Navigating the World of Travel Rewards:
A Guide to Maximizing Your Perks
One of the best ways to get travel perks is by using a travel reward credit card.
As a traveler, few things are more satisfying than knowing you’ve turned your everyday spending into an unforgettable trip. If you’ve ever heard someone casually mention how they “just used points” for an upgrade or a free flight, you might have wondered how to get in on the action. The truth is, travel rewards can open up a world of opportunities, but they require some planning and strategic thinking. Whether you’re new to travel rewards or looking to refine your strategy, this guide will help you understand how to make the most of these programs.
Understanding What You Want from a Travel Rewards Card.
Before diving into the specifics, it’s essential to decide what you want out of a travel rewards card. Different cards offer various benefits—some are flexible, allowing you to use your points with multiple travel service providers, while others are tied to specific airlines or hotel chains.
For instance, if hotel perks are your priority, a hotel-branded card might be your best bet. Take the Marriott Bonvoy card, for example. It offers points for spending at gas stations, grocery stores, and dining out, which can then be redeemed for stays at Marriott properties around the world. The perks don’t stop at free nights—you could also enjoy room upgrades, late check-outs, and welcome gifts depending on your status and spending habits. With Marriott hotels available at multiple price points across the globe, this card could be a smart choice for frequent travelers who favor consistency.
On the other hand, if your travel plans are more varied—flying different airlines, staying in various types of accommodations, and seeking out unique experiences—a more flexible travel rewards card like the Chase Sapphire Preferred® might be a better fit. This card is renowned for its generous sign-up bonus, flexible rewards redemption, and high-value points for travel and dining. The modest annual fee makes it accessible for most travelers while still offering significant value.
So, say you primarily want hotel perks, let’s start by looking at hotel-based cards. If there is a particular chain you prefer, that is a great way to build up points towards stays. The Marriott Bonvoy card is great for that. It can also get you perks on check in, like potential upgrades, late check-outs, property credits, welcome gifts, etc., depending on your spending and staying habits. The nice thing about Marriott Bonvoy is that they offer hotels at multiple price points and there are Marriott-family hotels just about everywhere.
Then take a look at your spending and traveling habits. If you really like to get lounge access, but only fly a few times a year, the annual rate for a card offering this perk may be more than buying a day pass for the lounge. Some perks are only generated for spending on travel related services, or dining out, so if you’re using your card to mostly pay for other things, it may not win you any points…literally.
There are also some cards where the perks are only given if you book your travel through their travel service–where costs may be higher than a discount rate you may find through other channels. You’ll get great concierge service, but potentially not as many options. I love staying at VRBO, AirBnB and even hostels during a lot of my travels, and unfortunately, these are not always options through some of the card-provided travel service platforms.
When signing up for a new card, also look at the number of “bonus points” they may give to new cardholders, and the spending you need to do (usually in the first few months) to get those points. Be realistic about if your normal spending habits will reach the amount needed.
Navigating the Fine Print and Understanding Perks
When considering a travel rewards card, be sure to read the fine print. Some cards require you to book through their travel service to earn points, which could mean higher costs or fewer options compared to booking independently. If you prefer the flexibility of staying in Airbnbs, VRBOs, or hostels, make sure the card’s travel platform supports these choices.
Sign-up bonuses are a key factor to consider as well. Many cards offer significant bonuses if you spend a certain amount within the first few months. However, be realistic about whether your regular spending habits will meet the required threshold. For example, the Capital One Venture X Rewards Credit Card offers high rewards rates on travel booked through its portal, along with valuable travel credits. But if you don’t typically book travel through specific portals, you might miss out on maximizing your points.
Here are some of the best travel perk credit cards available. Of course “best” has a lot to do with the information provided above.
Recommendations made without any compensation.
- Chase Sapphire Preferred® Card:
- Best for: Overall travel rewards and welcome bonus.
- Perks: High sign-up bonus, flexible rewards redemption, and generous rewards on travel and dining. The $95 annual fee is modest compared to the value you receive.
- Drawbacks: Lacks some luxury features like lounge access and travel credits
- The Platinum Card® from American Express:
- Best for: Luxury travel perks.
- Perks: Extensive airport lounge access, elite status with Hilton Honors and Marriott Bonvoy, and numerous travel and shopping credits. This card is ideal for travelers who value comfort and premium services.
- Drawbacks: High annual fee, and bonus rewards are mainly on flights and prepaid hotels.
- Capital One Venture X Rewards Credit Card:
- Best for: Travel portal benefits.
- Perks: High rewards rates on travel booked through the Capital One portal, travel credits, and airport lounge access. This card offers a good balance of rewards and benefits for its annual fee.
