You could save yourself thousands of dollars on airfare through travel hacking. So, what exactly is travel hacking? Airlines offer rewards programs that allow members to earn points, which can be used for flights. Travel credit cards also partner with airlines, letting you earn bonus points and points on your everyday spending!
In this article, we’re deep diving into all these travel hacks, so your money can go further!
👩✈️Chooosing the Right Airline Rewards Program
Major Airline Alliances
The first step is choosing which airline rewards program you’d like to join. There are three main airline groups to consider: OneWorld, Star Alliance, and SkyTeam. These alliances partner with various airlines worldwide, making it so much easier to travel and, of course, use your reward points across different airlines.
Below are snapshots of the airlines within the OneWorld, Star Alliance, and SkyTeam groups.
Selecting a Program Based on Location and Travel Needs
The airline program you choose will largely depend on your lifestyle, where you live, and where you love travelling to. Think of these airline programs as exclusive clubs—choose the one that fits seamlessly into your life. For most Australians, OneWorld makes the most sense since Qantas is part of this alliance. Flying with Qantas gives you access to a wide range of domestic and international flights from Australia’s capital cities. And let’s not forget, that Qantas also partners with other airlines outside the OneWorld Alliance, including Air France, Air New Zealand, and many more!
🪙Accumulating Rewards Points
Credit Card Sign-Up Bonuses
Now to the fun part! Let’s talk about how you can get your rewards points. You are destined to become a world-class traveller, after all! Credit card sign-up bonuses are one of the easiest ways to earn reward points. In many people’s experiences, credit card bonuses are where you get the most points for the least amount of money spent.
So, what does that actually mean? Let’s take the Qantas American Express Ultimate Card as an example, where you could earn up to 90,000 bonus Qantas Points. If you spend $3,000 in your first three months of using the card, you’ll get a whopping 70,000 bonus points. Plus, you’ll receive an extra 20,000 Qantas Points when you spend just $1 on your Card within 90 days of paying your second year’s annual Card fee. To put that into perspective, earning 90,000 through everyday spending alone, you’ll need to spend $72,00 – much harder than forking out $3,000 in three months!
That being said, bonus points can come with a catch, so it’s super important to read the fine print—also known as the terms and conditions (T&Cs)—for each credit card. For example, you won’t be eligible for bonus points if you’ve held an American Express card in the past 18 months. This is why it’s so important to keep track of all your credit cards—so you can keep earning those bonus points.
Maximising Everyday Spending
The key to using credit cards for travel hacking is putting routine expenses on your card and getting creative when you cannot meet your minimum spending requirements.
Use your credit card like you would use your debit card. Pay your groceries, phone, internet, petrol, dental, insurance, and other everyday expenses with it. Just remember to spend the amount you’d normally spend. Otherwise, you’ll find yourself in crippling debt (but more on that later).
If you live in a major city and/or have a partner, you shouldn’t struggle too much with meeting the minimum spending requirements. However, if you find yourself struggling to meet the minimum spend, you can always just get creative. For example, you can pay for purchases for your friends and family and then have them reimburse you. Just remember to only do this with friends and family members that you trust and who’ll keep their word!
💳 Managing Credit Card Usage Responsibly
Avoid Debt and Interest Rates
The golden rule of using credit cards for travel hacking is to always pay off your credit cards in full and on time every single month. Otherwise, you’ll end up paying ridiculously high interest, which could damage your finances and set you back. The high interest rates would completely negate any savings you’d make from travel hacking.
For example, let’s say you had $2,000 in credit card debt and could only make the minimum payments. If you didn’t pay off the full balance, over 19 years and 4 months, you’d pay a whopping $3,862 in interest. This is a stark reminder that just as investments grow with compound interest, so does credit card debt—but in the wrong direction!
Monitoring Credit Scores
So, you might be asking yourself whether a credit card impacts your credit score. Many people with credit cards have excellent credit scores, but that’s because they’re using their cards correctly. This means paying off their credit cards in full and on time, so they never get into debt.
Aside from being in debt, another way your credit score can be impacted is if you apply for a credit card and get rejected. That’s why it’s so important to keep these things in mind before deciding to get a credit card.
💸 Evaluating Annual Fees
Cost-Benefit Analysis
Many credit cards have annual fees, so are they really worth it? Well, it all depends on the benefits you’ll get from using the card. Let’s take the Qantas American Express Ultimate Card, for example, which has an annual fee of $450. By using this card, you get a $450 travel credit with Qantas. If you use the travel credit, you’ll essentially make your money back on the annual fee.
Let’s also not forget that you get 70,000 bonus points for spending more than $3,000 in 3 months. One Qantas point is roughly worth 1.5 cents, which means 70,000 points is equal to about $1,050 in travel credit.
When you sign up for a new credit card, it’s important to stay on top of it. Mark the end date for the minimum spend period so you can ensure you’re meeting the requirements to earn those bonus points.
✈️ Booking Flights with Rewards Points
Navigating Airline Websites
Here’s a quick rundown on how to book flights with your credit card points and save money while doing it:
- Log into the Qantas website and enter your destination and travel dates.
