This text is part of the special Pleasures notebook
With the cost of plane tickets that we know today and the cost of hotel nights becoming more and more expensive, it is not surprising that travelers are desperate to find ways to save. And banks, airlines and hotel chains are increasing their offers to retain globetrotters. Overview of travel points cards.
The Canadian reference in terms of travel points is Milesopedia, a company founded almost ten years ago by Jean-Maximilien Voisine. “It’s like the value of the dollar, there is a devaluation. So, we cannot compare a point from 2010 versus a point from today. We do not treat these rewards programs like RRSPs. You have to use your points regularly since they are only used for one thing: to devalue,” specifies the founding president.
He suggests a three-step approach: set a goal, choose the program that is most beneficial and, finally, find the credit card that best suits that goal. Before succumbing to an offer of 100,000 points, five times the points and other advantages, you have to do several calculations to find what is most interesting. Fortunately, Milesopedia has developed a credit card comparator which offer travel points and cash back to help consumers determine which credit card would make the most sense.
Before travel and at the airport
More and more credit cards are offering a discount on the Nexus card, which will allow you to pass through American customs much more quickly, on the way out and back, by plane or by car. But don’t get carried away with this gift: the Nexus card costs US$120 and is valid for five years.
Before the flight, the longer step is often that of going through security, and Visa saw this as an opportunity by allowing holders of its Infinite Privilege card to go through priority. This is particularly the case at the Montreal-Trudeau airport and in Toronto, but it is not necessarily the case elsewhere. And this privilege comes at a price: the annual fees for Infinite Privilege are more than $300 per year, according to financial institutions.
Most travel credit cards provide airport lounge access. But by calculating the annual fees of a credit card ($120, for example) that offer this type more and the number of visits you plan to make in a year, it is sometimes more interesting to pay the fees of usage access ($40 per person).
Holders of certain Mastercards, including World and World Elite, receive discounts at several airports around the world for discounted exclusive lounge access and food offers with their association with the Dragon Pass program.
During the trip
“There are the points, but there are also all the other benefits. For example, some cards, very few, do not charge a conversion fee. 2.5% is saved on each currency transaction. It can represent a lot of money,” explains Mr. Voisine.
Other popular benefits include those related to travel insurance and car rental insurance. Some cards also offer an extended warranty on purchases made with the card and even a replacement cell phone or other electronic device in the event of breakage, loss or theft during travel. Unfortunately, as each financial institution presents its difficult-to-quantify advantages in its own way, it can be tedious to carry out a real comparison exercise.
Nights and rewards
In addition to their credit cards, Hilton Honors, Marriott Bonvoy or Wyndham, three of the hotel giants, encourage their customers to sign up for loyalty programs. In all three cases, registration is free and points are accumulated directly in the application, one night at a time. There are no fees to join the programs, but the real benefits are reserved for those who already travel extensively. Occasional travelers will find what they’re looking for: free Wi-Fi access or faster speeds, express check-in, room occupancy a little earlier, late check-out and other little gifts.
Bargain hunting
To get maximum points, some people take advantage of welcome offers the first year, then cancel the credit card, and reapply for another, more advantageous one. This practice, which can be profitable in travel points, can however have an effect on your credit rating. “It fluctuates depending on the information and accounts on your credit file as well as the use of rotating credit (sum of balances and limits on rotating products, for example). The effect of this practice will be different for each consumer depending on previous entries in their credit file,” specifies Jean-Benoît Turcotti, spokesperson for Desjardins Group. Before making it its modus operandi, he recommends turning to the credit rating agencies Equifax and TansUnion to measure the real effects of this multiplication of account openings and closures.
Aeroplan and Air miles?
These two programs are in a class of their own and allow you to accumulate points without necessarily being associated with a credit card. They are advantageous when shopping at associated retailers and, with a little digging, you can even go to Amazon or the Apple site through your Aeroplan or Air miles account and take advantage of special offers. Moreover, the Aeroplan program ranked second in the list of best airline loyalty programs published by Point.me, an online booking and support platform to maximize the value of your points.
So, in summary, how can you travel cheaply? Remember that everything starts from a goal that we set for ourselves. It is better to concentrate your efforts: an airline, a gas station, a hotel group and a financial institution. But for that, you have to put in the time. And we know that time…is also money.
This content was produced by the Special Publications team at Dutyrelating to marketing. The writing of the Duty did not take part.
