What Are Travel Rewards Cards?
Travel rewards cards are credit cards that allow cardholders to get various discounts and benefits. The rewards these cards offer are redeemable toward travel. Some cards allow users to tap into additional benefits such as free airline tickets and free hotel nights. From first-class travelling to complimentary upgrades, free meals, and gas to exclusive access to airport lounges, travel rewards cards offer an array of rewards and promotions that can upgrade your financial habits. Let’s discuss the types of travelers cards and the benefits they offer.
Types of Travel Rewards Credit Cards
There are three main types of these rewards cards.
General travel cards
This type of travel rewards card offers a high level of flexibility in earning and redeeming rewards, as every purchase with a general travelers card allows you to earn reward points1. You earn top rewards every time you pay for dining and travels with your card. Some cards allow you to redeem your points for various travel conveniences, such as zero fees on foreign purchases and TSA precheck global entry.
Airline credit cards
If you’re a frequent user of specific airline services, having an airline credit card with a range of rewards is an excellent way to save money and earn more points. An airline credit card allows you to combine your points with an airline’s loyalty program2. Additionally, you can also use it to earn miles or points. These additional rewards are redeemable toward free checked bags, early boarding, seat upgrades, plane tickets, etc.
Hotel credit cards
Frequent travelers usually have hotel preferences. They choose respective hotels as their primary hosts. If that’s the case with you, you can earn a range of top rewards with a hotel credit card. It allows you to book rooms at cheaper rates. More importantly, some of these cards include accelerated reward point accumulation and other exclusive benefits, such as access to special hotel services, room upgrades, complimentary breakfasts, and more.
How Travel Rewards Work
A travel rewards card allows you to earn rewards in two ways:
- By making your regular purchases;
- By using your card for travel-rated expenses.
Every purchase you make at gas stations, grocery stores, and restaurants with a travelers card earns you more redeemable points. The most lucrative rewards come from dining and travel purchases. All three travelers’ reward cards allow you to earn and accumulate rewards.
Redeem your points for cheaper hotel stays, plane tickets, everyday airport purchases, etc. They also allow you to avoid hefty foreign transaction fees. Additionally, new cardholders get access to new member bonuses. These bonuses typically include reward points for starters. New credit card users can rely on them to understand how point rewards work and how to redeem them toward travel. However, most credit card issuers require you to spend a certain amount to unlock the member bonus points.
Benefits of Travel Rewards Cards
Aside from zero fees on foreign transactions, hotel stay upgrades, and cheaper flights, travel rewards cards offer a few perks that make them more than useful for users. These perks include:
- First-class upgrades;
- Access to premium airport lounges;
- Lost baggage insurance
- Flight cancellation reimbursement;
- Hotel room upgrades;
- Access to exclusive and premium hotel and airport services;
- Free baggage checks;
- Complimentary dining, snacks, and drinks.
Travel rewards cards serve a simple purpose – to make traveling more convenient, enjoyable, and affordable. They offer benefits and high rewards on everyday expenses, rideshares, hotels, and airfare.
Travel Rewards Card Fees
Most travel cards come with annual fees. The best way to find a card that suits your needs is to compare the benefits and the fees. In most cases, the savings you earn from in-flight purchases, reimbursements, priority boarding, and free baggage checking tend to add up to significant amounts.