This post is an introduction to concept of points transfers. This guide about points to transfer is all you need to know to start a rewarding journey.
What is reward points or frequent flyer miles?
Before we try to understand points transfer, it’s important to know what are miles. Many credit card issuers have rewards programs that allow cardholders to earn points for their spending. Airlines offer frequent flyer programs to reward customers for their loyalty. Passengers earn miles for each flight, and these miles can be used to redeem free flights, upgrades, or other travel-related perks. Other way of earning a mile or hotel reward is to convert them.
Treat it as a strong digital currency.
What is Points transfer
“Points transfer” typically refers to the ability to move or convert loyalty points or rewards from one program to another. This is commonly seen in credit card rewards programs, hotel loyalty programs, airline frequent flyer programs, and other similar systems. For eg, you can transfer Amex India points to 10 different hotels or airlines.
You can have a look at this step by step guide to transfer your Amex Membership reward points to Club Vistara.
Why should you transfer points?
There are number of reasons to use points transfer.
- You don’t find any better redemption opportunities with your card.
- Your points are expiring.
- Revenue cost of your flight is higher than reward points.
- You have an ongoing bonus offer
- You can book flights for even cheaper points.
- Price won’t matter, you just want to reach Paris to surprise your parents / spouse / kid.
- You need to relax in a 5 star hotel without worrying about the price.
- Treat yourself in a business class which you may never buy with cash.
When transferring points isn’t a good deal
With some airlines and credit cards, transferring points from your credit card to a frequent flyer program may not always be a good deal.
Some credit cards that offer the option to transfer points to a frequent flyer program do so on a 1:1 ratio, meaning 500 credit card points could be transferred for 500 airline miles. But occasionally, that’s not the case. Sometime it may not make sense to convert from your hotel to airline, even when there is an ongoing bonus like this from Accor to Emirates. It devalues your points drastically.
Conclusion
Flexible point currencies are the most valuable asset in the world of travel rewards. Understanding the transfer partner landscape helps shape your travel rewards strategy. One should definitely hold a credit card which gives this feature.