Beginner’s Guide to Points and Miles

Points and miles can unlock incredible travel experiences, from free flights and hotel stays to luxurious first-class cabins that cost only a fraction of their cash value. This guide will walk you through the basics of earning points and redeeming them, separated into two sections: Earning Points and Redeeming points.

Part 1: Earning Points

There are two main ways to earn points: credit card rewards and airline/hotel loyalty programs. Let’s explore both and how you can maximize them.

1. Earning with Credit Cards

Many points programs are tied to credit cards. Here’s how you can start:

Welcome Bonuses:

• Many cards offer large welcome bonuses after spending a specific amount in the first few months (e.g., 60,000 points after spending $4,000 in 3 months).
• Always aim to meet these requirements only with regular spending to avoid debt.

Ongoing Spending Categories:

• Some cards give extra points for specific categories:
  • Grocery/Restaurants: 3-5x points
  • Travel: 2-5x points
  • Gas, Streaming, etc.: Category-specific bonuses
• Example: Chase Sapphire Preferred gives 2x points on travel and dining.

Transferable Points Programs:

• Cards from programs like Chase Ultimate Rewards, American Express Membership Rewards, Capital One, and Citi ThankYou Points allow you to transfer points to airline or hotel programs.
• These points are flexible, making them highly valuable for beginners.

Cash Back Cards That Convert to Points:

• Some cards offer cash back, but can also pool rewards into transferable points. Example: Chase Freedom cards earn cash back, but if you have a Chase Sapphire card, you can convert the rewards into Ultimate Rewards points.

2. Airline and Hotel Loyalty Programs

You earn miles by flying and hotel points by staying at partner hotels.

Here’s how to maximize:

• Sign Up for Free Loyalty Programs:
  • Example: Enroll in Delta SkyMiles, American Airlines AAdvantage, Marriott Bonvoy, etc.
  • Always input your loyalty number when flying or staying at a hotel to earn points/miles.
• Maximize Airline Miles with Credit Cards:
  • Co-branded airline cards like American Airlines Citi AAdvantage or Delta Amex offer miles for purchases and bonuses for specific activities (e.g., free checked bags).
• Hotel Loyalty Points:
  • Chains like Marriott, Hilton, and Hyatt give points for each stay and often offer promotions for double points.
• Earn Miles with Partners:
  • Many airlines and hotels have partner programs (e.g., you can earn Delta miles by renting a car with Hertz).

3. Additional Earning Strategies

• Shopping Portals: Earn extra points by shopping online through airline or card-linked portals.
• Dining Programs: Register your card with programs like Delta SkyMiles Dining to earn miles at restaurants.
• Travel Promotions: Airlines and hotels often offer promotions like bonus miles for specific flights or double points during a stay.

Part 2: Redeeming Points

Knowing how to redeem your points effectively is essential to getting the most value. There are many ways to use points, but we’ll cover the key ones: booking flights, hotel stays, and transfers to travel partners.

1. Redeeming Points for Flights

The best value for airline miles is often for flights. Here’s how to redeem wisely:

• Book Award Flights Through the Airline’s Website
  • Go to the airline’s website and search for award flights. Example: On United.com, click “Use miles” when searching for a flight.
  • Airlines release award availability for seats, and the price in miles depends on the program.
• Transfer Credit Card Points to Airlines
  • Transfer points from cards like Chase or Amex to partner airlines (e.g., transfer Chase points to United or Amex points to ANA).
  • This is often the most valuable use of transferable points. Example: A first-class flight worth $5,000 can cost only 80,000 points + taxes.
• Understand Award Charts & Dynamic Pricing
  • Some airlines use award charts with fixed mileage requirements (e.g., 25,000 miles for a domestic round-trip).
  • Others use dynamic pricing, meaning the miles needed vary based on demand (like Delta SkyMiles).

2. Maximizing Redemptions with Sweet Spots

Some programs offer better value than others. Look for “sweet spots”—these are redemptions where you get outsized value for your points:

• Examples of Sweet Spots:
  • ANA Business Class from the U.S. to Japan: ~75,000 Amex points round-trip.
  • Qatar Qsuites from the U.S. to the Middle East for ~70,000 American Airlines miles.
  • Turkish Airlines domestic flights within the U.S for ~ 7,500 miles one-way.

3. Booking Hotels with Points

Using points for hotel stays can also deliver excellent value:

• Book Directly with Hotel Programs:
  • Use points through hotel programs like Marriott Bonvoy, Hilton Honors, or Hyatt.
  • Example: A hotel room costing $400 might be available for 25,000 points, giving you great value.
• Free Nights & Promotions:
  • Some programs offer the 5th night free if you book 4 nights on points (e.g., Marriott and Hilton).
  • Look for promotions like double points or point sales to stretch your balance.

4. How to Search for Award Availability

Award seats and hotel rooms can be limited, especially during peak times. Here’s how to find them:

• Use Platforms like Seats.aero:
  • Seats.aero searches award availability for multiple airlines. You can quickly find available flights across different programs without visiting each airline’s site.
  • Always check availability before transferring points—transfers are usually non-reversible.
• Be Flexible:
  • Having flexibility with travel dates helps. Award seats open closer to departure (14-30 days out) or far in advance (11-12 months out).

5. Paying Taxes

While miles cover the flight fare, you may still have to pay taxes and fees:

• Low Fees Programs:
  • Some airlines (e.g., United and Delta) charge low fees on award tickets.
  • Avoid British Airways for long-haul flights, as they charge high surcharges.
• Using Points for Taxes:
  • Some cards allow you to cover taxes with points (though this isn’t always the best value).

6. How to Get Good Value per Point

A key metric in the points world is value per point. To calculate:

• Value per point= (Cash price of flight/hotel – taxes) ÷ points used
  • Example: If a $1,000 flight costs 50,000 points + $50 in taxes, the value is:($1,000 – $50) ÷ 50,000 = 1.9 cents per point.

Aim for at least 1.5-2 cents per point with airline miles and 0.8-1 cent per point with hotel points.

Final Tips for Beginners

• Start Small: Focus on one or two transferable points programs (e.g., Chase or Amex) and one airline or hotel loyalty program.
• Avoid Expiring Points: Keep your accounts active by earning or redeeming a small amount of points occasionally.
• Don’t Hoard Points: Points can devalue over time—redeem them when you find good opportunities.

By mastering both earning and redeeming, you’ll be able to travel farther, stay in nicer hotels, and experience premium cabins—all for a fraction of the cash cost. Happy travels! 🚀