Travel Hacking -stop being perplexed by points and muddled by miles

 
airplane view from the terminal

My Travel Hacking Journey

Stretching my travel budget makes me giddy.

My relationship with travel rewards and the concept of travel hacking started early. Air Miles launched in Canada in 1992 and I jumped on board - slowly and sporadically building a bank of miles. In 2000, I flew round trip to Florida to visit my parents who were sailing from the Bahamas to New Brunswick. In 2004, I used points to accompany my husband on a work trip to Mexico City and in 2014 we gifted my eldest son a graduation flight to Europe.


I was hooked on the potential but still continued to earn points only sporadically. I felt torn with the thought that travel rewards were empty promises and I was getting sucked into a marketing machine.

In 2015, I realized that inaction, not paying attention to travel rewards, was akin to “leaving money on the table” and enabling rewards to influence my buying decisions rather than influencing my travel action. So I dove in head first by researching the travel rewards world. I became a little obsessed with both the strategy and the opportunity to make out-of-our budget trips a reality.

My husband and I took an online CreativeLive course called Make Your Dream Trip a Reality with Chris Guillebeau and Stephanie Zito. The course is still available, now a bit dated and with a lot of American content (US travel rewards are different and far more lucrative), but it was an amazing foundation of knowledge and a great kick in the backside to become a true travel hacker!  Within the year of taking the online course, we had a system in place that helped my family make the following adventures happen using travel rewards:

  • Booked for fall 2023: Italy - 2 flights and a handful of hotel stays

Travel for “free”

When I say free - let me clarify that you still pay the taxes out of pocket. Our most recent tickets include a flight into Barcelona and then home from Lisbon. These reward tickets required a grand total of $83 CAD per person. A whole lot better than the full retail price of $2230 per person. As a couple, that is a total savings of $4294! Yes, we spent money to earn points but it was money we were going to spend anyways. There is nothing sketchy or illegal about this even though the term “travel hacking” sounds shifty! It is simply strategically collecting travel awards, miles and points.

I’ll be the first to admit that even after seven years and multiple trips, the process of earning and using travel rewards can still be overwhelming and confusing. My bottom line, though, is to “earn them and burn them” wisely and often! I am certainly not an expert but am excited to share what I know (and what I don’t know) with you. The learning is ongoing and I look forward to learning from your experiences too.


I hope I can:

  • convince those who are unsure of the payoff that it is worth the time and effort, 

  • share something new to those who collect and use rewards to better maximize them, and

  • inspire and empower everyone to USE their travel rewards!

airplane in sky

While I’m a huge advocate of finding adventures locally and living everyday like it's a trip of a lifetime, I also endeavor to create a travel-infused life.

That means travelling and travel hacking is a significant strategy to make it all happen! 


TRAVEL HACKING 101: Need to know

Know your current reward balances

It is unlikely that you aren't already connected to a reward program, and, with some planning, be ready to participate in more! 

Make it a habit to look up your reward balances regularly. I love watching my rewards grow and I check in on them every couple of months by writing down the balances (old school style!). Tracking can feel like a game and will help keep earning rewards front and center in your mind. You don't want to suddenly remember that you have neglected to do anything with your reward cards for months - it’s a lost opportunity.  Online trackers include sites such as points.com but I like to track on paper. Use a special journal or printable rewards tracker. I find I’m much more engaged in the game when I track my balances manually. 

 
 

Have a travel goal! 

Where do you want to go? When?

Get clear on your travel goals, focus on an upcoming trip, and maximize your reward earning efforts. Start by identifying a specific destination to help narrow the reward program options. There is no point having a big balance of rewards in a program that doesn’t work for your destination or having a slew of small reward balances that can’t cover your primary costs. 

Don’t have a clear travel goal? You might need to do some initial work of identifying and clarifying the kinds of trips and experiences that would bring you joy. Read about ways to transform a bucket list to begin that process.

Travel reward program options.

Grow your reward balances two ways. Organically through a) free memberships and activity with loyalty programs and b) applying for specific credit cards that “feed” these balances with sign up bonuses and everyday card use. 

Loyalty programs

These are programs that are free to be a member. There are no credit cards required. Examples of loyalty programs include: 

  • Airline companies such as Air Canada, West Jet, American Airlines, Alaska ect..

  • Hotel chains or booking sites such as Marriott, Best Western, Booking.com ect..

  • Individual store, hotel, or gas station loyalty programs that can be transferred to other travel rewards programs. For example I collect Hudson Bay loyalty points that are set up to automatically convert to Airmiles. 

  • Group loyalty programs such Airmiles or More Rewards that represent a variety of merchants.

Credit cards

Credit cards are the fastest way to accumulate rewards. While this is an easy way to travel free faster, it is imperative that you are able to pay off your balance every month. If you aren’t able to, please be patient and focus on other ways to earn points - credit card debt will prevent you from travelling, not help you! Keep reading and I’ll address people’s #1 hesitation about making new credit card applications.


