Points and miles are currencies. You earn them every time you travel or use a rewards credit card, and you can then redeem them for free travel.
Credit card, airline, and hotel businesses are all connected, and the entire goal of the “hobby” is to use those currencies to travel the world. In its most basic form, it is as follows:
Your travel goals are a crucial factor to consider when deciding what you want to get out of your points and miles hobby. Do you wish to travel to an exotic area many times a year, flying first class on miles and paying for your hotel with points? Do you want to use miles to fly to see friends and family (but don’t care if you sit in the economy or business class)? Or do you simply want to learn more about travel rewards?
The good news is that, regardless of your travel objectives, understanding the fundamentals of these currencies can help you achieve them. Using points and miles to travel the world can help you save a lot of money. And once you start into this passion, you find that all types of travel are affordable and accessible.
Setting specific trip objectives might also assist to focus your attention and investigation. If you want to visit Japan, you can concentrate on essential airlines and hotel programmes while disregarding everything else (for now). This can assist to avoid feelings of overload and the dilemma of choice.
Types of miles and points
Consider points and miles (travel rewards) to be a different form of currency. Trip incentives, like stocks, cryptocurrency, bonds, or foreign currencies, provide a means to pay for your travel experiences and invest in your travel ambitions without using cash.
Each travel incentive currency, like a country’s currency, has its own worth. Many points and miles are worth about a penny each, but values vary… When contemplating a certain deal or promotion, it’s critical to do the math to determine the approximate financial value. 100,000 points may seem like a lot, but it depends on the type of points.
Airline miles
Each airline has its own set of miles. United MileagePlus miles are an example of airline miles. To earn United miles, you must first create a United frequent flyer account. Then, if you fly with United (or any Star Alliance airline – more on alliances below), enter your MileagePlus number on the reservation to earn miles for the flight.
The amount of miles earned on a flight is determined by several factors, including the kind of seat selected, the distance travelled, and the cost of the ticket. The number of miles earned with a co-branded credit card is also determined by the type of purchase.
Hotel points
Hotel points function in the same way that airline miles do. Many hotel businesses, notably Marriott Bonvoy and Hilton Honors, have their own reward schemes.
Hotel points can be earned through paid hotel stays or by using the hotel chain’s co-branded credit card. The Marriott Bonvoy Boundless® Credit Card is one example of such a card. Each hotel chain’s credit card, like airline credit cards, incentivizes customers to use the card by awarding additional points for using the card in hotels. For example, the Marriott Bonvoy Boundless® Credit Card earns 17 total points for every dollar spent at nearly 7,000 partner hotels.
The best use of hotel points is usually to redeem them for an award night. To encourage members to use their loyalty points at the hotels, certain hotel chains provide free nights (e.g., with Marriott you can book four award nights and get the fifth night free). Hotel points are often transferable to flights, however, the transfer percentages are typically low.
