Forget the piggy bank – your next dream holiday could be funded by the plastic in your wallet. Australians are sitting on a potential goldmine of travel opportunities, with credit card reward points offering a secret pathway to significantly cheaper flights.
Bonus Points Are Just the Starting Point
According to Adele Alessio, founder of Champagne Mile, many banks are currently dangling lucrative sign-up bonuses to attract new customers. These can range from 90,000 to 100,000 points in the first year, with some offers even spread across a two-year period.
However, Alessio cautions travellers against getting blinded by the big bonus number alone. "It's really important to not just look at the bonus points," she advises. The ongoing value of a card is crucial. Savvy consumers should also scrutinise the card's inclusions and, critically, the ongoing earn rate for monthly spending.
From Sydney to Singapore on Points
The potential value of these points is substantial. On the domestic front, reward seats can start from under 6,000 points for popular routes like Sydney to Melbourne with partners such as Velocity and Jetstar.
But the real excitement lies in international travel. A well-managed points balance can unlock premium experiences. "You can get 10 or 15 flights in premium economy, or you could get yourself potentially business class one-way to Asia or two-thirds of the way to Europe in business," Alessio explains.
Diversify Your Points Portfolio
Alessio recommends treating points like a savvy investment strategy. The key is diversification. Instead of pouring all your spending into one loyalty program, spread it across different portfolios including Qantas, Velocity, and flexible bank cards that allow conversion to various airline partners.
"Most of us wouldn't just put all of our money in one share. It's the same with points," she says. "You really want to diversify across different programs and that gives you a better chance of then unlocking opportunities with reward seats."
She also encourages travellers to think outside the box. Instead of fixating on ultra-popular routes like Sydney to London, consider partner airline routes which often have better seat availability and can offer superior point value.
When it comes time to search and book, Alessio suggests a simple tech trick: use your browser's incognito or private browsing mode. While she notes that price parity is usually consistent, this can help avoid potential price increases based on your search history, ensuring you see the best available deal.
