Loyalty Programs – Maximize Your Travel Ability

For those of you who want to travel frequently, being loyal to a specific airline, hotel chain, rental care company, or the like can be extremely beneficial. Loyalty programs can result in amazing travel opportunities, from the ability to fly first class to staying in luxury hotels for next to (or absolutely) nothing!

*Updated – May 2024*

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How Do These Loyalty Programs Work?

Loyalty programs work the same as you might expect. You build up points with a program and use those points to redeem awards. There are some caveats to knowing about different points or point programs. Let’s take a look.

Airline Points & Programs

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General Points/Miles

Each airline will be slightly different, but essentially, they all work similarly in accruing points.

You will accrue points based on what you’ve paid (usually depending on how you pay) and the distance you fly. You can use these miles to book reward tickets. Once upon a time, these fares were based on regions, but now they are decided by the airlines and have a much greater range of tickets. Part of this fare change is likely because of the addition of extra classes, e.g., basic economy, premium economy, etc. This has changed loyalty programs.

The next question is – should you join a loyalty program?

Should you join a loyalty program?

One question we get asked a lot is: Is it worth it to join an airline loyalty program?

Now that miles don’t expire in most airlines, generally, yes. If you have a preferred airline, or, for example, an airline that your employer puts you in for flights most often.

Being a member of airline loyalty programs may also open additional options for award tickets. Thanks to all the different partnerships airlines have, you can earn miles through online shopping, coffee orders, rideshares, and much more. For example, Delta miles through Lyft ride or United miles when you buy through their MileagePlus Mall. Check out your airline of choice’s “Earn Miles” page for partners through which you can earn miles.

Let’s take a look at a few examples. A flight from Los Angeles to New York for mid-January (low peak, non-holiday):

Delta: These miles flights range from 17,000 miles up to 30,500 for a basic economy ticket.

United: These rewards flights range from 19,000 up to 45,000 for an economy ticket.

Southwest: These reward flights range from 22,000 to around 35,000 points.

As one can see, the value of points needed can vary wildly within a single flight. The more flexible you are in schedule and fare class, the more options you’ll have.

By sticking with one airline or, better yet, one program such as Star Alliance or Skyteam, you’ll accrue more miles to book more exciting reward travel.

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Airline Loyalty Programs

Airlines have recently revamped their loyalty programs in how you earn status. It’s been across the board with the big three US-based airlines (American, Delta, & United), but many of the smaller airlines have followed suit to some extent.

Miles

Miles, as a prerequisite for airline status, have, at least in the US, slowly been disappearing. Both Delta and United have removed miles as a qualification needed for status. American Airlines, however, still incorporates miles into its program through what it calls ‘Loyalty Points’, (see below). At American Airlines, you need a certain amount of ‘Loyalty Points’ to reach different statuses; for example, you’ll need 40,000 Loyalty Points to reach Gold status. Unlike Delta, and more so than United, they do include Basic Economy tickets as part of their loyalty program.

Qualifying Dollars/Points

Shifting from pure dollars, many airlines have transitioned to qualifying dollars or points. Essentially, this boils down to money spent with the airline, such as tickets, seat upgrades, and more. With United, you can now earn Premier Qualifying Points even from award travel (which is new). Delta calls theirs “dollars” and this is money spent with the airline or via one of their branded credit cards (all the major airlines will have branded credit cards and will generally be beneficial in helping you reach status with that particular airline). American will count this money spent as part of their Loyalty Points.

Delta seems to be the stingiest about what qualifies for its overall program, but unlike United, it’s simplified it to just earning Medallion Qualifying Dollars, though you’ll need quite a few. On the other hand, United still requires specific flights (or can) depending on your preferences.

Southwest offers a very broad menu for collecting points for its Rapid Rewards program, including flights, rental cars, shopping, and dining.

Qualifying Flights

United still requires at least four qualifying flights to reach status with their program. You can forgo this by earning even more qualifying points, but if you don’t have the money to do that, then flights are it. Both Delta and American have eliminated the requirement of specific flights to simplify their programs.

Final Thoughts on Airline Loyalty Programs

These programs change frequently and will always benefit the airline over the member. Check-in with them frequently to see what the requirements are or if your credit cards work on your behalf.

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Hotel Loyalty Programs

Hotels, like airlines, operate loyalty programs with two factors: points or nights and status. Unlike airlines, increasing your status with a hotel is generally easier as you spend more time in a hotel than on a plane. Let’s look at a few examples of hotel points and statuses.

Hotel Nights & Points

Like an airline, hotels and hotel chains have points or nights, and you can earn money with them and stay in their hotels. Unlike airlines, however, with these programs, you only need to hit one figure: nights stayed OR points. Once you hit a specific number of nights stayed within a chain (and have enough points), you increase your status within their loyalty programs. Marriott Bonvoy, for example, requires you simply spend a minimum of nights at their chains to increase your status. Hyatt allows members to accrue points to increase status or requires a minimum number of nights. Compared to Marriott, however, their night requirement is fewer points.

