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What are travel credit cards, and how do they work?
Travel credit cards are financial products that offer various rewards and benefits geared towards frequent travelers. They typically earn you points or miles for every dollar spent on eligible purchases. These rewards can be redeemed for flights, hotel stays, car rentals, and other travel-related expenses. Travel credit cards may also include perks like travel insurance, airport lounge access, and no foreign transaction fees.
How do I choose the best travel credit card for my needs?
Choosing the best travel credit card depends on your travel habits, spending patterns, and preferences. Consider factors like the type of rewards offered (points, miles, or cash back), the card’s annual fee, sign-up bonuses, earning rates, redemption options, and additional travel perks. Analyzing these features will help you find a card that aligns with your lifestyle and offers the most value.
What are the benefits of using a travel credit card over other types of credit cards?
Travel credit cards provide unique advantages for travelers, such as earning rewards specifically tailored to travel expenses. Additionally, many travel credit cards offer travel-related perks like free checked bags, priority boarding, and travel insurance. Some cards also waive foreign transaction fees, making them ideal for international travelers.
What is a sign-up bonus, and how can I qualify for it?
A sign-up bonus is a promotional offer provided by the credit card issuer to entice new cardholders. To qualify for a sign-up bonus, you usually need to meet specific spending requirements within a certain timeframe after opening the account. The bonus can be in the form of points, miles, or cash back, and it’s a great way to jump-start your rewards earning.
Do travel credit cards charge foreign transaction fees?
Not all travel credit cards charge foreign transaction fees. Many of the top-tier travel cards waive these fees, making them ideal for international travel. However, it’s essential to read the card’s terms and conditions to confirm this before using it abroad.
How can I maximize the rewards earned with my travel credit card?
To maximize rewards, use your travel credit card for everyday expenses and large purchases. Take advantage of bonus categories and special promotions to earn more points or miles. Consider combining your travel credit card with loyalty programs to stack rewards and get even more value out of your purchases.
Have a hoard of American Express Membership Rewards® Points but have no clue how to use them?
Don’t worry, you’re not alone.
Redeeming points for maximum value isn’t always simple. In fact, across all points and miles currencies, it’s estimated only around 8% of customers are using theirs, and of that tiny number, only a few elite travelers squeeze every ounce of value from their earnings.
We want you to be among that number, so today we’ll be looking at the best ways to maximize American Express Membership Rewards® points for travel in 2024—whether you’re looking for cheap flights, first-class travel, hotels, or one of their many other uses.
What are American Express points?
Simply put, American Express Membership Reward points are the points currency of Amex’s credit card rewards program.
The points are earned by using and paying off American Express credit cards and can be redeemed for a number of different products. While we at The Daily Navigator focus primarily on travel redemptions, like flights and hotels, they can be used for purchasing consumer goods, too.
The monetary value of Amex points is dictated by where you use them—but your own experiential value comes into play in this equation, too.
If you’re completely new to American Express Membership Rewards points or points and miles in general, you might want to check out our guide to using points and miles first. But if you’re ready to roll, keep reading.
What are the best ways to maximize American Express points for travel in 2024?
It might not be the answer you want to hear, but one of the best ways to maximize American Express points for travel in 2024 is dictated almost entirely by you. Before you can proceed, you’ll need to define what maximum value looks like for you.
If we’re talking pure quantifiable value, transferring your points to a travel partner is the best way to use American Express points. It offers the opportunity to get outweighed value for your points, and score free or luxury travel in the process. But there are different situations where you may not want to do this, so today we’ll be looking at a few different ways to use your points.
