Even with Pandemic, Individuals Keep Declaring Free Flights, Lodge Rooms

The pandemic has halted a lot of people’s travel designs, but it has not stopped rewards credit score cardholders from professing their free travel awards.

A new survey by Bankrate.com reveals that 22% of rewards credit score cardholders who redeemed details past 12 months booked a free of charge flight, a free lodge place or the two. That’s about the similar proportion as in 2019, when 24% of these cardholders did also.

Boasting journey benefits during a pandemic may perhaps surprise many sector observers, which includes Bankrate.com credit card analyst Ted Rossman, but Rossman gives explanations for their decisions.

“Some individuals just adore to travel, and they uncovered means to do so inspite of the pandemic,” he suggests. “It’s also feasible that some took trips in early 2020 prior to the pandemic definitely established in, or they booked a journey in 2020 that they are hoping to choose in 2021.”

The Bankrate.com study finds that rewards cardholders who claimed a free of charge hotel remain or flight past yr were most generally adult men, cardholders earning at the very least $80,000 yearly, millennials (ages 25-40) and Gen Xers (ages 41-56).

The study of 2,449 adults was performed on-line Jan. 6-8 and has a margin of error of furthermore or minus 2%. The final results, Bankrate.com claims, are agent of all U.S. grown ups.

The survey also reveals adjustments in travelers’ payment procedures. Of study respondents who paid for airfare, 68% paid with a credit card, 26% with a debit card and 6% with dollars. Of people who paid for a lodge, 60% paid by credit rating card, 30% by debit card and 10% applied money.

In 2019, a more substantial proportion of older people — 80% — paid for airfare with a credit rating card, and a significantly decrease share — 13% — compensated with a debit card. For resort payments, 77% applied a credit score card, and 18% employed a debit card.

“Credit fell significantly previous yr, which I consider indicates a credit card debt-averse consumer amidst all the uncertainty in 2020,” Rossman says.

The credit-card analyst advises tourists to use credit cards for journey-linked payments and to spend their payments right before fascination accrues.

“Then you can acquire gain of credit cards’ excellent benefits, fraud protections and other customer protections, together with travel insurance policies,” he claims. “In other words and phrases, employing a credit card like a debit card can symbolize the very best of the two worlds.”

As numerous Us citizens get rid of or considerably lower the range of travel journeys due to the fact of the pandemic, is it foolish to use a vacation rewards credit card alternatively of a cashback card?

“For in the vicinity of-expression advantage, totally,” Rossman responds. “Travel rewards commonly characterize the best benefit if you’re ready to place in the do the job and capable to travel. If you know what you are undertaking, you can usually get much more cents for every issue or mile for vacation than dollars again, whilst it can be challenging.”

Rossman advises travelers to not stockpile their points or miles and redeem them as quickly as doable for absolutely free flights and lodging. Factors and miles get devalued when airways and resorts raise the amounts needed for earning the freebees.

“If you are preserving for a particular excursion, these as 100,000 miles to fly very first class to Japan once the earth opens again up, then go for it,” Rossman states. “Don’t hoard factors aimlessly. Once travel limits simplicity, there will be a glut of factors and miles, and airways and resorts will want paying out travelers. They could devalue their points and miles even much more aggressively than in the earlier.”