What Are Travel Points? A Beginner’s Guide to Saving on Travel
Travel points can feel like a mystery, but they’re simply a way to save on travel costs. This guide explains what travel points are, how to earn them, and how to use them effectively. If you’re new to rewards or want to make travel more affordable, this will help you get started. For more on rewards, see our Cash Back vs. Travel Points guide.
What Are Travel Points?
Travel points are rewards you earn and redeem for travel-related costs, such as flights, hotel stays, or car rentals. They’re a type of currency offered by airlines, hotels, or credit card companies when you spend with them. You collect points instead of cash, which can be used for travel discounts or free services.
For example:
- Spend $500 on a credit card, earn 1,000 points.
- Those 1,000 points might be worth $10, $15, or more off a flight or a free hotel night.
- Point value varies by program, similar to how coupons work only at specific stores.
Points are valuable within the rules of their program, so treat them like money when planning travel. In the right situations, they can actually save you more money than paying with cash.
How Do You Earn Travel Points?
You can earn travel points through several simple methods. Here’s how:
Credit Cards
- Earn points for every dollar spent (e.g., 2 points per $1).
- Some cards are tied to specific airlines or hotels; others offer flexible travel points.
- Compare options in our travel vs. cash back card guide.
Booking Flights or Hotels
- Join airline or hotel loyalty programs to earn points or miles.
- For example: Fly with an airline to earn miles or stay at a hotel to earn points for a free night.
Shopping or Dining
- Many airline and bank loyalty programs allow you to earn points at partnered stores or restaurants.
- Everyday purchases like groceries or meals can earn points.
- Learn more in our guide to earning extra travel points.
Sign-Up Bonuses
- Many credit cards offer bonus points when you sign up or meet a spending goal.
- This can be a great way to boost your points, but only if it fits your life.
- For example: Spend $3,000 in 3 months to earn 50,000 bonus points.
How Do You Use Travel Points?
Once you’ve earned points, you can redeem them to save on travel. Here are the main ways:
Booking Flights
- Use points through an airline or credit card travel portal to cover flight costs.
- Utilize free tools like Point.Me or PointsYeah.com to find award flights easily.
- For example: 25,000 points might cover a round-trip U.S. flight, with small cash fees for taxes.
Hotel Stays
- Redeem points for free nights through hotel loyalty programs or travel portals.
- For example: 10,000 points could cover a standard hotel night; more points may unlock a premium stay.
- We love the Hyatt program because of its value, but it all depends on your preferences.
Transferring Points
- Transfer points to airline or hotel partners for potentially better value.
Other Travel Benefits
- Use points for:
- Car rentals.
- Upgrades, like a better plane seat.
- Experiences, like tours or spa services.
5 Tips for Beginners to Use Travel Points Effectively
Start with a Free Program: Sign up for a loyalty program — like Delta SkyMiles for airlines or IHG One Rewards for hotels — to get familiar with how points and rewards work.
Focus on One Program First: Build points and learn the system before adding more programs to avoid confusion.
Check Point Value: Point values vary by program (Delta, IHG, Chase) and how you use them (flights, hotels, cash back). A good point is usually worth 1¢ or more — some can be 2¢+ with smart redemptions.
Consider Fees: Some cards have annual fees, so ensure the rewards justify the cost.
Use the Kiwii Extension: Download our Kiwii Extension to track point values and compare programs easily.
Why Travel Points Are Worth It
Travel points help make trips more affordable, whether for vacations or business travel. By earning and using points wisely, you can reduce costs and plan more trips without overspending.
Earn. Stack. Repeat.
Add Kiwii to your browser