- Best for: Foodies
- Annual Fee: $325
- Pay Over Time APR
- Reward Rate: 1X-4X
- Recommended Credit: 670-850
American Express® Gold Card
60,000 Membership Rewards® Points
Offer Details:
60,000 Membership Rewards® Points after you spend $6,000 on eligible purchases within your first 6 months of card membership
Why we like it
The American Express® Gold Card takes your dining and grocery spending to the next level, offering an impressive 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year, and 4X Membership Rewards® points per dollar spent at U.S. supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
To put this into perspective, if you spend $8,400 annually on dining and groceries, which aligns with the average American’s spending, you could earn enough points for a roundtrip flight to Hawaii. Meanwhile, the bonus alone is worth over $1,000, adding significant value to your everyday spending.
Reward details
4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1X Membership Rewards® point per dollar spent on all other eligible purchases.
Pros & Cons
Pros
Earn 4X Membership Rewards® points per dollar spent at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
Earn 4X Membership Rewards® points per dollar spent at U.S. supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
$120 Uber Cash on Gold: Add your Gold Card to your Uber account and each month automatically get $10 in Uber Cash for Uber Eats orders or Uber rides in the U.S., totaling up to $120 per year.
0% Intro APR for 6 months from the date of account opening on purchases eligible for Pay Over Time, then a 18.74% to 27.74% variable APR.
$84 Dunkin’ Credit: Earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin’ locations.
Get up to $100 in statement credits each calendar year for dining at U.S. Resy restaurants or making other eligible Resy purchases. That’s up to $50 in statement credits semi-annually. Enrollment required.
Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys, totaling up to $120 per year. Enrollment required.
Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges with every booking of two nights or more through AmexTravel.com. Eligible charges vary by property.
Apply with confidence. Know if you’re approved for a Card with no impact to your credit score. If you’re approved and you choose to accept this Card, your credit score may be impacted.
Cons
$325 annual fee
No major travel perks like its bigger sibling, the Amex Platinum
The best ways to maximize American Express points for travel in 2024: Redeem for flights
We’ll always tell you we think one of the best ways to maximize American Express points for travel in 2024 is to redeem them for flights and hotels. Redeeming them for flights can be particularly lucrative, although hotels also represent strong value for your points in some cases.
With that said, it depends on how you do this.
Read also: The Best Airline Credit Cards of 2024
Transferring American Express points to an airline partner
By transferring points from American Express, flights can be incredibly cheap. The issuer has 17 airline transfer partners. Most of these allow customers to transfer points from their Amex account to the airline’s loyalty program at a ratio of 1:1. Once the points have moved into your airline account, you can redeem them for flights.
It’s important to remember that not all airline loyalty programs are created equal. Some will offer poor value or high fees and should be avoided, while others boast spectacular sweet spots that could see you flying in a premium seat for pennies.
Here are some examples of unbelievable redemptions that show one of the best ways to maximize American Express points for travel in 2024 is by transferring them to an airline partner.
- Transfer 141,000 points to Singapore Airlines’ Krisflyer program, and grab a Singapore suite from London to Singapore. This seat is typically worth around $7,000.
- Transfer 30,000 points to KLM/Air France Flying Blue and redeem an economy roundtrip ticket to Amsterdam. Fees will be less than $100.
- Transfer 33,000 points to British Airways Executive Club and redeem a business class roundtrip from Miami to the Bahamas.
- Transfer 85,000 points to ANA and redeem a business class roundtrip from the US to Japan.
These look great on paper, but what makes transferring one of the best ways to maximize American Express points for travel in 2024?
It’s the direct value.
For example, if we look at the third suggestion, you’d pay around $1,000 for that roundtrip flight. In this scenario, you’re getting over 3 cents per point for your redemption. It’s unlikely you’ll earn that kind of value in any of the other ways we mention in this article.
Another one of the best ways to maximize American Express points for travel in 2024: The American Express flight booking portal
If you’re not interested in transferring your points, or can’t find a redemption that makes sense, you’re not out of options. American Express points don’t have to be transferred to be redeemed for flights.
Instead, you can use the Amex travel portal.
The American Express flight booking process operates similarly to any other travel aggregator, like Expedia, Skyscanner, or Google Flights. You enter your prospective destination and origin along with your dates and you’ll be offered several applicable flights.
