Having finished our post on the Best Travel Credit Cards for Miles Accruals in Singapore, the next natural step is to take the post to a test. In this test, we’ll be attempting to redeem a return flight from Singapore to Narita (Tokyo) via Krisflyer. First, we’ll need to know how many miles we need…
By taking a quick look on the SQ website, we can see that a return flight from Singapore to Narita costs
$8166.90 SGD OR 120,000 miles.
In this test, we’ll also be using 3 ways to attain the 120,000 miles required for the first class return flight from Singapore to Narita via Singapore Airlines.
Method 1: Fastest Way
Assuming that you currently do not have any miles. The fastest way to accumulate the required miles would be to collect as much of the sign-up bonuses as possible.
In this example, you’ll spend a total of $4391. Of which, $2141.15 are additional expenses to pay for the annual fees of these cards. However, you’ll quickly see that $2141.15 is actually much cheaper than the $8166.90 if you were to pay for the air ticket directly. In this way, you’ll be able to accumulate the required 120,000 miles within a relative short time span of 3 months (much faster if you get all your spending done immediately – ie points transferred to your account in the 2nd month). Also, note that the DBS Woman’s Card has the first year of annual fees waived. Hence, no additional charges come from that card.
Method 2: Cheapest Way
This method is a really hypothetical in that you’ll do all your expenditure online, via 1 card. The DBS Woman’s Card. This card offers the highest rate for online expenditures at $1 : 4 miles. Hence, to accumulate 120,000 miles, you’ll probably have to spend about $30,000 online. But the good news is that none of these go to paying for annual fees. You could also theoretically purchase $30,000 worth of NTUC vouchers to be used over the next couple of years. Lastly, if you take $8166.90 as a percentage return of $30,000 spent, you’ll realize that the return would equate to a whopping 27.22% return! That is definitely much higher than any 1% to 5% cash back in the market currently.
Method 3: Most Realistic Way
This method would be the most realistic way to attain the 120,000 miles. You will probably have a good mix of travel cards, online expenditures, dining and travels.
As typical Singaporeans, we’ll probably be spending a substantial amount on food each year. This example takes into account $400 spent monthly on the OCBC Voyage Card at an earning rate of $1 : 2.3 miles. Also, miles are accumulated based on renewal of 2 cards (Citibank Prestige and ANZ Travel). This means that you’d at least have to wait for a year to get the required miles. As a result, this equates to $2346.50 additional amount paid on annual fees. Which again, is much cheaper than the $8166.90 required for the same ticket. Moreover, you’ll be able to enjoy the perks of travel cards which includes limousine transfers to airport, airport lounge access, travel insurance and more.
As a reference, if you chance upon the 150% deal by Avianca Lifemiles, you’ll be able to purchase 250,000 miles for $3,300USD. This equates to $2310SGD for 125,000 miles. What this means is that, by paying for the annual fees of the credit cards, it is actually more worth it to get the same flight with the perks of the travel cards.
There are several disclaimers to the calculations that we have done above.
1. Rewards in the form of miles is not for everyone. Having credit card rewards in the form of miles is definitely not for everyone. Many people still prefer cash back because of the flexibility of how one can spend those cash back. Nonetheless, for those who value experiences, especially flights on first class on our flagship airline, this method is still well worth it.
2. Not everyone can get the above-mentioned cards. If you refer to our post on the Best Travel Credit Cards for Miles Accrual in Singapore, you’ll realise that some of these cards require annual income of $120,000, which is definitely not for everyone.
3. Actual results vary from individuals to individuals. The best way to accumulate miles really depends on your spending habits. Dining, travelling and online expenditures definitely makes a difference in the way you accumulate your miles for that desired first class ticket on Singapore Airlines. For instance, if you travel often to Australia or New Zealand, the ANZ Travel Card may be for you due to its earning rate of $1 : 2.8 miles for spendings in Australia, New Zealand or Qantas.
We hope we have helped to dismiss the myth that the coveted first class air ticket is out of reach and hope that you have enjoyed our post. Do let us know what you think about the fastest (cheapest) way to accumulate miles for first class air tickets on Krisflyer (Singapore Airlines), in our comments section below!