Over the last two years, our favorite air carriers transformed their reward programs from distance-based programs to revenue-based programs. Instead of being granted miles for number of miles flown, travelers now earn miles based on how much they spend on their airfare, multiplied by their loyalty status.
These programs began shifting tides when Delta Air Lines moved SkyMiles to a revenue-based program, followed quickly by United Airlines’ MileagePlus program and later by American Airlines’ AAdvantage. Many frugal travelers began expressing their frustration with the new changes, immediately looking for loopholes in the system in order to gain the most miles out of every flight. Others declared they would get out of the game entirely, trading loyalty for other forms of rewards.
No matter how travelers felt about the situation, revenue-based programs were here to stay. While it may seem unfair, many of us did not consider that all programs are revenue-based programs – whether they come from our favorite airline programs, hotel programs, or even flexible points earned from credit cards. Therefore, there are still opportunities to make the most of our favorite programs and maximize the most value out of these programs.
How can we get the highest value from all of our revenue-based programs today? Here are three tips every traveler can utilize to increase our rewards and travel cheaper.
Maintain loyalty where the rewards are – even if they are not with a travel provider
For many frugal travelers, maintaining loyalty to a single travel program may not be the best way to gain value. Where are you placing your loyalty: with a carrier or hotel chain, or where the value lies?
In certain situations, loyalty to a credit card may be more rewarding than loyalty to a single airline or hotel chain. Both the American Express Membership Rewards program and Chase Ultimate Rewards program offer travelers points that can be transferred into other loyalty programs, giving travelers the choice to use their points where they offer the most value.
Additionally, investing in a program that allows outbound transfers can also be valuable as well. For instance, Starwood Preferred Guest points – earned using the Starwood Preferred Guest Credit Card by American Express – can be transferred to a number of airline partners, or to Marriott Rewards.
Earn points and miles with EVERY transaction
After deciding which points programs deserve your loyalty – be it a frequent flyer program, a hotel rewards program, or another revenue-based program – the next step is to earn points with every single transaction travelers make. This should go beyond earning while flying or staying, but instead should encompass every purchase option.
To create a points and miles plan, look beyond the bonus categories offered by credit cards and into additional ways to earn miles with every purchase. Points malls, promotional offers and other programs can help travelers maximize their efforts to see the world for a low overall price.
Create a plan to maximize your personal value
Once travelers have determined where they can make the most points and miles out of their spending, the next step is to make a plan to maximize that personal value. Making a plan is about more than just agreeing to earn points with every purchase. Rather, making a plan should encompass how to make the most value with every swipe of the card.
For example: I use a color-coding system with my credit cards in order to determine which cards offer the most value based on their rewards points. One color represents the best value at gas stations, while another represents bonuses at grocery stores, and a third represents bonuses at drug stores. By maximizing bonus categories, travelers can get even closer to their next adventure.
Are revenue programs unfair at their core? In truth, all of our favorite travel rewards programs are revenue based. By understanding how their value pertains to our travel styles, we can ensure we make the most of every point, from start to finish.
How do you make the most of every point you earn, whether from traveling or through traveling? Let us know your tips in the comments below!
Written by Frugal Travel Guy @ http://www.frugaltravelguy.com
Written by Frugal Travel Guy @ http://www.frugaltravelguy.com