If you have Amex points in your account, you’ll see two figures listed next to each flight. One will be the cash value, while the other is the points value. If you decide to purchase the flight, you can use either option, and the points will be deducted from your account accordingly.
It’s important to understand that you won’t gain outsized value from any redemption by using the American Express flight booking system. When using the portal, your American Express points are valued at 1 cent each. So, if the flight is $1,000, the cost to redeem it will be 100,000 points. Compared to transferring your points, this may seem like a bad deal. If you only use the portal offered by American Express, flights will usually be worse value.
If we return to the previous section’s examples, the same 33,000-point business class flight would cost 100,000 Amex points. You see how many points you’re leaving on the table?
When should you use the American Express Flight booking portal?
Wherever possible, you should transfer points to achieve maximum value. But in some scenarios, a good deal on your specific route might not be possible or may not be the smartest redemption. If your other options have run dry and paying for the flight is out of the question, it’s worth trying the Amex travel portal.
The best ways to maximize American Express points for travel in 2024: Booking hotel stays
While redeeming flights is mathematically one of the best ways to maximize American Express points for travel in 2024, hotels also represent a lucrative option. American Express currently has three hotel transfer partners, far less than its airline equivalents, but all three can be valuable in their own right.
Depending on the credit card you have in your wallet, it’s also possible you have automatic elite status in the hotel loyalty programs, adding some extra perks to any stays you might redeem. For example, the American Express Platinum card allows the holder to enjoy Gold elite status at both Marriott and Hilton.
Transferring American Express points to hotel partners
American Express customers can transfer their points to any of Amex’s three hotel partners: Hilton Honors, Marriott Bonvoy, and Choice Privileges. Choice and Marriott have a transfer ratio of 1:1 while Hilton enjoys a strong 1:2 ratio.
Once transferred, the points can be used in a similar way to the airline partners: you can redeem the points for free hotels.
Hotel loyalty programs often have fewer sweet spots than their airline counterparts, but it’s still possible to find exceptional value. When searching for stays, make sure to calculate the value of a night with points. If the cash price is high while the points remain low, there’s a good chance it’s a strong redemption.
Here are some examples of great redemptions from each brand:
Hilton – Ho’olei Villas at Grand Wailea, A Waldorf Astoria Resort
A night at this stunning resort in Hawaii can often run well over $3,000 a night. That’s an incredibly expensive hotel, but using points, you can find rates for as low as 89,000 American Express points. This makes it one of the best ways to maximize American Express points for travel in 2024.
Marriott – Marriott Mena House, Egypt
I actually used my own Marriott Bonvoy points to redeem three nights at Marriott Mana House in Egypt. While the value of 35,000 points a night wasn’t as high as the Hilton option, it let me stay for free in front of the pyramids in a luxury hotel. That’s truly amazing.
Choice Privileges – Grand Hotel Santa Lucia, Naples
Italy can be an expensive place to visit, and with rates at the Grand Hotel Santa Lucia in Naples hitting as high as $900 at peak times, grabbing a room for just 35,000 points per night is a steal and one of the best ways to maximize American Express points for travel in 2024.
- Best for: Luxury Perks
- Annual Fee: $695
- Pay Over Time APR
- Reward Rate: 5X
- Recommended Credit: 670-850
The Platinum Card® from American Express
80,000 Membership Rewards® Points
Offer Details:
80,000 Membership Rewards® Points after you spend $8,000 on purchases in your first 6 months of card membership
Why we like it
The Amex Platinum was once the sole dominating force in the luxury credit card space. While it now faces some stiff competition, it still offers unbeatable perks like unprecedented airport lounge access, elite status at Hilton and Marriott, and some outstanding statement credits making the mammoth $695 worth it for some.
Reward details
5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year.
5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
Pros & Cons
Pros
Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership.
Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
$200 Hotel Credit: Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings through American Express Travel using your Platinum Card®. The Hotel Collection requires a minimum two-night stay.
