Start Planning Now to Save Big on Your Summer Vacation

Summer vacation may be the last thing on your mind right now. With the cold and snow that’s hitting a large swath of the United States, warmth may be on the minds of many, but just getting through the next few months is the real focus.

However, if saving a significant amount of money on your summer vacation is even a blip on your radar, now is the time to act.

If you’ve read our posts on Miles and Points, you know using airline miles and hotel points can make what is oftentimes an outrageously expensive trip, economical – even close to free in some cases.

To take advantage of this money saving opportunity, though, you need to begin now focusing on your travel goals and coordinating credit card applications that will provide the needed airline miles and/or hotel points to book your dream summer vacation.

Those of you fairly new to the Miles and Points game likely should read our post, “Six Reasons You Should Not Play the Miles and Points Game,” first.

If you’re still interested in the hobby, give our Miles and Points introductory posts a quick glance to get familiar with the process. Maybe check out “Getting Started with Miles and Points,” and go from there.

Of course, there are many of you already familiar with the hobby who just need some suggestions to spur your next round of card applications.

Which is what this post is really about.

As a reminder, most credit cards require a minimum spend to obtain the airline miles or hotel points/nights that are being offered. And most cards require that minimum spend to be completed within 3 months from the credit card approval date.

Which means, if you apply now and take the full 3 months to meet the minimum spends, your bonus miles and/or points will post to your airline/hotel loyalty accounts mid to late April. Most bonus miles/points post to loyalty program accounts soon after the statement close date in which the minimum spend was met.

Just in time to use those miles/points to book the flights and hotel rooms for your summer vacation.

Here are some of the current airline miles and hotel points credit card sign-up bonuses that can be used to save significantly on your upcoming trip.

Airlines

Southwest Airlines / Companion Pass

Chase Southwest Rapid Rewards Plus 

• 50,000 points sign-up bonus
• $2,000 spend in first 3 months
• $69 annual fee applied on first billing statement

 

Chase Southwest Rapid Rewards Premier 

• 50,000 points sign-up bonus
• $2,000 spend in first 3 months
• $99 annual fee applied on first billing statement

 

Chase Southwest Rapid Rewards Premier Business Credit Card 

• 60,000 points sign-up bonus
• $3,000 spend in first 3 months
• $99 annual fee applied on first billing statement

Southwest is a great option if your travels will be within the continental U.S., Mexico and the Caribbean.

Points are fairly easy to use, with availability sometimes better than the other major air carriers.

Southwest has no fees for checked luggage and if your plans change, tickets can be re-booked without the penalty fees other airlines impose.

One of the best Miles and Points perks out there is the Southwest Companion Pass.

When 110,000 Rapid Reward points are earned in a calendar year, the account holder can choose one person to fly free with him/her every time a ticket is purchased or points are redeemed for a flight. This perk is good for the year in which it is earned and the following year up to Dec. 31.

If you were to apply for one of the personal Southwest credit cards (Plus or Premier) and the Southwest business credit card, you would have 115,000 Rapid Rewards points in your account (sign-up bonuses plus minimum spend amounts), more than enough to earn the Companion Pass.

Or, apply for one of the cards and have enough Rapid Rewards points for 2 tickets to most Southwest destinations.

American Airlines

American Airlines: Citi / AAdvantage Platinum Select MasterCard

• 50,000 American Airlines AAdvantage miles
• $3,000 spend in first 3 months
• $95 annual fee waived for the first 12 months

American Airlines economy class “Saver” award tickets are 25,000 miles roundtrip within the continental U.S. Which means the sign-up bonus for this credit card would get you 2 economy class – saver lever award – tickets for your summer travels.

One caution about American Airlines and award ticket availability, though. American has been notoriously stingy with award availability recently. You may want to search for saver award availability for your desired destination before applying for this card. Yes, even though you may not find availability now, it could open up, but I’d be hesitant to make that bet.

United Airlines / Ultimate Rewards

Chase Sapphire Preferred 

• 50,000 Ultimate Rewards points
• $4,000 spend in first 3 months
• $95 annual fee waived the first year

If you’re familiar with the Miles and Points game, you likely know why I listed this credit card for travel on United. If you’re not, you probably think I’ve made a mistake.

Nope, no mistake. The Ultimate Rewards points earned with the Sapphire Preferred credit card – via sign-up bonus and ongoing spend on the card – can be transferred at a 1:1 rate to United Airlines.

So, the 50,000 Ultimate Rewards sign-up bonus points become 50,000 United Airlines miles, which equates to 2 economy class saver-level award tickets within the continental U.S.

Ultimate Rewards points can also be transferred at a 1:1 rate to: Southwest Airlines, British Airways, Air France, Korean Air, Singapore Airlines and Virgin Atlantic.

