How can your credit card help you cut travel costs? | The Financial Express

How can your credit card help you cut travel costs?

If you are a frequent flier and exploring ways to cut your travel costs, then credit cards can help you. Here’s how.

How can your credit card help you cut travel costs?
Some credit card companies offer their card users to convert the reward points to book flight tickets or to book hotel rooms.

The cost of staying in hotels and booking travel tickets is going up on a regular basis. If you are a frequent flier and exploring ways to cut your travel costs, then credit cards can help you. Here are a few hacks that can help you cut your travel costs.

Check Offers and Discounts

Before booking a ticket or a hotel room, check what offers you are getting on your credit card. You may check benefits on the website or mobile app of the credit card company. Usually, a travel agent offers discounts or cashback only if you use the credit card with which they have a tie-up. If you have a credit card, can get benefits like reward points, discounts, and additional offers. Do compare the offers of different vendors before using your credit card.

Use A Co-Branded Credit Card

A regular credit card may not have offers related to flight tickets and hotel bookings all the time, but if you have co-branded travel credit cards then you can enjoy the benefits like cash back, higher reward points or discounts on every travel-related transaction. In co-branded credit cards, the card company and the travel booking agent launch a card in partnership. The travel credit card offers higher benefits on spending through associate merchant partners. For example, if you book a ticket using a travel credit card from the associate travel agent, then you can get the benefits on each transaction as mentioned on the card’s agreement page.

Also Read: Top 5 investment options to secure the future of your children

Adhil Shetty, CEO, Bankbazaar.com, explains, “Travel credit cards offer you travel deals and discounts, lounge access, and accelerated rewards on travel-related spends. If you’re buying a premium card, there could be gift vouchers, curated experiences, and cheaper forex. If you’re using a co-branded travel card, you can get accelerated rewards for travelling with your preferred brand. You can use a combination of cards to maximise your rewards in order to cut down your travel costs. You can maximise your benefits if you know your credit card well.”

Use Reward Points

Some credit card companies offer their card users to convert the reward points to book flight tickets or to book hotel rooms. Such cards normally allow paying the travel booking amount partially through reward points and the rest through the card. Usually, card companies allow using the reward points to book flight tickets or hotel rooms through their web/app platform. It can be a great option if you have a high reward point balance.

Dining at Airport Lounge

Dining can cost heavily at airports. If you are using a credit card that offers free airport lounge access, it can save you lots of money towards dining. You can sit in a lounge, enjoy the food and get free access to high-speed internet as well.

Reward Point Expiry

The reward points on your credit cards have an expiry period. You make use of those points before the expiry. Some card companies allow you to convert the reward points into air miles. It can help you enhance your rewards balance. Later you can use the air miles to book flight tickets or to upgrade the flight seat or avail other related benefits.

While using credit cards for travel-related spending, carefully compare the charges levied on them. Avoid overspending and make the maximum use of your credit points if you are getting a good deal.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 23-11-2022 at 09:00 IST