Travel points, also known as rewards or miles, are a great way to save on flights, hotels, and other travel-related expenses. By strategically earning and using travel points, you can make your trips more affordable and even enjoy upgrades and exclusive perks. Whether you’re a frequent flyer or someone looking to maximize occasional travel, here’s a comprehensive guide on how to earn and use travel points effectively.
1. Choose the Right Credit Card
One of the easiest and fastest ways to earn travel points is through a travel rewards credit card. Many banks and financial institutions offer cards that allow you to accumulate points or miles with every purchase, which can be redeemed for flights, hotel stays, and other travel-related expenses.
How to choose the right travel rewards card:
- Look for a sign-up bonus: Many travel credit cards offer generous sign-up bonuses if you meet a minimum spending requirement within the first few months. These bonuses can often jump-start your points balance.
- Consider your spending habits: Some cards offer higher points for certain categories, such as dining, groceries, or travel. Choose a card that aligns with your typical spending to maximize your points.
- Check for annual fees: While some travel rewards cards have no annual fees, others may charge fees but offer more perks, such as free checked bags, lounge access, or travel insurance. Be sure the benefits outweigh the cost of the fee.
Pro tip:
- Use your travel rewards card for everyday purchases and pay off the balance in full each month to avoid interest charges while earning points.
2. Leverage Airline and Hotel Loyalty Programs
In addition to credit card rewards, many airlines and hotels offer loyalty programs that allow you to earn points or miles for each booking. Joining these programs is usually free and can help you accumulate points faster, especially if you stick to one or two brands.
Tips for maximizing loyalty programs:
- Stick to one airline alliance: If you fly frequently, consider choosing one airline or a member of an airline alliance (such as SkyTeam, Star Alliance, or Oneworld) to build up points faster. Points earned with one airline can often be redeemed for flights with other airlines in the same alliance.
- Hotel loyalty programs: Chains like Marriott Bonvoy, Hilton Honors, and World of Hyatt offer points for each stay, which can be redeemed for free nights, upgrades, or other perks. Staying loyal to one hotel brand can lead to higher status levels, resulting in even more benefits.
- Sign up for free: Joining an airline or hotel loyalty program is free, so make sure you sign up before booking your next trip to start earning rewards immediately.
Pro tip:
- Use points-earning platforms like Rocketmiles or Hotels.com to earn extra points or miles on your hotel stays by booking through their platforms.
3. Maximize Points on Everyday Purchases
Even if you’re not traveling frequently, you can still accumulate a significant number of travel points through your daily spending. Travel rewards credit cards typically offer points for all purchases, and you can use them strategically to maximize your points.
Ways to earn points through everyday spending:
- Dining out: Some credit cards offer bonus points for dining at restaurants, cafes, and even food delivery services.
- Online shopping portals: Many airlines and credit card companies have online shopping portals that allow you to earn extra points when you shop through their links. These portals often feature popular retailers like Amazon, Target, and Best Buy.
- Utility bills and subscriptions: Use your rewards credit card to pay for recurring bills like utilities, streaming services, and mobile phone plans to earn points on every payment.
Pro tip:
- Set your travel rewards card as the default payment method for subscriptions and bills to ensure you’re constantly earning points on essential expenses.
4. Keep Track of Your Points and Expiration Dates
It’s important to keep track of the points you’ve earned and be aware of any expiration dates. Many points and miles expire if they go unused for a certain period, which can result in the loss of valuable rewards.
How to manage your points:
- Use tracking tools: Apps like AwardWallet or Points.com help track your loyalty programs, alert you to point expirations, and monitor your progress toward redeeming rewards.
- Check for expiration policies: Some programs have no expiration dates, while others may require you to use or earn points within a certain timeframe. Be proactive about using points before they expire.
- Keep accounts active: Even small activities like making a purchase with a travel rewards card or earning miles through a partner offer can keep your points from expiring.
Pro tip:
- Don’t let points go to waste! If your points are nearing expiration, consider booking a small redemption, such as a gift card or a short domestic flight, to keep your account active.
5. Redeem Points for Maximum Value
Not all redemptions offer the same value, so it’s essential to understand how to maximize your points for the best return. Some redemption options, like international flights or hotel stays, offer far better value than others.
How to get the most value from your points:
- International travel: Points and miles often provide the best value when used for international flights, especially in premium cabins like business or first class. These redemptions can offer significant savings compared to paying cash for the same flights.
- Hotel stays: Use points for free nights at luxury hotels or resorts during peak travel times to get the most value from your rewards.
- Avoid gift cards or merchandise: While many programs allow you to redeem points for gift cards or merchandise, these options typically offer much lower value compared to travel redemptions.
Pro tip:
- Aim for a redemption value of at least 1 cent per point. For example, if a flight costs $300 or 25,000 points, that’s a value of 1.2 cents per point—a good deal!
6. Look for Transferable Points Programs
Transferable points programs, like Chase Ultimate Rewards, American Express Membership Rewards, and Citi ThankYou Points, give you flexibility in how you use your points. You can transfer points to a variety of airline and hotel partners, allowing you to choose the best redemption option.
Benefits of transferable points:
- Flexibility: Transferable points can be used across multiple airline and hotel partners, giving you more options for flights, hotels, and upgrades.
- Maximizing value: By transferring points to an airline or hotel loyalty program, you may be able to unlock better redemption rates, such as discounted award flights or hotel stays.
- Pooling points: Some programs allow you to combine points across multiple accounts (e.g., between you and a family member) to reach redemption thresholds faster.
Pro tip:
- Before transferring points, check for special promotions or bonuses that offer extra value when transferring points to specific partners.
7. Watch for Special Promotions and Bonuses
Travel reward programs often run promotions or bonuses that allow you to earn points faster or redeem them for higher value. Keeping an eye out for these opportunities can help you maximize your earnings and savings.
How to take advantage of promotions:
- Double or triple points offers: Many credit card companies and loyalty programs offer promotions where you can earn double or triple points for purchases in specific categories, such as dining or travel, for a limited time.
- Transfer bonuses: Some transferable points programs offer bonuses when you transfer points to specific airline or hotel partners. For example, you may get 25% more points when transferring to a certain airline.
- Booking bonuses: Airlines and hotels may run promotions offering extra points or miles when you book directly with them during certain periods.
Pro tip:
- Sign up for email alerts from your credit card provider and loyalty programs to stay informed about special promotions and limited-time offers.
Earning and using travel points effectively requires strategic planning and a bit of knowledge about how different reward programs work. By choosing the right credit card, maximizing everyday spending, staying loyal to specific airlines or hotels, and redeeming points for maximum value, you can turn everyday purchases into free or discounted travel. With these tips in mind, you’ll be well on your way to making your next vacation more affordable and luxurious through the power of travel points.
