Are “Free” Tickets Really Possible?
Even if tickets purchased with a credit card appear to be “free,” taxes, fees, and fuel charges are usually passed on to the user. For example, an economy class ticket from New York to London may cost nearly $200 in taxes, even if it is purchased for 60,000 miles. For the same destination, some airline programs may require only 60,000 miles, while others may require up to 90,000 miles. This difference directly affects the value of the points.
Someone looking to book a ticket with Delta SkyMiles may spend 100,000 miles if they use their points at the last minute, while someone who books the same ticket a month in advance may only spend 45,000 miles. These differences are not systematic and are constantly updated by algorithms. Some premium cards can make 25-50% more of the points they earn valuable for ticket reservations. For example, Chase Sapphire Reserve points are worth 50% more when used for travel reservations.
The Value of Points: 1 Cent or 5 Cents?
Most travel-focused credit cards in the US market assume that each point is worth 1 cent. However, in a well-optimized travel booking, you can get 4–5 cents per point. The value of points is not just about the quantity but also directly related to “what they are spent on.” The value per mile for first-class tickets can be up to three times higher than for economy class. Using Marriott Bonvoy points to purchase airline tickets generally provides a poor exchange rate. The same number of points can be used for three nights at a hotel, but only for one flight segment.
Transfer Partnerships: The Real Power
Points from major banks such as American Express, Chase, and Citi can be transferred directly to airline miles. This often means much more valuable use than the ticket price. For example, 100,000 Amex Membership Rewards points transferred to Emirates can be used to purchase a First Class ticket from Dubai to New York. The cash value of this ticket could exceed $10,000. British Airways Avios points offer a “sweet spot” for short-haul flights. For example, an economy flight from Boston to New York can be purchased for 4,500 points. The cash price can exceed $200.
Card Selection: Not All Points Are Equal
Some cards give loyalty points, while others give direct “travel credit.” Cards such as Capital One Venture allow points to be used like cash, while cards such as Chase Sapphire offer greater value through transfers. Conversion rates vary between card point systems. Citi ThankYou Points can be transferred to Singapore Airlines, while Capital One points are not as flexible. For someone who only travels a few times a year, points that are easy to use (such as Capital One) make more sense, while frequent flyers will get more value from airline transfer partners.
Regional Advantages: Same Card, Different Value
For someone living in Canada, tickets purchased through the Aeroplan program (Air Canada) offer more flexibility than most credit card programs in the US. With the same points, you can book three different flights within Canada, while in the US, even a one-way flight can be difficult. In the UK, the British Airways Avios system has very high taxes and fees for flights departing from London. The same points are worth almost nothing on a reservation departing from Bangkok. In some countries, such as India and Japan, the “fuel surcharge” is not applied by airlines, so tickets purchased with points can cost almost nothing.
Planning Timing: When Are Points Worth the Most?
Miles & Points experts indicate that points typically reach their highest value when booked 9-12 months in advance. Last-minute bookings during peak seasons like summer and New Year's can become nearly worthless. Some airlines update their systems daily in the morning. Reservations made during these hours may show more award seats (seats available for points).
“Stacking” Tactics: Methods for Double Rewards on the Same Flight
Some users have developed methods to earn multiple points from the same travel reservation. For example, flight reservations made through the American Express Travel portal earn both Amex points and miles in the airline's own loyalty program. Some users purchase the flight through a credit card portal and then contact the airline to manage the reservation via the PNR number and manually add their frequent flyer information. This way, miles are earned in both systems. Some cards offer 5X points on purchases made with certain airlines. When combined with the airline's own promotions (“bonus mile events”), these features can increase the stacking value several times over.
The Real Strategies of “Travel Hackers”
Some travel enthusiasts in the US are able to make more than 20 flights a year entirely with points. Most of these individuals open multiple credit cards, take advantage of each card's welcome bonus, and build large point pools. Some professional point earners actively use over 10 credit cards at the same time. They track each card's cycle, bonuses, and calendar using Excel spreadsheets. In a method called “manufactured spending,” people purchase gift cards and convert them back to cash to generate points through artificial spending. This method is now banned by many banks, but there are still examples of it being used legally.
