Over the past decade, travel hacking has gone mainstream thanks to social media, with influencers showing off luxury vacations they’ve booked using points and everyone wanting in on the action.
And its appeal is broad: Families can save a lot on the cost of a Disney trip, for example, while dreamers can book first-class tickets for a fraction of the cost.
As someone who has been travel hacking for over 10 years, I’ve seen and heard it all. Travel hacking is a rewarding hobby that opens up a world of travel opportunities. Hacking flights and hotels can save you a ton on these expenses.
What is travel hacking?
Travel hacking refers to the various ways you can earn points or miles toward future travel, typically without flying or staying in a hotel. It involves strategically using credit card points or miles, or points or miles earned through airline or hotel programs, to earn discounted travel rewards.
How to get started with travel hacking
Getting started with travel hacking can seem daunting, but we’re here to help. Here are some tips to help you get started:
1. Set goals
The first step in travel hacking is to set travel goals. Accumulating points without knowing what you’re aiming for can be a wasted effort. When I started out in 2011, I made the mistake of saving up Delta SkyMiles and American Airlines AAdvantage miles for a trip to Europe. It wasn’t until much later that I realized that American’s route network to Europe was weak at the time and that United Airlines MileagePlus miles were a much better option.
Before you focus on how to earn points, think carefully about where you want to go. Then research the best rewards programs to get you there. Bankrate’s Travel Toolkit introduces a variety of credit card, airline, and hotel rewards programs to help you make the best choice.
2. Find the right rewards credit card
The easiest way to increase your points balance is with a points-earning credit card. Once you sign up and are approved, you can usually earn a welcome bonus of 50,000 points or more after meeting spending requirements over a three-month period.
The welcome bonus is a big attraction, but you can also take advantage of category bonuses and annual spending bonuses to help you maximise your everyday spending and get more out of it in the long run.
These ongoing benefits are an important factor when choosing a travel rewards card. Most people will benefit from a credit card that allows them to earn transferable rewards, such as:
These currencies give you flexibility by allowing you to transfer them 1:1 or close to it across multiple airlines and hotel programs. If one airline doesn’t have any awards available for your desired travel dates, you can transfer them to another that does, giving you more choice and protecting you if the program devalues.
3. Check the requirements before applying
Once you have a general idea of which credit card you should apply for, make sure you qualify for it and are prepared to meet the requirements. Here are some things to consider:
- Your credit scoreAs you’d expect, the best travel rewards cards require you to have at least good credit, but many cards favor those with excellent credit. If you’re still working on improving your credit, consider waiting to apply until you have a better chance of being approved.
- Application RulesEach bank has its own rules for credit card approval. Chase has the infamous 5/24 rule that limits your welcome bonus if you’ve applied for five or more credit cards in the past 24 months. Amex’s one-time lifetime limit means that if you get a welcome bonus on one card, you likely won’t get the same bonus again. There are plenty of other credit card application rules to be aware of. Knowing the rules before you apply will increase your chances of being approved.
- How much to payIf you struggle to pay your credit card bills every month, credit card travel hacking probably isn’t for you, as the interest rates on these credit cards are typically high and can wipe out any rewards you’ve earned. If you’re not sure you can pay off your balance, it’s best to avoid these credit cards and use other ways to earn points and miles.
4. Use a shopping portal
If you want to further maximize your points and miles earning, shopping portals are the way to go. Nearly every major loyalty program has a shopping portal for your card issuer and select airlines where you can earn rewards. In addition to your credit card points, you’ll earn at least 1 extra point for every dollar spent.
Here are some examples:
Using a shopping portal aggregator like Cashback Monitor makes it easy to ensure you’re earning as many points as possible: enter the name of an online merchant and you’ll see a list of shopping portals and their earning rates.
Many shopping portals also offer bonuses on spending just before the holiday season or back-to-school season begins, which can be a great deal and help you achieve your travel goals faster.
5. Sign up for Dining Rewards
Dining rewards programs, like shopping portals, allow you to earn extra points with minimal effort. By joining dining programs that partner with airlines and hotels, you can earn up to 8 extra points per dollar spent. These include:
Some of these programs offer first-dining bonuses or additional points for writing reviews or meeting certain spending thresholds each year.
You can join all of these programs, but because they’re all part of the same network, you can’t enroll the same credit card in more than one program at a time. If you only have one credit card, it’s not that hard.
Enroll your card in the program of your choice, earn the First Dining bonus, and repeat until you’ve earned all of the others. Maximize your points earnings by using a credit card that gives you bonus points on dining.
6. Get creative to reap the rewards
Once you’ve developed the habit of getting the most out of your everyday purchases, it’s time to get creative: What else can you charge on your credit card while still maintaining a balance that you can pay off at the end of the month?
I once convinced my boss to let me pay a $35,000 supplier invoice with my credit card, I’ve earned thousands of points through Plastiq on rent and mortgage payments, and I’ve used retail arbitrage to resell popular fashion items to meet spending requirements.
If you think outside the box, you might find new ways to earn extra points.
What’s your best travel hack?
There are countless travel hacks out there, and the best ones are (obviously) top secret. But if you’re just starting out and want to keep things simple, here are the most valuable hacks you should know:
How can I travel for free?
Despite what travel influencers like to write in their photo captions, there’s no such thing as free travel. You almost always have to pay to earn or redeem points. Whether it’s annual credit card fees, reward flight taxes, resort fees, or whatever, there’s always a cost.
But by taking advantage of credit cards, points and loyalty programs, you can book amazing travel experiences for a fraction of the cost.
Conclusion
Travel hacking allows you to travel farther and further than you could if you were booking with cash. Paying for everyday expenses with your credit card, including hotels, airlines, and transferable points currency, allows you to travel at a relatively low cost.
If you’re considering opening a credit card with travel rewards, think about what you plan to travel for, the card’s sign-up bonuses and perks, and how you’ll use the rewards you earn. From there, you can start exploring more advanced ways to earn points, like shopping portals or dining programs.
In addition to these tips, don’t forget the responsibility that comes with using a credit card. Even the best travel credit cards can have high interest rates. Try to pay off your card in full each month as often as possible to avoid canceling any rewards you’ve earned.
