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We're big proponents of utilizing here at TPG. Programs like and provide valuable flexibility when it's time to use your points — one of the main reasons they fall in the upper echelon of our .
However, there are many reasons why someone would focus on other reward programs. If you're a hub captive, you may be interested in earning miles with a specific airline, and if you're planning to book a future trip to a specific resort, your attention may be on earning hotel points. This is especially true with new incentives from and to spend on your .
Higher loyalty program balances
The travel industry has been rocked by the , with , numerous and some airlines . For many travelers, this has meant canceled or postponed trips. And if you're like me, that has resulted in significant refunds of airline miles and hotel points.
Thanks to a pair of trips I've canceled due to COVID-19, my wife, daughter and I have (combined) received the following rewards back in our accounts:
As we've covered before, , as their values tend to depreciate over time. If you've been forced to cancel a trip and received a refund of points or miles in airline or hotel loyalty programs, you may want to press pause on earning additional rewards. Otherwise, you may fall victim to the next trap …
Ongoing devaluations
Many loyalty programs have adjusted their rewards structures over time. From to to , many of these changes make it harder to get solid value when you go to redeem your hard-earned points and miles. And while the coronavirus pandemic has led some programs to , others have plowed ahead with negative changes.
Chief among these culprits is United MileagePlus, as the program has made two notable changes that are indisputable devaluations:
If you had been working toward a specific award, you'd suddenly need more miles — one of the biggest problems with being over-leveraged in a specific currency. These changes even have some long-time United elite members .
READ MORE:
Risks of bankruptcy
There's also the risk of losing any points or miles in a loyalty program . While this is a more remote possibility, we have seen some programs as a result of the pandemic. History has shown that your points and miles are , though there's an outside chance that they could be lost entirely if a carrier permanently stops operations.
Of course, there's also a slim chance that a credit card issuer could go under as well, but that's very unlikely.
Why credit card points are a safer bet
On the other hand, if you focus your energy on earning credit card points rather than airline- or hotel-specific rewards, you can minimize (or remove) any fallout from the above issues. Whether you're earning or , they tend to be much more flexible than those affiliated with an individual travel provider. In many cases, you can use them for flights on any airline, and there's little risk for devaluation.
If you can transfer your credit card points to partner airlines — a feature offered on select Chase, Amex, Citi and Capital One cards — that can provide even greater protection.
RELATED:
For example, if you were for a Star Alliance award ticket to Europe in the past, many of those are now more expensive — 77,000 miles for one-way business class on most partners. However, if you had instead focused on , you still have the option to — but you could also transfer them to , which charges 72,000 miles for a one-way, business-class award ticket from North America to Europe.
Note that you're not limited to earning these points through just credit card spending either. Since many Americans are still spending large amounts of time at home, you should definitely be taking advantage of as well to boost your earning rates. Chase Ultimate Rewards has its own portal — look for the "Earn bonus points" section of the Ultimate Rewards site — while you can through (formerly Ebates). By clicking through these sites, you can earn even more rewards for your everyday purchases.
WATCH NOW:
Finally, you can save even more in conjunction with online discount and bonus programs. I try to browse my and at least a few times a week, just to make sure I'm .
Which cards I'm using the most right now
While I tend to favor cards that earn transferable rewards, this is magnified even more right now. Here are the cards in my wallet that are currently getting the most action:
All of these purchases put me closer to — and limit my exposure to potential devaluations and negative changes to airline and hotel loyalty programs.
Bottom line
It's important to have a strategy for earning and redeeming rewards, and given the , it's more important than ever to make credit card points a part of it. — like Amex Membership Rewards and Chase Ultimate Rewards — can offer spectacular value, but even a fixed-value rewards card may be a better choice than an airline or hotel cobranded option.
Don't fall victim to unexpected devaluations or no-notice changes to loyalty programs. Instead, focus your energy on more flexible rewards as you plan for your next vacation.
Featured photo by Clint Henderson / The Points Guy
We're big proponents of utilizing here at TPG. Programs like and provide valuable flexibility when it's time to use your points — one of the main reasons they fall in the upper echelon of our .
However, there are many reasons why someone would focus on other reward programs. If you're a hub captive, you may be interested in earning miles with a specific airline, and if you're planning to book a future trip to a specific resort, your attention may be on earning hotel points. This is especially true with new incentives from and to spend on your .
