This blog post discusses strategies for Miles and Points enthusiasts to protect their rewards from devaluations, including earning transferable points, setting clear goals for redemptions, and being flexible with travel plans.
In the world of Miles and Points, devaluation is a common concern that can affect every enthusiast. This blog post will explore what devaluations are, how they manifest in loyalty programs, and strategies to safeguard your hard-earned points from losing value.
Devaluation refers to any change that reduces the value of your points. This can take various forms, including:
Despite loyalty programs often claiming to enhance flexibility and value, devaluations typically mean you end up paying more than before.
While we cannot predict when devaluations will occur, there are several strategies you can employ to protect your points:
Earning transferable points is one of the best ways to shield yourself from devaluations. In Canada, American Express Membership Rewards and RBC Avion are two of the most valuable transferable points currencies.
To maximize flexibility, keep your points in your account until you are ready to make a redemption. When you find a desired booking, transfer your points immediately to lock in the redemption.
Miles and points are not a good investment; they do not appreciate over time. Instead, set clear goals for your points usage and book as soon as you reach your target.
For example, if you aim to fly business class on Turkish Airlines for your honeymoon, focus on earning Aeroplan points, which are ideal for this purpose. Once you have enough points, monitor award availability and book promptly.
Understanding the various loyalty programs available can help you find alternative ways to book the same flights. For instance, if you want to fly British Airways business class, you can explore booking options through multiple programs like Qatar Airways Privilege Club or American Airlines Advantage. This knowledge allows you to pivot if one program undergoes a devaluation.
Flexibility in your travel plans can help you take advantage of fleeting opportunities. Some loyalty programs guarantee a minimum number of award seats, while others may release them sporadically. If you see a desirable flight, book it immediately, as availability can change rapidly.
For example, a recent opportunity allowed booking the JW Marriott Masai Mara Lodge for just 75,000 Marriott Bonvoy points per night, a significant value compared to its current rate of 196,000 points. Missing such opportunities can lead to regret as prices rise.
Devaluations in the Miles and Points world are inevitable, but by employing the right strategies, you can mitigate their impact. Remember that points are not a reliable investment; instead, earn and burn them wisely. Focus on collecting the right types of points and maintain a proactive mindset to navigate the ever-changing landscape of loyalty programs.
In the next video, we will discuss the major changes happening to Aeroplan in the near future.
