Everyone takes a different approach to collecting miles and points. Some rack up points with a specific goal in mind, while others rack up points and almost view it as their retirement account, with no plans to redeem rewards anytime soon.
Continue reading: Tips For Diversifying Miles & Points, Avoiding Devaluations
Share your questions, experiences, and thoughts below.
I agree with all the points, and just to add, my loyalty to any program has fallen through the floor in the last 2-3 years. Watching points currencies lose value, hotel groups become financial instruments rather than hospitality chains, airline award availability get shadily eroded by programs that need to make a buck. I have shifted towards burning points/miles whenever I can, and shelling out $ with cash back or buying tickets/rooms outright with whatever brand gives the most value. They treat us like a resource to be milked, so will I, and little more.
Right now most of my spending is for transferable points, though that’ll change next year as I put spending on my Summit card to climb the status ladder. AMEX mainly for flights, Chase for hotels (when I’m not trying to use a credit), Bilt for dining, and Cap One for most of the non-bonused spend. I get my AA points via the Bask Bank partnership, so I’m not focusing much on Citi spend at this point.
Oh, goodie.. let's treat these corporate pseudo-currencies like all other investments... 'diversify!'
So, what are the equivalent of complex 'derivatives' within this mostly-unregulated 'market'? Like, let's get some '(miles)-backed securities' (MBS), 'collateralized (point) obligations' (CPO), and 'credit-(card) default swaps' (CDS)...I recommend some 'senior tranche' ...options contracts for redemptions... uh no, there's a 'margin-call' on my SkyPesos! Where's my bailout?!
This is an excellent article. Obviously a balance between diversification and earning and burning.
For most people looking to take 1-2 trips a year using points to offset part of the expense, I'd recommend a simple strategy like a Citi Strata Premier and a DoubleCash. Can diversify with a Chase Sapphire Preferred with a Freedom Unlimited. Split your spend between the ecosystems, pay attention to what card you use for what spend to maximize bonus categories, and watch the points roll in.
Have some general destinations that you might want to go in mind, but be flexible. Run searches regularly. That will give you a sense of what you will realistically be able to redeem points for at a good redemption rate. For a family of 4, it's going to be hard to find business class seats for 4 people during the same weeks that everyone else is traveling. Especially round trip. You may do better redeeming your points for hotels.
But also, know what you value. If you don't value a name brand Park Hyatt luxury hotel, there are lots of wonderful boutique hotels out there (especially in a place like Paris) with prices that will not break the bank. Pay cash for the hotels and use your points for airfare. And while business class is of course more fun, it's ok to redeem points for economy travel - last I checked there was not a law against it, and there can be some excellent economy redemption opportunities.
No offense to Disney Mouse, but just get out there and see the world. Kids can make all sorts of memories in all sorts of places. Use your points to broaden your horizons and explore.
My points value built way up due to lack of international travel during Covid, cancer, and other life issues. But we got back at it last year, with 2 international trips in J, then 2 more this year. I was a bit freer with the points, being willing to spend more miles for great routing. But just 8 round trip tickets is enough to make me start panicking about miles balances! We actually still have plenty, but because I tend to cancel things and re-book when something much better comes alone, I have stranded points at various airlines. My next job will be to figure out good ways to use my Virgin, BA, Qantas, Hilton, IHG, and through some miracle, Delta points.
Transferable points just aren't worth 1.7 cents per point anymore. Increasingly, they don't transfer 1:1 to airlines, and airlines have all devalued. 1.3 cents per point is honestly generous.
Oh come on. "Increasingly" is still like 1 out of 10 airlines, and if you can get to Europe in business class for under 100k in J on all three alliances.
If you spent 80k points + $350 on a one-way ticket that would cost $2,500, you're well above 1.7
The subject of accrued points devaluing and the aspiration to save them for retirement came up 12 or 18 months ago. What I've been doing since then is, if the return per point is good, use points and put the cost of the ticket I would otherwise have bought in a savings account. If it was an aspirational trip I bank the amount of cash I'd have realistically paid for a ticket if the reward wasn't available.
That way I don't have to worry about the points devaluing, and I'll have a retirement travel kitty that I can use to buy points (or tickets). It takes a level of focus not to spend it on just anything, but cash in a savings account is just another 'flexible transfer currency'.
Agree with all points you make. While I agree it's typically unwise to earn and accumulate points with a specific airline, I'd be curious to hear your take on Alaska Atmos. While it's technically an airline currency, there are so many possibilities and sweet spots. The argument could be made that one should earn Bilt points, since they transfer to Atmos but also to a list of airlines and hotels, but Bilt doesn't offer signup bonuses (yet – figure that changes in February), making Bilt points harder to earn. Especially since Atmos has two solid credit cards with good bonus categories, there's definitely a case to accumulate points with them.
Rakuten transfers to Bilt - got my first Bilt points last month. Still two more 1:1 Rakuten:Bilt transfer dates on 2/15/26 and 5/15/26.
BA's devaluation is coming soon and trying to figure out what to do. Might as well bounce around the Avios ecosystem for now.
Brex and HSBC are no longer 1:1 programs for all partners. Capital One has multiple partners that aren't 1:1 transfers. Amex cracked too. Meanwhile, where are you finding an 80k TATL business class award, especially from the west coast? These used to be commonplace, they are very rare now given how airlines have largely stopped giving partners award inventory. So you have to factor that in too. Plus, brokers use bots to snipe what little inventory does become available.
And then there are devaluations. It used to be 12.5k for a domestic economy class award. Now it's an average 22.5k to start. If you need positioning flights, you have to factor this in too.
All of that adds up to 1.3cpp being generous now. Can you still get outsize value, if you work really hard and know a lot? Yes, but I am genuinely expert in this stuff and it's super hard now. Not impossible, but close.
Yea... They already lost Latam which was an amazing sweet spot (60k to Easter Island from the USA).