Higher loyalty program balances
The travel industry has been rocked by the , with , numerous and some airlines . For many travelers, this has meant canceled or postponed trips. And if you're like me, that has resulted in significant refunds of airline miles and hotel points.
Thanks to a pair of trips I've canceled due to COVID-19, my wife, daughter and I have (combined) received the following rewards back in our accounts:
- 280,000 Alaska Airlines miles
- 70,000 American Airlines miles
- 60,000 British Airways Avios
- 96,000 World of Hyatt points
As we've covered before, , as their values tend to depreciate over time. If you've been forced to cancel a trip and received a refund of points or miles in airline or hotel loyalty programs, you may want to press pause on earning additional rewards. Otherwise, you may fall victim to the next trap …
Ongoing devaluations
Many loyalty programs have adjusted their rewards structures over time. From to to , many of these changes make it harder to get solid value when you go to redeem your hard-earned points and miles. And while the coronavirus pandemic has led some programs to , others have plowed ahead with negative changes.
Chief among these culprits is United MileagePlus, as the program has made two notable changes that are indisputable devaluations:
- Adjusting elite qualification from partner flights: As of late April, it's now harder to earn on partner flights, as United has now you'd earn on non-United itineraries. Even worse? The carrier offered just one day of notice before implementing this new policy.
- Removing partner award charts: After in November 2019, United made the decision to in late April. Less than 24 hours later, .
If you had been working toward a specific award, you'd suddenly need more miles — one of the biggest problems with being over-leveraged in a specific currency. These changes even have some long-time United elite members .
READ MORE:
Risks of bankruptcy
There's also the risk of losing any points or miles in a loyalty program . While this is a more remote possibility, we have seen some programs as a result of the pandemic. History has shown that your points and miles are , though there's an outside chance that they could be lost entirely if a carrier permanently stops operations.
Of course, there's also a slim chance that a credit card issuer could go under as well, but that's very unlikely.
Why credit card points are a safer bet
On the other hand, if you focus your energy on earning credit card points rather than airline- or hotel-specific rewards, you can minimize (or remove) any fallout from the above issues. Whether you're earning or , they tend to be much more flexible than those affiliated with an individual travel provider. In many cases, you can use them for flights on any airline, and there's little risk for devaluation.
If you can transfer your credit card points to partner airlines — a feature offered on select Chase, Amex, Citi and Capital One cards — that can provide even greater protection.
RELATED:
For example, if you were for a Star Alliance award ticket to Europe in the past, many of those are now more expensive — 77,000 miles for one-way business class on most partners. However, if you had instead focused on , you still have the option to — but you could also transfer them to , which charges 72,000 miles for a one-way, business-class award ticket from North America to Europe.
Note that you're not limited to earning these points through just credit card spending either. Since many Americans are still spending large amounts of time at home, you should definitely be taking advantage of as well to boost your earning rates. Chase Ultimate Rewards has its own portal — look for the "Earn bonus points" section of the Ultimate Rewards site — while you can through (formerly Ebates). By clicking through these sites, you can earn even more rewards for your everyday purchases.
WATCH NOW:
Finally, you can save even more in conjunction with online discount and bonus programs. I try to browse my and at least a few times a week, just to make sure I'm .
Which cards I'm using the most right now
While I tend to favor cards that earn transferable rewards, this is magnified even more right now. Here are the cards in my wallet that are currently getting the most action:
- : I typically use this card for all travel purchases thanks to the I earn, but right now, it's offering for May and June (on up to $1,500 in spending each month). I've used it a few times for trips I've planned for late 2020, but it's currently my go-to option for .
- : Earlier this year, I made the decision to apply for the Amex Gold, even though I . This card offers 4x points at , so I'm using it for takeout orders at local restaurants.
- : For other purchases that don't fall into typical bonus categories, I swipe my Blue Business Plus card, which offers on all purchases (up to $50,000 in total spending each year; then 1x).
All of these purchases put me closer to — and limit my exposure to potential devaluations and negative changes to airline and hotel loyalty programs.
Bottom line
It's important to have a strategy for earning and redeeming rewards, and given the , it's more important than ever to make credit card points a part of it. — like Amex Membership Rewards and Chase Ultimate Rewards — can offer spectacular value, but even a fixed-value rewards card may be a better choice than an airline or hotel cobranded option.
Don't fall victim to unexpected devaluations or no-notice changes to loyalty programs. Instead, focus your energy on more flexible rewards as you plan for your next vacation.
Featured photo by Clint Henderson / The Points Guy