Dream Trip on Points: How to Make 2023 Your Year of Free Flights and Hotels

Dream Trip on Points: How to Make 2023 Your Year of Free Flights and Hotels - Maximize Sign-Up Bonuses for New Cards

One of the best ways to boost your points and miles balance quickly is to take advantage of sign-up bonuses on new credit cards. These offers give you a large lump sum of points, typically between 30,000 and 100,000 points, just for spending a certain amount during the first few months. If playing your cards right, you can easily rack up hundreds of thousands of valuable points and redeem them for almost free flights and hotel stays.

The key is applying for cards that align with your travel goals. Are you loyal to one airline or hotel brand? Target their co-branded cards first. Do you want maximum flexibility? Aim for transferable points like Chase Ultimate Rewards that can be moved between airline and hotel partners. Also consider which points currencies you need to top up. 75,000 American AAdvantage miles could get you to Europe in business class, while 60,000 Marriott points may cover several hotel nights.

To maximize bonuses, space out applications every 2-3 months. Issuers often deny applicants who have opened too many new accounts recently. Check your credit report before applying to understand your approval odds. While each hard inquiry causes a small, temporary score drop, the best rewards cards require good credit.

Meet minimum spend requirements organically instead of overspending, if possible. Use new cards for essential purchases you’d make anyway, like groceries and gas. Manufactured spending techniques like buying gift cards should be a last resort. Also consider paying taxes, insurance, or rent with a credit card if the merchant allows it.

Once you earn the bonus, decide whether to keep or cancel the card. Annual fees can eat into your savings, but perks like free checked bags or elite status may justify the cost. Downgrade to a no-fee version of the card if available. Cancellation should be a last option since closing accounts can impact your credit utilization and history.

Dream Trip on Points: How to Make 2023 Your Year of Free Flights and Hotels - Transfer Points between Programs for Maximum Value

Once you've built up a healthy stash of points and miles, it's time for advanced maneuvers like transferring between loyalty programs. This unlocks amazing redemptions you can't get by only using points in one closed ecosystem. The three major flexible currencies - Chase Ultimate Rewards, American Express Membership Rewards, and Citi ThankYou Points - all allow transfers to multiple airline and hotel partners.

For example, I recently booked an insane value redemption using Amex, British Airways, and American Airlines. I transferred 60,000 Amex points to British Airways Avios. This got me a one-way business class ticket on American Airlines from New York to Los Angeles, flying on their flagship Boeing 777-300ER. Cash price was $2,500 but I paid just 25,000 Avios plus $11 in taxes and fees. Wait, why was this so cheap?

The key is British Airways uses distance-based award charts, not regions. So a cross-country US flight prices much lower than say, New York to London. American Airlines is a partner so those Avios can be redeemed for their flights. This is called an "open jaw" booking, returning from a different city than your origin. LA to New York would cost another 25,000 Avios booked separately.

To unlock maximum value, study airline alliances and award charts carefully. Oneworld alliance members like American, British Airways and Qantas pool their miles with reasonable transfer rates between programs. Same for Star Alliance members United, Air Canada and Singapore Airlines. Transferring from a flexible program into one of these airlines before redeeming can lead to spectacular deals.

On the hotel side, Marriott Bonvoy has over 30 airline partners. Points transfer at a 3:1 ratio into Asia Miles, Turkish Airlines Miles&Smiles or other programs. This can help top off accounts for an award ticket. Hyatt also has airline partners including United, British Airways and more.

Even just transferring flexible currencies between the same program can open options. For example, transferring Chase Ultimate Rewards to Hyatt before booking often leads to better redemptions than using UR directly. That's because Hyatt's award chart has better rates than Chase's portal. Always check award availability before transferring to be safe.

Dream Trip on Points: How to Make 2023 Your Year of Free Flights and Hotels - Use Points for Long Haul Business Class Flights

Scoring those fully-flat seats for an overnight hop across the pond or a marathon journey to Asia often requires a small fortune in cash fares. We're talking $5,000, $10,000 or more for a roundtrip in the pointy end. Thankfully miles and points can make these dreams come true at a fraction of the price.

Long haul business class awards represent one of the holy grails of travel hacking. Flying in style without breaking the bank is one of the biggest reasons we play the points game. Polishing off a 5-course meal paired with vintage wines at 35,000 feet beats cramming into a cramped economy seat any day.

Most programs use regional-based award charts pricing one-way business class tickets between 60,000 to 100,000 miles depending on the zone. With a single signup bonus you could have enough for a one-way. The value is tremendous - potentially getting over 10 cents per point compared to buying a revenue fare. Partnerships extend your options across the major alliances. United, Air Canada and Lufthansa pool their miles while American, Qantas and British Airways do the same.

Jenna raved about the spacious business class cabin onboard the EVA Air Boeing 777-300ER from Bangkok to San Francisco. She paid just 80,000 United miles transferred from Chase Ultimate Rewards. Lay-flat seats, Givenchy pajamas and lobster mac and cheese made it feel like a first class experience.

