Luxury Hotel Stays Are Possible on a Budget If You Do This First

Want to enjoy the beaches in Thailand or visit the colosseum in Rome, but don’t have the cash on hand to actually book the entire hotel stay?

When used intentionally, credit card rewards can help you score stays at luxury hotels and resorts. Investopedia connected with two travel experts who shared their top tips for how to use credit card rewards to book your dream vacation.

Be Strategic When Transferring Your Credit Card Rewards

You can make the most of your credit card rewards by opting for a card that has a many different transfer partners (aka hotel rewards programs and airline loyalty programs). This will give you many options for using your rewards.

“Flexible rewards cards earn points you can pool and then move to different hotel programs when you’re ready to book,” said Megan Daniels, founder of Journey Currencies. “For me, I can earn Chase points much faster than Hyatt points, so I collect Chase Ultimate Rewards points and transfer to Hyatt when I want to book a great hotel for a great points rate.”

And when transferring your rewards, be strategic about which hotel rewards program you’re transferring them, too. Some programs offer higher redemption rates, which means you get more bang for your buck.

“I funnel most of my spending through cards that transfer to Hyatt, because Hyatt’s redemptions get me more value than Marriott or Hilton. Ten thousand Hyatt points buy me $180 of hotel value, whereas 10,000 Marriott points cover $70 to $80. The difference is quite real,” said Georgia Fowkes, a travel advisor for Altezza Travel.

Additionally, some credit card issuers will offer bonuses for transferring points to select transfer partners. For example, your points could be worth 30% more if you transfer your points to a certain hotel loyalty program.

“Whenever I see a 20% to 50% bonus on transfers from Chase or Amex, I go for them. I send the points over and book my hotel nights before the rates shift,” said Fowkes.

Additionally, don’t assume that paying for a hotel stay with just rewards will get you the best deal. Sometimes, combining cash and points to book your hotel stay can get you a more affordable rate.

“Cash and points bookings also let me stretch a stash of points across more nights. Sometimes paying half the points plus a reduced cash rate yields a better return than an all-points stay,” said Fowkes.

Avoid Stockpiling Your Rewards

While you may be hoarding your points to use in the future, you don’t want to sit on them for too long either. Hotel loyalty programs can devalue your points, so your current rewards are worth less than were in the past.

“The biggest mistake travelers make is sitting on points while programs devalue them. Hilton and Marriott quietly and suddenly raised points per night,” said Fowkes. “Better earn toward a goal and redeem fast. And if you’re sitting on enough for five nights, use the ‘fifth night free’ benefit before the charts move again.”

Take Advantage Of Offseason Deals

And if you have flexibility when it comes to booking your vacation, aim to travel during the shoulder season or offseason. During these periods, flights and hotel stays are typically cheaper.

“I usually scan award calendars several months ahead, looking for the off-duty dates, shoulder season, and other off-peaks, when point prices slide down,” Fowkes said. “I’ve cut the cost of a night by a third just by shifting my trip off a weekend or big-event week. Off-peak booking is the way to consistently unlock high-end rooms at reasonable redemption levels.”

Take Stock Of All The Perks Your Credit Cards Offer

To reap the most from your travel credit card, look into all of the perks and benefits your card offers—don’t just consider the value of your credit card rewards.

“Don’t overlook how credit card perks and hybrid redemptions tilt the math. Free-night certificates tied to a premium card anniversary, elite-status upgrades, resort credits, and waived fees can turn an expensive redemption into a sweet deal,” Fowkes said. “I’ve used a Hilton-Amex free-night certificate on a Waldorf Astoria room that would have been 150,000 points or over $2,000 cash.”

The Bottom Line

Itching to take that vacation you’ve always wanted to Barcelona? If you have credit card rewards on hand, you can make the most of them by transferring them to a hotel loyalty program, comparing redemption rates, and booking your vacation during the off season or shoulder season. Additionally, don’t hold onto your points for too long—spend them or risk having them devalued.