Comparing the Major Chains

Most loyalty programs offer a 1:1 ratio when it comes to earning nights stayed. You stay one night, and you earn one night. One essential item to note is that occasionally, a chain might not offer this 1:1 nightly reward. This can depend on which brand or hotel chain within the loyalty program you choose. Let’s take a look at the nights needed for different tiers for the big three programs (Marriott, IHG, Hyatt, & Hilton).

MARRIOTT	Nights (& Points)
Member	None needed (basic introduction tier)
Silver	10 (no points required)
Gold	25 (no points required)
Platinum	50 (no points required)
Titanium*	75 (no points required)
IHG	Nights (& Points)
Member	None needed (introductory tier)
Silver Elite	10 Nights
Gold Elite	20 Nights or 40,000 Points
Platinum Elite	40 Nights or 60,000 Points
Diamond Elite	70 Nights or 120,000 Points
HYATT	Nights (& Points)
Member	None needed (basic introduction tier)
Discoverist	10 Nights OR 25,000 Points
Explorist	30 Nights or 50,000 Points
Globalist	60 Nights or 100,000 Points
Lifetime Globalist	1,000,000 Lifetime Base Points
HILTON	Nights (& Points)
Member	0-6 Nights
Silver	7+ Nights
Gold	28+ Nights
Diamond	42+ Nights

Choosing A Program

We encourage you to review which hotels or chains you might be interested in, which are available in the areas you travel to, and/or which have perks that best suit your needs. Some hotels/brands can also be a bit more expensive. All the different chains can range from more affordable to more expensive, so we recommend looking at the chains with more brands under their name. Overall, sticking with a hotel chain is a personal choice. Allegiance can change based on how your stay and location. It can also change based on the credit cards you use.

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Credit Cards, Points, & Loyalty Programs

Having gone over how the basic points systems work, one of the most efficient ways to earn points is to use travel credit cards. We only recommend getting a credit card if you don’t have other debt and are prepared to pay off your credit cards in full each month. That aside, travel credit cards allow you to really ramp up your points. With these, you can reap the rewards of free travel, be it hotels, flights, rental cars, or vacations.

How do these cards work?

Well, they work like credit cards but have a few perks (and often cons) that other cards might not have. These cards can also be specific to certain programs (e.g., Citi Bank American Airlines AAdvantage MileUp Mastercard).

Some allow you to earn points to share with various loyalty programs (e.g., the Chase Sapphire cards), and some allow you to earn points only to use within their system (American Express Platinum card). Many of these cards also come with other pros. Let’s start by looking at the great rewards and pros that can come from travel cards.

Travel Credit Card Pros

Credit cards, in general, offer some great benefits over debit cards as well! Benefits include fighting for you in fraud cases or disputed charges or offering no foreign transaction fees. Virtually every travel credit card will also offer you a smattering of bonuses. Usually, in return for spending a certain amount in the first [however many] months (each card is different).

For example, the Chase Sapphire Reserved card offers 60,000 points if you spend $4,000 in the first three months. Please remember that you should be able to pay off what you spend. Right from the get-go, you can accrue enough points for a night or two (possibly more) at a hotel, a flight somewhere, or to help with a rental car.

Airline Specific Cards

If your travel card is tied to a specific airline (e.g., United or American), you’ll usually get perks when you book with that airline when you use your card. Let’s look at Chase’s Explorer Mileage Plus card.

When you book on United (note that for these perks to go into effect, you need to book via the airline directly) with the Mileage Plus card, you get the following benefits:

• First checked bag free for you and a traveling companion (check out our packing guidelines)
• Priority boarding
• Premier Upgrades on award tickets

You’ll get these perks upon booking an individual ticket with United. Along with these, you’ll also get two United Club passes a year, which are great for those long layover days.

While we have spoken exclusively about airline travel, these ideas hold for hotel cards. Let’s take a look at the Hilton Honors Surpass Card. By signing up for this card, you automatically qualify for ‘Gold Status.’ You can earn a signing bonus of 130,000 points, one free night a year, ten trips to their hotel lounges (yes, hotels have lounges), and 12 points earned when booking hotels via Hilton.

Remember that credit cards, while useful, can also be a quick way into debt. Also, remember that many of these cards have frequently changing offers. Their signing bonuses may go up or down, as might some of their other non-point perks.

Non-point rewards – i.e., credits

Many of these cards also offer other perks, many of which are unrelated to accruing points. The better travel credit cards, nearly all offer a credit for Global Entry/TSA-Pre and/or Clear. Covering the fees for TSA Pre, Global Entry, or Clear is also common and extremely useful if you’re a frequent traveler either domestically (TSA Pre) or internationally (Global Entry).

