Save on Your Travel Costs
Travel is something many of us have put on hold for the last year or so. And we’re getting a bit restless to say the least, longing for some sense of normalcy by way of visiting areas and people outside of our “Covid bubble.”
As long as things continue to move in the direction we’ve seen over the past month or so, relatively normal travel just might be around the corner.
And while a large portion of us have received thousands of dollars of government stimulus money over the past year, I’d argue it’s still a smart move to save as much as you can on any expenditures you plan to make. Travel included.
If you’ve followed Savings Beagle at all, you likely are aware we promote using credit cards to your benefit, not the bank’s.
Which means paying off credit card balances first and foremost, but then utilizing credit cards in ways to save you money whether it’s by taking advantage of cash back opportunities or building rewards balances to offset various expenses…travel being one.
And it’s saving on your travel costs that we want to cover with this article.
Credit Cards and Travel
There are a vast number of travel rewards credit cards available from a number of different banks. And when used strategically, the rewards earned from these credit cards can save significantly on your travel costs.
My wife and I have earned hundreds of thousands of rewards points over the years, equating to tens of thousands of dollars of free travel to locations throughout America and around the world.
The process isn’t easy, but it’s not difficult, either. It just takes some time to learn the intricacies involved in earning and using the reward points and/or miles that can be earned.
We’ve put together a series of posts dedicated to addressing the basics associated with what I call the Miles and Points hobby. A hobby that, for those comfortable with the process, can provide travel experiences you may have only dreamed about for very little out-of-pocket money.
But first I want to bring to your attention one of the better “beginner” credit cards for those interested in trying the Miles and Points hobby.
Chase Sapphire Preferred Credit Card
The Chase Sapphire Preferred credit card is arguably one of the best introductory cards for those wanting to see if the Miles and Points hobby is for them.
And, it just so happens, the Sapphire Preferred card is currently offering its highest sign-up bonus ever. Here are the details and a quick overview of how the card can save on your travel costs.
Earn 80,000 Chase Ultimate Rewards points after spending $4,000 within the first 3 months from card approval. Additionally, you’ll receive a $50 statement credit toward any grocery store purchase(s) within the first year from account opening.
Ongoing Earning
- 2 Ultimate Rewards points per dollar spent on dining and travel purchases
- 1 Ultimate Rewards point on all other purchases
Annual Fee: $95 (may be waived the first year if you apply in a Chase bank branch)
When I started in the Miles and Points hobby roughly 10 years ago, the Sapphire Preferred was considered one of the best travel rewards cards available. Things have changed since then, with the addition of a number of travel rewards cards, some of which provide much better ongoing earning potential.
However, as a rewards program, Chase Ultimate Rewards remains the best available, and the Sapphire Preferred card the best route for many to open up all that the Ultimate Rewards program has to offer.
Here are a few examples.
The Chase Sapphire Preferred card (along with the Chase Sapphire Reserve and the Chase Ink Preferred business credit card) allow earned Ultimate Rewards points to transfer on a 1:1 basis to a variety of travel partners, a few of which include:
- Hyatt hotels
- Marriott hotels
- IHG hotels
- Southwest Airlines
- United Airlines
There are a number of other foreign airlines which are also transfer partners that can allow more advanced travelers/hobbyists to maximize their Ultimate Rewards points. That’s a much longer discussion, though, not for this post.
Hyatt hotels are my favorite transfer partner – in fact my preferred hotel chain, period – and one from which you can really obtain excellent value for your Ultimate Rewards points.
And, Southwest Airlines and United Airlines can also provide a good value when transferring Ultimate Rewards points.
Here are a few examples based off the 80,000 Ultimate Rewards points sign-up bonus on the Sapphire Preferred credit card.
Hyatt
- Stay 16 nights at the lower-tier Hyatt Place or Hyatt House properties absolutely free
- Stay 4 nights at a mid-tier Hyatt hotel absolutely free
- Stay 2 nights at the highest-tier Hyatt properties absolute free
These are approximations, the specific award price being dependent on the exact hotel, location and dates of travel. You can view hotel categories and pricing at this link.
Southwest Airlines
Southwest award ticket pricing is based on the actual ticket price you’re purchasing. The more expensive dollars-wise, the higher the award price.
A random example for a roundtrip flight from Baltimore to Orlando the last week of June would price at approximately 23,000 Southwest Rapid Rewards points (and $11.20 in fees) per person. Depending on time of trip and dates, pricing could be lower or higher.
You can use the Southwest search engine to check current pricing at this link. Just be sure to select the “Points” radial button when searching.
United Airlines
In the “olden days,” airlines had set award charts which based award travel pricing on geographic areas. Unfortunately, that’s no longer the case. Award pricing, for most airlines, United included, is now variable, based primarily, but not solely, on current ticket dollar pricing.
What’s nice is that if a ticket is pricing cheaply, you probably can get that flight for around 5,000 United miles one-way.
On average, an economy class ticket within the domestic U.S., probably will price around 30,000-40,000 miles.
To know for sure, you’ll need to check United’s award search for specific travel dates and times. Again, be sure to select “book with miles” to see award pricing.
But, you should be able to get at least one free ticket, if not more, out of an 80,000 point Ultimate Rewards points sign-up bonus.
These are just some examples of what the Chase Sapphire Preferred credit card’s current 80,000 point sign-up bonus could get you in free travel.
And, if you don’t want to go to the trouble of transferring to travel partners to book travel, you can use the Chase Travel Portal to book your travel – air, hotel, car, excursions, etc. – and get 25% more value from those 80,000 points. Meaning, you could offset $1,000 of travel expenses booked via the Chase Ultimate Rewards Travel Portal.
This is just a quick overview of Ultimate Rewards points and the UR program. You can view our post “Why I Love Chase Ultimate Rewards Points and You Should Too” for more details.
And, for those who want more info on how the Miles and Points hobby works, below is our series that digs a little deeper.
Be sure to read the first post before any others, though. If any of the reasons we list hit home, it might be best to steer clear of using credit cards to save on your travel costs.
Savings Beagle Miles and Points Intro Series
SIX REASONS YOU SHOULD NOT PLAY THE MILES AND POINTS GAME
HOW TO TRAVEL MORE FOR LESS
MILES AND POINTS – A REAL-WORLD EXAMPLE
GETTING STARTED WITH MILES AND POINTS
A FEW MILES AND POINTS TIPS TO GET YOU GOING
Wrap Up
For those willing to learn and put forth some effort, utilizing travel rewards credit cards can lead to some significant savings on your travel costs. Not to mentioned being able to “afford” experiences most would never think possible.
And right now, one of the better travel rewards credit cards is offering its highest sign-up bonus ever.
So, for those interested in the Miles and Points hobby, now might be the time to take a serious look.
Hopefully, our Intro Series of posts can be of benefit. Of course, if you have questions, don’t hesitate to ask and we’ll do our best to put you on the right path to saving more of your own money while still enjoying life.
