A Beginner’s Guide to Points – Your Loyalty, Rewarded
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What's better than a vacation? One where you can get as much of it for free as possible. And if collecting hotel rewards, rental car rewards, frequent flyer miles, and more, that could very well happen.
You could earn free nights at fabulous hotels if you collect enough points for a rewards program. Which hotels have the best award programs? We look at those issues and others in this beginner’s guide to travel rewards points.
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What are hotel reward points?
A free vacation is the best vacation. With enough hotel points, a big part of it can be free. Earning them is simple.
Points are earned through hotel stays you’ve paid for or using a credit card connected to the hotel chain. They’re similar to airline miles earned on paid flights or with an airline’s co-branded credit card that can be used to book a free flight or bump up to business class or first class.
Each hotel chain’s credit card goal is to encourage users to spend and use the card often in exchange for earning points that can be used at the hotel chain co-branded with the card. Points can be exchanged for free rooms, though upgrades in hotel rooms and other amenities are also offered.
Points usually don’t expire if you keep your card active and use it at least once a year.
The first hotel loyalty program was started in February 1983 by Holiday Inn, though it discontinued its program in 1986 and restarted a year later. According to Hotel News Now, Marriott started its program in November 1983, making it the oldest continuously operating program.
The programs help build brand loyalty, the site reports, and guests spend more with a hotel chain they’re a loyalty program member of. An executive at InterContinental Hotels Group told Hotel News Now that people who join its loyalty program give 36% more of their share of hotel spending to the chain than before enrolling.
Loyalty members are also three times more likely to use direct channels such as the chain’s website or 800 number than non-members, which makes it more cost-efficient for the hotel owner, he said.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
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*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
How to earn points
Earning hotel points is pretty straightforward: Pay for a hotel stay and earn points as a loyalty program member. Or use a hotel’s co-branded credit card to earn points.
Here are five main ways to earn points:
Hotel stays
Earning points from hotel stays is a common way to accumulate rewards in hotel loyalty programs. These points can be later redeemed for free or discounted hotel stays, room upgrades, and other benefits. Here's how you can earn points from hotel stays:
- Join the hotel loyalty program. Sign up for the hotel's loyalty program. Membership is usually free, and it's typically a prerequisite to earning points for your stays.
- Book directly with the hotel. Whenever possible, book your hotel stays directly through the hotel's official website, mobile app, or reservation hotline. You often earn more points by booking directly compared to third-party booking platforms.
- Provide your loyalty number. Ensure that you provide your loyalty program membership number when making reservations or at check-in. This associates your stay with your loyalty account.
- Choose participating hotels. Stay at hotels within the same hotel chain or brand that participates in the loyalty program. Not all hotels within a brand may participate, so check in advance.
- Earn points per dollar spent. Many hotel loyalty programs award points based on the amount you spend on eligible hotel charges, such as room rates, dining, spa services, and other on-property expenses. Some programs also offer tiered earning rates, where elite members earn more points per dollar spent.
- Promotions and bonus points. Look out for promotions offered by the hotel or the loyalty program, which can allow you to earn bonus points. These promotions often have specific requirements, such as staying a certain number of nights or during a particular time frame.
- Elite status benefits. Achieving elite status within a hotel loyalty program can lead to additional point-earning opportunities. Elite members often receive bonus points for their stays. Higher-tier elite members may also be eligible for room upgrades, late checkout, and other perks that enhance the value of their stays.
- Co-branded credit cards. Some hotel chains offer co-branded credit cards in partnership with banks. These credit cards often come with sign-up bonuses and offer points for everyday spending, as well as extra points for using the card with the hotel brand.
- Hotel partnerships. Check if the hotel chain partners with other companies, such as airlines or rental car agencies. You may earn additional points by booking flights or other services through these partnerships.
- Extend your stay. Some hotel loyalty programs offer bonus points for staying multiple consecutive nights at the same property. This can be an incentive to book longer stays.
- Participate in surveys or feedback programs. Some hotels offer points in exchange for completing surveys or providing feedback about your stay.
- Use the hotel's mobile app. Some hotels offer bonus points for booking through their mobile apps or for completing mobile check-in and check-out.
