In the competitive world of corporate travel, every dollar matters. Business flights are often unavoidable, yet they carry substantial expenses that can erode profit margins.
But what if you could unlock a hidden strategy that fundamentally changes how much your business spends on travel? This could be the solution to transform your corporate travel budget from a source of stress into a competitive advantage.
I’ll break down a simple trick that can save your company on flights. I’ll also outline things to keep in mind before using this approach, and when it doesn’t benefit your business.
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Here’s how to earn the 35% airline points rebate
The answer lies in your wallet. Business credit cards offer a variety of perks, but is yours matching your needs?
To illustrate, if your company spends heavily on travel, consider the Business Platinum Card® from American Express. This card provides significant value by earning you five times the membership points on flights and prepaid hotels booked through Amex Travel.
As you rack up membership points, you might wonder where the best place is to redeem them. This is where the card really displays its value.
Use Membership Rewards points to book flights through Amex Travel. You’ll receive 35% of the points back when booking business or first-class flights on any airline, or economy flights on your selected airline.
Here’s how it works:
- Choose a selected airline online or by calling the customer service number on the back of your card. You can change your selected airline once per calendar year.
- Use membership points to pay for all or a portion of your flights.
- You’ll receive the 35% rebate (in membership points) six to 10 weeks after charges appear on your billing statement.
- You can receive up to 1,000,000 membership points back in each calendar year
- For bookings made through Spirit or Southwest Airlines, you’ll need to call business travel services at 1-800-553-9497 to qualify.
Is this card right for your business?
(Image credit: Getty Images)
This won’t be the best travel solution for all businesses. To start, there’s the card’s $895 annual fee. And if your employees need cards, it’s $400 per card. These fees alone might not be worth the switch if your company has a no-fee or low-fee card that offers satisfactory rewards.
Additionally, you have to select only one airline to qualify. If you have employees traveling internationally, you might not be able to maximize the rewards enough to justify the fee, though codeshare flights are eligible. This is where an airline sells tickets for another airline’s flight.
Here are the qualifying airlines:
- Alaska Airlines
- American Airlines
- Delta Air Lines
- Hawaiian Airlines
- JetBlue
- Southwest Airlines
- Spirit Airlines
- United Airlines
Another thing to keep in mind is that booking travel through Amex’s Travel portal might not lead to the best flight deals. Research from The Points Guy found portal bookings can cost about 10.32% more on average than booking directly with airlines, though the difference varies depending on the route, fare class and how points are redeemed.
How much do I need to spend on flights to justify the fee?
While there are many things to consider before deciding whether the card is right for you, you might be surprised to learn that it doesn’t cost much to justify the annual fee with the 35% rebate.
Assuming a redemption value of about 1 cent per point, the 35% rebate could offset the card’s $895 annual fee after roughly $2,557 in flights booked with points. Actual savings will vary depending on how points are earned and redeemed.
|
Metric |
Value |
|---|---|
|
Annual Fee |
$895 |
|
Rebate Percentage |
35% |
|
Minimum Required Flight Spend (in Points) |
$2,557 |
This isn’t a high bar for many businesses. The key is building up to the point where you can use points regularly to book flights.
On top of this, you’ll earn an annual $200 airline credit for incidentals, a $200 Hilton credit for stays and a $209 Clear Plus membership. Considering you’re already traveling, you can use the card to earn membership points on things you’ll use anyway and statement credits to justify the fee in no time.
Leverage points to lower travel costs
Overall, saving on travel is a key consideration for many businesses. Using the Business Platinum Card from American Express can help you earn 35% of your points back on flights booked using your points. Over time, this could save you significantly.
While the annual fee is high, the spending threshold needed to justify it is not. However, if your business doesn’t travel often, there are better card options available without the higher annual fees. Here’s a good one:
We may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened. We may not cover every available offer. Our relationship with advertisers may impact how an offer is presented on our site but our editorial selection of products is made independently. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. We calculate a typical annual reward for each card, assuming $36,000 spent annually and less any annual fee. Interest rates, fees, rewards and other terms listed in this article are subject to change. Before you apply for a credit card, check its current terms and conditions with the issuer.
