How to avoid travel rewards inflation

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Even though travel is still a bit different from how it was two years ago, things appear to get back on track, as both hotels and airlines are finding it difficult to keep up with demand. And this is normal, as a lot of consumers are now booking trips and redeeming those travel rewards they earned, even during the pandemic.

However, it appears that the latter can be quite an issue for hotels and airlines, as the ridiculous quantity of rewards issued over the past year could put them at risk!

It’s all about inflation

Technically speaking, inflation can be translated as the decrease in purchasing power of money. And, of course, it can apply to travel rewards. With airlines and hotels trying to eliminate points of their balance and reduce loyalty program’s risks, they will try charging more for award redemptions.

How can you avoid inflation when it comes to rewards? Stick with us, as we’ll share a few tricks!

Opt for transferable rewards and avoid brand-centered points

For example, American Express Membership Rewards is one of the safest options right now, as they can be easily transferred to various airline and hotel loyalty programs. Therefore, cardholders will have more options to take advantage of each loyalty program and get the most from their points!

On the other hand, brand-specific points don’t offer you the option to redeem them for different airlines or hotels, so you’re stuck with using them with the issuer.

Earn and spend. Rapidly!

There are a lot of points owners who are really proud of their millions of points. However, for the average consumer, owning way too many points can put you in a situation in which travel rewards lose their value. In this case, the solution remains to spend them as quickly as possible, right?

Well, yes. And no.

It’s not actually advantageous to throw away travel rewards on gift cards or basic merchandise purchases that have a lower value per point. Instead, act quick, and don’t forget that, in the end, you’re trying to earn these rewards for new travel experiences. Spend wisely, that is!

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