Sign-up bonuses
Earning points from sign-up bonuses is a common way to quickly accumulate rewards points or miles in various loyalty programs, including credit card rewards programs and hotel or airline loyalty programs. Here's how you can earn points from sign-up bonuses:
- Credit card sign-up bonuses. Many credit cards, especially rewards credit cards, offer sign-up bonuses to attract new cardholders. To earn these bonuses, you typically need to apply for the credit card and meet certain spending requirements within a specified time frame (e.g., spend $3,000 in the first three months). The bonus points or miles are usually credited to your account once you meet the spending requirement.
- Hotel and airline loyalty program sign-up bonuses. Joining hotel or airline loyalty programs often comes with sign-up bonuses. These bonuses can include a one-time deposit of points or miles into your loyalty account when you create a new membership.
- Bank account sign-up bonuses. Some banks offer sign-up bonuses when you open a new checking or savings account. These bonuses can be in the form of cash, points, or miles. Be sure to check the terms and conditions of the bank's offer to understand what's required to qualify for the bonus.
- Travel booking websites. Some online travel agencies and booking platforms offer sign-up bonuses to new users. These bonuses can be in the form of points, credits, or discounts on your first booking.
- Online shopping portals. Certain online shopping portals and websites offer sign-up bonuses or initial rewards points for creating a new account.
- Referral programs. Some credit cards, loyalty programs, or online services have referral programs where existing members can earn bonus points or miles by referring friends or family members who successfully sign up or make a purchase.
- Frequent flyer programs. Some airlines may offer sign-up bonuses to new members of their frequent flyer programs. These bonuses can be in the form of initial miles deposited into your account.
- Membership programs. Various membership programs, such as those for hotel chains or premium travel services, may offer sign-up bonuses when you enroll.
- Retail loyalty programs. Some retail stores and brands offer sign-up bonuses for their loyalty programs, which can include points or discounts on your first purchase.
Credit card points
Earning points from credit cards is a common way to accumulate rewards that can be redeemed for various benefits, including travel, cashback, merchandise, and more. Here's how you can earn points from credit cards:
- Apply for rewards credit cards. Start by applying for credit cards that offer rewards points as part of their benefits. There are various types of rewards credit cards, including cashback cards, travel rewards cards, and general rewards cards.
- Meet the minimum spending requirement. Many rewards credit cards offer sign-up bonuses, which can be a significant source of points. To earn these bonuses, you typically need to spend a certain amount within a specified time frame (e.g., spend $3,000 in the first three months). Once you meet the minimum spending requirement, the sign-up bonus points are usually credited to your account.
- Regular card spending. Earn points for everyday purchases made with your credit card. The earning rate varies depending on the card, with some offering a flat rate on all purchases and others providing bonus points for specific spending categories. Take advantage of bonus categories: Some credit cards offer higher earning rates for spending in categories like dining, travel, groceries, or gas. Use the card that offers the best rewards for your regular expenses.
- Online shopping portals. Some credit card issuers offer online shopping portals or partnerships with retailers where you can earn extra points for purchases made through their platforms.
- Travel expenses. If you have a travel rewards credit card, you may earn bonus points for booking flights, hotels, car rentals, and other travel-related expenses.
- Referral programs. Many credit card issuers have referral programs that allow existing cardholders to earn bonus points by referring friends or family members who successfully apply for the same credit card.
- Promotional offers. Keep an eye out for special promotions and bonus point offers from your credit card issuer. These promotions may include spending challenges or limited-time bonus point opportunities.
- Balance transfer offers. Some credit card offers may include bonus points for transferring a balance from another credit card. Be cautious with balance transfers and ensure that the terms are favorable for your financial situation.
- Annual renewal bonuses. Some premium credit cards offer annual renewal bonuses, where you receive a set number of points each year when you renew your card membership.
- Use multiple cards. Depending on your spending habits and goals, you may use multiple credit cards to maximize your point earnings. For example, you might use one card for dining, another for travel, and another for everyday purchases.
- Payment of bills. Some credit cards offer rewards for making payments like utility bills or mobile phone bills. Check if your card offers such rewards.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
How hotel points work
Earning hotel points by the above methods is half of the equation. The other half is the fun part: Redeeming them.
