Panama is Latin America's newest Hot Destination; sizzling with round-trip travel possibilities from the States for $47! How?

It's All About the Miles...
While most U.S. carriers offer some type of service to Panama's Tocumen International Airport (coded PTY), American Airlines leads the way with three daily flights to/from Miami (MIA), with gate-to-gate travel time of 2-hours heading down, and 2-and-a-half hours returning. Fares range in costs based on season and availability, but budget travelers can earn the biggest savings if they know how to make the frequent flier awards program work best for them.

Collecting miles takes forever if only relying upon earned mileage from paid flights, or cashing in 25K IGO-points for 5K miles. Nevertheless, accrual remains ongrowing when having a Citibank Credit Card linked to AAdvantage accounts, paying one-mile per dollar spent. With monthly activity, frequent flier miles never expire. A $50-annual fee covers Gold Level cards; the only income they've ever earned from me with each monthly statement paid-in-full since having this card as of 3/96. In 10-years, I've earned over 150K-miles from this method alone.

In addition to collecting miles, card members are also eligible for Discounted Mileage Awards; savings based on membership level. Lists are renewed quarterly and usually posted one month before periods begin. This not only helps to budget miles as frugally as travel funds, it's perfect for travel to obscure destinations. Savvy managers can also find ways for reaching more popular destinations.

Example Award flights from the U.S. mainland to Puerto Rico are rated at 30K-miles. Since San Juan (OSJ) is American's connecting hub to the Caribbean, I find the cheapest listed island destination, book the flight to cover minimum night stays, and then schedule an extended lay-over in Puerto Rico on the return flight. Mileage savings is always at least 10K.

Booking Award Flights to Panama
PlanAAhead Awards in coach always net the biggest savings, but seat availabilities to any destination are getting harder to find. A flight can be half-empty, but if allocated number of award seats have already been claimed, you're SOL! Award flights can be booked up to 311-days in advance; the method timeshare travelers use to get a jump on seats since their annual travel dates never change even when trading for other destinations.

For Panama, travel is peak during January-April, not only because of snowbirds but it's also the country's dry season. March dates are further restricted by Spring Breakers, and connecting flights just getting to MIA, or anywhere in Florida, are also usually long gone. Even with American recently adding a third daily flight based on Panama's growing popularity, there was nothing available for March travel that didn't involve getting routed all over the Eastern seaboard at the preset mileage rate of 35K. Checking dates well into April, the 20th was the only thing returning from PTY to SGF that didn't require an overnight layover.

When researching award flights, don't hesitate to also use American's online full-fare search to get general ideas. Otherwise, flights through the AAdvantage search only appear if seats are available. If still needing answers, call 800-882-8880 to glean additional information. The agent I spoke with ran dates in two-week increments through late June finding no availabilities which didn't require overnight layovers, though her system missed the April 20th availabilities. However, she did mention a 5K-mile discount for April-June shoulder-season travel that wouldn't have appeared on the website until the payment screen.

Booking online 1/18, the 30K-mile award flight cost $47 including Panama's $20 departure tax. Booking over the phone would've costs an additional $15. The unavoidable layover in Miami heading down added $60 to expenses not factored into quoted Panama costs.

Seat Preferences -- to enjoy best views of the Canal and Panama City, secure an #A-window seat on the flight down, and an #F-window seat on the flight out. Sitting towards the rear not only allows unobstructed views without wings, but also room to sprawl out when flights aren't crowded. If other window seats are vacant, switch sides for the best aerial tours over Cuba and the Cayman Islands.

Potential Bigger Savings -- When speaking with the agent, I specifically asked about discounted mileage flights to PTY appearing on the 2nd quarter Citibank list, due for release within a couple of weeks. Should I wait? She assured Panama had became so popular, it wouldn't appear. Sure enough, PTY flights made the new list at 25K for April-June travel, based on seat availabilities. When calling American to see about reissuing the exact same flights, they wanted an additional $100 based on reprocessing; hardly worth the 5K-mile savings.

Keep this timing factor in mind if using these incentives. On frequently appearing flights to Colombia, Nicaragua, and other less-traveled destinations, it's certainly worth the wait-and-see approach.

Tocumen International Airport
More modern than anything expected, the country's main airport is located about 40km northeast from heart of the capital. Custom forms and necessary paperwork are distributed on the flight down, except for the mandatory Tourist Card which is sold for $5 before passing through immigration. These should be carried with you at all times while in the country!

For departures, carry-on luggage limits are predetermined at the check-in line entrance. If the agent has not tagged your bag as such, you'll be expected to check it after a thorough hand-inspection.

There's a pricey restaurant on the 2nd level as well as a pair of shops which have the best selections for souvenirs and mementos. Once clearing customs and security, the lower-level contains a mall for Duty Free Shopping, selling everything from big-screen televisions and electronics to expensive jewelry, perfumes and designer wear. Cartons of cigarettes cost $18; hardly a bargain when they're $1 a pack anywhere in the country. And much to my surprise, AA employees were distributing plastic bags, containing a humongous prepackaged sweet roll and a container of diced fruit, as passengers boarded for the 8:15am take-off. The flight wasn't meal-coded.

Copa Airlines is Panama's national carrier with flights circulating only through the Western Hemisphere.

Transport To/From Tocumen
Lonely Planet's insufficient information mentions cheap buses that regularly depart from Panama City to the airport, but gave no details about what to expect as a traveler just arriving in the country. The airport scene of everyone trying to hustle you into taxis was no different, but there were no bus-stop signs. Asking around, everyone kept pointing beyond anything obvious that could be seen.

From the arrivals level, head right and where the road separates left from the sidewalk, continue forward between some booths, barricades and walls which feeds into a hidden employee parking lot. From there, you can see the nearby highway which has a circular, turn-around at the airport entrance. Covered shelter closest to the airport are for buses heading away from Panama City. Shelter across the circle along the highway is for buses heading towards the capital.

The walk is at most 10-minutes from the terminal, but worth the extra effort and savings unless schlepping an abundance of baggage. Buses, known as Los Diablos Rojos (The Red Devils), frequently pass heading towards various parts of the city. I highly recommend asking for buses going to Albrook, the country's National Transportation Center, where ground connections are made. If nothing else, it's a convenient spot to get your bearings before heading into the chaos of Panama City.

Be aware that this transfer option isn't for the timid! For those accustomed to Latin American environments, it's like a homecoming as the banged-up school bus parades through first glimpses of Panama, to the rhythms of whatever's pulsing on the stereo. I also don't recommend this for travelers in a hurry, or on a tight schedule. Making innumerable stops and with traffic congestion, it took about 75-minutes to reach the bus station. Pay as you exit. Price: -- 25¢!

Otherwise, you're at the mercy of bargaining for a cab, which is always more expensive leaving from the airport, and you're still likely sharing the ride which will have numerous drop-off points. The official Focus Panamá tourist guide lists taxi rates, to/from Panama City hotels and the airport, as $25 for one passenger, $14 each for two, and $10 each for three or more.

For early morning departures when returning, I was advised not to wait with luggage in the wee-hours at a nearby bus-stop. A cabbie had previously agreed on $12 for a 5am pick-up, but was running behind when calling him that morning. $15 was the cheapest I could negotiate at the last-minute. The ride took about 30-minutes, but transportation time increases throughout the day as traffic does.

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