Getting to the Points

More than ever, travelers are looking for a bargain. In a recent survey conducted by the travel-research company Global Market Insite (and commissioned by Visa), 53 percent of respondents said they would travel during the off-season to save money, 33 percent said they would journey to a country with a lower cost of living than their own and 29 percent said they were looking for a favorable exchange rate. But savvy travelers are also recognizing that now is the perfect time to use all those points they've accumulated and take advantage of special offers from credit-card companies, hotels and airlines.

Spend 'em if you got 'em: For years, it seemed that airline points programs were more hassle than they were worth. The flights you wanted never seemed available when you wanted. No longer. "Until the last six months, the argument was, 'Why do I do this? I can't use these'," says independent travel consultant Joe Brancatelli. "Now the airlines love to have you. Things are so bad, there are lots of empty seats." In March, airline traffic fell 15 percent, even with the airlines cutting capacity by 10 percent. So don't be afraid to cash in airline points now. The world's largest points program, run by American Airlines, affords the most flexibility in terms of dates and destinations. Emirates Skywards Miles (which has, in my view, the best economy class around) has partnerships with other high-quality carriers, including Virgin Blue, Continental and South African Airways.

Know when to hold 'em: Before spending points in a hotel program, check to see if you can get a room for a low rate. There are so many good deals that it's the perfect time to start gathering hotel points, saving for the post-crash world when room rates shoot up again. The best bargains are in the upper-level chains, where the Marriott and the Hilton are locked in a price war. Hilton hotels are drastically slashing prices, while Marriott is trying to attract travelers by offering more services, like free spa treatments and breakfasts. Travelers can now find real steals in New York, where many rooms have dropped to more than half what they were a year ago. And in Hawaii, a night on the beach at a high-end Hilton can be had for $170—down from $350 last year. Even luxury chains like the Ritz-Carlton and the Four Seasons are getting into the price-cutting game, and you can now get three nights for what two used to cost.

Plastic packaging: The two top credit-card points programs, AmEx and Visa, also offer significant luxury bargains. Visa's Great Breaks Web site (visagreatbreaks.com) lets travelers click on their desired destination to receive the latest local discounts—a $63-per-night four-star hotel in Macau, for instance, or four days and three rounds of golf at the Mission Hills Resort in Shenzen, China, for $698 per person. AmEx cardholders should check out the Membership Rewards Exclusive site (membershiprewards.com) for discounted airfares—like a $499 round-trip ticket from anywhere in America to Australia on Quantas—and last-minute travel deals like the "Best of Tea Cities" that was offered in Paris and Milan late last year. Limited in number, they usually sell out quickly, so pay attention. AmEx travel also allows members to pay for any airline ticket with Membership Rewards points. And don't forget all the things your card already provides for free—like insurance on car rentals and concierge services. It's all beside the points.

© 2009