Have you ever wondered how some people seem to be able to travel the world without doing damage to their bank accounts? The answer may lie in their masterful use of travel rewards. Basically, there are three types of travel rewards: airline miles, hotel loyalty program points and transferable points. Using these to cover the cost of flights and hotel stays can help you save a lot of money on your next vacation.
Here are some useful tips to keep in mind, whether you are just starting to collect points or trying to better manage your travel points.
1. Look out for welcome bonuses
If you’re thinking of signing up for a new travel rewards credit card, go for one that has a good welcome bonus. In this way, you will start with a large amount of points and miles if you can meet minimum-spending requirements, which vary by card. Try and time it to coincide with any big purchases that you are planning within the minimum-spend time frame — typically within the first three months of opening your account.
2. Choose a credit card with transferable rewards
Holding a credit card with transferable rewards means that you will have the flexibility to transfer your redeemed points to any of your card’s travel partners. You will need to do some research on the offerings of various cards, then choose a card which matches your ideal list of airline and hotel partners.
3. Take advantage of airline alliances
There are three major airline alliances i.e. OneWorld, Star Alliance, SkyTeam. You can transfer your travel points and miles between carriers that are in the same airline alliance. For example, if you have enough American Express Membership Rewards points to transfer to its partner, Delta, you may then use those Delta SkyMiles with any of its SkyTeam alliance partners e.g. Virgin Atlantic. Similarly, if you have enough Chase Ultimate Rewards points to transfer to its partner, United, you can then switch those United MileagePlus miles to any of its Star Alliance partners e.g. Lufthansa. Amex points transferred to its partner, American Airlines, would allow you to use those AAdvantage miles with another Oneworld alliance member e.g. British Airways.
4. Earn reward through your normal purchases
Do your research to find out whethere you can earn travel rewards through your normal purchase. Some credit cards have different spending categories, such as dining, travel, gas, or groceries, which are eligible to earn bonus points. Some airlines even have a shopping portal which lets you earn rewards for buying things that you would buy online anyway.
5. Redeem your rewards wisely
You could use up all your travel rewards to redeem a first class seat, OR you could use those same amount of miles to exchange for a few economy flights. Similarly, you could redeem a night’s stay at a 5-star resort OR you could opt for a few nights stay at a more budget-friendly hotel. Therefore, it is important that you know clearly what you want your reward points to do for you and choose your redemptions wisely.
6. Keep track of your travel points expiry dates
Most airlines and hotel brands put a use-by date on their reward points. Check your rewards account regularly and make sure that you redeem your rewards before your points expire.