Travel reward cards make up the bulk of the most popular non-cash reward cards.  Let’s face it, there are two major costs when you travel, air and hotel.    The USA Today just published an article on how hotel loyalty plans are gaining traction against airline plans.

Why Hotel Programs Are Gaining In Popularity

The article states a fact that is becoming increasingly clear to anyone who has tried to redeem airline awards lately: “The [hotel] programs’ popularity grows as some travelers become increasingly disillusioned with airlines’ frequent-flier programs. Many airlines have instituted changes that make it more difficult for frequent fliers to earn free tickets.” I would say this is an understatement as many airlines have created de facto blackouts to many popular destinations.

The Advantages Of Hotel Programs

Hotel programs are still have fewer fees, restrictions, and blackouts compared to airline programs.   Most airlines are quickly “unbundling” all of their fares, forcing you to pay separately for luggage, food, seating, and even fuel.  Hotels, on the other hand, have not yet started charging extra for pillows and blankets.  Furthermore, a hotel may offer options such as a “staycation” near your home, or even putting up guests from out of town nearby.

The Ultimate

The best reward cards give you options for air and hotel rewards.   Cards like the American Express Starwood offer all sorts of flight redemption opportunities as well as fairly generous hotel reward options.   The key, as always, is to stay flexible and take a close look at your value returned per dollar spent.

This entry was posted on Tuesday, October 7th, 2008 at 11:34 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.