- Drawbacks: Limited domestic travel transfer partners.
- Chase Freedom Unlimited®:
- Best for: Cash back for travel bookings.
- Perks: Earns cash back on all purchases, with additional rewards on travel booked through Chase. It also features a 0% introductory APR period and a solid sign-up bonus.
- Drawbacks: Requires activation of quarterly categories for maximum rewards.
- American Express® Gold Card:
- Best for: Everyday spending rewards.
- Perks: High rewards at U.S. supermarkets and restaurants, travel credits, and a substantial welcome offer. Ideal for those who spend significantly on dining and groceries.
- Drawbacks: Substantial annual fee, not suited for smaller spenders
- Bilt World Elite Mastercard® Credit Card:
- Best for: Rewards on rent payments.
- Perks: Earns rewards on rent payments without transaction fees, bonus points on dining and travel, and point transfers to partner programs.
- Drawbacks: Requires at least five transactions per statement period to earn bonus points
- World of Hyatt Credit Card:
- Best for: Hotel stays.
- Perks: Great for those who frequently stay at Hyatt properties, with generous points on Hyatt stays, a significant sign-up bonus, and additional benefits like free nights and elite status.
- Drawbacks: Limited to Hyatt properties, which may not be as ubiquitous as other hotel chains.
- Marriott Bonvoy Card(s):
- Best for: Hotel stays
- Perks: bonus points for travel related spending such as gas stations, groceries, and dining out. Automatic elite status on some cards. Marriott offers cards with and without an annual fee. The annual-fee cards come with amped-up rewards that, for some users, particularly Marriott loyalists, make them lucrative options despite the cost.
- Drawbacks: Benefits limited to hotel stays.
- United℠ Explorer Card:
- Best for: United Airlines frequent flyers.
- Perks: Bonus rewards on United purchases, free checked bags, priority boarding, and lounge passes. Ideal for those who regularly fly with United.
- Drawbacks: Benefits are best utilized by frequent United flyers.
A few final tips:
To maximize your travel rewards, get organized. Use a spreadsheet or a rewards tracking app like AwardWallet to keep track of your points, spending, and the perks available to you. Also, consider “churning” cards—applying for new ones, earning the sign-up bonuses, and then canceling them—if you’re comfortable managing multiple accounts. However, be aware that this strategy can impact your credit score and potentially lead to debt if not managed carefully.
Finally, remember that earning travel rewards is a long game. It may take time to accumulate enough points for that dream trip, but with patience and a strategic approach, you’ll find that the rewards are well worth the effort. Whether you’re aiming for a free flight, a luxurious hotel stay, or simply want to enhance your travel experience, the right travel rewards card can be a powerful tool in your travel arsenal.
Fine print: Are there blackout dates or restrictions for redeeming travel? Do your rewards points expire after a certain amount of time? Make sure you understand any limitations.
Perks: Your travel credit card may include some valuable extras, such as airport lounge access, free checked bags, free TSA Pre-Check, no foreign transaction fees, and travel protection benefits. Just be aware that credit cards offer minimal protection compared to travel insurance.
Your personal travel plans: Let’s say your travel dream is to fly from Los Angeles to Tokyo, first class. Research the airlines that fly that route and their associated reward programs so you can focus on the most efficient way to earn the points you need.
How can I earn more travel rewards points?
The first piece of advice from travel rewards pros: Get organized. You can use a simple spreadsheet to track your logons, points earned, expiration dates and other key info. Or, try an online reward point manager. AwardWallet makes it easy to track more than 600 loyalty programs, keeping your credit cards, loyalty point balances, airline/hotel elite status info, and travel bookings all in one app.
Next: Pursue those signup bonuses. You can apply for cards that give the rewards you are looking for at the time, and cancel them to move to a different card that offers something different later. This allows you to claim the sign-up bonus, and focus your spending (using just that card) to get to your goal.
Strategic spending can help you earn more travel rewards points, too. This can involve:
- Always using a specific card for groceries, gas, etc. to capture category-specific bonus points
- Using your rewards card to pay for business travel, then getting reimbursed
- Using your card to pay for group expenses (such as dinner out or a trip), then getting reimbursed
- Paying recurring bills (such as your Internet provider) with a rewards card
- Paying rent with Bilt, which makes it easy to earn travel rewards on your biggest monthly expense
- Staying loyal to a specific travel carrier. For example, if you always fly United and use a United-branded card, you’ll earn miles faster.
Be patient. It can take years to amass enough points for your dream trip. But you’ll get there!
Happy travels!
