Travel rewards sound amazing. You get free flights, luxury hotels, and VIP perks. But many travelers miss out on value because they don’t use their points the right way. A few simple mistakes can cost you thousands of miles and dollars. The good news? You can avoid travel reward pitfalls with a smarter strategy. Here’s how to fix the most common travel reward mistakes and get the most out of your points.
1. Choosing the Wrong Travel Rewards Program
Many travelers sign up for a rewards program without checking if it actually fits their travel style. Some cards are best for frequent flyers loyal to one airline, while others work better for those who prefer flexibility. If you pick the wrong one, you might struggle to use your points or get stuck with poor redemption rates.
Why It Hurts
Loyalty programs are designed to benefit travelers who use them often. If you rarely fly with the same airline or stay at the same hotel chain, you may never earn enough points for a worthwhile redemption. Worse, some programs have blackout dates or limited award availability, making it frustrating to book free travel.
How to Fix It
Pick a rewards program that matches your travel habits. If you fly often with a specific airline, a co-branded airline card can unlock perks like free checked bags and priority boarding. If you prefer to keep your options open, a general travel rewards card with transferable points is a better choice. Always check redemption options before signing up—some points are far more valuable than others.
2. Ignoring Fees That Wipe Out Your Rewards
People focus on earning points but ignore the fees that come with travel rewards cards. Some cards charge $95 to $695 per year in annual fees. Others have foreign transaction fees, late payment fees, or fees for transferring points. If you’re not using the card’s benefits, you might be paying more than you’re saving.
Why It Hurts
Some premium travel credit cards charge $500 or more per year. If you’re not taking advantage of lounge access, free hotel nights, or statement credits, that fee quickly outweighs the value of your rewards.
Foreign transaction fees, usually around 3%, can add up if you travel internationally. Even airline programs sometimes charge steep fees when redeeming award tickets, making “free” flights not so free.
How to Fix It
Before applying for a card, compare the costs with the benefits. If the perks—like lounge access, free upgrades, or travel credits—cover the fee, it’s worth it. Otherwise, a lower-fee or no-annual-fee travel card might be a smarter choice. If you travel abroad often, pick a card with no foreign transaction fees to avoid unnecessary charges.
3. Missing Out on Welcome Bonuses
Many travel credit cards offer big welcome bonuses—often worth 50,000 to 100,000 points. But to earn them, you must meet a minimum spending requirement (e.g., $3,000 in the first three months).
Some people sign up at the wrong time or fail to track their spending. As a result, they miss out on the biggest perk of the card.
Why It Hurts
These bonuses can be worth hundreds or even thousands of dollars in free travel. A 60,000-point bonus could cover a round-trip business class ticket or several nights in a high-end hotel. If you fail to meet the spending requirement, you lose one of the best opportunities to earn a massive amount of points in one go.
How to Fix It
Only apply for a new card when you know you can meet the minimum spend requirement. Use it for everyday expenses like groceries, gas, and bills to reach the goal without overspending.
If the requirement is too high, some cards allow adding authorized users so their spending counts toward the total. Timing your application before big purchases can also make hitting the threshold easier.
4. Letting Points & Miles Expire
Many travelers forget about their points and let them expire. Each airline and hotel has different expiration policies. Some points expire after 12 months of inactivity. Others stay active as long as you earn or redeem at least once every few years.
Why It Hurts
Losing points means losing free travel. Some programs, like American Airlines AAdvantage, have a 24-month expiration window, while Hilton Honors points expire after 24 months of inactivity. Others, like Delta SkyMiles and Southwest Rapid Rewards, never expire, but if you’re not paying attention, you might still miss out by not using them before devaluations or program changes.
How to Fix It
Keep your points active by making small transactions regularly. Even a tiny purchase, like buying a $1 ebook through a rewards shopping portal, can reset the expiration clock. Booking a low-cost award ticket, using points to pay for part of a trip, or even transferring points from a partner program can keep your balance alive.
5. Redeeming Points for Poor Value
Not all redemptions offer good value. Some people cash in their points for gift cards, low-tier hotels, or economy flights when better options exist.
Many programs devalue their points over time. If you redeem carelessly, you might get far less than they’re worth.
Why It Hurts
Many programs offer less than 1 cent per point for gift card redemptions, while premium flights and luxury hotels can yield 3 to 5 times that value. A first-class international flight that costs $5,000 in cash might be available for 100,000 miles, giving you a value of 5 cents per point. But if you use those same points for a $500 hotel stay, you’re only getting 0.5 cents per point. It’s ten times less value.
How to Fix It
Always check the value of your points before redeeming. Flights, especially in business or first class, and high-end hotel stays tend to offer the best value. If your program allows transfers to airline or hotel partners, that can sometimes stretch your points even further. Avoid redemptions that give you less than 1 cent per point unless you have no better option.
6. Booking Too Late or Too Early
The Mistake
Many travelers assume they can book a rewards flight or hotel stay at any time. Some wait until the last minute, thinking unsold seats will be available for points. Others book too early and miss out on lower award prices or better deals.
Why It Hurts
Airlines and hotels release award availability in phases. If you book too soon, you may pay more points than necessary. If you wait too long, the best redemption options may be gone—especially for premium seats or peak travel periods.
For example, many airlines open their lowest award prices 11-12 months in advance. But as demand increases, those seats disappear. Some programs, like American Airlines AAdvantage, release last-minute award space, but it’s unpredictable. Booking at the wrong time can cost you twice as many points as a smarter redemption.
How to Fix It
The best time to book depends on the airline or hotel program. Most airlines release the best-value award seats 10-12 months before departure, while hotels often open their lowest redemptions up to a year out.
- For high-demand flights, book as soon as availability opens.
- For flexible travel, check 6–8 weeks before departure when some airlines open last-minute seats.
- Use tools like Google Flights, ExpertFlyer, or award alerts to track the best redemption windows.
If your preferred dates aren’t available, set up award waitlists or book a refundable ticket while searching for better options.
Maximize Every Mile & Point
Travel rewards are an incredible way to cut travel costs and upgrade your experience. But only if you use them wisely. The most common mistakes can reduce the value of your rewards or make them unusable.
By choosing the right rewards program, tracking fees, hitting spending requirements, keeping your points active, and redeeming for high-value travel, you can turn points into unforgettable trips. Take the time to optimize your strategy, and your next vacation could cost you next to nothing.
