Unlock Travel Savings: How to Maximize Credit Card Reward Points

For frequent travellers, credit card reward points can be worth far more than the cashback or vouchers they are often redeemed for. With the right strategy, points earned from everyday spending can help pay for flights and hotel stays, substantially reducing travel costs. There are two very different ways to use credit card rewards for travel, and understanding this difference can significantly improve the value you receive.

The first and simplest approach is to use points to book flights or hotel stays directly through a bank’s travel portal. Most premium credit cards in India now offer this option. For instance, HDFC Bank Infinia and Diners Club Black cardholders (among others) can redeem Reward Points on HDFC Bank’s SmartBuy microsite to book flights and hotels for Rs.1 per point value, while Axis Bank cardholders can use EDGE Rewards through the bank’s travel platform, TravelEDGE, for Rs.0.20 per point. In such cases, points are effectively used as currency, with a fixed value assigned to each point.

Suppose a Delhi-Mumbai ticket costs Rs.6,000. If your points are valued at 50 paise each, you would need 12,000 points to cover the entire fare. The process is straightforward and resembles paying with cash. The biggest advantage is simplicity. There are no concerns about seat availability, blackout dates, or understanding airline loyalty programs. The ticket booked is generally treated as a regular paid ticket, allowing travellers to earn airline miles and status credits on the journey.

The second approach is often more rewarding, but requires a little effort. Instead of redeeming the points directly, cardholders can transfer these to airline frequent flyer programs or hotel loyalty programs and use the miles or points for award bookings. For example, American Express Membership Rewards points can be transferred to programs such as Singapore Airlines KrisFlyer, British Airways Executive Club, Marriott Bonvoy and Hilton Honors. Similarly, Axis Bank Atlas Miles can be transferred to partners, including Air France-KLM Flying Blue and Qatar Airways Privilege Club.

The value difference can be dramatic. Consider a business-class ticket between Delhi and Singapore. A cash ticket may cost Rs.70,000 or more. However, the same seat might be available through Singapore Airlines KrisFlyer for 43,000-52,000 miles, plus taxes. If those miles originated from a credit card transfer, the effective value per point can be significantly higher than the fixed-value redemption available through a travel portal.

The same principle applies to hotels. A room at a luxury property such as the W Maldives, which may cost over $850 per night during peak season, could be booked for around 60,000-80,000 Marriott Bonvoy points (per night). Likewise, Accor Live Limitless points transferred from participating bank programs can be used to offset hotel bills across brands, such as Novotel, Pullman and Fairmont, at the approximate value of Rs.2 per point.

That said, transfer-based redemptions are not always the best choice. Economy-class tickets on domestic routes often offer poor value when booked using airline miles. For example, a Mumbai-Bengaluru ticket costing Rs.3,500 may be better off paid in cash rather than with transferred miles. In such cases, using points directly through a bank’s travel portal may make more sense.

Travellers should also remember that loyalty program transfers are generally irreversible. Before moving points to an airline or a hotel program, it is advisable to confirm award availability and understand the redemption rules. Airline miles can also expire or lose value over time if loyalty programs change their award charts. Besides, there are taxes and fuel surcharges, which could be expensive.

As a rule of thumb, those who travel occasionally and prefer convenience may find direct travel bookings via their bank’s platform the better option. However, frequent travellers willing to learn about loyalty programs can unlock a significantly higher value by transferring points to airline and hotel partners.

The key is to view credit card points not merely as rewards, but as a travel currency. Used strategically, they can turn everyday spending into free flights, hotel stays and even premium-cabin experiences that would otherwise cost tens of thousands of rupees.