New York — First, the bad news.
Users Credit cards She’ll likely find that her accumulated airline miles and points toward various travel perks won’t take her that far this summer.
As jet fuel prices rose during the Iran War, so did Cost Airline tickets and checked baggage fees. The Labor Department reported last week that airfares in April were 21% higher than a year earlier. Flights actually become more expensive during the summer due to increased demand.
That means travelers who want to use an airline-branded credit card or a travel rewards card from a bank considering a specific flight or first-class seat may have to shell out some cash, choose a different destination or fly at inopportune times to get the most out of their accounts, travel experts say.
In the early years of Frequent flyer programsairlines published tables showing customers the cost of a higher class of service or flying a certain distance in miles. Almost all airlines now constantly adjust their flight prices, an algorithm-driven strategy known as dynamic pricing.
Points-priced flights are based on overall demand, just like regular fares. The cash value of those seats is often roughly equal to points. Higher airfare prices usually translate into needing more miles or points to purchase a ticket.
Long before the current disruption in global oil supplies, consumers, a A pair of US Senators and former Transportation Secretary Pete Buttigieg Wrong cried On airlines’ practices of increasing the number of points or miles needed to earn a free flight or offering fewer redeemable seats before people can cash out their loyalty stock.
“There’s no doubt that dynamic award pricing, higher redemption rates on some domestic flights, and surcharges have made it difficult to find the huge deals that travelers enjoyed a decade ago,” said Brian Kelly, a travel rewards and credit card expert known as The Points Guy. “But that doesn’t necessarily mean that points have lost their value. It just means that consumers need to be more strategic about how they redeem them.”
Now, the better news.
There are plenty of ways to accumulate Airline milesMost of them do not come with an expiration date. Signing up for an airline’s frequent flyer program is the simplest way and usually doesn’t cost anything. Depending on the carrier, members can earn miles when they fly with the airline or its partners and can redeem them for perks like discounted flights, seat upgrades or checked bags. Top layers Loyalty programs can also offer benefits such as priority boarding or waived baggage fees.
Major airlines also partner with banks to market co-branded credit cards that carry annual fees. The cards earn miles for users when they buy something.
“When you’re going to spend money anyway, you might as well get something in return,” said Adam Morvitz, a credit card miles expert and CEO of Point.me, a travel loyalty platform. “If you’re already buying groceries, paying for gas, or booking a hotel, a travel rewards card turns that everyday spending into points that can fund your next trip.”
This is where being a frequent flyer or having an airline credit card may lead to summer savings. To offset jet fuel costs, some U.S. airlines have raised checked baggage fees for domestic flights and many short-haul international flights. United Airlines Raised the price of the first bag from $40 to $50. The first checked bag for Delta Airlines Fees increased from $35 to $45.
Airlines still allow customers in the upper tiers of their loyalty programs or who hold credit cards like the Delta SkyMiles Card from American Express or the United Card with Chase to check a bag for free.
Financial institutions such as American ExpressChase Bank and CitiBank both issue their own travel credit cards that provide points for purchases. Travelers who want the option to fly with more airlines tend to prefer this. Depending on the card, perks can include Access to the airport loungeTravel insurance, no foreign transaction fees, and TSA PreCheck or Global Entry balances.
“For those who spend responsibly, the value is incredible as you can get more value from the perks, even if there is an annual fee,” he said.
For starters, Morvitz recommends flexible points cards rather than airline-specific options because they can be transferred through loyalty programs and provide more redemption options if the airline changes its award prices. Consumers should match the card to their actual spending habits — such as choosing cards with rewards categories for groceries or dining — while also considering whether the annual fee is justified by the benefits they’ll actually use, he said.
A lot of banks are promoting big sign-up bonuses while people are making summer plans, such as offers 100,000 miles Or up to 150,000 miles or points for new customers who qualify and spend a certain amount of money within a specified period – usually the first three months. Rewards make it a good time to get one of these cards, which could make trips more affordable for people who need extra points, Kelly said.
These subscription offers can also be among the most valuable features of Rewards cardsMorvitz said the cost of travel sometimes amounts to more than $1,000. But consumers must carefully track minimum spending requirements to qualify. He also recommends using category rewards and shopping portals to maximize rewards and always attaching a frequent flyer number to airline bookings.
The important thing to remember is that the value of your travel bank card or airline loyalty card evaporates if you… Bearing balance. Average Credit card interest rate It ranges between 21% and 24%, so carrying a $1,000 balance can quickly erase any savings from the free checked bag.
“Travel rewards cards are one of the best financial tools available to responsible cardholders, but they are designed for people who treat them like a debit card,” Morvitz said. “Spend what you spend anyway, and always pay the balance in full each month. The minute you start carrying a balance and paying interest, the math works against you.”
Hotels are another place where travelers may not get as many of their rewards points this summer. Hyatt overhauled its loyalty program this week, moving it from three levels to five. While some stays at lower-cost hotels will require the same number of points, the same may not be true for more upscale Hyatt properties.
Travel blog One Mile at a Time estimated that some of Hyatt’s top luxury hotels will cost up to 67% more with points under the new system.
“If you’re sitting on hotel points, don’t sit and hoard them…they seem to quickly become less valuable,” said Sally French, who covers credit cards and loyalty programs for Nerd Wallet.
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Associated Press Airlines and travel writer Ryo Yamate contributed to this report from Las Vegas.