The deal is not enough for me to part with the points.
- Domestic award tickets are not very affordable.
- I prefer to save my travel points for future expenses.
I recently booked a few flights as the second half of the year was proving to be a busy travel period for me. I paid for the ticket in cash.
It may not seem like much. We generally recommend using travel points when possible to save money. However, there are times when it is beneficial to have a little more choice in how you redeem your rewards. This is why I’ve been saving mine.
Moderate value for award tickets
The reason I no longer use credit card points on domestic flights comes down to value, in this case lack of value.
Discovered: This card has one of the longest intro 0% interest rate periods.
Details: Consolidate your debt with one of these top rated balance transfer credit cards.
Before you book your trip with Points or Miles, we recommend that you calculate the value you will receive. To do this, divide the cash price of the purchase by the price of the reward. For example, if a $300 ticket costs 30,000 miles, each mile is worth $0.01.
Most award tickets you find on domestic flights these days are worth about $0.01 per mile. This is on the low side as I usually want to get at least $0.015 or $0.02 in travel rewards.Even if there was better value available, that’s not always the case better deal After considering the prices of other airlines.
For example, I was looking for a flight to New York and found a flight with stops that I could book for 60,000 miles or $920. That’s about $0.015 per mile, which is reasonable. But then I saw another airline offering a direct flight for $619. I wouldn’t spend 60,000 miles if I could book a flight for that amount.
Accumulate points for better opportunities
So why wouldn’t you want to use your 60,000 miles to effectively save $619? I knew it would be worth it.
Most Travel Points earned are transferable. They are part of major credit card rewards programs such as Chase Ultimate Rewards and American Express Membership Rewards. These types of points allow you to transfer points to various airline and hotel partners. This gives you a lot of options and the value you get depends entirely on what you book.
Earn points not used for flights. Instead, I decided to use them to book a Hyatt hotel where a room at $909 a night would cost 29,000 points. That’s a lot more than any flight I was looking at.
Determining When to Redeem Travel Awards
You don’t always want to guess yourself before redeeming points from your credit card. And as long as you’re saving money on them, it’s really hard to go wrong.
However, if the value of your travel rewards depends on how you use them, we recommend a few things to help you get the best deal.
First, learn about the different ways to use perks. Whether it’s American Express Membership Rewards Points, United Miles, or other currencies, make sure you understand your redemption options and the value of each.
Also, consider your future travel plans when deciding when to use your benefits. As a general rule, you save more money when you use your rewards to purchase more expensive trips. For example, international award tickets are usually a better way to maximize miles than domestic award tickets.
If you’re planning a large trip, consider grabbing regional travel points that can take you further. , meant accumulating points for more expensive expenses such as New York hotels and international airline tickets.
Top credit cards interest-free until 2023
If you have credit card debt This top balance transfer card Guaranteed 0% Adoption APR in 2023! Plus, no annual fee. These are just some of the reasons why our experts rate this card as the best option to help you manage your debt. Read full review It’s free and you can sign up in just 2 minutes.