Chase also partners with hotel loyalty programs, so Ultimate Rewards points can transfer at a 1:1 rate to: Hyatt Hotels, IHG Hotels, Marriott Hotels and Ritz-Carlton Hotels.

As you can see, Ultimate Rewards points are extremely valuable when it comes to reduced cost/free travel, and can beef up the balances of a variety of travel-related loyalty programs for your summer travels.

United Airlines has a credit card, but its current sign-up bonus is only 30,000 miles. Occasionally, its sign-up bonus will increase to 50,000 or more miles, at which point I would consider it…just not now.

It’s better to earn the transferrable Ultimate Rewards points via the Sapphire Preferred or the next card I’ll mention.

Ultimate Rewards

Sapphire Reserve 

• 50,000 (*100,000) Ultimate Rewards points
• $4,000 spend in first 3 months
• $450 annual fee ($75 for each authorized user)

Why would you apply for the Sapphire Reserve over the Sapphire Preferred when the sign-up bonus is the same 50,000 Ultimate Rewards points, but the annual fee is so much higher – and not waived the first year?!

Well, I’m not sure you should. I list it as another option to earn those valuable Ultimate Reward points. If I had to give a reason, though, it would be for the $300 annual travel credit.

Which means, $300 of your summer travel expenses – hotels, motels, car rental agencies, cruise lines, trains, buses, taxis and more – will be automatically credited to your account. $300 of savings, with no more effort than using the Reserve card to pay.

I still don’t know that it’s worth applying for over the Preferred with a comparable sign-up bonus, but that’s for you to decide.

*The online Sapphire Reserve 100,000 Ultimate Rewards sign-up bonus may still be found even though it was scheduled to be reduced after 1/11/17.  The 100,000 sign-up bonus should still be available for a few more months via applications made in a Chase branch.  At 100,000 Ultimate Rewards points, especially if I had upcoming travel plans, I’d be more apt to seriously consider this card over the Preferred.  After the first year, you could always downgrade to the Preferred to avoid the higher annual fee going forward.

Hotels

Hyatt

• 2 Free Nights at any Hyatt Hotel
• $2,000 spend in first 3 months
• $75 annual fee

If you haven’t stayed at a Hyatt, you’re missing out. Use the 2 free nights at a high-end property at one of Hyatt’s fantastic destinations and you’ll have a vacation experience you won’t soon forget.

Marriott Rewards Premier 

• 80,000 Marriott Rewards points
• $3,000 spend in first 3 months
• $85 annual fee

You can earn an extra 7,500 bonus points by adding an authorized user to your account who makes a purchase in the first 3 months. Award nights start at 7,500 points/night for category 1 properties and go to 45,000 points/night for the highest category hotels.

There is also a Marriott Rewards Premier Business credit card with the same bonus points/minimum spend requirements, but a $99 annual fee.

Hilton Hotels

Hilton has four different credit cards from which bonus points or free nights can be earned. Two of which are issued by American Express, the other two by Citi.

It may be possible to be approved for both an American Express Hilton card and a Citi Hilton card at the same time thus increasing the Hilton sign-up bonus amounts.

Here are the current sign-up bonuses for each card.

Citi Hilton HHonors Visa Signature Card 

• 40,000 Hilton HHonors points
• $1,000 spend in the first 4 months
• No annual fee

Citi Hilton HHonors Reserve Card 

• 2 weekend night certificates
• $2,500 spend in the first 4 months
• $95 annual fee

Hilton HHonors American Express 

• 50,000 Hilton HHonors points
• $750 spend in the first 3 months
• No annual fee

Hilton HHonors Surpass American Express 

• 75,000 Hilton HHonors points
• $3,000 spend in the first 3 months
• $75 annual fee

The Hilton HHonors program does not have the most rewarding redemption schedule. Aside from the 2-weekend night bonus on the Citi Reserve card, it would likely take two card bonuses to get enough points for more than one free night.

Do a search for Hilton properties at your desired destination, and be sure to select the HHonor Points box when searching, or at the top of the search results page, to check award room availability and pricing to guide your sign-up strategy.

Wrap Up

These are just a few of the credit card options that can help cut your summer travel expenses.

One airline or Ultimate Rewards credit card sign-up bonus can easily save $500 or more in airfare to your summer vacation destination.

And a free night at a beach resort as a result of a credit card bonus can easily amount to a $300 savings. Multiply that by 2, 3 or more nights, and that’s significant money saved.

All from signing up for a credit card or two and meeting the minimum spend requirements.

So pick your summer vacation destination, scan the current credit card bonus offerings and start your card applications.

Before your know it, summer will be here, you’ll be lounging at your dream destination, and your bank account will have hardly been touched thanks to the Miles and Points game.