Aside from airline-specific perks and miles, travel cards can offer much more. Many cards offer hotel or flight vouchers worth up to varying values ($200 is fairly common).

Other non-point-related bonuses might include a subscription service like Netflix or Hulu. Many offer access to different airport lounges, usually via Priority Pass. Many have their own lounges, but these are less frequently available (e.g., Centurion Lounges via Amex).

Finally, travel credit cards might include subscriptions to services like a gym and grocery stores, discounts on services like Lyft or Uber, and more. Your travel card can easily

Travel Reward Cards Cons

Generally, the positives of a travel rewards card outweigh the negatives. And like any other credit card, the negatives are pretty self-explanatory. Running up a high debt is never a good thing. Remember only to spend money you can immediately pay off (emergencies notwithstanding).

Some of the best travel rewards cards also have very high annual fees. The Chase Sapphire Reserve is $550 a year. The American Express Platinum is $695, and the Capital One Venture X is $395. These are high, though they can be negated in the cards’ perks.

Also, be mindful of your interest rates, depending on various factors such as your credit score. Another negative can be the card type, for example, American Express. American Express has some wonderful travel cards, but a frequent international traveler must remember that many countries do not accept American Express.

The last and perhaps most controversial con is that you need to spend money to access the main perks of any rewards card. We do NOT advocate for spending you do not have. If you want to grab a reward card signing bonus, save up before applying. Then, when the time arrives, you can snatch that signing bonus and pay off your card in one fell swoop.

Credit Cards We Love & Use

Capital One Venture X

• Priority Pass Membership plus access to Capital One Lounges
• $100 every 5 years Global Entry or TSA-Pre
• $300 annual travel credit
• 10x Points earned on hotels and rentals cars booked through Capital One
• 5x Points earned on flights booked via Capital One
• 2x Points on all other purchases
• Transfer points to many airlines and hotels (note: none are US-based airlines or hotels, e.g., Emirates, AirFrance, Accor Hotels, etc.)
• Rental car status with Hertz & rental car coverage
• Annual gift of 10,000 points

Apply for the Capital One Venture X here.

American Express Platinum

• Annual Allowance for a Clear Membership & $100 every 5 years Global Entry or TSA-Pre
• Equinox+ App ($300 value)
• Walmart+ Subscription ($13 value)
• Gold Status with Hilton Honors & Marriott Bonvoy
• A $200 Hotel Credit (which also gets you $100 off at the hotel for things like food)
• Priority Pass Membership and access to Amex Centurion Lounges ($50 for each additional guest unless you spend $75K)
• $200 Airline Credit with major US Airlines
• Rental Car status & coverage
• $20 monthly entertainment (e.g., Netflix, NY Times, etc.)
• $20 per month for Uber & UberEats in the US
• Earn 5x points on flights booked via Amex or directly with airlines and 5x on hotels booked through Amex.
• Transfer Amex points to a large number of airlines and hotels, such as Marriott, Hilton, Delta, United, and more

Apply for the Amex Platinum here.

Chase Sapphire Preferred

• 5x Points on travel purchased through Chase
• 2x for travel purchases outside of Chase
• 3x points for dining, food delivery, and eating out
• 3x points for online groceries
• 3x points on some streaming services
• Ability to transfer to a lot of great hotel and airline programs

Apply for the Chase Sapphire Preferred here.

Marriott Bonvoy (from Chase)

• 6x Points on stays with Marriott
• 10x Points from Marriott for stays
• 3x Points on gas, groceries, and dining (only on the first $6,000)
• 2x Points on all other purchases
• One Free Night Award (worth 35,000 points)
• 15 Elite Credit Nights
• Automatic Marriott Bonvoy Silver status (25 needed for Gold)

Apply for the Marriott Bonvoy Boundless here.

Conclusion on Credit Card Loyalty Programs

Travel cards are a fantastic way to build up points for future travel. You can earn perks and bonuses and, in the case of most hotel cards, qualify for automatic minimum status. Nerdwallet or the thePointsGuy are two great sites to help you review travel reward cards. To quote Uncle Ben from Spider-Man, “with great power, comes great responsibility”. These travel rewards cards can be wonderful, help you secure free stays and travel, and boost status, but they can also, without careful attention, pull a person into debt trying to achieve those perks. As such, we recommend researching cards, finding one that fits your needs, and spending wisely!

Final Thoughts on Loyalty Programs

Whether you choose to engage with loyalty programs is entirely up to you. For frequent travelers, travel credit cards are the easiest way to build status and points. Hotels offer another slightly less complicated method, while airlines are the most challenging. Many travelers do not travel frequently enough to qualify for basic airline loyalty programs. That said, make sure you sign up for these programs! You may not hit status milestones, but you can still accrue points, resulting in big savings!

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