Travel Rewards: Points, Miles or Cash-Back
Travel Rewards: Points, Miles or Cash-Back
Issue #3-23 features a look at points, miles and cash-back travel rewards from credit cards and loyalty programs
If you’ve been following along so far in 2023 here at The Family Travel Bulletin, you know I have been discussing travel strategies I use to travel better, travel smarter and optimize for value as much as possible. Continuing with that theme this week, I take a quick dive into the world of travel rewards that come in the form of points, miles and cash-back.
What's in my Wallet? How I Optimize my Travel Rewards and Save Big on Family Travel
Travel rewards can be broken down into three different categories, which include Points, Miles and Cash-Back. Most people get a majority of these travel rewards using travel related credit cards, but you can also accrue these types of travel rewards when staying at hotels (hotel loyalty programs) or when flying (getting airlines miles).
Example of Popular Credit Card Points Rewards Programs: American Express Membership Rewards Points, Chase Ultimate Rewards Points, Capital One Rewards Points
Example of Popular Hotel Points Loyalty Programs: Marriott Bonvoy, World of Hyatt, Hilton Honors, IHG Rewards, among many more.
Example of Popular Airline Mileage Programs: United Mileage Plus Miles, Delta SkyMiles, Southwest Rapid Rewards, Alaska Mileage Plan Miles, AAdvantage Miles, Flying Blue Miles (Air France/KLM), among many more.
Cash-back: The best cash-back credit cards typically offer 1.5% or 2% cash-back for everyday spending, which makes it easy to track how much value you are getting and offers simplicity on using the travel reward money you get back however you’d like.
Here are two examples of how travel rewards may be used for a hotel stay or for flights:
Example: Hotel stay at the Westin Hapuna Beach Resort
Five night stay will cost ~$5,250
Marriott Bonvoy Points Redemption is available for the dates and will cost 230,000 points (one night free on points when staying 5 nights - Marriott Bonvoy award benefit)
The value of the Marriott Bonvoy points is $5250 / 230,000 = 2.28 cents per points, which is a great value when using Marriott Bonvoy Points.
Example: Flight to Hawaii for a family of four
Flight will cost $500/person on Hawaiian Airlines, for a total of $2000
Hawaiian Miles redemption is available for the travel dates and costs 35,000 miles roundtrip per person, for a total of 140,000 miles (assume miles are transferred in from Amex Membership Rewards)
The value of the HawaiianMiles is $2000 / 140,000 miles = 1.43 cents per point, which can be a good value depending on how you value these miles versus using them elsewhere.
As you can see from these two examples above, there is no one best credit card or loyalty program out there and a large part of it depends on your travel budget, preferences and the destinations you want to visit. How I accrue and use points and miles in certain travel rewards programs may not be the best way for you to accrue them or use them. Also, for example, where I may find great benefit in transferring points from American Express to its travel partners for free hotel stays using points, you may find better value by using them for flights or getting cash-back.
I feel that earning and accumulating travel rewards is a lot more straight-forward than redeeming them for the best possible value and that is where most people get frustrated, i.e., when they can’t find award availability or it gets too complicated to use and takes up too much of their time. The Points Guy (and a few other big travel sites) are a great resource for this: What are points and miles worth? TPG’s January 2023 monthly valuations
From my personal experience, I prefer to get better return on my spending with bonus categories offered by certain credit cards and then transferring those credit points to hotel points or converting them to airline miles depending on the value I receive from them.
I plan on expanding more on this topic in the coming weeks and going into further detail on the travel blog at The Family Travel Guy - stay tuned!
“Sometimes you will never know the value of a moment, until it becomes a memory.” - Dr. Seuss
RECENT BLOG POSTS
Recent posts from The Family Travel Guy you may have missed
Save Up to 25% on Rooms at Select Disney Resort Hotels This Spring and Early Summer
Five Reasons why you should stay at a Disneyland Resort Hotel for your next trip
FAMILY TRAVEL NEWS
Round-up of travel tips, insights and news you can use for your next trip
Don’t Risk Your Summer Trip: VRBO Reveals Book-By Dates for Key Travel Seasons
The rule change you need to know when traveling to Europe in 2023
How to Avoid Hotel Resort Fees (and Which Brands Are the Worst)
Your Guide to the Disney100 Anniversary Celebration at Disneyland Resort
FAMILY TRAVEL OFFERS & INSIGHTS
Featured Special Offers of the Week
Paris 2024 launches official hospitality program - open to the public today
Official Paris 2024 Olympic events packages are now live and include guaranteed tickets to the Games, hotel accommodations, and curated tours and activities.
Save Up to $700 on a 2-Night Stay When Combined with Select Star Wars: Galactic Starcruiser Voyages
Combine the magic of a Disney Resort hotel stay with the unforgettable adventure of a Star Wars: Galactic Starcruiser voyage with this special offer!
Get Your 3rd Night Free in Santa Barbara
Book a three-night stay by March 31, 2023 and receive your 3rd night free at participating hotels and resorts listed in the link above.
THE FAMILY TRAVEL GUY
I hope this email helped spark some travel inspiration!
Learn More Here: Randy | The Family Travel Guy
Stay Connected: Instagram | Facebook | Twitter | Pinterest | Virtuoso Profile
If you ever have a question or are looking to book a hotel where I can offer extra value and amenities, please reach out to me at Randy@thefamilytravelguy.com
The Family Travel Bulletin is a once weekly newsletter by Randy Singh featuring a curated summary of family travel news, special offers, travel advisor insights and recent blog posts from The Family Travel Guy to help you travel better, travel smarter and optimize value along the way.
The Family Travel Guy is an independent affiliate of 1000 Mile Travel Group, a Virtuoso Member, CST# California: 2129700-40
Copyright ©2023 The Family Travel Guy, All Rights Reserved