4 Award Travel Redemption Mistakes I’ve Made so You Don’t Have To

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These mistakes could cost you money and stress you out. 

Travel credit cards allow travelers to earn rewards when they use their cards to make travel purchases. While the process of earning rewards is simple, it can take time and research to find the best redemption options. You can make costly award travel redemption mistakes if you’re not careful. Here are four of the award travel redemption mistakes I’ve made over the years so you can learn from them and make better choices.

1. The easiest redemption option isn’t always the best move

Many travel rewards credit cards offer flexible redemption options. You may be able to book travel reservations through a portal, transfer your points or miles to a transfer partner and book directly with an airline or hotel, or cash in your rewards for a statement credit.

The last option is usually the most stress-free solution. But that doesn’t mean it’s the best move to make — this convenient option may not offer the best value. By exploring other redemption choices, you may be able to stretch your points or miles further for better use of your rewards.

Here’s an example: Let’s imagine you have 100,000 points, and they’re worth $1,000 if you redeem them as a statement credit. Sounds great, right? After researching further, you realize you can book a round-trip business class ticket to Paris for 95,000 points and around $400 in taxes and fees instead of a retail cost of more than $3,000. You might decide to go to France instead.

2. Check availability before transferring points or miles

Before redeeming your credit card points or miles, make sure that you check availability. This is especially important if you want to transfer your rewards to a travel transfer partner. If you transfer your points to a hotel or airline loyalty program without first checking availability, you may be put in a difficult situation if you stumble upon roadblocks in the booking process.

There may be no availability, or you may be surprised to learn that you need more points or miles than you realized. Once transferred, you won’t be able to move your points or miles back to your credit card issuer. You can avoid disappointment by verifying availability first.

3. Review the taxes and fees before booking

Another tip worth remembering is to review taxes and fees. When redeeming award travel flights, keep in mind that the airline charges taxes and fees. So, while your flight may cost $0 thanks to points and miles, you’ll owe additional taxes and fees during the checkout process.

For flights that originate in the United States, these fees begin at $5.60. However, some international award bookings charge more expensive fees. Make sure you research these fees before redeeming your points or miles. The last thing you want to do is score a free flight only to find out that you owe hundreds in additional fees.

4. Don’t hoard points and miles

Once you begin using rewards credit cards, it can turn into a fun game. But don’t get so caught up in the excitement of collecting points that you forget to redeem them. Airline and hotel loyalty programs can change, and your points and miles may lose value over time. Hoarding your rewards can end up costing you money. Once you earn them, outline a redemption plan and put them to use instead of letting them collect dust in your account.

When first learning how to maximize travel rewards, it can be easy to make mistakes. But you can set yourself up for success by doing plenty of research before booking award travel. If you’re looking for a new credit card, check out our list of the best travel rewards credit cards.

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