![]() Airline and hotel points are like currencies owned by companies, and those companies can value their currencies however they like by changing the cost of redemption. The most important reason to use points now is that they may have less buying power over the coming years, Mr. Customers earned about half as many points in 2020 as they did the previous year, and redeemed just 10 percent of their available points compared to 30 percent the previous year. According to a study by ValuePenguin and OnPoint Loyalty, the five largest airline loyalty programs - Delta Air Lines’ SkyMiles, American Airlines’ AAdvantage, United Airlines’ MileagePlus, Southwest Airlines’ Rapid Rewards and JetBlue’s TrueBlue - ended 2020 with $27.5 billion in liabilities, up $2.9 billion from 2019. Many travelers are sitting on larger than ever point balances, both because they haven’t been redeeming their points and because they’ve been adding to the pile over the last two years with credit card purchases tied to airline loyalty accounts. He is now also seeing some worry about flights near Eastern Europe because of the Russian invasion of Ukraine. Some travelers are “still uncomfortable with international travel,” while conditions remain in flux because of the pandemic, so using points to book a flight to a foreign country can offer more peace of mind, said Jamie Larounis, who writes about loyalty programs on his travel website, the Forward Cabin. This difference, between ending up with a credit or a refund, can loom large for expensive trips like a family vacation overseas. Refundable tickets can be purchased, but they are more expensive. Tickets bought for cash, in contrast, typically offer a credit for a future flight rather than a refund and may charge fees, so your money is tied up with the airline. That means if you need to cancel the trip, all your points and any associated fees will be returned without any penalties. More flexibilityįlights booked with points on the major U.S. Several factors make now the time to cash in points. ![]() “The demand is hitting the books in ways we’ve never seen before,” he said. United Airlines’ Mileage Plus program has had multiple record-breaking days over the past few weeks as customers have flocked to redeem miles, said Michael Covey, the managing director of the United program. Meredith, have amassed larger than usual totals in airline and credit card rewards programs. There were lots of seats,” she said.Īs travelers return to the skies, many, like Dr. Meredith, an internist, was excited to save money by using her rewards balance. Although the seats were pricey at 50,000 points each, Dr. That meant she had plenty to redeem when her family of four decided it was time for a winter getaway to Miami. ![]() used a branded American Airlines credit card for everything from groceries to medical expenses during the pandemic, piling up points with nowhere to spend them.
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