Since we started traveling full-time in January 2012, we have taken 298 flights, of which 204 have been purchased with miles (using these frequent flyer tips), saving us $47,630 to date (here’s our entire flight history, if you are interested). So…you are probably thinking, “Wait a minute. Are these guys flight attendants? Stowaways? Trust-fund kids?” None of the above.
We fly almost entirely for free (using frequent flyer miles to book our flights), and you can too. Award Travel is the implementation of clever strategies to acquire massive amounts of frequent flyer miles and hotel points, without having to spend a lot of money or take a bunch of flights. And, contrary to the name, there are no high-tech skills needed, just a bit of diligence, organization, and creativity.
One of the best ways to earn troves of miles is credit card bonuses, it doesn’t have any lasting effect on your credit score (despite my wife’s initial skepticism, our FICO score has actually gone up 60 points since we started collecting miles). Note:Â Award Travel isn’t a free lunch, but if you follow our frequent flyer tips, it will be your ticket to exploring the world (for free!).
Benefits of Award Travel
- Travel Catalyst: Having a large stash of miles will not only save you money on your travel (obviously!) but more importantly, it increases your chances of taking that next international trip because the cost of flights is no longer a barrier.
- VIP Perks: Having lots of miles can yield first-class upgrades, lounge access with complimentary meals wine/champagne/etc, hotel room upgrades, free breakfasts, and purchase reimbursements. (One of our travel credit cards refunds us $300 per year in travel expenses, along with free lounge access worldwide, free TSA Precheck, free Global Entry, and came with a sign-up bonus of 100k miles)
- Flexibility: While online ticket prices seem to fluctuate by the minute, mileage tickets are (usually) a fixed amount–no matter how close to your departure date. As long as you aren’t trying to fly at a peak time, you can often snag cheap mileage tickets a week or two in advance.
Before you Start
- Be Honest with Yourself: If you have a hard time paying your bills on time, and you aren’t particularly organized, then award travel might not be for you. However, if you’re determined to have more travel in your life and aren’t scared of a Google spreadsheet, your efforts will be rewarded with tropical destinations.
- Improve Your Credit Score: This is the single most important factor in award travel. Your score should be at least 600 to begin, and preferably over 650. Regardless of your score, it can always be higher…and along that same vein, no matter what your score there are cards that will help you get it higher (yes, having a card and paying it on time WILL help raise your score). Head to AnnualCreditReport.com and download all three of your credit reports for free. Repair any derogatory marks, close any dormant accounts, set all your credit cards on auto-pay for the entire balance, and follow the advice on Sallie Mae.
- Sign up for Reward Accounts: Joining frequent flyer and hotel reward programs gives you instant benefits such as discounts, point-earning opportunities, VIP perks, and access to larger networks of travel companies. We’d recommend signing up with these top players today: American Airlines, Delta, Southwest (hands down the best rewards program in the world), United, British Airways, Hilton, Marriot, and IHG. Every time you book a hotel or flight, ask if that company is part of one of these programs, to accumulate points whenever possible.
- Southwest Rapid Rewards: Our hands-down favorite US domestic airline. The cheapest award flights of any carrier, The Companion Pass, two free checked bags, same-day standby, and NO-FEE changes/cancellations up until 10 minutes before departure make Southwest #1
- United MileagePlus Program: United is our favorite international carrier, as their reward fares for regional flights are reasonable, and they have a plethora of partners within Star Alliance
- American Advantage: As one of the largest and most popular frequent flyer programs in the world, and as part of the Oneworld alliance, American partners with several different airlines to transport passengers to over 1,000 destinations all over the planet
- Delta Sky Miles: Points are not worth as much as the others, as rewards are “expensive”. Only consider earning Delta miles if you live in a city with a lot of Delta flights in/out, such as Atlanta, Cincinnati, Detroit, Memphis, Minneapolis, and Salt Lake City.
- British Airways Executive Club (Avios): These points are very good for short-haul flights, as their rewards tiers are based on miles flown, and often cheaper than the other carriers. Be very careful when booking reward flights (or collecting BA/Avios miles), because BA charges exorbitant fuel surcharges.
The Basics
- Points vs. Miles: Think of a mile and a point as the same thing (we’ll be using the terms interchangeably in our newsletter). You earn miles by flying, making purchases on your credit card, and a variety of other ways we will discuss. Typically, for every dollar you spend or mile you fly, you will earn one point (although there are ways to earn multiple points per dollar spent). The “value” of a point or mile depends on many factors, but a fairly common/conservative estimation is around $.02 per point. Point values needed for flights and hotels change dramatically based on demand. (You can find round trip flights in the lower 48 states for around 25,000 points (or 8,000 points on Southwest), with flights to Europe usually around 40,000 RT). Always do the math to decide whether it’s better to use points or cash; you’ll want to have those points handy if airfares ever skyrocket.