$240 Digital Entertainment Credit: Get up to $20 back in statement credits each month on eligible purchases made with your Platinum Card® on one or more of the following: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock, and The Wall Street Journal. Enrollment required.
The American Express Global Lounge Collection® can provide an escape at the airport. With complimentary access to more than 1,400 airport lounges across 140 countries and counting, you have more airport lounge options than any other credit card issuer on the market. As of 03/2023.
$155 Walmart+ Credit: Save on eligible delivery fees, shipping, and more with a Walmart+ membership. Use your Platinum Card® to pay for a monthly Walmart+ membership and get up to $12.95 plus applicable taxes back on one membership (excluding Plus Ups) each month.
$200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Platinum Card®.
$200 Uber Cash: Platinum Card® Members can get out and about and explore their local area with $15 in Uber Cash for US rides each month, plus a bonus $20 in December. That can be up to $200 in annual Uber savings. Simply download the Uber app and add your Platinum Card® to your Uber account to get started. Available to Basic Card Member only. Effective 11/8/2024, an Amex Card must be selected as the payment method for your Uber or Uber Eats transaction to redeem the Amex Uber Cash benefit.
$199 CLEAR® Plus Credit: CLEAR® Plus helps to get you to your gate faster at 50+ airports nationwide and get up to $199 back per calendar year on your Membership (subject to auto-renewal) when you use your Card. CLEARLanes are available at 100+ airports, stadiums, and entertainment venues.
Receive either a $120 statement credit every 4 years for a Global Entry application fee or a statement credit up to $85 every 4.5 years for a TSA PreCheck® (through a TSA official enrollment provider) application fee, when charged to your Platinum Card®. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
Shop Saks with Platinum: Get up to $100 in statement credits annually for purchases in Saks Fifth Avenue stores or at saks.com on your Platinum Card®. That’s up to $50 in statement credits semi-annually. Enrollment required.
Unlock access to exclusive reservations and special dining experiences with Global Dining Access by Resy when you add your Platinum Card® to your Resy profile.
Cons
The $695 annual fee is brutally high. Too high for many that can’t, or don’t want to take full advantage of its benefits.
Points-earning rates are low unless spending directly on flights or with the Amex Portal.
Some of the benefits, like travel credits, are more limited and are harder to use than competing cards’ offerings.
Using American Express Travel for booking hotels
While transferring points to a hotel partner offers far more potential and is one of the best ways to maximize American Express points for travel in 2024, it’s possible to use American Express’ travel portal for hotels, too.
With American Express Travel, hotels can be searched for in the same way as on Expedia or a similar travel aggregator. From there, you can manage the booking and even take advantage of some Amex-related perks depending on the credit card you own.
Using American Express Travel, hotels will be listed at around the same price as they are elsewhere. It may be slightly higher than the direct booking price. At the checkout, similar to how the American Express flight booking process works, customers are prompted to use points or cash, or a mixture of both.
Once again, American Express points will be fixed at 1 cent each, so a $500-a-night hotel will require 50,000 points to book. While this isn’t terrible, the value isn’t nearly as strong as it would be by transferring your points to a partner.
When to use American Express Travel for hotels
While using the American Express travel portal isn’t the best value, it does offer some benefits. The hotels listed are not tied to a single brand, giving you more choices for your trip. You’ll also not need to worry about award availability as there are no blackout dates. With American Express Travel, hotels are listed at different prices on different days, so sometimes it might be possible to grab a room for a lower rate than normal if you’re set on not spending any cash.
The point
American Express points offer users a lot of scope for their travel. Transferring to an airline partner is by far one of the best ways to maximize American Express points for travel in 2024, but transferring to hotel partners is also a good option.
As a last resort, using the American Express flights booking portal can offer some value, but it should never be the default option.
Read also: How to Fly to Hawaii Using Points and Miles
by your friends at The Daily Navigator