Rare but High-Yield Promotions
Chase card users are offered special promotions such as “40% Bonus Avios” during certain periods. For example, transferring 100,000 points yields 140,000 Avios. These rates appear only once or twice a year but can increase the value of a flight ticket by up to 40%. In American Express's “targeted offer” system, bonuses of 150,000 points are offered exclusively to specific users. Some of these offers are sent to long-inactive customers rather than users who have never opened the card. Singapore Airlines' “KrisFlyer Spontaneous Escapes” promotion is updated monthly and requires up to 30% fewer miles on certain routes. These promotions are only valid for 1–2 weeks but offer a high value/reward ratio.
The Psychological Impact of Purchasing Flights with a Credit Card
Research conducted among users has shown that tickets purchased with points are perceived as less valuable. For this reason, some users feel that they are enjoying luxury without taking too much risk when they purchase Business Class tickets with points. This psychological phenomenon is incorporated into the marketing strategies of credit card companies. Slogans such as “The privileges you deserve” give users the feeling that they are being rewarded not with their own money but with something they have “earned in some way.” Some people report that after flying Business Class for the first time using points, they do not want to return to economy class by paying cash. This creates a “conditioning” effect that increases credit card loyalty.
Cross-Program “Sweet Spot” Hunting
A United MileagePlus business class flight with a layover between Tokyo and Saigon can be booked for just 35,000 miles. The cash equivalent of the same ticket can exceed 1,200 USD. ANA Mileage Club members can book a first-class ticket on flights departing from Japan for around 50,000 miles. This equates to approximately 20-25 cents per mile. On Qatar Airways' Qsuite cabins, some Europe-Asia flights departing from Doha can be booked for just 70,000 Avios. Cash tickets for these cabins can cost up to $3,000.
Avoiding Airport Taxes and “Incidental Fees”
At some airports like London Heathrow, taxes on award tickets can exceed 500 USD. However, the same route departing from Brussels or Amsterdam can drop to as low as 150 USD. Therefore, the “flight departure point” should be strategically chosen. On some Lufthansa award tickets departing from Germany, the total tax required for business class is only 20–30 USD more than economy class. Tax optimization can be done when spending points.
Inter-card Point Transfer: Advantages and Hidden Risks
In systems that allow points to be transferred directly to airlines (e.g., Amex Membership Rewards, Chase Ultimate Rewards), the transfer is irreversible. This means that once you transfer your points to British Airways, you cannot transfer them back to Amex. Transfer transactions are instant in some airlines (such as Aer Lingus and Air France), while in others they can take several days. During this time, ticket availability may be lost and the points will be “locked.”
Airline programs sometimes change their rules suddenly. For example, in 2021, Emirates increased the mileage requirement for First Class tickets by 50% without prior notice. After a transfer, the points remain in that system and become “locked value.” Before making a transfer, you must register with the airline's program and ensure that the system matches your personal information. Even the slightest difference in name can result in the transfer being canceled or suspended.
Which Points Lose Value Over Time?
Delta SkyMiles points become less valuable each year due to “SkyMiles inflation.” Many experts note that Delta points are now “cash-like” because they are approaching the cash equivalent system. United MileagePlus switched to dynamic pricing after 2020. This means it has become much harder to find tickets using points on popular routes, and the value per mile has started to decline.
American Express Membership Rewards points generally remain more stable because the transfer systems are very diverse. However, program changes by some transfer partners can indirectly affect the value of AMEX points. In systems like Southwest Rapid Rewards, each point is fixed at approximately 1.2 cents. These systems aim for stability rather than big gains.
Most Common Mistakes
The most common mistake users make is using points as shopping credit or statement credit. For example, using Chase points to shop on Amazon only gives you 0.8 cents per point. The same points could be worth 1.25–1.5 cents toward travel. Some users may want to cancel their ticket reservation and get their miles back. However, many airlines apply tax deductions or cancellation fees even if they refund the miles. For example, Lufthansa may charge a €100 penalty for canceling a Business award ticket.
Baggage allowance is not always automatically included when purchasing tickets with points. Especially with low-cost airlines, award tickets in economy class may only include carry-on luggage. Those who do not purchase a ticket after a transfer sometimes leave their miles unused for years, and the miles expire. For example, in the Asia Miles system, miles are deleted after three years, even if they are “actively used.”
