Each and every airline loyalty program offers co-branded credit cards to the loyal travelers as a travel rewards card, and so do the banks. The three types of travel rewards cards offered to the travelers of an airline carrier are as explained below.
The Airline Rewards Cards
If you sign up for the travel reward card offered by an airline, you can make purchases on participant hotels and that will earn you air miles. You can use the air miles toward booking advance flights, upgrade flight tickets to economy class, or even priority board if the airline welcomes your loyalty. Needless to say, the airline-specific travel rewards card will show the combined reward points on the airline mileage account. Such types of cards are ideally suited if you fly frequently or dine in a participant hotel.
The Fixed-Value Cards
The fix-value cards will also let you evade the hassles of blackout dates in travel rewards system, as there are banks that offer travelers fixed-value cards with no blackout dates. They are fixed because they won’t let you transfer reward points to air mileage accounts of partnering airlines or hotels participating in the same loyalty program. Fixed-value cards have a fixed redemption rate set by the bank and they are ideally suited for travelers who earn reward points by purchasing than flying.
The Convertible Point Cards
The reward points earned can be converted to airline mileage account of partnering airlines or hotel brands participating in the same loyalty program as the card issuer. That is why the convertible point cardholders have the convenience of spending and transferring the reward points to air miles. Some examples of convertible point cards are the Starwood Preferred Guest card, Chase Sapphire Preferred Card, etc.
How Travelers can Breakdown the Ideal Travel Rewards Card
People tend to choose one travel reward card from the above categories in the US. Some get cash for miles by choosing the right travel reward cards and sell miles as per the spending style and travel plans. Just like fixed-value cards, the convertible points cards let travelers redeem the reward points with participant hotels or flights at a pegged redemption rate. This rate is usually 1 cent per reward point in most of the credit card companies, but there are brokers who offer more.