Meanwhile, Alex fulfilled his dream of flying home to Australia on the A380 upper deck using 60,000 American AAdvantage miles transferred from Citi. He stretched out across the long cabin on one of the largest jets in the world. Swanky lounge access, pajamas and unlimited wines made the 14 hour journey fly by.

Securing the award seats takes planning and flexibility. Airlines block off lots of business class space for elite members and paid travelers. Using points, you're left competing for the left over scraps. Investing in airline status can help increase chances of waitlist clearing. Consider off-peak seasons and inconvenient routes to open availability. And have back-up plans in case your top choice isn't bookable.

Dream Trip on Points: How to Make 2023 Your Year of Free Flights and Hotels - Find Sweet Spot Redemptions with Awards Charts

Legacy carriers like United and American use region-based award charts. Prices are grouped into buckets - say, North America to Europe costs 60,000 miles roundtrip in business. But the distances within each region vary wildly. Flying San Francisco to London is over 5,000 miles while New York to Dublin is only 3,000 miles. Yet they cost the same!

This is where sweet spots emerge. You can stretch your miles further by targeting routes in a region with shorter distances. Fly from Boston to Dublin instead of Seattle to London and your points go further since you're paying the same for less flying. Always calculate cents per mile when redeeming to understand true value.

Partner award charts also hold sweet spots. Alaska Airlines charges just 25,000 miles to fly American Airlines from Los Angeles to New York. But their chart prices London to Stockholm the same even though it’s much shorter. Capitalizing on quirks like this takes time studying the charts.

Things get more complex when multiple programs are involved. Say you use Chase Ultimate Rewards points to book United. Check both award charts to see which offers better pricing. For domestic U.S. flights, United's own award chart is usually better. But for international trips, transferring those UR points to United's Star Alliance partners like Singapore and Lufthansa can open options United doesn't make available.

Hotel programs also utilize award charts. Category-based systems like Hilton offer fixed pricing no matter the cash rate. On busy weekends in global cities when cash prices skyrocket, using points at low category hotels keeps costs down. Club Carlson offers a very generous last night free perk to further enhance value.

Being flexible is key to maximize value. Jenna wanted a special birthday trip to Bora Bora funded solely by points, her white whale redemption. Award space using United miles was wide open in low season. The cash rate at the overwater bungalow was $600 in November but $1,200 in January. She opted for the cheaper November dates to make her points stretch further. The weather was still amazing, and she got an extra night free using her Capital One Venture X card.

Dream Trip on Points: How to Make 2023 Your Year of Free Flights and Hotels - Book Stopovers and Open Jaws to See More Places

Stopovers and open jaws are flight hacker tricks that let you weave extra destinations into an award ticket without paying more miles. Clever ticketing is the hallmark of a true travel hacker. Why visit just one place when you can see two or three for the same amount of points?

Hidden-city ticketing involves getting off at a connection point instead of your final ticketed destination. This sketchy trick annoys airlines, though, who can cancel your remaining segments. Instead, take advantage of generously allowed stopovers and open jaws offered by many frequent flyer programs.

Stopovers allow you to halt in a city for as long as you'd like on your way to your destination. For example, booking a roundtrip from New York to Bangkok with a stopover in Hong Kong. You'd spend a few days in Hong Kong before continuing onto Thailand. On the return, another stopover lets you break up the long journey home.

The best part? Stopovers don't cost any extra miles beyond the base award rate. Most programs permit one stopover in each direction. American AAdvantage allows a whopping two stopovers plus your destination. Length can be as long as you want. You're essentially getting free flights to multiple cities for the miles cost of just getting to Asia.

Jenna has mastered the stopover art, using them to see six countries on a single United award. New York to Bangkok with stops in Dublin, Frankfurt, Istanbul and Seoul cost only 110,000 miles roundtrip in business class. That's over $20,000 worth of flights for the points from just one credit card bonus.

Open jaws are another tool letting savvy travelers see more ground. This involves arriving in one city but departing home from another. No backtracking required. From Los Angeles you could fly into Tokyo then return from Seoul rather than doubling back. Mileage is calculated one-way based on distance between your start point and furthest destination.

Alex used an open jaw to tackle Australia and New Zealand on one ticket. Flying from Los Angeles to Sydney on Qantas, he then visited Melbourne and Cairns before departing Auckland back home. Just 80,000 American AAdvantage miles covered all flights thanks to the open jaw. Cash price would’ve exceeded $5,000.

Dream Trip on Points: How to Make 2023 Your Year of Free Flights and Hotels - Research Airlines' Daily Getaways and Flash Sales

Scoring nearly free flights takes research and pouncing on deals. Savvy travelers have their pulse on flash sales and mistake fares to snag once-in-a-lifetime trips on the cheap. Alex has turned fare watching into a hobby, routinely bagging $2,000 international business class tickets for under $500.

His secret weapon? Following airfare blogs and airline social media closely to spot flash sales the moment they go live. For example, he jumped on a British Airways business class sale from Houston to London dropping roundtrip prices to just $1,600. But the sale only ran for 48 hours before disappearing. Peering into his crystal ball, he also noticed Air France error fares mispricing premium cabins to Asia at big discounts. Being among the first to book these mistake fares locked in the cheap rates before airlines caught their blunder.