- Turn on the ‘Use Points’ option and click ‘Search Flights.’
- You’ll then be flooded with a list of potential flights.
- Pick the flight that’s right for you!
It’s super important to be mindful of how many points a trip will cost, as not all flights cost the same number of points. The points required can vary a lot depending on where and when you’re travelling. Classic Reward flights are usually the most economical option in terms of points. However, it’s worth noting that not all Classic Reward flights require the same number of points.
Classic Reward flights can be booked up to 353 days in advance. Booking a flight a few months ahead that has fewer stops is generally cheaper than flights with multiple stops. This is because the more stops you make, the more you may pay in airport taxes.
Examples of Cost Saving
The return flight from Sydney to Los Angeles in economy would cost me 83,800 points plus $339 in taxes and other airline fees. If I were to pay cash for this flight, it would cost $1,801. By using my points, I’d save a whopping $1,462! This means my Qantas Points for this flight are worth roughly 1.7 cents each.
Curious about how much it would cost to fly business class? A one-way Business Class Reward flight from Sydney to Los Angeles would cost 108,400 points. This is quite affordable considering we couldn’t find a direct flight with Classic Business Rewards. For a return flight, it would cost 216,800 points plus $615 in taxes and fees. If I were to pay cash for this flight, it would cost $5,443. By using points, I’d save an enormous $4,828! For this flight, my Qantas Points are worth roughly 2.2 cents each.
😍 Enhancing Travel Hacking Strategies
Leveraging Referral Programs
If you want to earn more bonus points, you need to take advantage of referral programs. With some credit cards, referring a friend can get you both extra bonus points. American Express cards often have great referral program schemes, and you’ll typically earn more points per dollar spent compared to Visa or Mastercard credit cards. However, it doesn’t hurt having Visa or Mastercard credit cards because Amex isn’t accepted everywhere.
You could work with your partner, friends, or family members to maximise these extra bonus points. For example, let’s say you get an American Express credit card, and your referral signs up for a Visa or Mastercard credit card. Throughout the year, you can both use your respective cards, and before the year ends, you can invite each other to your credit cards to earn additional bonus points.
Once you’ve earned the bonus points and used the card for a year, consider cancelling it before the annual fee comes up for renewal if you no longer need the card.
💰Other Benefits of Travel Credit Cards
Complimentary Perks
Aside from the bonus points, there are many benefits to using a credit card for travel hacking. For example, most travel credit cards offer two complimentary business lounge invitations per year. In addition, many also provide free travel insurance.
As part of the travel insurance package, most cards will cover your hotel and food costs if you experience a delayed or cancelled flight. It’s basically an all-expenses-paid holiday!
🏨Alternative Ways to Earn Reward Points
Partner Offers and Promotions
There are other ways to earn reward points with Qantas. For example, you can earn points by booking your hotel or Airbnb through the Qantas website. You’ll earn points for every dollar you spend on Airbnb. To do this, simply sign in to your Qantas account, and on the homepage, click “Hotel.”
Another way to earn points is through Qantas Shopping. Qantas has partnerships with many businesses, so you can earn points on just about anything. Just remember to always spend the amount of money you’d normally spend—otherwise, it’s not worth it.
Preventing Points Expiration
Something to be mindful of is that Qantas Points expire after 18 months if there’s no activity on your account. This means no earning or spending of Qantas Points within that time frame.
If you’re using a credit card linked to your Qantas account, you don’t need to worry too much about this. However, if you’re not, it’s important to stay on top of it to ensure your points don’t expire. You wouldn’t want your precious points to go to waste!
🚀 Take Your Travel Hacking to the Next Level
By choosing the right airline rewards program, taking advantage of credit card sign-up bonuses, maximising everyday spending, booking flights with reward points, and leveraging referral programs, you’ll be well on your way to becoming a certified travel hacker! I encourage you to explore other strategies and even personalise the ones I’ve recommended!
Want to learn more about this credit card and others? Check out our detailed articles about each one of them!
The airline program you choose will largely depend on your lifestyle, where you live, and where you love travelling. Think of these airline programs as exclusive clubs—choose the one that fits seamlessly into your life. Qantas has a great rewards program. Flying with Qantas gives you access to a wide range of domestic and international flights from Australia’s capital cities.
Yes, credit card rewards can be used for expenses other than flight. This includes cashback, bills and retail products etc.
You can calculate the value of a rewards point by dividing the cost of the reward by the number of points spent.
The golden rule of using credit cards is to always pay off your credit cards in full and on time every single month. Otherwise, you’ll end up paying ridiculously high interest, which could damage your finances and set you back. The high interest rates would completely negate any savings you’d make from travel hacking.
Something to be mindful of is that your reward points can expire after a certain period if there’s no activity on your account. This means no earning or spending of points within that time frame. If you’re using a credit card linked to your rewards program, you don’t need to worry too much. However, if you’re not, it’s important to stay on top of this to ensure your points don’t expire. You wouldn’t want your precious points to go to waste!
