There are so many ways to travel on a budget today, anyone can do it. Money saving tips could be: sharing expense with other travelers, volunteering abroad, remote work programs, the list goes on. (I will share about remote work and volunteering abound in other post). However, one tried and true money saving method, that EVERYONE can do, is Travel Hacking. Let’s all fight the post-pandemic travel insanely high prices, by getting the best deals through travel hacking together.
What is Travel Hacking:
Travel Hacking is the art of utilizing travel credit cards, hotel loyalties, airline flight miles and other points based programs to cash in for: free, or highly discounted “almost free” travel. It may seem complicated the first time, but believe me this is extremely easy and anyone can do it! In fact, I have been using Travel Hacking for years to get thousands of dollars in free travel each year.
While there any many Advance techniques for transfer bonuses and complex points redemption methods, this is an INTRO guide to Travel Hacking to help you get started with the basics. Let me know if you have any questions, and share your huge travel savings in the comments below. I will give a prize to the best travel hacker story this year
Travel Hacking is a lot easier then it seems, so follow this guide to get your first redemption in no time. In this guide I will explain the basics of travel hacking, credit cards to get started *(this is region specific. See Asia, Europe and South America travel hacking guides). Airline and hotel loyalties programs and more tips. If you don’t become way smarter, and richer, reading this post then you’re doing it wrong 😉
Before getting started, let’s list out some goals, as your end goal will define which redemption plan you might be looking for.
Typical Travel Hacking Goals are:
- Taking a business class, (round trip) Trans-Atlantic flight twice a year. (Nothing’s better than fling from the states to Germany on Business, then flying to German on Business for free)
- Saving money on food and drinks by getting access to airport lounges while you travel abroad
- Getting free a weekend hotel stay at an exotic location in Bali, or a free hotel upgrade to a suite every time you book.
- Using your frequent travel, to started getting upgraded to business class, without paying more than coach prices
- Start paying your business expenses with business credit cards, and racking up loads of free travel to use anytime you want.
These are all pretty simple and easily achievable goals for any Travel Hacker. Everyone has slightly different goals, and different spending abilities, and its great to write these out before getting your first Travel Credit Card.
Before we go any further, let me explain travel credit card points. Basically, credit card companies, offer you ways to accumulate points, then you can use those points like cash for travel expenses or other benefits. For example, maybe a credit card will give you 10,000 points. And a nice 2 night stay in Luxemburg at the Hyatt cost $800usd or… 10,000 points. You turn in your points, and your stay is free! Its really that simple.
How you get lots of points, and use them is where it gets a little more detailed, but again, this is really easy.
Step 2 Picking you first Travel Card
Hers a few things to look for: (Remember there is no “one” card that is perfect for everyone, but these are great perks)
-Easy and obtainable sign up bonus
-Great redemption options (able to redeem points for lots of options: flights or for hotel or for cash)
-Travel Bonuses, for example free entry into airport lounges, or free lost baggage insurance
-No Int’l transaction fees. (These little fees each time you use your car can really add up when you are abroad).
-Low annual fee. Some of the best reward cards, come with a pretty heft annual fee, $200-$700 per year. Usually this is waived the first year. However, some times the benefits of the cards greatly out way any annual fee.
For you first card, You are definitely looking for something that gives you a large sign-up bonus. Hold up, what’s a sign up bonus? This is a simple introduction bonus to “welcome” you to the credit card company. Many times cards will offer you 40,000 – 100,000 points just for singing up, enough for 2 business class international flights and then points left over!
These signup bonus usually have an initial spending requirement. For example, “If you spend $3,000 USD in the first 3 months… you get the sign up bonus”… These are important details to review before signing up for any travel card. (Don’t pick one that has a spending amount that you don’t think you will do in the time frame)
What other details should I look for in Travel Cards?
-Some are brand specific with their points redemption. For example, if you fly Delta all the time, you could get a Delta Airlines travel Credit Card, with points that are usually only work for Delta Airlines. Other cards are more flexible, allowing you to spend points wherever you like. These flexible redemption cards are ones I recommend for first time travel hackers.
These are: Chase, Citi, Capitol One and American Express Platinum. These cards are pretty easy to reach the initial spending requirement, and have very flexible redemption options, if you are not really sure how you will use your precious travel credits
Here are the Cards I would start with, and short details about each one. (Remember there is No Perfect Card )
- Chase Sapphire Preferred– A great beginner card to get started. Enjoy benefits such as 5x on travel purchased through Chase Ultimate Rewards, 3x points on dining, and 2x on all other travel purchases, and $50 annual Ultimate Rewards Hotel Credit. Get a sign up bonus of 60,000. Renting a car, this card will offer you free car insurance. No foreign transaction fees.
- American Express Platinum– This is a good choice for travelers who want to have options on how to use / redeem points. AMEX has one of the highest annual fees, but also has the most credit back offers, everything from $120 in dining credits to GrubHub or select restaurants like The Cheesecake Factory, $120 in Uber cash (which you can use on rides or Uber Eats) $240 for streaming services a year, the list goes own. Earn 80,000 (or more) as a sign up bonus. Also earn 5x rewords on flights, booked directly with airlines. This is a great one you should consider. The Blue Door Platinum Lounges around the world have a great reputation.
- Capitol One Venture X– This is a straightforward reward card with many benefits. 10X miles on hotels and rental cars. Unlimited complimentary access to many airport lounges, *(including in my option the current best lounge in usa the DFW Capitol One lounge). Receive hundreds of credit backs each year. A great 75,000 introduction offer, this one is a great first choice.
- Citi– If you fly with Oneworld, arguably one of the best airline groups for international routes, this is the card for you. Receive a sign up bonus of 100,000 American Airlines AAdvantage, complimentary lounge access, no feign transaction fees, and many other benefits. This was one of my first Travel Cards and one I still use each year. The free access to airport lounges if with the price of the annual fee.
Other Cars I would choose are a little more specific. Do you always fly on United Airlines? If so get an United Credit card. Always stay at Hyatt or Marriot Hotels, get a card that matches those brands. These will give you a large number of points, to use with a brand you may already be booking.
Next step is how to accumulate points.
There is three basic ways to accumulate, and the first 2 are easy.
- Sign up bonus. Note, this is only done ONE time, so, you can’t keep signing up over and over for the same card… I know, I tried… 😉
- Spending points accumulation. This is pretty simple, as you spend, the card gives you per dollar amounts as points. Keep in mind some cards give you double or triple or extra points for specific categories of spending Maybe one card gives you 10X points for restaurants and a different card is 4X points for flights… uses these multipliers when you can.
- Points transfer bonus. This last method is the most complicated, but can get you more points as well. Points transfer bonuses is as it sounds, you would transfer points from one card or program to another. Think of it like doing an online bank transfer sending your money (points) from one bank to another, but, as you do it the second back gives you a bonus for moving the points. For example, Let’s say you have 40,000 Marriot points, and you want to fly on United. United offers a special 1.5X transfer bonus, so when you send your 40,000 Marriot points to United portal, and now you have 60,000 points in United bank, just like that! Magic! Wow, you’re getting it, your travel hacking like a boss now!!!
Redeeming your points
Redeeming your points. As we talked about in the beginning, everyone has different goals. Some will be ready to redeem points in a month, others may save up for years. All is ok, as long as your saving Just keep in mind some points system can expire, so use them before you loose them, other than that, good luck! Let me know the best deals you get in 2023, and any questions you may have. *Check all the deals and terms directly with the credit card companies as offers and terms can change. Happy Travel Hacking!