In the age of Instagram, a photo-op is worth a thousand rewards points.
More people are spending money on experiences rather than splurging on fine jewelry, watches or things of value. Experiences are the new currency, and many travelers are banking on trips of a lifetime and the travel rewards cards to help them get there.
"Points are valuable and people are traveling more," said Brian Kelly, an expert on using travel rewards points and the founder and CEO of the website The Points Guy.
"There is more low-cost flight to Europe right now and the U.S. dollar is really strong globally. Right now, people want to go to Bali rather than buy a watch," Kelly noted.
Travel Pulse sat down with the Kelly to get the latest information on how best to use travel rewards cards to save money on that next big trip.
Travel Pulse: For those new to using rewards credit cards, how do you start?
Brian Kelly: "Not every credit card is good for every person. You are going to have to do some research. Set a goal and choose card to get you there."
TP: How can people get a jumpstart on travel savings and get the most points?
BK: You have to get a credit card. Make sure you have a good score; a credit score of 700 or more is best. The higher the better.
Right now, there is insane competition. There are a huge amount of credit card offers. Citi just upped the game with its Citi Prestige card.
TP: What should people look for?
BK: Flexibility is the key. You want the most flexibility to use your points. The value comes when you transfer your points to rewards programs and use your points for first- and business-class tickets.
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TP: Is it going to be really hard to redeem points?
BK: If you redeem only in a single program, you aren't going to maximize your rewards. Using just one program is setting yourself up for failure.
If you want elite status for the perks, that makes sense but then don't get a credit card that puts all of your miles back into that same program. Diversify with your travel credit card. Get a card that gives you category bonuses on all airlines, hotels, rental cars, meals, entertainment and more.
TP: What's the best way to track and manage points?
BK: There are free sites such as TripIt and Points.com that people can use, but they aren't perfect. The airlines don't actually want people to use these sites, so there's no one perfect way to track your points. You are going to have to roll up your sleeves.
One thing to remember is that if you cancel a card, you will lose all of your points. Use them or transfer them out before closing any credit card.
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There's also no excuse for losing points due to inactivity. You can buy an item on an airline's rewards website using your points to keep your points active.
TP: How long should you accumulate points before you start traveling?
BK: With huge sign-up bonuses, you get the points when you reach the amount you are required to spend on the card. It's a really good time for travelers. One or two sign up bonuses and you are ready to go.
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