The American Airlines credit card was used for everything from groceries to medical expenses, piling up points with nowhere to spend them. She had a lot to redeem when her family decided to go to Miami for the winter. It was easy to save money by using her rewards balance. She said there were lots of seats.
As travelers return to the skies, they accumulate larger than usual totals in airline and credit card rewards programs. They are spending them. Michael Covey, the managing director of the United program, said that the Mileage Plus program has had multiple record-breaking days over the past few weeks.
The time is right to cash in points.
All flights booked with points on the major U.S. carriers are fully refundable. If you have to cancel the trip, your points and fees will be returned without penalties. If you buy a ticket for cash, you'll get a credit for a future flight rather than a refund and you'll have to pay fees. The tickets that are Refundable are more expensive.
It can be difficult for a family to afford a family vacation overseas if they end up with a credit or a refund. Some travelers are still uncomfortable with international travel, so using points to book a flight to a foreign country can offer more peace of mind. He is worried about flights near Eastern Europe because of the Russian invasion of Ukraine.
Many travelers are sitting on larger than ever point balances, both because they haven't redeemed their points and because they have been adding to the pile with credit card purchases tied to airline loyalty accounts. According to a study by ValuePenguin and OnPoint Loyalty, the five largest airline loyalty programs are Delta Air Lines, SkyMiles, American Airlines, AAdvantage, and MileagePlus. Customers redeemed less of their points in 2020 than they did in the previous year, and earned half as many points as they did the previous year.
The most important reason to use points is that they may have less buying power in the future. Airline and hotel points are similar to currencies owned by companies, and those companies can change the cost of redemption to their liking. According to Helane Becker, an airline analyst at the investment bank, she expects airlines to devalue points more often in the future.
The airline and hotel sectors are already showing this. Alaska Airlines increased the cost to book some of its first class tickets. Hyatt Hotels implemented a new peak and off-peak pricing program that increased the points needed for some hotel stays.
People are sitting on big piles of miles and have a lot of demand for travel. Some leisure travelers are buying seats in the front of the plane because they think it's safer than economy class seats.
Mr. Covey said that the airlines have more seats available for less than 10,000 miles.
Customers are being encouraged to use their points. The customer's loyalty program status will be elevated if they book rewards tickets on Delta airlines through the end of the year. The flights that were paid with cash were counted toward program status. United Airlines joined the list of airlines that allow customers to combine money and miles to buy tickets. In February, United had flash sales for tickets to London and Australia that were purchased with points.
More countries are eliminating Covid testing for travelers. The testing requirement was dropped by London on February 11. Thailand, Vietnam, Australia, and other countries are welcoming tourists.
Alison Carpentier, the director of guest loyalty at Alaska Airlines, which is part of the Oneworld alliance of 14 global airlines, said the availability of tickets purchased with points has been good as international travel starts to open back up.
Airlines want to fill as many seats as possible so many now make almost all of their seats available for purchase with points, instead of just a subset. It's a good idea to check back before the flight to see if the number of points needed has gone down.
Looking ahead. The travel industry hopes this will be the year that travel comes roaring back after governments loosen coronaviruses. What to expect.
There is lodging. Travelers discovered the privacy offered by rental residences. They hope to compete by offering stylish extended-stay properties, sustainable options, rooftop bars and co-working spaces.
Rental cars. Travelers can expect higher prices and older cars with high mileage since companies still haven't been able to expand their fleets. Are you looking for an alternative? Car-sharing platforms might be more affordable.
Cruises. Demand for cruises remains high despite a bumpy start to the year. Because they sail on smaller ships and steer away from crowded destinations, luxury expedition voyages are particularly appealing right now.
There are destinations. Travelers are eager to visit a city like Paris or New York. Some resorts in the U.S. are experimenting with an almost all-inclusive model that takes the guess work out of planning a vacation.
Experiences. Sexy travel options include couples retreats and beachfront sessions with intimacy coaches. Trips with an educational bent are becoming more popular with families with children.
Business class seats on international routes are more plentiful now that demand is low. Corporate travel is still down and companies that allow employees to purchase business class seats so they can arrive refreshed for their meetings are not buying as many tickets.
It can take some sleuthing to redeem points. On a randomly selected day in March, a business class flight on Delta from New York to Paris costs 320,000 SkyMiles points, but a similar flight on Air France costs only 75,000 miles. American Express, Citi, Chase, and Capital One have partnerships with Air France, so their customers with membership rewards points could transfer them to Air France, making the cost of the Delta ticket less than it would have been.
A new website. Adam Morvitz, the founder of Me, said that the company aims to help travelers see all of their redemption choices. Travelers can enter the dates and cities for their potential trip and the site will compare how many points they need from various airline and credit card programs, with partnerships that allow points from one program to be transferred to another, like the New York to Paris scenario above. Concierge service is also offered by the site.
Tiffany Layne, a travel consultant and owner of LaVon Travel and Lifestyle in New York City, said booking as far in advance as possible will give you the most choice because airlines are still adding back routes and flights.
There is rarely a downside to booking with points, even far out. You have full control if your plans change.
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