If I accumulated enough points every time someone asked me what the best way to use them to travel was, I’d have enough to travel around the world twice. Now, more than a decade after turning my interest in loyalty programs into a full-time job, I know how to make the most of my points.
Points, if used correctly, can be worth more than cash. You can redeem points for almost anything, like a staycation at an extended stay hotel or a first class trip to the Maldives. You can even drive around the country with stops at motels or literally fly around the world. Knowing the value of your points and using them wisely is key. As a general rule, you should aim to get at least 1 cent value per point (although that’s not always possible with hotel points).
If you’re saving up points and wondering how to best spend them on travel, we’re here to help. We’ll give you all the information you need to get the most value out of your points and miles.
Quick stats on travel habits
- According to Bankrate’s Summer Vacation Survey, 47% of American adults plan to skip summer vacation in 2024.
- According to Bankrate’s Summer Vacation Survey, 65% of American adults who are not taking a summer vacation this year say they cannot afford to take a summer vacation.
- According to Bankrate’s Summer Vacation Survey, 53% of Americans are planning a summer vacation in 2024, and of those, 36% say they’re willing to go into debt to pay for their summer vacation.
- 23% of U.S. consumers surveyed by Arrivia plan to use points to cover rising travel costs. (arrivia)
1. Use points and miles to buy international business and first class tickets
International business and first class tickets typically offer the highest value return for points and miles. For example:
- A round-trip business class ticket to Europe typically costs between 80,000 and 140,000 points or miles, while buying the same route with cash would usually cost around $5,000.
- Economy class tickets to Europe typically cost between 30,000 and 60,000 miles round trip, but cash fares can often be as much as $400 cheaper during off-peak seasons.
As you can see, premium cabin redemptions offer a better chance of maximizing the value of your miles than economy class. However, traveling in international business and first class not only offers the highest redemption value, but also is unattainable without points and miles. As such, these classes are considered the best use of points and miles for travel. These classes allow you to access travel opportunities that would otherwise be out of reach while keeping costs down.
The best redemptions for me have been flying in business and first class. For example, a few years ago I booked a trip for my family to three countries in Asia. My parents and two siblings came along and we flew in business class with Cathay Pacific to Singapore and Bali. We stayed in five-star hotels, enjoyed several upgrades to suites, and flew first class back home.
It’s a memory I’ll never forget, and my family still talks about it. The list price for that trip was well over $10,000-$90,000 in economy class. Instead, I used about 1 million points and paid $1,500 out of pocket.
Getting to rest and enjoy the flight in a comfortable flat-bed seat is a special experience worth splurging on. The few times I’ve been able to share points or miles with family have been the most rewarding.
2. Book a luxury hotel or resort (or all-inclusive)
Luxury hotels are great value for points. For example, the Maldives is a popular destination for making the most of your hotel points. Hotels in the Maldives can easily exceed $1,000 per night, making it a great place to use your hotel points or free night awards.
But what’s often overlooked is that these “free” luxury hotel stays come with a lot of added costs. Even if you use your points for a hotel stay, meals can be pricey in these remote destinations, and boat or seaplane travel can cost more than $500 per person. Unless you plan on paying for the room out of your own pocket anyway, you may not save much with this type of points redemption.
A great alternative is to book an all-inclusive hotel closer to home (such as Mexico or the Caribbean). Hyatt, Hilton and Marriott all have all-inclusive resorts that require a reasonable number of points. Hyatt all-inclusive hotels are available for as low as 12,000 points per night (during off-peak season). It’s easy to rack up five points for a night with the welcome bonus on your World of Hyatt Credit Card* or Chase Sapphire Preferred® Card. This bonus will earn you Ultimate Rewards points that can be transferred to your World of Hyatt account.
To be more specific, the World of Hyatt credit card is currently offering up to 60,000 bonus points: Earn 30,000 points after you spend $3,000 in the first three months after opening the account, plus earn 2x points (normally 1x points) on purchases in the first six months after opening the card (up to $15,000), for a maximum of another 30,000 points, while the Chase Sapphire Preferred is currently offering 60,000 bonus points after you spend $4,000 in the first three months after opening the account.
Keep in mind that this 12,000-point rate is for two people per room, and Hyatt charges an additional 6,500 to 29,000 points per night for each additional person staying in the same room.
The great thing about Hyatt’s all-inclusive hotels is that all meals and accommodations are included, meaning you pay $0 when you check out. This isn’t always possible at luxury resorts, where even using the minibar can be a big hit to your wallet. All-inclusive hotels like these are perfect for travelers on a budget who want to have fun without breaking the bank.
3. Use hotel points for longer stays at lower-category hotels for families and large groups
There are multiple ways to make hotel points work for you, and while this may not be a popular opinion, I firmly believe that extended stay hotels are a great way to use your points.
Extended stay hotels tend to be lower-category properties and often require a fraction of the points required for luxury hotels, but the lower exchange rate doesn’t impact value since the price paid can be significantly higher.
For example, on a recent trip to Salt Lake City, a downtown Hyatt House was $414 a night (before tax). Instead of paying this exorbitant fee, I exchanged 8,000 Hyatt points, which is worth more than 5 cents per point. Bankrate values Hyatt points at about 2.3 cents per point, making this an exceptional exchange.