But not every hotel room has the same value. Stay at an expensive location or a higher-end hotel in the chain or property with more amenities, and you may have to redeem more points to get the free room. Stay at a mid-tier location, and you can use fewer points to stay for free.
A hotel won’t accept the points you earn outside the chain whose loyalty program you’re a member of. Hilton award points, for example, can’t be used at Hyatt. Hilton does have a range of hotel names in addition to its name brand, including Waldorf Astoria, Conrad, Canopy, DoubleTree, Embassy Suites, Hampton, and Homewood Suites.
On the other hand, Hyatt offers much value in its rewards program by requiring fewer points to stay at its top-tier hotels.
Using elite status
A small but important part of understanding how hotel points work is the added benefit of climbing a chain's “elite status” levels. More hotel stays will earn you extra points, which will raise your benefit status and earn you more amenities.
You can earn a free breakfast, later checkout, free WiFi, room upgrades, and free parking.
Marriott Bonvoy gives its top elite-level members, the Ambassador Elite level, a personal Marriott assistant. Hilton members get more bonus points as they climb the elite status ladder, and all members stay for free on the fifth night of a trip.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
What you get with points
Free hotel rooms are the main benefit of earning points, but others can also make an annual fee worthwhile.
Hotel stays
Points earned through hotel loyalty programs can be used to redeem a variety of benefits, with hotel stays being one of the most popular and valuable rewards. Here's what you can typically get with points when it comes to hotel stays:
- Free hotel nights: The primary use of hotel loyalty points is to redeem free hotel nights. Points can be exchanged for one or more nights at a participating hotel or resort within the loyalty program's network. The number of points required for a free night varies depending on the hotel's category or tier, with higher-end hotels often requiring more points.
- Room upgrades: Some hotel loyalty programs allow you to use points to secure room upgrades. This can include moving from a standard room to a suite, getting a room with a better view, or enjoying additional amenities.
- Cash and Points options: Many hotel loyalty programs offer a "cash and points" option that allows you to partially pay for a hotel stay with a combination of cash and points. This can be a flexible way to use your points and reduce the out-of-pocket cost of a stay.
- Redeem for experiences: Some hotel loyalty programs offer opportunities to redeem points for unique experiences, such as guided tours, spa treatments, golf rounds, and more, often at the hotel or in the local area.
- Transfer to Travel Partners: Some hotel loyalty programs allow you to transfer your points to airline loyalty programs or other travel partners. This can be a valuable option if you prefer to use your points for flights or other travel-related expenses.
- Points + cash and packages: Certain hotel loyalty programs offer points + cash options, where you can use a combination of points and cash to book a stay. Additionally, some programs offer vacation packages that include accommodations, flights, and other perks.
- Discounted or free breakfast: In some cases, you can use points to access complimentary breakfast or other dining benefits during your hotel stay.
- Extended stays: Depending on availability and program rules, you may be able to use your points for extended stays beyond the typical length of a reservation.
- Elite status benefits: Earning elite status within a hotel loyalty program often comes with additional perks like room upgrades, late checkout, and complimentary amenities. While these benefits aren't direct point redemptions, they enhance the overall value of your stay.
- No blackout dates: Many hotel loyalty programs offer points-based bookings with no blackout dates, meaning you can use your points to book a room even during peak travel periods.
Airline perks
Airline loyalty points, often referred to as frequent flyer miles or points, can be used to redeem a variety of airline perks and benefits. Here are some of the things you can typically get with airline points:
- Free flights. The most common use of airline points is to redeem free flights. You can use your points to book flights to various destinations served by the airline or its partners. The number of points required for a free flight depends on factors like the airline, route, class of service, and availability.
- Upgrade to premium cabins. You can use points to upgrade your ticket from economy class to premium cabins such as business class or first class. Upgrades can provide you with a more comfortable and luxurious travel experience.
- Travel flexibility. Many airline loyalty programs allow you to use points to book flights with more flexible change and cancellation policies. This can be especially useful if you're uncertain about your travel plans.
- Companion tickets. Some airline loyalty programs offer companion tickets as a perk. These tickets allow you to bring a friend or family member on a flight with you for a reduced or complimentary fare when you purchase a ticket with points.
- Lounge access. Elite members of airline loyalty programs often receive complimentary access to airport lounges, where they can enjoy comfortable seating, complimentary food and beverages, and other amenities.