- Types of Credit Cards: Airline Cards (i.e. the Southwest Priority Card from Chase, currently offering a 80,000-mile sign-up bonus on the Performance Business Card) vs. Hotel Cards (i.e. Starwood Amex) vs. Flexible Point Cards (i.e. Chase Sapphire Preferred or Amex Platinum). When choosing a card, there are many factors in play (your travel style, monthly credit card spend, home airline, etc), but a general rule of thumb is that flexible points are the best because you can choose whether you want to transfer them to an airline for a flight or hotel, or book the flight through the cards portal. Airline Cards are a close second because the sign-up bonuses are usually larger, and they come with perks like free checked bags, seat upgrades, early boarding, companion tickets, etc. Hotel Cards are a distant third, mainly because their reward levels are quite expensive when compared to a flight for an equal number of points, and are usually enjoyed by people who frequent the same hotel chain, and require luxury hotels when they travel. (For Example: You can purchase a flight from New York City to Indonesia for the exact same number of points as just one night in a category 5 room at the Hilton Bali (and you can get a room in Bali for $30/night)…Which would you choose?)
How to Earn Miles (without taking a flight)
- Credit Card Bonuses: Signing up for credit cards is the most efficient way to quickly get lots of points (that’s why having a solid credit score is so important). A good airline and hotel card will offer consumers anywhere from 50,000-150,000 points as a sign-up bonus. To get these points, you typically have to hit a minimum spend in the first few months (could be a $1 spend, could be $3,000.) But don’t worry, if you put every purchase on your new card, including all your recurring purchases, you will be surprised how quickly you will hit the minimum spend.
- Airline Shopping Portals: Nearly every airline has a shopping portal on their website, where they will reward you handsomely for simply clicking through to your favorite merchants you are already shopping at. Just bookmark your favorite airlines’ portals in your web browser and cross-reference these portals before you make any large purchases.
- Manufactured Spending: All people using these frequent flyer tips know that you should use your credit card for every single purchase you make (yes, even that $1 pack of gum); however, there are ways to “manufacture” spending, without actually buying more stuff you don’t need. Examples: Give a micro-finance loan to those in need through Kiva.org (they have a 99%+ repayment rate on their loans, and you will be helping others while helping yourself hit minimum spend); Purchase Gift Cards with your Credit Cards then withdraw the money to your bank (Only for the most advanced Award Travelers, but you will hear a lot of blogs talk about it); Pay family members bills, or large purchases, using your credit card and have them Venmo you back…and countless other creative methods to increase your mileage earning.
Earning the Southwest Companion Pass
- We love Southwest airlines SO freaking much, and we think they are HANDS DOWN the best frequent flier program in the world…we made them their own blog post. So if you are looking to learn how to earn the Southwest Companion pass check it out here!
Staying Organized with these Frequent Flyer Tips
- Track Your Applications: Use Google Sheets or Excel to track your credit card applications. The sheet should include columns for the application date, date to hit the minimum spend, points you will earn, if can you add an extra card holder (for extra points), benefits of the card, a screen-shot of the offer you are applied for (very important!), and the offer code where applicable.
- Award Wallet: Sign up for an Award Wallet Pro account and enter every one of your rewards accounts. This online service will track your account balances so you can see them all in one place, give tips on how to earn more miles, and most importantly, they will alert you if any of your rewards are about to expire. A few airlines have stopped allowing AwardWallet to track your balance, but there is an easy way around this, read more here.
- Mint.com: This free online tool is the best way to keep track of your bank accounts and credit card charges. Enter all your credit cards and bank accounts and it will keep an eye on all your purchases. Yes, that sounds scary, but Mint.com is easily one of the most secure and valuable tools when trying to keep your credit score high, reduce any pesky fees or interest charges, and make sure that nothing fraudulent is getting charged to your accounts.
- Mind Your Deadlines: Before you reach the minimum spend deadline call your credit card company and confirm everything is on track to earn your points.
Award Travel is an incredible way to explore the world with very little cash outlay, though as we explained, it’s not without its own hurdles and learning curves. Don’t get dismayed if you aren’t earning a million miles in the first month. Take it slow and steady, learn from those who have laid a path before you, and you will be relaxing on that remote beach before you know it.
Award Travel 101 Resources
Return to the main Award Travel page for more tips on lodging, flights, and immersive travel experiences.