Call them loyalty programs. Or travel rewards. Or points and miles. 

They’re your bonus points, your extra credit for patronizing particular travel brands and companies, from airlines to hotels and rental car companies.  And they’re your travel hacking tool for moving on up from that cramped middle seat to riding high in first class. 

You probably knew that the travel industry was big, right? But would you guess that it generates $2.7 billion…a day?! For that reason, loyalty programs are more than a mere afterthought when it comes to travel companies battling for your buck. They’re very intentionally tested, designed and marketed to attract and keep customers with juicy perks and irresistible rewards.¹

But not all loyalty programs are the same. Some treat you like a VIP from the get-go, while others ask you to prove your loyalty before they shower you with perks and status. Here is an overview of the available programs, followed by some insider advice to help you find the best loyalty programs for you and your travel habits.

What Types of Travel Loyalty Programs Are Available?

Airlines. Hotels. Rental car companies. Third-party travel sites. Companies from all of these industries and more have loyalty programs you can join, test out and earn travel freebies through. (Credit cards are their own special breed of loyalty programs, and while much of what we share here is applicable for those programs, we’ll focus more on your airlines and hotel chains.)

If you’re just getting started out exploring these programs, many travel experts say to simply sign up for each program you encounter to get a sense of how it works before focusing on just one. And that part is usually quick and easy, as companies will ask you to swap some personal information including name and email for membership. The good news is that you may even receive a signing bonus; many programs reward you with points or miles right off the bat to entice you to enroll. From there, it’s gravy. Each time you patronize the brand, you’ll accrue points or miles that add up to rewards. You’ll also probably receive promotions about specific times and places during which your purchases will multiply your rewards windfall. You’ll have a website and most likely a mobile app you can visit to track your points, redeem rewards and more.²

Pretty straightforward, right?

Let’s take a look at one program to get a better idea of how they reward members: the Alaskan Airlines Mileage Plan, which was named the No. 1 airline rewards program by US News & World Report.

Right away, you might be thinking, “Hey, I’m not flying to Alaska anytime soon, so why do I care?” Well, Alaskan Airlines flies to and from a number of West Coast cities and its perks aren’t limited to this airline alone. Among the program’s benefits are the opportunity to earn and redeem miles — those points that can become free or upgraded flights — from Virgin Atlantic and 18 other airlines. Plus, miles don’t even have to be used for airfare; they can be redeemed at partnering retail stores, rental car companies, and hotels. And finally, Alaskan Airlines is applauded for addressing what’s perhaps the biggest knock on airline loyalty programs — redemption restrictions — by promising flexible options for taking all the miles you’ve earned and cashing them in for freebies.

Looking at top-ranked hotel loyalty program Marriott Rewards, you’ll see a similar focus. The program promises that there are no blackout dates for redeeming points for standard rooms. Plus, with more than 4,000 locations in 70-plus countries, you won’t have to manipulate your travel itinerary in order to find a participating hotel. Don’t overlook this detail; when you’re dialing in which loyalty programs are right for you, you’ll want to make sure that the rooms, flights and rental cars are actually available in the places you might be traveling through. Otherwise, what’s the point?³

In addition to looking at the big benefits each program touts, it’s also important to read the fine print and check out third-party reviews. The loyalty program industry is overwrought with legalese, and it’s often not until you’re seeking to redeem rewards you’ve worked hard to earn that you notice or are informed that you can’t get what you want. Sites such as thepointsguy.com, which focuses on the popular niche of credit cards travel rewards, and One Mile At A Time, which casts a wider net on all things travel hacking from one traveler’s perspective, can go a long way in vetting program claims.

OK, So What Are the Best Loyalty Programs for Me?

Good question.

As we mentioned above, the first criteria to meet is likely availability. So, if you’re travelling around the East Coast exclusively, then Alaskan Airlines might not be the best fit. Remember, travel companies are motivated to give you tunnel vision on their particular brand. Once you build status with a program, you’ll find it hard to book with a different company. Trust us. Be sure to do your research here.

Another consideration to make is whether you’re looking for a loyalty program for personal or business use. Or both. Your business travel budget might make Choice Privileges a nice fit for quarterly meetings, as these hotels are located everywhere and are priced right. Basically, they’re built for business travelers. But you might want something a bit more upscale to reward your leisure travel trips, like Kimpton Hotels’ Karma Rewards, which offers bar and spa credits for members in addition to the standard perks.⁴

Travel frequency is another big consideration for which loyalty programs to pursue. Some programs may dangle low-hanging fruit rewards for accruing a modest amount of points. For example, Hyatt’s program rewards a complimentary stay in a standard room with just 5,000 points (You get 5 points for every dollar you spent in the Hyatt World program. Do the math and you’ll find a freebie isn’t far away).⁵

Other loyalty programs may require many more points to reach initial pay-offs, but reward you handsomely once you hit this critical mass of loyalty, making them a better long-term fit for the avid traveler.

Travel site Orbitz takes an interesting approach to the fact that some of us travel infrequently and others seemingly always have a suitcase in hand — but all of us crave rewards. They do this by tiering their program into three status levels — Silver, Gold, and Platinum — to put rewards within reach of all type of travelers. Now everyone gets something, but those in Platinum just get bigger, better perks than those in Silver.

We should add one more heads up for loyalty program newbies: while you can earn free perks, you can also accrue fees if you need to cancel a trip you’ve booked with points or miles. So be sure to check to see what these fees are with each program you’re considering. Also, be aware that one way around these penalties is potentially through travel insurance. The AllTrips Executive plan from Allianz Global Assistance offers a Frequent Traveler Reward Program benefit that can reimburse you for fees charged for re-depositing awards back into your account, up to a specific limit.

It’s no mystery that everyone wants something for free. But it can be tricky to untangle travel rewards programs with the goal of determining the best fit for you, today and tomorrow. By testing these programs out, taking a look at your travel habits and finding the right match, you’ll be able to optimize your travel spending and upgrade your average trip into a truly special getaway.

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