If you’re a frequent traveller, then you definitely should be feeling the pinch of rising flight tickets, particularly across the festive season. It is because the typical value of tickets from metro cities like Delhi and Mumbai to Tier 2 cities has risen as excessive as 30 per cent in comparison with final yr. The development is similar throughout the nation. One of many causes for costly flight tickets is the rise within the value of Aviation Turbine Gasoline (ATF) by round 80 per cent as in comparison with final yr. One more reason is the lifting of Covid curbs that has led to the rise within the variety of bookings as in comparison with the final yr.

In such a scenario there may be one option to cut back your touring price: Bank cards. Bank cards provide reward factors or journey mile packages, that are designed for individuals who journey very often. Most journey bank cards present accelerated earnings on journey spends leading to greater factors/miles accumulation which, in flip, interprets to greater financial savings on redemption. Nonetheless, the precise financial savings will differ from one card to a different because the redemption charges and modes range.

“Every card has its personal system of awarding miles each time you utilize the cardboard. Some bank cards provide air miles instead of reward factors whereas others can help you convert reward factors to air miles. Some are co-branded with widespread airways, some with loyalty packages whereas others provide primary air miles which can be redeemable in a number of methods. Consequently, the redemption course of additionally varies from card to card,” says Sachin Vasudeva – Director, Paisabazaar.

For instance, Citi PremierMiles Credit score Card helps you to earn ‘Miles’ which can be utilized to get a reduction in your flight ticket however this may be completed in some ways. You’ll be able to select to ‘pay with factors’ on a third-party platform like MakeMyTrip, Goibibo, and so on. or switch them to an eligible airline loyalty program. The redemption fee additionally varies accordingly. Alternatively, when you’ve got an airline co-branded card, factors could also be redeemable underneath the airline’s frequent flyer program solely.

Tips on how to earn and redeem air miles? “Typically, air miles will probably be transformed to future journey purchases, together with airfare, resort lodging, floor transportation, journey bundle offers, and so on. The worth of air miles relies on your utilization. As an illustration, a co-branded bank card might give you 4 miles per Rs 100 spent on the cardboard. Nonetheless, you get 30 miles per Rs 100 spent in the event you guide airline tickets with the companion airline through their web site. Then there are sign-up bonus miles and miles for reaching spending milestones on the cardboard. The identical applies to redeeming factors and air miles as effectively. Your issuer might can help you redeem air miles towards flight tickets, resort bookings, and even bundle excursions. So, you may have to search for what it could price you to guide your resort room or airfare utilizing money as a substitute of air miles or reward factors,” says Pankaj Bansal, CBO, BankBazaar.com.

Bansal explains, for example, that you could be be eligible for a 40 per cent low cost in your resort or a free air ticket. It is advisable to calculate what is healthier. As an illustration, redeeming rewards might prevent Rs.15,000 on resort bookings whereas the price of the flight ticket could also be solely Rs.10,000. So, it is advisable to perceive what rewards to leverage. Ensure to issue within the redemption fees as some issuers cost a redemption price on the time of redemption. 

Bank cards providing journey factors/miles are often co-branded with widespread airways or journey portals. The utilization ought to, due to this fact, be deliberate accordingly in an effort to optimise the rewards. The redemption worth of the journey factors issues probably the most. “Typically, 1 level doesn’t imply Rs. 1, this is the reason understanding the redemption fee is necessary. Equally, for playing cards that permit reward level conversion into air miles, the speed of such conversion issues. Perceive the reward construction, evaluate the charges and browse the high quality print earlier than availing the power,” explains Vasudeva.

“A few of the hottest journey bank cards that provide air miles are Citi PremierMiles Credit score Card, Axis Vistara Signature Credit score Card, Intermiles HDFC Signature Credit score Card and Air India SBI Platinum Credit score Card. Most air miles bank cards in India are co-branded with widespread airways and provide air miles underneath the mentioned airline’s loyalty program. For instance, Axis Vistara Card affords Membership Vistara Factors and Air India SBI Card affords Air India Air Miles. Such co-branded playing cards are helpful in the event you desire a specific airline,” provides Vasudeva. 

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