Jenna studies airline sites promoting daily getaways and member-exclusive deals. She scored $99 one-way first class tickets on American Airlines between Washington DC and Chicago, booking the moment the sale popped up. Timing is critical with these short sales. She recommends signing up for airline newsletters and creating frequent flyer accounts to be alerted when low fares are released.

United Airlines runs some of the best daily getaways sales with business class deals as low as $500 roundtrip to Europe. Their website promotes current deals front and center when logged in. Jenna jokes United should rename them “daily temptations” for points collectors since the offers are so enticing. American and Delta also advertise specials exclusively for their loyalty members. Having airline apps on your phone makes it easy to get alerts anytime new deals are launched.

Status can unlock additional flash sales not available to the general public. Alex’s Executive Platinum status gets him early access to American’s business class deals 12 hours before other members. Travel hackers prioritize fast status typically through heavy credit card spending just to access these exclusive rates.

Dream Trip on Points: How to Make 2023 Your Year of Free Flights and Hotels - Look for Points + Cash Hotel Rates

The savviest travelers mix points and cash to unlock phenomenal hotel deals. While completely free hotel nights feel magical, point requirements at top properties can be astronomical. But combining points and money can significantly reduce rates at even high-end hotels. I call these “points plus cash” bookings, and they maximize your redemption value.

For example, Jenna was eyeing the Park Hyatt New York, a category 7 hotel requiring 30,000 World of Hyatt points per night. That's a sky-high 180,000 points for her 6 night stay, exceeding her entire point balance. But then she discovered the points + cash option.

This allowed her to pay just 12,000 points and $300 per night. Now the stay cost 72,000 Hyatt points plus only $1,800. Much more reasonable than paying the full points price or coughing up the $1,000+ per night cash rate during her travel dates.

Marriott Bonvoy also offers excellent points plus cash deals. Alex was checking rates at the luxurious St. Regis Bora Bora, a category 8 property. Cash price was an eye-watering $1,500 per night. Booking his beachfront overwater villa would've required a colossal 480,000 Bonvoy points.

But the program lets you book any hotel for a fixed cost of 50,000 points plus variable cash copays. Alex chose five nights for just 250,000 points and $800 in copays. This still felt indulgent, yet slashed his costs by over $5,000 compared to paying cash.

Hyatt and Marriott actively promote these point and cash deals on their websites. But don't overlook similar options with other chains. Hilton offers discounted "points and money" rates that can be highly valuable if cash rates are astronomical.

Points plus cash is also an option booking through third parties. On hotels.com, you can use Hotels.com Rewards nights along with paying cash to lower rates. Just select "use rewards" when checking rates to see available options.

When does points plus cash make sense? I recommend calculating the per point value to decide. Take the cash rate and deduct the copay, then divide by the number of points to get cents per point. For Jenna's Park Hyatt stay, $1,300 cost savings divided by 72,000 points equals 1.8 cents per point. A great return compared to Hyatt's average redemption value.

Dream Trip on Points: How to Make 2023 Your Year of Free Flights and Hotels - Plan Ahead and Be Flexible with Dates and Destinations

The most overlooked strategy for scoring nearly free dream trips is having an open mind about dates and destinations. Points masters plan far ahead and remain flexible to snag the best awards.

Jenna always books at least 6 months in advance, especially for aspirational trips to Bora Bora or the Maldives. She'll check award charts to estimate how many points are needed, then gives herself time to apply for the right credit cards. Scheduling a family trip to Hawaii 2 months out would never work. By planning ahead, she uses sign-up bonuses strategically and avails waitlists if needed.

Alex swears by last-minute, spur-of-the-moment travel hacking. But for special redemptions, he's learned to plan ahead too. Waiting until the week before departure to search award space to Sydney in Qantas first class was foolishly optimistic. He kick-started planning earlier next time, giving himself 9 months to accumulate the points and find availability.

Remaining flexible with dates also opens options. Limiting yourself to only Christmas and New Years holidays means battling crowds and blacked-out award space. Traveling a week before or after can yield huge savings.

Jenna wanted a winter escape to St. Regis Aspen over NYE. But the points cost was astronomical at 200,000 Marriott per night. Shifting her trip to mid-December still offered snowboarding and holiday charm for under 100,000 points a night.

Alex was dead-set on Oktoberfest in Munich. But when no Lufthansa first class award seats were bookable, he expanded his search. A week earlier he discovered wide open space on Swiss' A330 out of Chicago. Flexibility saved his redemption.

Consider destination flexibility too. Search nearby airports or regions, not just one city. Jenna couldn't find nonstops from LAX to Honolulu on her dates. But flying into Kona on the west coast of the Big Island via Seattle worked perfectly.

Alex had his sights set on Moorea, but award nights at the Intercontinental Resort were nonexistent. He widened his search to nearby Bora Bora and Tahiti, finding availability at the Le Meridien. Island hopping on a local flight kept the Polynesian vibes alive.