Allen Chao

Date: January 22, 2016

Name: Travel Hacks – Do not let the lack of funds clip your wings

Presenters: Allen Chao and Emily Lim

Many entrepreneurs have the dream of travelling across countries on business or first class. However, the price range can be a factor for entrepreneurs. LEADUP meetup invites Allen Chao, the Travel Hacker, to share his strategy to travel at a fraction of the cost. In this presentation, entrepreneurs will discover the hidden secrets from the travel industry and utilize the advantage from their point system. Moreover, Emily Lim, the Founder of LEADUP, will share her insight of the book called “The Magic of Tidying up”.

Allen Chao is the Category Business Manager in BuildDirect Technologies. Regularly, he hosts “Travel Tips with Chao” seminars to educate his co-workers with travelling strategy. Many people called him “The Travel Hacker”. Allen Chao is also one of the speakers at The First All-Canadian Points & Miles Conference from Points University. Moreover, his passion to help friends to save money on travel encourages many entrepreneurs to think outside of the box.

Allen Chao mentions his first travel hack discovery was in his fourth year in Simon Fraser University. During that year, he traveled over 12,000 miles each trip to Finland and realized the incentive from general airline travel system is poorly designed. After his 5^th round trip, he discovered the point system strategy from credit cards. He managed to collect 500,000 points per mile a year with less than 10% accrued from flying. With the total of over 117,000 miles, he figured out the travel hack.

Cathay Pacific, one of the International airline companies, offers one trip from Vancouver to Hong Kong in economy class for $500. For business class, it will be $2500 and for first class, it will be $5,000. Chao manages to reduce it down to $350 for business class and $500 for first class with a simple strategy of transferring points.

The strategy is in 3 steps:

1. Open Alaska Airline mileage plan and Starwood Preferred Guest (SPG) card
2. Accumulate points and transfer to Alaska Airline mileage plan
3. Purchase tickets from Cathay Pacific from Alaska Airline mileage plan

Chao suggests Alaska Airline mileage plan because it only requires 50,000 points for business class and 70,000 points for first class. Comparing with other Asia mileage plans, Alaska Airline has more flexibility. Many entrepreneurs has the misconception that they have to use the same travel mileage system from the airline they purchase the flights; in fact, there are other companies that offer higher incentives.

Chao recommends entrepreneurs to take advantage of the MBNA Alaska MasterCard. They can take the advantage of the sign up bonus of 25,000 Alaska mile points. The annual fee is $75 and the rebate is $60. The total cost of is actually only $15.

Chao also wants entrepreneurs to get the American Express SPG card. Entrepreneurs can receive 20,000 SPG points, which converts to 25,000 Alaska mile points. The annual fee is $120 and the rebate from referral link is $30. The total cost is only $90.

For one way business class, Alaska Airline mileage plan requires 50,000 points. Entrepreneurs can transfer the 25,000 points from MBNA Alaska MasterCard and 25,000 points from American Express SPG card to Alaska Airline mileage plan. The total cost for entrepreneurs is $105.

For one way first class, Alaska Airline requires 75,000 points. Entrepreneurs can sign up another MBNA Alaska MasterCard and transfer the points to Alaska Airline. The total cost will increase to $120.

Think outside of the box

For business class round trip, Alaska Airline requires 100,000 points. Chao suggests entrepreneurs to ask their spouse to sign up another SPG card. The advantage of SPG card is that they are able to transfer the points to spouse. When entrepreneurs can use the points from two MBNA Alaska MasterCard and the points from two SPG cards, the total cost will come up to $210.

Chao shares a couple of tips from using Alaska Airline mileage plan. The plan allows entrepreneurs to have one stop over for free with the limit of booking only one career and no other places Alaska Airline does not apply.

Another tip is for Canadian residents. Chao explains when Canadian residents fly to New York, the airline can stop over for one month. Entrepreneurs can utilize this advantage to leverage on one ticket.

