Points Travel: How Savvy Travelers Are Saving Big On Vacations

In recent years, points travel has evolved from a niche hobby for frequent travelers into a mainstream strategy that millions are using to save money on flights, hotels, and even luxury experiences. Once the domain of road warriors racking up frequent flyer miles on endless business trips, travel rewards are now a multi-billion-dollar industry that spans credit cards, airline loyalty programs, and hotel partnerships. Today, more than ever, consumers are turning to points and miles to offset the rising costs of travel.

“Travel rewards have exploded in popularity,” says Julian Kheel, founder and CEO of Points Path, a browser extension for Google Flights, that gives users the ability to compare frequent flyer mile prices alongside cash prices in search results. “According to a report by McKinsey & Company, travelers now collectively hold over 30 trillion frequent flyer miles, and the ‘Big 3’ U.S. airlines redeem as many as 25 million frequent flyer awards annually.” The sheer volume of points and miles in circulation underscores how integral these programs have become to modern travel.

How Points Travel Works

At its core, points travel is a way for consumers to earn travel rewards through various activities, most notably spending on credit cards, and then redeem those points for flights, hotels, and even experiences like tours and cruises. While frequent flyer miles from airlines are still popular, the vast majority of points today are earned not from flying but from everyday spending.

“Americans are now earning most of their travel rewards through shopping, primarily with credit cards,” explains Kheel. “Programs like Chase Ultimate Rewards, American Express Membership Rewards, and Citi ThankYou points have made it easy for people to accumulate flexible points that can be redeemed for travel. Unlike traditional frequent flyer miles, these points can be used for a variety of travel-related purchases or transferred to airlines and hotels for more flexibility.”

These “flexible” points are a game-changer. Consumers are no longer limited to one airline or hotel chain. With points from major banks, travelers can transfer their rewards to numerous airline and hotel partners, which can potentially offer greater value for premium experiences or high-demand flights. This flexibility gives travelers more control and increases the likelihood of finding a deal that suits their travel plans.

However, understanding how to maximize the value of points remains key. For some travelers, the process can be overwhelming, with a myriad of options and ever-changing rules on how points can be redeemed. But the rise of tools like Points Path has made the process easier for mainstream travelers, helping them quickly compare options and make informed decisions.

“Enthusiasts might spend hours searching for the perfect redemption,” says Kheel. “But mainstream travelers have benefited from tools that simplify the process.”

Mainstream Adoption: Points Travel for Everyone

While points travel was once the playground of frequent travelers and credit card hackers, it’s now accessible to anyone with a rewards card. In fact, many travelers today are joining the points bandwagon without even realizing it, thanks to the proliferation of credit card offers that emphasize travel rewards.

“Mainstream travelers are catching on,” says Kheel. “The average person may not have the time to meticulously study frequent flyer programs, but with the right credit card and a bit of guidance, they can still unlock significant savings on their trips.”

The points ecosystem is vast, but most people are now earning their rewards from credit card spend rather than traditional methods like flying. Popular cards, such as the Chase Sapphire Preferred, the American Express Platinum, and the Capital One Venture card, offer generous sign-up bonuses and ongoing rewards that accumulate quickly. By using these cards for everyday purchases, from groceries to gas, travelers can rack up points that eventually translate into travel opportunities.

“The points world is no longer just for hobbyists,” says Kheel. “Mainstream consumers are realizing how powerful these rewards can be, and more importantly, they’re realizing how easy it is to get started.”

Maximizing Points for Holiday Travel

With the holidays fast approaching, many travelers are looking for ways to save on flights and hotels. Points and miles can be a great tool for reducing the cost of holiday trips, but there are some caveats. During peak travel seasons like Thanksgiving and Christmas, both cash fares and award prices in miles tend to skyrocket.

“You can save cash by using points for holiday flights, but you’ll likely get less value than at other times of the year,” warns Kheel. “The cost of airfare in miles increases during the holidays, just as cash fares do.”

However, there are ways to stretch your points even during peak times. One strategy is to book flights on dates with lower demand, such as the Friday after Thanksgiving or the weekend a few days before Christmas. You’re also more likely to find award availability on less popular flights, such as early morning or late-night departures, or on itineraries with connections.

Interestingly, Kheel notes that the holidays can be an ideal time to splurge on premium travel experiences. “An ‘aha’ moment for many travelers is realizing that the holidays are a great time to use points for premium cabins,” he says. “You’ll pay more miles for business or first class, but you might get more value in return. If you’ve been saving up your points for a special occasion, the holiday season could be the perfect time to indulge in some luxury.”

Planning Ahead for Holiday Travel

Planning ahead is always key to getting the most value from your points. If you wait until the last minute to book holiday travel, you’ll likely find that award seats are scarce and priced at a premium. Instead, try to book several months in advance and be flexible with your travel dates.

“Our report found that the most popular holiday destinations are major U.S. cities like New York, Los Angeles, and Chicago, as well as international hubs like London, Paris, and Tokyo,” Kheel says. “If you want to maximize your points, consider visiting less popular destinations where award availability may be more plentiful and less expensive.”

Warm-weather spots like Miami, Hawaii, and Cancun also rank high on travelers’ wish lists during the holiday season, so those hoping for a beach getaway should act quickly. For the most value, consider less crowded destinations or quieter travel dates.

As more consumers embrace points travel, the opportunities to save on flights and hotels continue to grow. Whether you’re a seasoned traveler or just getting started, understanding how to leverage your points and miles can open up a world of possibilities. With the right strategy you can stretch your rewards and make your next vacation more affordable, or even more luxurious, than you ever imagined.