What is travel hacking? A Beginner’s Guide to Using Points and Miles

Over the last five years, points and miles have helped us visit Zurich, Copenhagen, Lisbon, Barcelona, Madrid, Edinburgh, Dublin, Vienna, Costa Rica, Vancouver, and Montreal. They’ve helped us explore dozens of U.S. states and national parks, and take trips that would have been significantly more expensive if we had paid entirely out of pocket. And that’s all thanks to travel hacking.

Travel hacking is the practice of earning and redeeming points and miles to reduce the cost of travel. While the term may sound intimidating, the concept is actually pretty simple. You earn points and miles through credit cards, airline and hotel loyalty programs, shopping portals, dining rewards programs, and other promotions. You then redeem those rewards for flights, hotels, rental cars, cruises, and other travel expenses for free or significantly reduced travel costs.

For some people, that means booking luxury resorts or international business class flights. For others, it means visiting family, taking a weekend getaway, exploring a national park, or crossing destinations off a bucket list that may have otherwise felt out of reach due to cost.

We’ve used points and miles for all kinds of trips. Some have been luxury redemptions. The majority have been more cost-effective ones. What they all have in common is that they helped us travel while spending less money.

How Travel Hacking Works

At its core, travel hacking is simple: earn points and miles, save them, and redeem them for travel.

The details can get more complicated or more intricate as you dive deeper into the hobby, but that’s really all there is to it.

Most travel hackers earn rewards from a combination of credit cards, loyalty programs, and everyday spending. Those rewards accumulate over time and can then be redeemed for flights, hotels, rental cars, cruises, and other travel expenses.

The key is understanding both sides of the equation. Earning points is important, but knowing how to use them is where you can find significant value.

Step 1: Earn Points and Miles

The fastest way most people earn a meaningful amount of points is through credit card welcome bonuses.

For example, a travel rewards card may offer tens (or hundreds) of thousands of points after meeting a minimum spending requirement. Depending on the credit card provider and where you’ve accrued points, that sign-up bonus alone could be enough for multiple domestic flights, a few hotel nights, or a significant discount on an international trip.

Beyond welcome bonuses, points can be earned through:

• Everyday spending
• Airline flights
• Hotel stays
• Shopping portals
• Dining rewards programs
• Referral bonuses
• Travel promotions

One of my favorite aspects of travel hacking is that many points and miles earning opportunities can be stacked together.

Let’s say you’re buying something online. You might earn points from your credit card, additional rewards through a shopping portal, and potentially miles through my favorite travel hacking app. Those small earnings add up surprisingly quickly.

Step 2: Build Your Points Balance

As you continue earning points and miles, you’ll likely begin building balances across different programs.

Some travelers prefer flexible points currencies such as Chase Ultimate Rewards, American Express Membership Rewards, Capital One Miles, or Citi ThankYou Points. Other people focus primarily on airline miles or hotel points because their loyalty has earned them status.

For beginners, I generally recommend flexible points because they provide options.

Rather than being locked into a single airline or hotel chain, flexible points can often be transferred to multiple travel partners. That flexibility can make it easier to find award availability and adapt your strategy as your travel goals change.

Step 3: Redeem Your Points

This is where the fun begins. Once you’ve accumulated enough points and miles, you can start using them for travel.

Depending on the program, you may be able to:

• Book flights directly through an airline
• Redeem hotel points for free nights
• Transfer points to airline partners
• Transfer points to hotel partners
• Book travel through a credit card travel portal
• Offset travel purchases using points

There are often multiple ways to use the same points, which is why understanding your options can significantly impact the value you receive.

Common Travel Hacking Myths

One of the reasons people hesitate to get started travel hacking is because they’ve heard misconceptions about the hobby. Let’s clear up a few of the most common myths.

Myth #1: You Need to Be Rich

Travel hacking works best when it builds on spending you’re already doing.

All points should be earned from purchases you would make regardless of if you were trying to travel hack, including groceries, gas, dining, utilities, streaming services, insurance premiums, and travel expenses. Spending money just to earn points pretty much defeats the point of travel hacking.

The goal isn’t to spend more money. The goal is to earn more rewards from the money you’re already spending.