Credit cards

Chao illustrates credit cards have 4 different levels: sweet fruit, bulk of fruit, low-hanging fruit, and ground fruit. TD Aero Plan Visa Card is considered to be sweet fruit. It earns the most mile points. The American Express Silver and Royal Bank Avion Visa Card are considered to be bulk of fruit. The low-hanging fruit would be the SPG and American Express Gold card. These are considered to be the hybrid type. Other cash back cards are in the category of ground fruit. Entrepreneurs are encouraged to get low-hanging fruit.

Credit scores are affected by different factors.

• 35% on payment history
• 30% on the amount owed
• 15% on length of credit history
• 10% on new credit
• 10% on the types of credit card used

It is important for entrepreneur to keep one card with good payment history for their portfolio. Sign up for new card will hit 5 points on credit score, but after 3 months, the credit score will bounce back.

“Reward yourself with good credits”

Question and Answer

Chao emphasizes when entrepreneurs sign up the credit card and do not activate it, it will still affect the credit card. Entrepreneurs need to wait at least 6 months before cancelling the card. Before entrepreneurs change the card, they need to ask for the old card to transfer to non-annual fee card.

MBNA card uses the 3^rd party mile reward system. Depends on the type of the card, entrepreneurs need to see if the system is integrate with the bank or the 3^rd party companies. Moreover, entrepreneurs can transfer the points early and strategically.

Chao suggests entrepreneurs to wait 90 days minimum to reapply new card for bonus. Otherwise, they can open business card.

Chao mentions there are other sites that provide similar travel tips.

• Canadian Kilometers
• Canadian blog – “Don’t Call the Airline!”
• Pointshogger

The magic of tidying up

Emily Lim recommends a book called “The magic of tidying up” by Marie Kondo. Every entrepreneur has a closet that fills of things. As years gone by, things are growing. It is important for entrepreneurs to clear the space and only keep the things they enjoy.

“Ask the dress, do you bring me joy? If not, why are you in my closet?”

Lim applies this theory in her life. Many experts use point system to evaluate their stress level. However, Lim believes the system has flaws. A suggested system is the hassles and uplifts scale. Hassles are things people that are annoyed or bothered. Uplifts are events that make people joy. With a scale, entrepreneurs can rate their items or events in their lives. The scale and provide awareness for entrepreneurs to improve their stress level in general.

There are 6 lessons Lim learn from the book.

Lesson #1: Do not tackle the whole house

Entrepreneurs should tackle the category and not by room. In life, entrepreneurs should only change one thing at a time and no all at once.

Lesson #2: Respect your belonging

Entrepreneurs must understand things have feelings. They will not feel happy if they are squashed in a corner of the closet. In life, entrepreneurs should look at different perspective and understand why they exist in their lives.

The ultimate tip to success is not to do it alone. Lim believes it is important for entrepreneurs to list all the people they can help them achieve their goals.

“Why do alone if you can do it with others?”

Lesson #3: Nostalgia is not your friend

Entrepreneurs need to know items are sentimental. When the items serve their purpose, entrepreneurs should set them free. In life, entrepreneurs should not hold anger. They can release them out of their lives and open up the space for joy.

Lesson #4: Purging feels so good

Entrepreneurs must realize one experience does not mean other experiences are the same. Every experience is different. In life, it is important to change the mindset and allow different experience to fill the joy.

Lesson #5: Fall in love with your closet

Entrepreneurs must fill their closets with things they love, and then they will fall in love. In life, entrepreneurs should fall in love of their life. Entrepreneurs will meet many different people in life. If people they meet are toxic, they should cut them out of their personal life. It is not necessary to be friends for life and entrepreneurs have the permission to fire their friends.

“I want to love my life and the circle of friends; I love my life because I let love into my life”

Lesson #6: Rediscover life you love

Life can be different for all entrepreneurs. They should have their own personal style. In life, after getting rid of bad stuff, entrepreneurs get to discover new things in life.