“Travel hacking” is when you work within the rules of
airlines, hotels, and travel credit cards to earn rewards such as points
and miles to put toward free travel. Despite its name, travel hacking is simple
(and legal), and lots of people do it every day to save money and see the
world. If you have ever wanted to take the family on a trip and just couldn’t
afford the airfare, learning to travel hack can solve your dilemma.
Photo by Cynthia Dial
Meet the experts
We reached out to the following travel rewards experts for
their advice on choosing a travel card, maximizing rewards, and making the most
of points or miles at redemption. Here’s what they told us.
Tip #1 – Take advantage of more than just free travel.
You might not know this, but travel credit cards are
good for more than just earning points. Some of these cards grant you and your
family access to additional perks. Ariana from TopCashback explains:
Airline miles or hotel loyalty points may seem like the only
rewards, but think again! In addition to miles, some reward programs (such as
American Express) give you access to airport lounges, restaurant and hotel
concierges and deals on rental cars.”
Rewards programs may also offer opportunities for earning
extra points with participating car rental services, hotels, and airlines. All
the more reason to make sure you read up on everything your card has to offer.
Tip #2 – Choose cards with miles bonus incentives and
flexible redemption.
Travel hacking is all about finding ways to earn miles and
points faster while working within the existing rules. Cat Holladay from The
Compass is Calling explains how some cards make that even easier:
“The key is to sign up for the cards with the most miles’
bonus incentive AND the most flexible usage. Several cards out there give
50-60,000 ‘miles’ after spending $3,000-4,000 in the first 3 months. 60,000 miles
is the equivalent of 2 domestic tickets on many airlines, almost two
international tickets on Singapore Airlines, and one international ticket on
most carriers.”
Choosing a travel credit card with flexible redemption means
more options when it’s time to redeem your hard-earned miles. Some top travel
cards offer 1:1 rewards transfer to airline and hotel loyalty programs or
discounts on travel booked through the card’s rewards program, and more. Others
allow you to redeem miles for a travel statement credit, which means you can
reimburse yourself for eligible travel purchases, no matter where you book.
And, as Cat points out, many of them offer generous mile bonuses for spending a
couple thousand dollars within the first few months.
Tip #3 – Maximize rewards on everyday purchases.
What kind of purchases do you make in your everyday life? Do
you find yourself eating out more often than not? Are you brand loyal? It is
wise to sign up for a credit card with a rewards program that aligns with those
everyday spending habits.
“By signing up for a new credit card with a hefty welcome
bonus and just doing your normal, everyday spending, you can accrue points or
miles towards free flights (plus taxes or fees, generally low) or hotel rooms,”
explains David Slotnick of The City Miler.
One of the best things about a credit card that rewards your
everyday spending habits is that you don’t have to change anything. You don’t
need to adjust how much you’re willing to pay for something just to hit a
particular threshold, and you’ll earn your way toward a free trip in no time.
Tip #4 – Don’t opt for cash back.
Some cards let you cash in your points for a pre-paid gift
card. While that might seem like a perk, it’s a colossal waste of points and
miles. With most travel cards, you’ll get the best points redemption value for,
you guessed it, travel. (Some travel credit cards even give you a nice
redemption bonus if you book through their cardmember portal!)
“It’s tempting to exchange your points for cash back – you
see the dollar amount beckoning to you on your screen, just one click away,”
says Kaja Olcott of RewardExpert. “However, people need to know that it’s not
necessarily the best value available to them. In fact, redeeming for air travel
typically offers the most lucrative return.”
Tip #5 – Study loyalty program terms for extra points.
Travel isn’t the only category where loyalty programs exist
to help you earn and spend points. In fact, quite a few travel credit cards on
the market feature loyalty programs in other categories for dining, car rentals
and more. Studying and understanding the terms of these programs is a great way
to maximize your point accrual, according to Torsten Jacobi of Mighty Travels:
“Loyalty programs often offer bonus miles or points just for
signing up to them for free. If you shop online, you can use various portals
like MileagePlus Shopping and AAdvantage eShopping to earn as you spend and some
loyalty programs also have dining programs so you can earn as you eat. You can
earn with your car rentals, your mobile phone provider, when you buy an
Internet service, order flowers and sometimes even when you buy or sell a
property!”
Another way to earn extra points is with loyalty programs
that let you “level up” in terms of spending and earning points. “Just for
signing up you get 3 American Airlines points for every dollar you spend at
participating restaurants,” explains Sean Ogle from Location Rebel. “Once you
hit 12 transactions in a year, you get bumped up 5 points per $1 spent. So to
give you an example, if you go out to a dinner and spend $100, you’ll get 500
AAdvantage points just for being part of the program. If you register one of
your rewards credit cards, then you’ll also get points from them.”
Tip #6 – Consider a card with an annual fee.
No one likes to pay annual fees on their travel credit
cards. However, in some cases, the annual fee is worth it, as Matthew Kepnes of
Nomadic Matt points out:
“For those who travel a lot and fly a lot, I think it is
worth it to get a card with a fee. Fee-based cards tend to give you a better
rewards scheme, where you can accumulate points faster, get better access to
services and special offers, and get better travel protection. With these
cards, I have saved more money on travel than I have spent on fees.”
The cost of the annual fee can pay for itself several times
over. This is especially true with cards that come with a generous sign-up
bonus. For instance, if you opt for a card that nets you 60,000 points just for
signing up, the cash back on those points could pay for the card for several
years. It’s also worth noting that some of these cards offer to waive the
annual fee for your first year.
Tip #7 – Be flexible.
Generally, flexibility is a good thing to have when life
throws little curve balls at you. This is especially true for booking travel
and redeeming hotel rewards. Some rewards programs help you save money or earn
extra points if you are flexible about your departure date and are willing to
shift things around. You might even be eligible for more rewards if you
downgrade your hotel accommodations.
“Flexibility is key when trying to maximize airline and
hotel rewards. Sometimes the award space will appear just days before your
trip. If your travel dates aren’t flexible, book a backup itinerary and change
it as better options become available.” – Scott Mackenzie, Travel Codex.
It’s often important to opt for travel credit cards that
have flexible spending and redemption bonuses. The same is true for how
flexible you are in redeeming those points.
Tip #8 – Transfer points to partner programs.
Sometimes it pays to transfer your points to a partner
program. Take it from the Financial Panther himself, Kevin. He explains:
“Some card issuers have a bunch of travel partners to which you can transfer your points over and get tremendous deals. For example,
I have a friend this year, who is flying to Hawaii round trip from Minneapolis
for 25,000 points! He did this by transferring his points to Korean air
partner, who partners with Delta, and they have a deal where you can fly
anywhere in the US roundtrip for 25k points.”
Some top travel credit cards feature 1:1 points transfer to
several airline and hotel loyalty programs. That means you won’t lose any
points if you decide to do like Kevin’s friend and transfer those points for a
better deal.
These are just a few expert travel hacking tips you can use
to earn free travel while making the most of your points. So don’t let the
rising cost of travel stop you or your family from seeing the world. Take some
tips from our panel of travel experts, and start making the system work for
you.
#travel #travelingcynthia #traveltips #travelhacking
No comments:
Post a Comment