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Best Travel Hacking Tips for 2023
By Nathan Mahr MONEY RESEARCH COLLECTIVE
Travel hacking has emerged as one of the most popular ways to save money and earn rewards for your future travels. It involves taking advantage of credit card rewards and hotel and airline loyalty programs to make travel more cost-effective.
Whether you’re planning a one-stop family vacation or a complex business trip, traveling expenses add up quickly. That’s why maximizing the potential of travel hacking is becoming an increasingly important skill for any budget-conscious traveler.
In this article, we’ll give you our top travel hacking tips to help you plan your next vacation with maximum efficiency. It covers everything you need to know about travel hacking, from what it is and how it works to the various rewards programs available.
The ultimate guide to travel hacking
Travel hacking is a great way to plan trips on a budget. However, there are some essentials to learn before you dive in and give it a try. Below, we answer some key foundational questions about travel hacking.
What is travel hacking?
Travel hacking is a term that refers to the practice of accumulating and utilizing loyalty points, rewards miles and other incentives to reduce travel costs. It involves the strategic use of credit cards, airline programs and hotel rewards programs to maximize your rewards points while reducing the cost of your trips.
In addition to rewards programs, several credit cards offer exclusive travel-related perks such as free checked bags, airport lounge access and discounted room rates. When combined with other clever travel strategies, such as using reputable travel booking sites, savvy travelers experience significant savings while getting more out of their trips.
How does travel hacking work?
With many different options to maximize travel hacking, it can be challenging to understand exactly how it works. The basic idea is fairly simple: you earn points or miles by using a specific airline, hotel, credit card or alternative type of rewards program. You can then use these points and miles to purchase cheap flights, book hotel rooms or get discounted rates on various travel-related expenses.
Travel hackers aim to squeeze the most value out of their rewards points and frequent flier miles by taking advantage of promotional offers while stacking different loyalty programs to maximize their savings. For example, a travel hacker might purchase an airline ticket with a rewards credit card, collect points from the flight and then use those points in exchange for a hotel stay.
With travel hacking, you can also look for opportunities to accumulate points or travel miles through everyday purchases, such as groceries and gas. When done correctly, travel hacking can easily offset large portions of travel expenses, enabling you to stretch your budget and enjoy more luxurious vacations.
The benefits of travel hacking
Travel hacking can be a powerful tool for anyone who wants to save money on their travels. From globe-trotting business executives to budget-conscious families, everyone can benefit from one or more of these rewards programs and strategies. Here are some of the primary benefits you can reap from utilizing travel hacking strategies:
- Increased savings: Travel hacking helps reduce your overall costs on flights, hotel stays, car rentals, restaurant meals and more.
- More rewarding experiences: Travel hacking can give you access to exclusive experiences and VIP treatment that you may not otherwise be able to afford. Whether that means upgrading your flights or booking luxury stays at five-star hotels, you’ll be able to enjoy your travels in style.
- Exclusive perks: Many credit cards and loyalty programs offer special perks such as free checked bags, airport lounge access and more.
- Flexibility: Travel hacking programs often provide access to multiple redemption options, allowing you ample flexibility to customize your travel experiences.
These are just some of the advantages of becoming a savvy traveler. With proper planning, you can get the most out of your rewards programs and save money on your trips.
Rewards vs. points vs. miles: What’s the difference?
For optimum success in travel hacking, it’s vital to differentiate between the various rewards and incentives available. Rewards points, miles and other incentive-based forms of currency become a substitute for cash when paying for travel expenses.
One of the most common types of rewards is miles and hotel points, which you can earn through airline frequent flier programs and hotel loyalty programs. You can use these points to pay for flights, hotel stays and other travel-related expenses offered by the associated companies.
Credit card companies offer another form of rewards currency, known as rewards points. You earn these points any time you make purchases with your card. You can then use them to pay for travel expenses or redeem them for gift cards, merchandise and cash back.
Many of the best travel hacking cards offer bonus points for certain categories of purchases, such as dining or entertainment. Additionally, some cards come with promotional offers that provide accelerated rewards for meeting specific spending requirements within a limited time frame.
The best travel hacking tips to help you spend less
Travel hacking is all about finding the best deals and leveraging rewards to save money and get more out of your travels. Here are some of our best tips to help you travel smarter while saving money.
1. Set a travel goal
It helps to have a specific goal in mind when you’re looking for ways to reduce your expenses. Whether you want to take your dream trip to Europe or simply save enough for a local weekend getaway, knowing what you’re working toward will guide your spending and reward selection.
For example, some airlines may have weak networks when it comes to international travel but work well for domestic flights. Understanding your travel goal will help you maximize the potential of your rewards and focus your efforts on the programs that will best help you reach it.
2. Use your points and miles before they expire
Although credit card rewards points generally don’t expire if your account is in good standing, airline miles and hotel points often do. These programs typically require you to be active within a certain period — usually 12 to 18 months — to keep your points from expiring. To avoid any unpleasant surprises, make sure you either use the rewards you’ve already earned or continue to stay active in the program.
Often, you can remain active by taking a flight, staying in a hotel or making a qualifying purchase. This can reset the expiration date on all your accumulated points or miles, ensuring they remain valid.
3. Look out for opportunities to earn bonus miles
One of the best ways to maximize your travel hacking rewards is to take advantage of bonus points, miles and other incentive offers. Many credit cards reward new customers with bonus points or miles upon signing up, while others offer accelerated rewards for meeting spending requirements in a certain category within a given period.
