As of December 2000, the Varig Smiles program maintained partnerships with 139 companies, including hotels, car rental agencies, restaurants, etc. All told, these partnerships earned revenues for Varig in excess of US$55.1 million in 2000, an increase of 37% over 1999 partnership revenues (US$40.1 million). This illustrates just how profitable frequent flyer programs can be for the airlines -- even relatively small airlines.
Something a little newer!
The current malaise in the airline industry is not limited to the United States. Witness Varig (Viacao Aerea Rio Grandense), Brazil's largest international carrier, which is struggling to emerge from bankruptcy. Just last month, in fact, creditors approved a bankruptcy reorganization plan that calls for the company to sell units to cut its debt. Varig is seeking buyers after Brazilian President Luiz Inacio Lula da Silva said the government would not bail out the 79-year-old carrier.
Then again, there is hope. Varig still owns a huge portion of the market, and its membership in the Star Alliance is a win-win for both the company and its customers. And Smiles, Varig's long-running frequent flyer program, continues to offer solid incentives to its members to keep flying.
Members can earn miles on Varig, Star Alliance, or non-alliance partner airlines. Generally, members earn one mile for each mile actually flown, with a 25-percent bonus for business class, and a 50-percent bonus in first class. Short hops earn a minimum of 500 miles. Accrual rates may vary by partner, and are subject to the rules of the partner's particular program.
In addition, Smiles boasts a huge complement of credit card partners in Brazil, Argentina, Paraguay, Uruguay, and Bolivia. Only a few are Varig-branded; most have independent programs with points that can converted into Smiles miles. Rates vary, but tend to hover around one point per U.S. dollar spent, with each point convertible into one mile.
Award choices..
Still, there is plenty of variety among the flight awards offered by Varig. For one thing, membership in the Star Alliance ensures that members can fly to nearly every corner of the globe. Even Varig itself has a very large route network, so chances are members need not even bother with partners.
Smiles awards are divided into two basic types: standard awards and "Any Day" awards. You guessed it: Any Day awards are free of blackout dates and capacity controls, but will significantly increase your mileage expenditure.
Standard awards are more or less in line with the industry average. Within Brazil, awards run between 20,000 and 40,000 per roundtrip, depending on class of service flown. From Brazil to the U.S., standard awards run 50,000, 75,000 and 100,000 miles for economy, business and first class, respectively. That's about dead center between American AAdvantage's off-peak and peak awards, and slightly more than LAN Pass' 70,000-km (43,495-mile) award.
Trips to Europe run from 70,000 to 130,000 miles, and to Asia, 90,000 to 150,000. Flying an Any Day award will effectively double those mileage requirements.
One-way awards are now available, but only within Brazil. They generally run slightly more than half of the standard awards.
Upgrades may be made from either full-fare economy or promotional economy to business class, or from business class to first. Depending on your class of service and length of flights, they'll run between 30,000 and 150,000 miles.
Partnerships
Smiles boasts a large list of hotel partners: Tropical Hotels & Resorts Brasil (250-500 miles per stay); Atlantica Hotels (1 mile per dollar); Bourbon Hotels (1 mile per dollar); Golden Tulip Hotels (500 miles per stay); Grupo Posadas (250-500 miles per stay); Hilton (500 miles per stay); Hotels Deville (500 miles per stay); Priority Club (2.5 miles per dollar or 500 miles per stay); Maksoud Plaza (2 miles per dollar); Marriott (1-3 miles per dollar); New Age (500 miles per stay); Pacific International (500 miles per stay); Pestana (1 mile per dollar); Sol Melia (1 mile per stay); Worldhotels (500 miles per stay); Starwood (500 miles per stay); Summit (1,000 miles per stay); and Tulip Inns (250 miles per stay).
Rental car partners include Avis and Hertz, and generally give out between 250 and 500 miles per rental.
Smiles also offers a host of other mileage-earning partners, from telecommunications providers to magazines to restaurants and more. These include American Express Traveler's Cheques, americanas.com, Angeloni, Bomclube, Bradesco Capitalizacao, Claro, Conrad Punta Del Este Resort & Casino, Cotacao On Time, Fernandez Mera, Global Calling Card, Gradiente Cellular Travel, Guard One, IT Viagens de Incentivo, Loja Abril.com, Netflores, Petrobras Card, Pirelli, Programa Protest Premium, Santander Retirement Plan, Samsung, Sandrecar Ford, Satipel, Submarino.com, Skitotal, TIM, Unibanco Mais Milhas DI, Vacine, VARIG LOG, EF -- Education First, Experimento Courses, EUROPA Editors, HSM do Brasil, Newsweek International, O Estado de S. Paulo, Gestion Magazine, Espaco Marcos Guardabassi, Manekineko, Nakombi, Rubaiyat and Cabana Las Lilas, and Assurant Solutions.
Varig Smiles Elite Level Program
Members who manage to earn 20,000 flight miles or 25 segments in a year are entitled to Silver status. They may expect a 25-percent earning bonus, a 5,000-mile threshold bonus after reaching the Silver level, an additional 3,000-mile bonus upon each renewal, 10 kg. of excess baggage allowance for flights within South America, and Star Silver status with Star Alliance partners.
Members who fly 50,000 or 60 segments in a year get Gold status. Gold members earn a 50-percent earning bonus, a 7,500-mile threshold bonus (5,000 miles upon renewal), 20 kg. of extra baggage allowance, Executive Class check-in, access to Executive Class lounges, waiver of expedition fees, dedicated service desk, and Star Gold status with Star Alliance.
True road warriors who manage to rack up 100,000 flight miles or 100 segments in a year earn Diamond status. Diamond members get a full 100-percent earning bonus, a 10,000-mile threshold bonus (7,000 miles upon renewal), check-in at First Class counters, access to First Class lounges, guaranteed reservations, and staff meet-and-assist service at Guarulhos (Sao Paulo) and Galeao (Rio de Janeiro).
The Rules.
Should flown miles not post to an account, members must send in a copy of the ticket and the original boarding pass of the non credited flight.
Miles may not be transferred between accounts; however, awards may be issued in anyone's name.
Service and online site
On Epinions.com, Varig earns a fairly solid 2.5 out of five stars, and on the UK's dooyoo.com, a full three out of five stars. Keep in mind, of course, that online ratings tend to trend downward, as the bulk of the reviewers are upset passengers looking to punish the carrier for a bad experience.
Different browsers have varying levels of success. Safari, for example, doesn't seem to work with the Smiles award charts.
Awards can be booked online, which is a plus, but missing miles must be requested through the mail.
Some other points to note
Partnerships. Varig Smiles offers mileage-earning opportunities across the board, and Varig's membership in the Star Alliance puts the whole world within reach. The elite-level program offers fair thresholds, and a solid number of legitimately valuable perks.
Award levels are acceptable, but it would be nice to see Smiles leverage its many partnerships into a greater variety of awards.
