TRAVEL HACKING 101: A BEGINNER’S GUIDE TO THE PROCESS
There are millions of ways to make your budget travel possible. From adopting the sharing economy to embracing the sharing economy to working abroad and volunteering in other countries to finding low-cost flights, travel has never been more convenient or cheaper. Even with the recent pandemic-related cost increase, travel remains affordable, and plenty of bargains are waiting to be discovered.
However, what is the most effective method to cut your expenses even more? The art of travel hacking.
I’ve done this for a long time, which has helped me make more free flights and hotel stays than I could count. If you’re not doing this and not doing it, you’re putting an enormous amount of money in the bank and spending way more on travel than you need to!
What is travel hacking?
The art of travel hacking consists of applying for travel credit cards and accumulating points for credit cards or hotel points and airline miles, which you can use to redeem for flights and hotel stays, flight upgrades, transportation, and many more.
Many sophisticated techniques, tips, and hacks are out there (and we’ll go over many of them within my comprehensive guide on the topic), but most people aren’t sure how to begin. It isn’t easy because of the many programs and credit cards. What is the best card you can get? How can you tell if you’re earning the most points? How can you redeem your points to earn rewards?
Determine your goal(s)
Before hacking your travel plans, the first thing to do is identify the goal(s). What are you hoping to accomplish?
Are you saving up for an extended family trip? Are you only looking for one or two free flights or hotel stays here and there? Or do you want to invest in a significant first-class upgrade? Are you an avid traveler and enjoy perks like lounge access or complimentary upgrades?
There’s no correct answer, so you should consider this. If you’re going into the world of travel hacking and don’t have a plan, You’ll get lost.
It is essential to complete this since it can assist you in choosing the best credit cards and spending strategies to help you reach the goal(s). You can pick from many travel credit cards, and they each have advantages and disadvantages.
For instance, if you’re a frequent flyer with American Airlines, the best cards to start with are AA-branded. This way, you’ll be able to boost your points balance and enjoy the benefits these cards offer (free checked bags, Priority boarding, free checked bags, etc. ).
If you plan to travel to Europe as a United member, you must apply for a card that will provide you with United and Star Alliance points.
Are you a fan of one particular hotel brand? Find the card for that specific brand.
If you want to earn points to use wherever you want, get a Chase, Citi, Capital One, or American Express(r) Card because they allow you to use their points to travel with many different businesses.
Once you’ve decided your goal(s), You can determine the right cards and programs to help you get there.
Apply for a credit card for travel
If you are clear on what goals you wish to accomplish and what perks are essential to you, you can begin looking for credit cards.
Note that travel hacking is not possible without credit cards. It’s impossible to earn enough points without it. It would be best if you learned everything about credit cards and why they’re not so bad as we make their claims.
While many introductory cards are free, the best travel credit cards typically have an annual charge. But, this cost could range from $ 199 to $500 and will usually not be charged for the first year. It is also possible to waive it later when you contact them and ask to cancel your card. I frequently do this to avoid paying the charge.
A lower spending threshold Unfortunately, to qualify for the fantastic welcome bonus the cards typically provide, you must meet the requirement to meet a minimum spending amount within the initial months. I generally opt for cards with an annual minimum of USD 3,000 within three to six months. Although there are methods to temporarily increase your spending, you should try to obtain the reward through regular day-to-day expenditures. You should only apply for a card or cards you can require for the required spend(s) in orderable for the welcome bonus(es). (More about minimum spending conditions in the following step.)
A category-specific bonus: Most credit cards give you one point for every dollar you spend. However, the best credit cards will offer additional rewards when you buy with certain retailers, use their websites, or if the card is a credit card with a brand name or a particular brand. This can allow you to earn points faster.
Unique benefits of traveling Each of these credit cards for travel have great perks. Some will grant you exclusive elite loyalty status or offer other benefits. Travel hacking isn’t just about getting points and miles but also the other benefits that come with the card to make your life simpler!
There are no foreign transaction fees. Credit cards are fantastic to use abroad because you can get the most favorable exchange rate through them. However, if you have to pay an amount each when you use the card, it’s less than ideal. Today, many cards do not charge fees for foreign transactions, and you shouldn’t ever pay the foreign transaction fee.
Get the welcome bonus
As mentioned, the most crucial aspect of applying for the first time is getting a welcome offer. Most cards will offer a bonus when you spend an amount specified in the first few months after receiving a card (usually within the first three months). These bonuses can be massive and often exceed the price of a round-trip airfare.
Naturally, it’s foolish to miss the chance to win a free flight, so be sure you can meet the minimum spending requirement to qualify for the welcome bonus prior before a credit card. If you cannot fulfill the spending need, there’s no reason to bother joining.
This could be waiting until the next major purchase (e.g., wait until you require a new computer, new sofa, etc.) or putting off a major holiday, like Christmas or a special someone’s birthday, to accrue more points than usual spending.
If none of that seems sufficient, then you’ll have to be inventive.
For instance, if you take a trip out for dinner, you can pay for the bill with your credit card and let everyone else pay back. So, the price will be credited towards the minimum amount you need to spend. Also, if your relatives or friends are planning significant purchases and you want to know if they could put them on your credit card to receive points. It’s an excellent method to reach the minimum expenditure without shopping until you’re stuffed.