Credit cards are an effective and fast way to build your travel reward balances because card companies/banks offer enticing sign up bonuses along with rewards for ongoing use. Additionally, credit cards offer an opportunity to “double dip” by getting points with the credit card along with points from a loyalty program. Credit cards are also valuable to a travel hacker for other benefits they might offer. Some have extra perks like:

  • free checked bags,

  • priority boarding,

  • free access passes to airport lounges ,

  • some level of trip insurance,

  • Low or no foreign transaction fees on purchases in other countries

  • companion discounts (discounts for traveling together), or

  • upgrades or extra discounts at hotels.

flight board at an airport
 

TRAVEL HACKING 101:  Nice to know

Understand that there are differences in reward types

Points, miles, rewards…all branded differently is confusing. There are airline miles, hotel rewards, transferable credit card points. There are rewards for a specific company and some that are flexible and applied anywhere. What 1 “mile/point” means in one company is often very different from the next. On top of that, even in a single program, the value of the rewards can change depending on the reward. For example, as of April 2022, each AirMiles point is worth 17.2 cents when redeemed for air travel but only 12.3 cents for hotels. Maybe not a big issue if you really need a hotel stay but a difference nonetheless. 

It’s confusing enough that most people just don’t bother. I still argue that it is worth it for those who love to travel. The key is to create an informed yet SIMPLE approach.

Your credit score may actually improve.

Have you ever checked your credit rating?  I would suggest that you do. Many people worry that with multiple credit card applications, your credit score will take a hit. What I have learned and experienced is that this isn’t the case WHEN YOU PAY OFF YOUR BALANCES EVERY MONTH.

My understanding is that our credit score is composed of different factors: payment history (35%), credit utilization (30%), length of credit history (15%), new credit applications (10%), and credit types (10%). Applying for new cards (if you choose that route) will impact the 10% of your score based on new credit applications but it can also help you demonstrate a good payment history and credit utilization, which together contribute to 65% of your score.  Canadians can check their credit scores for free. I access mine through my online banking site for free. 

TRAVEL HACKING 101: Action to take now

scrabble tiles spelling go for it

The overall goal is to spend as little out of pocket money as possible and still reap maximum travel rewards. Leverage what you already spend in your daily life to build your reward balances.

Know your current reward programs  

Take a look at your current loyalty reward balances. What do you already have to work with and build on? You may decide your current program(s) are the right ones to help make your travel goal a reality, and you also may end up signing up with some new programs. But to begin wisely - know what you’ve already got!

Apply for a new credit card (if appropriate) to get a reward bonus for your chosen or primary program.

For example, for our latest trip we identified Air Canada (Aeroplan) as our primary travel reward program because we had a decent balance to begin with. I also know that Air Canada is part of a bigger alliance of 26 airlines that we can book with our rewards, giving us a variety of options to get us from Vancouver Island to Spain. We then reviewed credit cards available that could give us an Aeroplan bonus. There are a number of options but after reading about their benefits, fees, and eligibility as well as assessing the credit cards we already have - we went with an Aeroplan American Express. 

Reward bonuses vary. Read the rules! The American Express card required us to spend a certain amount each month over 6 months to earn the full bonus. We needed to make a plan to figure out how we could ensure that would happen. If you have a big purchase on your horizon, consider if all or part of it could be paid for with a credit card and especially a new card to ensure the bonus. In the past we have aligned our new cards with home renovation purchases, the down payment of a vehicle, car insurance, a new computer, a big Costco run! All of which we would be spending money on normally - the plan made sure it aligned with the new credit card requirements. My favourite sites to compare credit card options (for Canadians) is Greedyrates, CreditCardGenius, and Prince of Travel.  My reward tracker has a bonus page to keep track of your credit card research and info all in one place - check it out

Switch from cash/debit to credit for everything you can.

*With the previously stated caveat that you pay your entire balance off every month!  

Build your reward earning system by setting any and all recurring expenses to be paid by credit card. Include:

  • Utilities like cell phone, internet, cable, electricity, gas.

  • Other monthly bills like memberships. Mine include adobe, canva, dropbox, spotify

Everything from groceries to a coffee to a load at the landfill! I don’t think I’ve touched my debit card in a very long time. The pandemic helped most businesses (large and small) shift from cash to cards which makes it easier.

Shop through e-stores.

While I always prefer to first support local businesses with my credit card, some things need to be purchased online. I recommend and encourage the use of e-stores to earn points but I can’t say I’m good at this strategy myself.  I usually remember AFTER a purchase that I should have gone through an e-store portal. The ones that I try to use are:

If there is something you are buying online anyway  - it is just a simple extra step to visit the e-store portal first. 

 
online shopping

Travel Hacking

Earning through your regular purchases is half the story.

Burning those rewards as a travel hacker is another kettle of fish! 

The first step is to make a plan and start to earn. What comes next, when you reach your award target, is to make travel happen! Another story for a different article. Comment below or send me your questions on anything to do with travel hacking and I’ll do my best to find the answers! 



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Travel and Wellbeing: How Travelling Can Improve Your Mental Health