Aside from welcome bonuses, several credit cards also present ongoing promotions that provide bonus points when you use them in certain stores. You may get bonus points for specific types of purchases or by meeting annual spending thresholds. Paying attention to these promotions and bonus offers will allow you to rack up points faster and stretch your travel budget further.
4. Try to qualify for travel credit cards that come with extra benefits
Some of the best travel rewards credit cards come with additional benefits such as hotel booking discounts, companion tickets and priority boarding. For example, the Chase Sapphire Preferred® credit card offers no foreign transaction fees and a 25% bonus on points redeemed for airfare, hotels and rental cars.
Another example is the American Express Platinum Card®, which offers a $200 annual hotel credit, complimentary elite status in various hotel loyalty programs and access to exclusive airport lounges. These benefits can add up quickly and provide significant savings when traveling, so make sure to research the extra perks that come with any travel cards you’re considering.
When it comes to getting the most bang for your buck, travel credit cards offering points that can be transferred across various loyalty programs are another attractive choice. With these flexible rewards, you can enjoy an array of options in terms of redemption. Popular examples of rewards programs that offer easy transferability and a large number of travel partners include the American Express Membership Rewards, Chase Ultimate Rewards and Capital One miles programs.
These point systems and redemption structures allow the transfer of points to different hotel and airline partners at a 1:1 rate, which means they hold the same value as a dollar. This enables you to take full advantage of the best deals and rewards available without losing out on the full value of your points.
5. Pay your credit card debt on time
Missed payments can lead to late fees and penalty interest rates, which can quickly eat into any rewards or points you’ve earned. Make sure to pay your credit card bills on time, as this will ensure that you maximize the value of your rewards points and avoid debt.
On top of this, any negative information that appears on your credit report can lower your score and make it difficult to qualify for other cards with better rewards. If you’re having trouble keeping up with payments, consider transferring your balance to a card with a 0% annual percentage rate (APR) promotional period or setting up automatic payments to ensure that you stay on track and pay off your debt faster.
6. Only apply if you can meet the minimum spending requirement
Many of the best travel rewards cards offer generous bonus points if your spending meets certain requirements within the first few months. These minimum spending requirements can vary tremendously, often ranging from $1,000 to $4,000 or more. Although these bonuses are an excellent way to claim extra rewards points, ensure that you only sign up if you’re confident you can meet the required expenditure. The last thing you want to do is get stuck with a high APR and a large balance you can’t easily pay down.
7. Sign up for hotel rewards programs
Hotel rewards programs such as Marriott Bonvoy or Hilton Honors offer discounts, perks and rewards points when you stay at one of their affiliated hotels or make purchases with the hotel’s travel partners. The rewards you can earn in these programs typically include free night stays, upgrades and discounted rates at participating hotels. In some cases, points can also be converted into airline miles with select partner airlines.
Many of these hotel rewards programs have developed different tiers or levels that give you access to a variety of exclusive benefits. For example, the Marriott Bonvoy Titanium Elite status provides members with the following rewards: a 75% bonus on points earned on eligible hotel purchases, complimentary late check-out, a 48-hour guarantee on room availability, exclusive lounge access and an annual Suite Night Award™, which allows members to upgrade their room at select properties at no extra charge.
Members must stay 75 nights or more in Marriott hotels within a calendar year to achieve Titanium Elite status. Even if you don’t stay at their hotels often, it may still be worth signing up for these types of programs to take advantage of any extra rewards they offer while racking up all the points you can get.
What’s the best way to start travel hacking?
With the dizzying array of rewards and loyalty programs, travel hacking can be confusing to newcomers. Although the strategies vary depending on individual needs and goals, there are a few basic steps to follow when starting out.
First, you should determine your travel preferences. Start by researching points and miles programs, hotel rewards programs and credit cards that will help you reach your goal while keeping your spending habits within realistic limits.
Once you’ve identified the best programs for your needs, sign up and start participating. This includes making purchases with credit cards to earn rewards points, staying at hotels to earn loyalty points and booking flights with airlines that offer rewards for frequent flyers.
You should also be sure to read the fine print of all programs to understand the terms and conditions, including any fees and minimum spending requirements. Finally, keep track of your points and stay organized by using a spreadsheet or an app for managing travel cards and rewards.
Many rewards programs are free to join and require minimal effort, so there’s no reason not to take advantage of them. With a little planning and dedication, you can easily maximize your rewards and save money on your next trip.
Is travel hacking worth it?
Travel hacking can be worth it if you do it properly. Travel hackers can save hundreds, if not thousands, of dollars on trips by earning extra points or miles, taking advantage of bonus offers and utilizing the perks associated with travel credit cards. Depending on your goals and the amount of time you have to devote to managing rewards programs, the payoff can be well worth the effort.
Before embarking on a travel hacking journey, ensure you have a clear plan and understand the terms and conditions of all programs you plan to use. Some rewards credit cards may have annual fees or require you to meet minimum spending requirements, so it’s important to do your research and make sure the rewards outweigh the costs.
If you’re especially budget-conscious, researching no-annual-fee credit cards that still offer generous rewards programs is a great way to start your travel hacking adventures without breaking the bank. Additionally, keep aware of any expiration dates for rewards points or mileage and make sure to use them before they expire.
Get started on your travel hacking journey
Although travel hacking can seem a bit intimidating at first, it’s relatively easy to get started and can be a great way to save money on travel expenses. To begin travel hacking, determine your travel goals and preferences, research credit cards and loyalty programs, sign up for the best ones for your needs and track all points you’ve earned.
Whether you’re just looking for a few extra points here and there or aiming to become an expert traveler hacker, understanding the programs and managing your accounts wisely will allow you to dramatically reduce your travel costs while rewarding you with amazing experiences.