When Tracy Wren decided to go to the 2024 Summer Olympics, she used the miles to book a flight to Paris with Singapore Airlines.
But she didn’t win them – she bought them.
Rather than buying miles directly from airlines selling 1,000 miles for around $40, Wren relies on Carousell, a popular online marketplace in the Asia-Pacific region, to sell new and second-hand items.
Buying miles online “is a cost of nearly 50% compared to purchasing tickets,” says Ren.
Is this allowed?
Buying and selling airline miles online is not illegal, according to Aaron Wong, founder of Travel and Loyalty’s website The Milelion.
It also does not violate Carousell’s terms of service. The company, which bans the sale of weapons and cryptocurrency, told CNBC’s travel via its representative, “The governance of airline miles and points sales depends on the terms… () airline… Carousel is not in a position to enforce these third-party agreements.”
This is where online sellers control if they violate the rules, Wong said. The terminology of the Singapore Airlines’ loyalty program states that “the sale or bartering of Krisflyer Miles is… prohibited.”
Online sellers often price Krisplyer miles for less than half the cost of Singapore Airlines and sell 1,000 Krisplyer miles for around $40.
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“So it’s not a question of whether you can do it…but whether you can get away with it,” Wong said.
He said if the airline catches a traveler who purchases or sells miles, it can confiscate the miles and close traveller’s loyalty accounts. Apart from that, buyers also run the risk of losing money to online scammers, he said.
How it works
Some sellers will transfer credit card points directly to the buyer’s Krisflyer account, Wong said. The names of the two accounts must match, he said, but added that they “go through the crack.”
A more common approach is to name the buyer “candidates” under Singapore Airlines’ Krisflyer program, he said. According to the program, members can “nominate up to five individuals.”
Nothing I do violates the terms of the contract.
Speaking to CNBC, one member of Singapore-based Krisflyer said he has been using the method to sell miles to strangers for the past year and a half, at a price of $17 ($12.75) at Singapore dollars ($12.75).
Sellers who asked to remain anonymous to protect their identity at work said that buyers must share passport details to be designated as candidates.
“I need to have their personal information, so I will share my details with them too. I will proof of my address with them… my phone number,” he said. “It gives them even more comfort in case something goes wrong.”
And things go crazy, he said. He had to intervene twice in a ticket that he redeemed for others, he said.
“In those circumstances, it was pretty ok, but if he called me in 15 minutes, I would be in the meeting for an hour,” the seller said, adding that the buyer also paid the flight change fee immediately.
He said that Singapore’s small size and low crime rates make it easier for city-states to sell airline miles.
“It’s a pretty compliant society. People don’t usually ride each other,” he said.
Why sellers sell?
Another seller said he refused to name himself or use the carousel screen name, but he said he began selling Krisplyer miles more than a decade ago after accumulating more points (mainly through credit card purchases) than he could use. Additionally, he said he is always “crashing for expiration dates.”
His Carousell list says he sells 1,000 miles for $15 to $25, depending on how he purchases and how many miles he purchases. He has made six “five-star” reviews of Miles’ sales in the past month, with buyers raving about his “fast” and “hassle-free” deals.
But first seller CNBC said he said he was selling points for a totally different reason.
“Singapore Airlines become a very expensive airline to fly, so I rarely used my money to fly,” he said. “You sell those miles, get funds, and the same funds will be used for other bookings.”
Additionally, he usually books a trip about six weeks in advance. By then, he said redemption flights were usually sold out. He also said he would not use Krisflyer Miles to buy the product because “arithmetic doesn’t stack up.”
The seller told CNBC he doesn’t feel he’s breaking the rules.
“According to airline regulations, people say they need to be added as candidates to my account,” he said. “There’s nothing I’m doing. This violates the terms of the contract.”
However, when asked about the sale of Krisflyer Miles in the carousel using Singapore Airlines nomination system, the representative stated that the programme’s term “strictly prohibits the sale or barter of Krisflyer Miles, Elite Miles, PPS Value, Rewards, Award tickets or other perks.”
“Members engaged in such activities are at risk of cancelling these benefits,” the representative said. “SIA will work closely with relevant authorities to monitor these platforms and will take decisive action against members who violate these rules.”
Less legal methods
That has not stopped the “miles broker” business cottage industry from being born online, Millerion’s Wong said.
“Airlines tend to focus more on brokers, bigger guys,” he said. “Carousel sellers know that too.”
He said the airline would try to prevent miles from selling without making redemptions undue troublesome for its members “playing with the rules.” Ultimately, “They can’t engrave it completely.”
Wong suggests using services such as Citi Payall and Cardup. This allows users to earn miles from bills, rent and education payments.
“The irony I saw here is that you can do it — legally — less.”
