How to book a Flight/ Hotel?
So after accumulating point on your credit card, you want to figure out how to use those points to your benefit.
One way you can do that is to use redeem the points you earn for Cash Back. (This means if you have a credit card that gives 5% back after every purchase made on the card then if I spend $100 I will get $5 back in cash and if you spend $1000 you get $50 back in cash or statement credit depending on which card you have). You would commonly see beginners pick the cash back option or people who want a more simple credit card setup.
Another way you can use your credit card points is for Travel Experiences. Credit card points can significantly reduce the amount of money you would have to pay to book a flight or hotel. (Assuming you have enough points saved up and you redeem those points properly).
A few commons ways people like to book travel are:
1) Through the travel portal of whatever issue they have a credit card with. (So if they have a Chase Sapphire Rese they book travel through Chase’s Website. If they have the American Express Gold Card, they book travel through American Express website etc.)
2) Another way people book travel that might be more common than the first is through Expedia because they can get good deals if they book through websites like Expedia or Priceline
3) Another way people like to book travel is to just book directly from the website. (So if you wanted to fly on Delta Airlines, you would just go directly to the delta website to book a flight)
This video is a good tutorial on how to use your credit card for travel:
These are some recommended Airlines based on overall reviews: (these airlines are good or at least have their use cases)
US based Airlines:
Delta
International based Airlines:
Virgin Atlantic
Emirates
Singapore airlines
Air Canada
Hotels:
Each Airline and Hotel has their own point systems so I would encourage you to try as many as you can and see which ones you like. I’ve included some links to help you get started. These sites can help you accumulate points faster. Remember to book your flight months in advance to get the best prices/deals.
Understanding the value of points/miles and Point Conversion Rates:
When it comes to redeem points/miles for travel knowing point conversion rates is very important. I’m going to try and explain using an analogy. Pretend that credit card points represent literal money in your hand and you go to a “machine” to deposit that money.
Example #1: Lets say you’re booking a flight with “Aero Mexico Club Premier” and you have an American Express(Amex) credit card and a Capital One credit card. The Conversion rate for Amex is (1:1.6). This is good because is all this means is if I used 1000 Amex points I’m getting 1600 back in value. (In other words, you only put 5 bucks in a machine but it gives you back $20 worth of value).
Now if you book that same flight with Capital One miles instead, your conversion rate is (1:1) which is not bad. That is the standard. (It’s like putting 5 bucks in a machine and getting 5 bucks out as well). You technically didn’t lose anything but you would’ve got more for your money if you book with Amex).
Example #2: Let’s say you’re booking a different flight with “EVA Air” and you have a Citi Credit card and a Capital One credit card. Citi Thank you points Conversion rate is (1:1) which is standard but Capital One’s conversion rate is (2:1.5) which is bad.
If we book with Capital One then (its like putting $20 into the machine just for it to only give you $15 dollars back) you pretty much lose money. You’re better off booking at the standard rate with Citi instead.
If you want to refer back to the examples I used, then this is also a good website to see conversion rates and have a better idea.
