If you’ve built up a stash of airline points or miles, now is the time to use them for your next vacation.
Global jet fuel prices have more than doubled since the Iran war began, rising to almost $200 per barrel.
Fuel is airlines’ second-highest cost after labor, and many carriers are trying to offset price hikes by increasing fuel surcharges, bag fees, and ticket fares.
As the cost of vacation rises, travel experts say cashing in on rewards instead of paying out of pocket for a flight could now be a smarter move.
“The Points Guy always recommends booking with any points and miles you have stashed away, especially when cash prices are high,” Clint Henderson, managing editor of The Points Guy, told Business Insider.
Henderson has been doing exactly that, using his own points and miles to get ahead of potential fare increases and added fuel charges. He said he has already booked trips through spring next year to destinations such as Paris, Hong Kong, and Tokyo.
Travelers usually accrue miles and points by flying on a specific airline and being part of their membership program, or by having a specific credit card that accrues points for everyday spending. Some are general travel cards, like the Chase Sapphire Reserve; others are co-branded with the airline, like Delta’s American Express Gold Card.
“With most points and miles programs, at least in the US, you can cancel and get your points back,” he said, “so I don’t have to worry in case these trips don’t pan out.”
That safety net is particularly important as travel becomes unusually volatile. Recent US government funding lapses strained air traffic control and airport security staffing for weeks, triggering widespread airport delays and flight cancellations. Ongoing conflict in the Middle East has also squeezed capacity in key connecting hubs.
For travelers who haven’t built up a balance of points, Henderson said it might be worth opening a new credit card that offers a large sign-up bonus to help cover the cost of an upcoming trip. Capital One, Chase, and American Express all currently offer sign-up bonuses ranging from 75,000 points to over 100,000 points when you hit a certain spend threshold.
TJ Dunn, a Canada-based loyalty programs expert and founder of All Points West Travel Consulting, said signing up for a co-branded credit card can also come with another useful perk: a free checked bag. Some of these cards have a $0 annual fee.
In a bid to offset skyrocketing jet fuel costs, the US’s biggest airlines — American, Alaska, Southwest, Delta, JetBlue, and United — have already hiked checked bag fees.
“A single trip can often justify the card’s annual fee on checked baggage fee savings alone,” Dunn said.
For those already on a loyalty program, Dunn said there’s little point to holding onto rewards for too long: “The magic of compound interest just doesn’t exist in loyalty programs, and your points are only going to lose value over time rather than appreciate.”
To get the most out of points, Dunn said, it’s best to be flexible with dates and destinations. “Leaving a day earlier or later, or flying into or out of a different city, could be the difference between paying 50,000 points or 100,000 points for your trip,” he said.
NerdWallet travel analyst Sara Rathner told Business Insider that the timing of the fuel hikes comes during an already busy travel season, as we emerge from spring break and head into summer.
She said that traditionally, the best way to use points has been for pricey, long-haul international trips, but now that domestic travel costs are rising, this is also a worthwhile use of points.
“Point values can vary,” Rathner said. “You’re better off saving cash by using your points and miles now instead of saving them for something in the future, because cash is cash; you could always use it for something else.”
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