The Ultimate Guide to Points Travel: How to Travel the World in Luxury for Free
- Sep 6, 2022
- 5 min read
Updated: Apr 25
Imagine flying first class, checking into five-star resorts, and traveling the world for a fraction of the cost or even free. That’s exactly what points travel allows you to do. This guide breaks down everything you need to know from beginner basics to advanced strategies so you can turn everyday spending into luxury travel experiences.
Maximize Your Credit Card Points Earning Potential
There are three primary ways to earn points:
1. Credit Card Welcome Bonuses (FASTEST WAY)
The biggest source of points comes from sign-up bonuses, often worth:
60,000–150,000+ points for each new credit card
Enough for flights or multiple hotel nights
Don't be afraid to open new cards! Only get a new card if you can offset the Annual Fee in the value the card brings to you.
2. Everyday Spending
Earn points on Daily Spend. Cash Back Cards are great but they aren't going to help you earn free first class flights around the world. You can easily get more value from points than cash back.
The MOST IMPORTANT part is using the right card. Every card offers different earning potential per spending catgory (I.e. Travel, Dining, Supermarkets, Gas, etc.). Make sure you are maximizing your earning potential with each dollar spent.
3. Shopping Portals & Bonuses
Platforms like Rakuten or card-linked offers (i.e. Airline Shopping Portals) can multiply your earnings significantly with BONUS points. Most people shop online but most people don't utilize shopping portals. Say you were going to go to Nike to order a pair of sneakers. $100 Sneakers = 100 Points on a credit card. But platforms like Rakuten can offer 15Xpoints per dollar promotions. Those $100 Sneakers now just earned you the 100 points on your credit card PLUS 1500 bonus points.
Have a Points Travel Strategy
Do you want to earn free hotel stays or free airfare?
A Hotel or Airline co-branded credit card might be best for you
Do you want to redeem points for everything ?
Flexible Travel Cards from large institutions like Amex or Chase might be best for you
Credit Cards 101: Understanding Credit Card & Reward Types
There are several types of credit card rewards, and not all offer the same value.
Here's what you need to know:
Flexible Points Programs (Best Option)
American Express Membership Rewards (MR)
Chase Ultimate Rewards (UR)
Bilt Mastercard (Bilt 2.0)
All of these points systems allow you to use points in their eco-system. Use AMEX points for gift cards or booking travel through their specific online travel portals. But these cards have the MOST value with their transfer partners. You can book $1,000 of travel on AMEX Travel with 100,000 points or you can TRANSFER 100,000 points to a partner and earn 5x, 10x, 20x the value!
Example:
A Round Trip Flight to Asia on Amex Travel may cost you $1,000 in Economy for 100,000 Amex Points
That same 100,000 AMEX Points can get you one way in BUSINESS CLASS which is easily a $2K-5K cost.
Transfer Partners = Added Value
Travel Hack Pro Tip:Â Credit Card companies liked AMEX and Chase will offer Transfer Bonuses to Partners. For example, I transfered AMEX points to partner Qatar at a 30% bonus allowing me to book a flight on the world's best airline for free and at a 30% saving. These cards typically rotate partners and bonuses periodically throughout the year.
Cash Back Cards
Cash Back is straight forward and puts cash back in your pocket. But most people aren't buying $10,000 business class or first class flights with Cash Back. The easier and faster way to get your luxury travel is with points!
Hotel Co-Branded Credit Cards
Hotels have partnered with banks to offer co-branded credit cards. For example, the Hilton Amex or Marriot Amex are GREAT cards to have in your wallet and come with tons of free benefit like instant status, upgrades, and large sign up bonuses that will quickly get you to those free hotel rooms!
These cards will earn hotel loyalty points (example: Hilton Amex earns Hilton Honors Points instead of traditional AMEX Membership Rewards points).
These are great cards to have in your wallet if you want to redeem your points for free luxury hotels!
Airline Credit Cards
Airlines have become more like banks than actual airlines. All airlines offer co-branded cards.
Earn airline miles directly with specific carriers.
Include travel perks like free checked bags, priority boarding, or airport lounge access.
These are great cards to have if you fly one airline more than once a year. Bag Fees quickly add up and these cards provide tons of value to offset annual fees when you are booking flights for family members or friends on your itinary.
Smart Card Strategy: What’s In Your Wallet?
Don’t be afraid to hold multiple credit cards in your wallet. As long as the value you’re getting outweighs the annual fees then you shouldn't have any concern.
Hotels & Airlines 101: Loyalty Pays Off
Rule #1: Be Loyal
Stick with one hotel or airline brand to accumulate points faster and earn and utilize elite status perks.
Rule #2: Book Direct
Third-party travel sites may be cheaper, but booking directly ensures:
You earn loyalty points.
You receive elite benefits.
You have more flexibility to change or cancel.
Rule #3: Pick the Best Brand for You
Choose a hotel or airline that aligns with your travel goals, location, and lifestyle.
Choosing the Right Hotel Brand
Top Hotel Programs:
Marriott Bonvoy
Hilton Honors
Hyatt World of Hyatt
Each has co-branded credit cards that:
Earn you more points per dollar.
Offer annual free night certificates.
Help you fast-track to elite status.
The Hilton Aspire Amex comes with automatic Diamond status, free night certificates, and $600 in annual travel credits making it one of my favorite credit cards to hold.
Choosing the Right Airline Program
Be loyal to airlines with a hub in your city (Example: Delta in Atlanta or American in Dallas).
Unless you are a frequent business travel, you don't need to always use the same airline. You will earn more rewards with booking flights with the right credit card than earning flying in the air.
Travel Hack Pro Tip:Â
For example, if you book a $1,000 flight from LAX to NYC on your AMEX Platinum with American Airlines you will earn 5000 Amex Points for the purchase and another 2500 American Airlines miles. If you booked that same flight with an American Airlines Credit Card you would only earn 3000 and 2500 points earning you less points and with an inferior product since AMEX points are more valuable than Amerian Airlines miles.
Start Your Points Travel Journey
Whether you're planning your first free trip or trying to unlock first-class flights and luxury stays, points travel can change the way you see the world. It all starts with understanding the best ways to earn and redeem your points.
