can redeem them right away, rather than holding onto them long term.
However, others will surely feel differently.