- Priority boarding. Frequent flyers with elite status may receive priority boarding, allowing them to board the plane before general passengers.
- Checked baggage allowance. Elite members of airline loyalty programs often receive additional checked baggage allowances or even complimentary checked bags, depending on their status level.
- Waived fees. Some loyalty programs offer benefits like waived change fees, cancellation fees, or close-in booking fees when using points for flights.
- Partner airlines. Many airline loyalty programs are part of global alliances or have partnerships with other airlines. This allows you to use your points to book flights on partner airlines, expanding your travel options.
Additional perks
Using points for perks beyond hotels or airlines largely depends on the specific loyalty program you are a member of. Many loyalty programs, whether associated with credit cards, retail stores, or other businesses, offer a variety of non-travel-related perks that you can redeem points for. Here are some common ways to use points for other perks:
- Retail and merchandise purchases. Many loyalty programs offer online shopping portals where you can use your points to purchase a wide range of merchandise, including electronics, clothing, gift cards, home goods, and more.
- Gift cards and certificates. You can often redeem points for gift cards or certificates that can be used at various retailers, restaurants, and online stores.
- Statement credits. Some credit card rewards programs allow you to redeem points for statement credits, which can be applied toward reducing your credit card balance.
- Cash back. Certain credit cards offer cashback rewards that can be redeemed as cash or a statement credit, effectively reducing your credit card balance.
- Charitable donations. Many loyalty programs enable you to use your points to make charitable donations to specific organizations or causes.
- Experiences and events. Some loyalty programs offer unique experiences and event tickets that you can purchase with points. This can include concert tickets, sporting events, theater performances, and more.
- Magazine subscriptions. You might be able to use your points to subscribe to magazines or other periodicals.
- Streaming services and entertainment. Some loyalty programs allow you to use points to pay for streaming subscriptions, video-on-demand rentals, or other entertainment services.
- Health and wellness services. Certain loyalty programs offer redemptions for health and wellness services such as gym memberships, spa treatments, or fitness classes.
- Hotel and car rental certificates. In some cases, you can redeem points for hotel or car rental certificates that can be used for future stays or rentals.
- Dining and restaurant certificates. Some loyalty programs offer dining certificates that can be used at participating restaurants.
- Professional services: Depending on the loyalty program, you may have the option to redeem points for professional services such as financial planning, legal consultations, or tutoring.
Cash back vs. points
Cash in your pocket is always better than not having it, including over hotel points. Even with a large bonus of points when opening a hotel credit card, cash will likely be worth more in the long run.
Hotels change their reward point requirements for free stays occasionally, so 20,000 points for a free stay today will likely be higher in a year or so. With more hotels using dynamic pricing, traveling during peak times when children are out of school will require more points than off-peak times.
Raise Your Credit 80 points*
- 5 star service trusted by over 450,000 members
- Have processed over $11,000,000 in bill payments for members
- No deposit, no credit check, no interest
- New member promotions available
*Potential increase based on StellarFi member data. StellarFi numbers observed an average of 80 points VantageScore® 3.0 increase during a member’s lifetime. Score increase based on members with an incoming score range of 300-499 pts, who made regular on-time payments, with regular on-time payments. Results may vary.
The bottom line
If you travel occasionally and want a free hotel room from time to time, then earning hotel points through stays or a credit card can be a way to get at least part of your vacation for free.
You can join many hotel rewards programs for free, but it will take longer to earn a free stay. Instead, choose a hotel chain you prefer and one you’ll enjoy using on every trip.
Credit card fees for hotel-branded cards vary from zero to $95 and $450 or so annually. Make sure there are enough perks to make the fee worthwhile. Unless you travel often, you may want to start with a no-fee card to see how earning hotel points works.
And be sure to pay your credit card bill off completely each month and on time. Paying interest charges will only negate the value of your points, and that won’t make a free hotel stay as much fun.
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Writer
Aaron Crowe is a freelance journalist who specializes in personal finance writing and editing. He has worked at newspapers, where he won a Pulitzer Prize, and has written for numerous online publications. These include AOL, US News & World Report, WiseBread, Bankrate, AARP, and many websites focusing on housing, credit and insurance. He lives in California with his wife and daughter.
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