Myth #2: You Need a Wallet Full of Credit Cards

If you’ve spent time in points and miles Facebook groups, you’ve probably seen people with dozens of credit cards. That approach works for some travelers, but it’s not necessary if you want to travel hack. Many people successfully travel using just one or two credit cards.

You don’t need a complicated setup to get started. In fact, learning to earn and use points in one rewards program well is more valuable than opening multiple cards right away just to earn points.

Myth #3: Travel Hacking Is Only for Luxury Travel

Luxury travel tends to dominate social media because it’s visually appealing and gets a lot of clicks. Those people sitting in first class enjoying champagne while in a lie-flight seat. Looks amazing, right? And when you see them saying “I got this $5,000 seat for free”, it makes you interested. I get it.

But many travelers use points for less glamorous purposes. Flights home for the holidays. One-night hotel stays during road trips. Family vacations. Weekend getaways. National park trips.

Luxury travel is one possible use of points and miles, but it isn’t the only use.

Myth #4: Every Redemption Needs to Maximize Cents Per Point

We never calculate cents per point before redeeming our points and miles. If we do calculate it ever, it’s after booking just out of curiosity. For some people, that’s the number one consideration for booking a trip. And if you care about that, by all means, check the calculation.

The best redemption isn’t necessarily the one with the highest “value”. The best redemption is the one that helps you take the trip you want to take.

If points save your family hundreds or thousands of dollars on a vacation you were already planning, that’s a successful redemption.

The Different Ways to Earn Points and Miles

One of the reasons travel hacking is so accessible is that there are numerous ways to earn rewards.

Credit Card Welcome Bonuses

For many travelers, welcome bonuses are the foundation of a travel hacking strategy.

A single bonus can often provide enough points for a meaningful trip, making it one of the fastest ways to build a rewards balance.

Everyday Spending

If you’re interested in travel hacking, you need at least one credit card that earns points, not just cash back. The majority travel rewards cards offer elevated earnings on at least one frequently used category.

Whether you’re buying groceries, filling up your gas tank, dining out, or paying for travel expenses, those purchases can contribute toward future trips.

Airline Loyalty Programs

Airlines reward travelers with miles based on flights and other partner activity.

Over time, those miles can be redeemed for future flights and travel benefits. United, for example, offers cardholders a minimum of a 10% discount on all flights that miles are redeemed for, which is a great perk if it makes sense for you. And since we fly out of O’Hare and are loyal to United, this is one that keeps a United card in our wallets.

Hotel Loyalty Programs

Hotels offer points for stays, promotions, and partner activity.

Those points can later be redeemed for free nights and other travel perks.

Shopping Portals

Shopping portals are one of the easiest ways to earn additional points.

By clicking through a portal before making an online purchase, you can often earn bonus rewards on top of what your credit card already earns. Portals like Rakuten or an airline shopping portal frequently offer elevated earnings throughout the year, making it possible to earn 10, 15, or 20x rewards on purchases you were making anyway.

Dining Rewards Programs

Several airline and hotel programs offer dining rewards.

By linking a credit card and dining at participating restaurants, you can earn additional points without changing your spending habits. You link it once and never have to think about it again, except when you’re pleasantly surprised that you got some points and miles without realizing.

Why I Love Flexible Points

If you’re just getting started with travel hacking, you’ll quickly discover that not all points are created equal.

Some points are tied to a specific airline or hotel program. Others are more flexible and can be transferred to a variety of travel partners. I’m a big fan of flexible points currencies for beginner travel hackers because they give you options.

Let’s say you’re planning a trip to Europe. You may be able to transfer points to an airline partner for flights. Those same points could be transferred to a hotel program. instead If award availability changes or your travel plans shift, flexible points give you the ability to adjust your bookings.

Over the years, we’ve transferred points for flights to Europe, hotel stays throughout the United States, and trips that looked very different from one another. Having options has often made it easier to find a redemption that works for the trip we’re planning rather than being limited by having just one type of points.

That’s one reason I frequently recommend beginners start with a flexible points ecosystem rather than focusing exclusively on a single airline or hotel program.

How I Approach Travel Hacking

Everyone develops their own philosophy when it comes to points and miles. I take a practical approach and figure out how points and miles can help our trips cost less.

Over the years, points and miles have helped us visit Europe, Costa Rica, Canada, national parks, major cities, and destinations throughout the United States. Some of those trips involved fancy hotel stays. Most involved “regular” hotels that simply met our needs.

