Buzz
Even if you're hesitant about flying, your travel itch might be strong—especially if you’ve accumulated travel rewards. So what's the optimal way to spend them: points, cash, or a mix? Travel experts share their advice on how to make the most of your points and miles for maximum value.
Booking Hotels: Tips and Strategies
The worth of points and miles can differ between programs—and their value changes depending on where and when you travel—making it hard to assess their true value. Fortunately, NerdWallet provides a comprehensive points valuations guide for each program, helping you determine the best redemption options for various hotels.
Points required for booking * value per point = X
1. Check the total cost of the booking in cash.
2. Input your values into the formula above.
3. You’re getting better value with points if X is lower than paying cash.
(Points required for booking * value per point) + cash for booking = Y
When using both points and cash, you need to factor in one more element to the equation:
1. Determine the total cost of the booking in both cash and points.
2. Input the values into the points and cash formula provided above.
3. You'll get better value for your points and cash if Y is less than paying solely in cash.
How to book flights
You might still feel uneasy about flying, but save NerdWallet’s miles points calculator for future trips. The calculator does the calculations for you and helps you decide whether paying for a flight with cash or miles is the better choice.
Points and cash likely won't give you the best value.
Whether you're calculating manually or using a calculator, you'll typically find that using points and cash isn't the top redemption option. However, NerdWallet points out a few situations where it could still be a viable choice.
If you lack enough points or miles to fully cover your booking, using points and cash could be the next best alternative. Additionally, you might prefer to save cash by reducing your overall spending on the trip, regardless of redemption values.
Another reason could be that you don’t want to accumulate travel rewards indefinitely. There's always the risk of rewards program devaluations or other changes that could reduce the value of your rewards in the future.
