I’ve been on top of this PremierMiles situation since the day Citibank announced the upcoming devaluation. I can only thank my stars and yours that the devaluation is coming with a notice, and not unlike the time when Jet Airways and Citibank broke up relations overnight.
Citibank will put the new transfer rates into effect from February 1, 2015, where each airmile conversion will work from 1 PM = 1 airmile to 2 PM = 1 airmile. So far, no changes are envisaged to hotel conversions. This means, even when you effect a transfer on January 30, 2015 you will still get a 1:1 conversion when it lands up into your frequent flyer account.
I’ve seen loads of emails and comments from readers over the past few days, commenting about acting in a haste and junking the card. I’d say, hold on. Evaluate your options, see your circumstances and then jump.
Not everyone will have the same situation or the same travel goals. But I would broadly like to classify the actions of the holders of PremierMiles card into 4 buckets:
- Those who travel internationally, should look at all the transfer options and see which ones will suit them best, then act.
- Those who travel domestically around India, should look at Air India and Etihad, and then act.
- Those who like to use it for cash at INR 0.5, will still continue to hold on to their PremierMiles.
- Those who like to see an appreciation of their PremierMiles by converting into Prestige, I’d say, do it when you’re comfortable, because the conversion ratio stays the same to the best of what I know, at this point of time. Also, first be convinced about the 20,000 INR fee of the Prestige.
So, whichever bucket you are in, just think it through and don’t make the call to transfer all your PM just because your friends and other readers of this blog are doing so!