Earn by Timing, Not Spending
Some card campaigns offer extra points for purchases made on specific days of the month. For example, Chase Freedom selects a category each quarter and offers 5X points on purchases made in that category. Users who miss this bonus receive 1X points for the same purchases. Business cards offer much higher bonuses than personal cards. For example, Amex Business Platinum may offer a 35% point rebate on purchases over $5,000. It is possible to accumulate points not only on travel, but also on large fixed expenses such as tax payments or rent. In the US, some systems (such as Plastiq) act as intermediaries for such payments with credit cards and allow you to earn points.
Secondary Benefits: Beyond Free Tickets
Some credit cards not only allow you to purchase tickets with points, but also offer perks such as free lounge access, priority boarding, extra baggage, or accommodation insurance in case of flight delays during your trip. For example, Capital One Venture X users can access over 1,400 lounges worldwide for free with Priority Pass. The market value of this service is around $400 per year. The Chase Sapphire Reserve card offers “travel interruption insurance” that reimburses users for expenses in the event of flight cancellations or baggage delays. This feature is unknown to most people but can make a significant difference in critical situations.
Is it possible to upgrade with a free ticket?
Upgrading “reward tickets” purchased with credit card points to business or first class is generally not possible. Airlines classify such tickets as non-upgradable. However, there are some exceptions. With premium airlines like Singapore Airlines, if you purchase a “standard award” ticket instead of a saver class ticket, you can upgrade for additional miles. This requires more miles overall but makes it possible.
United Airlines offers upgrade options using points to members of its loyalty program on certain flights. However, this is only available if there are seats available on the flight, and the waitlist is often long. Credit cards linked to the airline (e.g., United Explorer Card) offer a higher chance of free upgrades because these cards contribute to status upgrades. If you have status, an upgrade may be possible before the flight, even if the ticket type is not eligible.
Flight + Hotel Combinations: Hybrid Reservations with Points
Some credit cards offer extra points or promotions when flight and hotel reservations are made at the same time. For example, when booking both a flight and a hotel through the Chase Travel portal, you may see promotions such as 10% point rebates. Marriott Bonvoy points offer significant advantages when converted to flight + hotel packages. For example, instead of a single hotel night with 100,000 points, you can get a package with 5 nights' accommodation + 50,000 airline miles. Amex Travel offers “vacation bundle” promotions during certain periods. In these packages, fewer points are deducted for the ticket, and hotel reservations can be made at a lower fixed rate.
Future Point Systems: Blockchain & Digitalization
Some fintech startups (e.g., FlyCoin) aim to transfer airline miles to a blockchain infrastructure, enabling users to sell these points as NFTs. Thus, points could become not just loyalty tools but also commercial assets. Some U.S.-based startups have established “miles exchange rate tracker” systems to make the value of points transparent.
These systems analyze each airline's mile-to-cent ratio in real time and tell users where it is most advantageous to use their points. Some airlines, such as Emirates, have already begun developing blockchain-based loyalty programs. The goal is to enable instant point transfers, transparently display value loss, and prevent speculative use.
The Strange Side Effects of Traveling with Points
Some users lose their sense of real prices because they constantly fly for free with points. They say, “I got this for 80,000 miles,” without realizing that the ticket was actually worth $4,000. This can lead to excessive complacency in vacation decisions. Some users based in India are using virtual addresses to access promotions in the US, applying for cards, and then leaving the system after transferring their points.
This has led some banks to tighten their “location fraud” analysis. Flight point addiction (yes, it exists) has turned into a real obsession for some users. An online subculture has formed where people post 40-50 messages a week asking, “Which airline has the best redemption deal for this date?”
Is it reasonable to accumulate miles without planning a trip?
Experts emphasize the importance of setting a goal when starting to accumulate points. This is because point systems are constantly changing, and miles accumulated one year may not hold the same value the next. Additionally, some banks may cancel bonuses for cards that remain inactive for a certain period. For example, Amex may not refund points for cards that are not used sufficiently by the end of the first year. Users who accumulate points without a goal usually spend them on purchases and miss out on big rewards. However, strategic use for travel can provide 3–4 times more value.
Interesting But True: Some Tickets Can Only Be Purchased with Miles, Not Cash
Some special flights with Japanese airline ANA can only be booked through their loyalty program. For example, a special First Class Tokyo–Los Angeles flight can be booked with miles but is not available for purchase with cash. Some Qatar Airways Qsuite routes are placed on a waitlist for cash bookings but offer immediate confirmation with points. This demonstrates that miles can sometimes be a more powerful “currency” than cash.