5 Reasons Why Our Families Prefer Hotel Loyalty Credit Cards Over Airline Rewards

Traveling with family can be a wild ride, especially when it comes to choosing the right rewards credit card. Airline reward cards may offer enticing points valuations for international business flights, but they often come with restrictive dates and limited availability.

Let's face it, trying to find four seats together in business class using points is like finding a unicorn in a haystack. For families, hotel loyalty credit cards offer a more practical and flexible solution.

Take a look a this quick comparison, including American Express Membership Rewards.

Airline Cards:

• Typically have higher point valuations (1.5-3 cents per point)

• Often tied to specific airlines, limiting redemption flexibility

• Usually only offer higher earning rates on airline purchases (2-3X points)

• Most earn only 1X on non-bonus categories spending

Hotel Program Rewards:

• Often have lower average point valuations (0.5-2 cents per point)

• Usually have a lot higher earning rates on hotel stays (5-54X points)

• Higher multipliers on non-bonus categories (2-3X)

• May offer more flexible redemption options, like free nights or room upgrades

American Express Membership Rewards:

• Points valued around 1 to 2 cents each

• Flexible redemption options, including transfers to airline partners

• Earning rates vary by card (1-5X points)

  
  

So why do we like the hotel rewards cards?

1. Restrictive Dates and Limited Availability

Airline rewards programs often require travelers to plan and book their flights well in advance in order to secure the best deals and availability. This can be particularly challenging for families with children who have strict school schedules and limited flexibility in terms of travel dates. The need to coordinate vacation time with school breaks can make it difficult to take advantage of airline rewards.

Furthermore, securing multiple business class seats together can be a daunting task, especially for families needing four seats in close proximity. The limited availability of premium cabin seats, combined with the high demand for such redemptions, can make it extremely challenging for families to travel comfortably together using points.

As a result, families often find themselves in a dilemma where they have to choose between using their hard-earned points for separate flights or compromising on seat preferences to ensure they can travel together.

2. Connecting Flights and Layovers

Families living outside major international airport hubs face another hurdle: the issue of connecting flights. This can be particularly problematic due to fixed reward fares that may limit the flexibility in choosing convenient connection times. As a result, families may find themselves dealing with extended layovers, which can be especially exhausting when traveling with young children. The struggle to navigate through these limitations can add stress and discomfort to the overall travel experience.

3. Road Tripping and Airport Avoidance

Some families choose road trips over airport chaos. Who wants to deal with the drama of airport security?

For those who prefer road trips, hotel loyalty credit cards are undoubtedly the best choice. By using these credit cards, road trippers can earn points and enjoy exclusive privileges at various hotel chains along their journey. Hotel loyalty credit cards provide travelers with the convenience of seamless booking, special discounts on accommodations, complimentary upgrades, free breakfasts and access to exclusive amenities. This not only enhances the overall road trip experience but also adds a touch of luxury and comfort to each pit stop.

4. Elite Status and Flexibility

Hotel loyalty credit cards provide:

• Elite status and upgrades - because who doesn't want to feel like a VIP?

• Free nights, room upgrades, early check-in, late check-out and extra amenities

• Flexible hotel night rewards - no need to stress about blackout dates.

• More points for hotel stays - cha-ching!

• Convenience, with hotels all over the globe often located near popular family destinations

• Points pooling: Some hotel loyalty programs allow families to pool their points, making it easier to redeem awards.

• Transferable points: Some hotel loyalty programs allow points to be transferred to other loyalty programs or even airlines offering families even more flexibility.

When you have extra hotel points, you can often transfer them to top off your airlines rewards. Examples include:

• Marriott Bonvoy (3:1 ratio)

• Hilton Honors (10:1 ratio)

• World of Hyatt (2.5:1 ratio)

• IHG Rewards (10:1 ratio)

• Choice Privileges (5:1 ratio)

• These redemptions can often be combined with bonuses for better redemption value.

5. Higher point multipliers

Many reviews and comparisons tend to emphasize the maximum value per point, which can be misleading. Achieving the highest point valuations can be challenging. I believe a more practical approach is to consider the points earning rate along with an average point value. Ultimately, it's all about the percentage return on your investment.

For instance, the typical redemption values for Hilton Honors points range from 0.5 to 1 cent per point. Nevertheless, the Hilton Honors American Express Aspire Card allows you to earn 14X points for each dollar spent at Hilton Hotels. Additionally, this card provides Hilton Honors Diamond Status, which gives an extra 20X points per dollar. Consequently, you can earn a minimum of 34X points per dollar spent at Hilton with this card. Occasionally, there are special promotions that allow you to earn up to 54X points per dollar. Furthermore, this card offers a higher point multiplier for non-bonus category spending (3X points for every dollar).

Even with the lower point valuation of 0.5 cent per point and the standard 34X points on Hilton stays, you would still receive a whopping minimum of 17% return on every dollar spent.

Similarly, the Marriott Bonvoy Brilliant American Express Card gets you 21X points (6x plus an extra 15x from Platinum Elite status) on Marriot Bonvoy stays. Combining this with the average Bonvoy point value (0.8 to 0.9 cents) yields a similar return around 17%.

By utilizing particular promotions, higher point valuations, and bonuses like the complimentary 5th night offer, one can significantly boost these return rates above 17%.

A better option for the average family?

In the end, the most suitable rewards program will vary based on your unique travel patterns and personal preferences. We believe that hotel loyalty credit cards present a more convenient and adaptable choice for families, offering a broader selection of redemption choices, simpler point redemption processes, and family-oriented perks. Focusing on hotel loyalty is sure to enhance the comfort and enjoyment of your family trips!