A few years ago, I never would have imagined using points for a stay at Alila Ventana Big Sur. A free hotel night during a road trip or flights that save hundreds of dollars was more our speed.

In my view, the goal of travel hacking isn’t finding the perfect redemption or the one with the maximum cents per points. There isn’t a perfect redemption if you never take the trip because you’re so worried about the research that you just hold onto your points and miles. The goal is taking the trip.

Common Travel Hacking Mistakes to Avoid

Like any hobby, travel hacking comes with a learning curve. Fortunately, many of the most common mistakes are easy to avoid.

Carrying a Balance on a Rewards Card

Travel rewards are only valuable if you’re paying your credit card balance in full every month.

Interest charges can quickly outweigh any points or miles you earn. If you’re carrying a balance, focus on paying that down before pursuing travel rewards.

Spending Money Just to Earn Points

One of the biggest misconceptions about travel hacking is that you need to spend a lot of money. You don’t.

The best travel hackers earn rewards on spending they were already planning to do. Buying things you don’t need just to earn points rarely makes financial sense.

Hoarding Points Forever

You need to earn and burn. Points are meant to be used. Programs change. Award prices increase. Devaluations happen, frequently. Points and miles are like “real” money, they depreciate in value over time.

While it’s good to save points for future trips, I prefer earning points and using them when the opportunity comes up rather than letting them sit unused for years.

Waiting for the Perfect Redemption

I’ve seen people spend months researching transfer partners, award charts, and redemption values while never actually booking anything.

Travel hacking should make travel easier, not harder.

If you’ve found a redemption that helps you take a trip you want to take and you’re using your points, don’t overthink it. Book the trip.

How Beginners Can Get Started

If you’re new to travel hacking, my advice is simple: start small.

You don’t need to learn every airline loyalty program. You don’t need to memorize award charts. You don’t need ten credit cards.

Start with a beginner-friendly travel rewards card, like the Chase Sapphire Preferred.

Learn how that rewards program works. Earn the welcome bonus.

Book a trip.

Once you’ve gone through the process once, the entire hobby becomes much easier to understand.

You’ll learn more from booking your first award flight or hotel stay than you will from spending months researching redemptions. The most important step is simply getting started.

Frequently Asked Questions

Is travel hacking legal?

Yes. Travel hacking involves using legitimate loyalty programs, credit card rewards, promotions, and points currencies exactly as they were designed to be used.

Do you need credit cards to travel hack?

No. You can earn points and miles through flying, hotel stays, shopping portals, dining rewards programs, and promotions. However, credit card welcome bonuses are often the fastest way to earn a significant number of points.

How many credit cards do you need?

There is no magic number. Some people successfully use a single rewards card, while others manage multiple cards in order to maximize their earnings. Beginners can absolutely start with just one card.

What are the best points programs for beginners?

Flexible points programs are a great starting point because they provide multiple redemption options. Programs like Chase Ultimate Rewards allow you to redeem points in several different ways rather than tying you to a single airline or hotel chain.

Is it hard to travel hack?

The good news is it’s not hard to travel hack. If you have a credit card that you’ve been paying off in full for years, you’re doing the primary thing needed to accrue points and miles.

The more challenging part can be searching for redemptions and actually using your points. Once you’ve mastered travel portals, it becomes much simpler.

Will it take a long time to earn points?

Yes and no. If you don’t open cards frequently for sign-up bonuses, it can take a while to earn enough points for a massive redemption. But through strategic spending and using existing resources like shopping portals, you can earn a free trip faster than you think.

Can travel hacking really save thousands of dollars?

Absolutely. Over the last several years, points and miles have helped us save thousands of dollars on flights and hotels while visiting destinations across Europe, Canada, Costa Rica, and the United States.

Final Thoughts

Travel hacking is probably my favorite hobby because it has consistently helped us travel more while spending less.

Over the last several years, points and miles have helped us visit destinations across Europe, Canada, Costa Rica, and the United States. They’ve made family vacations more affordable, reduced travel costs, and opened doors to experiences we may have otherwise skipped.

There is no right or wrong way to travel hack. If you have a credit card and strong financial habits, you’re halfway there. There is a way to make travel hacking fit for you, your spending, and your travel habits.