Additionally, extended stay hotels often offer valuable perks that can make your stay at the hotel even more enjoyable. A free breakfast is usually standard at these types of hotels, along with free or inexpensive parking. With larger beds and extra sofas, these hotels can usually accommodate more than one guest per room. This makes extended stay hotels a great choice for families or large groups, as you can fit into one room instead of two.
4. Look for deals on booking travel during peak times
During peak travel seasons like summer vacation, spring break, and the holidays, everything from airfares to hotel rates skyrockets, making this the perfect time to take advantage of points and miles to save money.
It’s worth noting that an increasing number of airline and hotel loyalty programs (many of which are featured in Bankrate’s Travel Toolkit) are moving to dynamic pricing, meaning that redemption rates change based on airfare and room rates. However, despite dynamic pricing, it’s still possible to make good use of your points and miles.
Hotel loyalty programs are one example of how lucrative these redemptions can be. For example, a stay at the Westin New York Grand Central over Christmas and New Years would cost well over $6,000. You’d need about 480,000 Marriott Bonvoy points for the same stay, with each point worth 1.25 cents. That’s a great deal for a Marriott redemption; Bankrate puts the average value per point at 2.3 cents.
Award ticket prices do go up during peak season, but that doesn’t mean the math isn’t working. It’s always best to compare redemption rates to cash prices (and Bankrate’s valuation) to determine if that’s the case. Recently, I was able to book a $750 domestic ticket on United Airlines for just 20,000 Aeroplan points, saving me more than 3.75 cents per point on an economy class ticket during peak season.
5. Travel during off-peak seasons and be flexible with your travel dates
Booking travel during higher-cost peak seasons can increase the value of your rewards, while off-peak redemptions can save you points and miles.
As an example, American Airlines is one of the few major airlines that still publishes an award chart that includes off-peak travel dates for both its awards and partner awards. If you travel during the off-season, you may be able to save about 20% on an award ticket. For example, a one-way economy class fare to Europe is typically 30,000 miles. If you’re willing to travel on an off-peak day, the same award would cost about 22,500 miles.
The same is true for fare-based programs like Southwest Rapid Rewards. By searching airline low-fare calendars, you can get amazing deals on off-peak award tickets. If your travel dates are flexible, booking off-peak travel can help you get even more value out of your points and miles.
6. Look for sweet spot redemptions across airlines and hotels
Sweet spot rewards are one of the best kept secrets of airline and hotel loyalty programs. The “sweet spot” is a reward that’s offered at a significantly lower price than most other programs. Understanding sweet spot rewards is a great way to get more travel with your limited points or miles balance.
For example, United MileagePlus often requires more than 160,000 miles for a round-trip business class ticket to Europe, while Star Alliance member All Nippon Airways (ANA) requires just 100,000 miles for the same flight. ANA also offers free stopovers on these award trips, allowing you to book time in multiple locations for the cost of a single trip.
Award tickets to Hawaii are always popular and can cost more than 40,000 AAdvantage miles round trip even for off-peak travel from the West Coast, but British Airways Executive Club has some great deals for West Coast travelers, starting at just 13,000 Avios one-way.
Flying Blue, the joint loyalty program of Air France and KLM, isn’t as widely known, but it’s packed with perks that can save you miles and cash. For example, you can book a round-trip ticket between the U.S. and North Africa for just 100,000 miles, which is a fantastic deal considering most other programs require more than 160,000 miles for the same perk.
7. Take advantage of consecutive night discounts
Many hotel loyalty programs offer the fourth or fifth night free when you book consecutive nights, so you can get even more value out of your hotel points by booking a longer stay.
For example, Marriott Bonvoy offers all members the fifth night free on reward stays, while Hilton Honors reserves this benefit exclusively for co-branded credit cardholders and members with Silver Elite status or above. Additionally, IHG One Rewards offers IHG co-branded credit cardholders, such as the IHG One Rewards Club Premier Credit Card*, the fourth night free on consecutive bookings.
8. Redeem rewards of “enough” value when necessary
Following the advice above will help you maximize the value of your points and miles, but you should use your rewards in a way that works for you. If you’re happy redeeming your Chase Ultimate Rewards points for a ghost tour in New Orleans, do so. If you can save money by using your American AAdvantage miles for a rental car, do so.
The best way to use your points or miles is usually international business or first class flights, but the best way to use your points or miles may be different. The rewards are yours to use, so ignore the actions of influencers and choose what works best for you.
However, points and miles depreciate over time and can even expire after a long period of time, so the absolute best way to get the most out of your points and miles is to redeem them as soon as possible – don’t hoard them or let them accumulate before you use them, allowing them to depreciate in value.
Additionally, if they’re nearing expiration, consider exchanging a few thousand miles for a lower value reward, like a gift card, so your account remains active and you can prevent your balance from expiring if you just redeem a few miles.
FAQ
Conclusion
The best way to use your points or miles for travel comes down to personal preference, but you can make your points or miles even more valuable by redeeming strategically: take advantage of sweet spot rewards, splurge on luxury travel, and redeem your points during peak or off-peak seasons.
By planning ahead and comparing cash and award prices, you can save money on travel and get the most out of your points and miles.
*World of Hyatt and IHG One Rewards Club Premier credit cards information was collected independently by Bankrate.com. Card details have not been verified or approved by the card issuer.
