What is travel hacking and should you be doing it?

Next month I’ll be flying myself and my partner to Bangkok, Thailand — in Japan Airlines business class. We’ll be staying at the Park Hyatt Bangkok while enjoying our free suite upgrade. No, I’m not a millionaire. I’m budget travel hacking and I paid just $27 for the two lie-flat business class seats.

For the last seven years, I’ve been traveling on a budget, taking in the most incredible once-in-a-lifetime experiences — all the time. And it’s largely thanks to simple travel hacks like maximizing points and miles.

Travel hacking is a way to see the world in an intentionally highly-discounted way. It allows you to travel on a budget (any budget!) by paying a fraction of the usual prices. These travel hacks are no secret – anyone can do them!

With a bit of planning, you can learn the skills to earn almost free travel.

What is travel hacking?

Travel hacking is basically utilizing and leveraging card, airline, and hotel loyalty points to drastically reduce the cost of traveling the world. By redeeming your points and miles you strategically earn free and almost free airfare and hotel nights. But, you can oftentimes use your card points for things like car rentals and even experiences, too.

Travel hacking allows you to travel on a budget that you can afford while giving you the opportunity to travel in luxury. Stay in nicer hotels, fly business class, and even take more vacations if you want to!

You might hear it described as “getting in the game,” largely because travel hackers (like me!) search out ways to earn more points and miles on everyday purchases. Then cash them in on the joys of traveling.

I subscribe to a budget travel hacking concept. This means I utilize great deals and promos in addition to just collecting points and miles.

Does travel hacking work?

Absolutely travel hacking works! With the right knowledge and understanding of travel hacking basics, anyone can learn to travel hack an almost free vacation. You are leveraging a system that already exists. Why not maximize your loyalty points earned and travel better in the process?

Personally, I saved over $22,000 on free travel in 2022. That’s right, $22,000 saved thanks to hacking travel points and miles!

I didn’t have to use any extreme budget travel tips or skimp on experiences. In fact, I stayed at 5-star hotels I would have never paid out of pocket for. I flew for free, utilizing miles for flights (I did pay less than $20 in taxes). My husband and I redeemed points for some truly amazing Airbnb stays. We even spent a month in Europe on points.

I simply earned points and miles through dining rewards, hotel loyalty programs, and airline loyalty programs; but mostly through spending with (and paying off) travel rewards credit cards.

And, you can do it too!

How do I get started as a travel hacker?

The first thing to know about travel hacking is that the best way to do it is with travel reward credit cards.

You need to first ask yourself if you are financially responsible enough to pay off your balance in full every month. Free travel is only free as long as you aren’t carrying a balance on your cards.

Next, check your credit score. A score above 700 is great for travel rewards card approval, and a score over 750 will get you approved for just about any card on the market. If your credit score isn’t ready for travel hacking, work to improve your credit score (maybe with a non-travel rewards card) before jumping into points and miles.

Using credit cards might be something new to you, and it might make you feel uncomfortable. But if you can use your credit card like a debit card your credit score might even improve! Personally, mine went from 780 to 810 while taking out 4 cards last year.

There are really only two rules to travel hacking: pay your credit card balance off in full every month, and know your typical monthly spending amounts so you can easily meet the cards or programs’ minimum spend amounts to earn high bonuses.

Though earning travel points with credit cards is the fastest way to start traveling the world for nearly free, you can choose to earn points and miles without travel credit cards, too.

How do I earn points and miles?

Points and miles are largely earned through card minimum spend thresholds that result in thousands of dollars in travel you don’t have to pay for. It is really simple once you get the hang of it. This is how to travel for free!

For example, you might earn 75,000 Capital One points for opening a Venture X card. These points will earn you $750 in travel at a minimum. But bank cards like Capital One can usually be transferred to other programs for higher free travel earnings. Those 75,000 Capital One points could easily become two roundtrip tickets to Europe with a quick transfer to FlyingBlue!

Here is the basic cycle for huge earnings:

• Open a travel rewards credit card that makes sense to your travel goals
• Meet the minimum spend threshold, which is usually between $3,000-$5,000 in 3 months by moving all your daily spending (groceries, car insurance, gym membership, etc.) to that card. Travel hackers often plan on opening new card accounts around high spending times (buying a new couch, remodeling a kitchen, etc.)
• Earn the promotional points bonus and use the reward points and miles towards a highly discounted trip

Outside of high sign-up bonuses, you can earn points and miles through everyday spending on your travel cards, loyalty accounts, dining rewards, gas programs, and more! There are plenty of ways to earn points and miles.

How do I know which card is right for me?

There are different types of travel rewards cards that break into three categories: bank, airline, and hotel. Bank cards are always useful because their points are usually highly transferrable, meaning you can transfer them easily to other programs using a site like Point.me for more value per point. They also tend to have the highest earnings in everyday categories like groceries, gas, and dining.

I recommend to anyone asking me about the best budget travel hacks to start with a bank card to earn points. Bank cards will give you the best starting point and the most options.

Personally, I almost always recommend starting with the Chase Sapphire Preferred. But, everyone’s journey is different and should be treated as such. You can always book a 1-on-1 coaching call to help you get started and have a clear plan that’s individualized to your travel goals.

Is travel hacking really free?

Travel hacking isn’t always totally free. Oftentimes with flights, you’ll need to pay taxes, but hotels generally are truly free, where you can walk out with a hotel bill of $0 when you use points.

Most travel cards (or at least the good ones) also come with an annual fee. Travel hackers largely don’t shy away from annual fees because the benefits outweigh the cost of having the card.

For example, the World of Hyatt personal card has a $95 annual fee. However, that $95 annual fee includes an annual free night at properties with nightly rates of about $450 or less, points for everyday purchases plus 9 points per dollar spent earned at Hyatt properties, and automatic Discoverist status (which gives you hotel perks like free premium internet and free room upgrades).

The main consideration for an annual fee card is to ask yourself if the benefits you’d realistically use outweigh the annual fee amount.

Don’t shy away from a card with annual fees as a dealbreaker for traveling the world for nearly free. Annual fee cards can increase your category earnings, come with great perks, and provide no foreign transaction fee purchases abroad.

Is travel hacking worth it?

Travel hacking is absolutely worth it! Simple travel hacks have allowed me to travel on a budget I can afford while seeing sites I never dreamed possible. Earning highly discounted travel anywhere in the world is one of the best gifts you can provide yourself.

If you can pay your credit card statement in full every month and want to travel, you should be travel hacking!

How do I become a travel hacker?

Travel hacking is a learned skill. This means anyone can do it! It’s helpful to have the right resources to get started. One of my favorite tools for beginners is the Travel Freely app. Downloading the app includes a free eBook to help you get started as well as a free task list, too.

Investing in resources like my Budget Travel Guide (which costs less than a large coffee) or my Group Coaching program will jumpstart your travel hacking journey. Those enrolled in my group coaching program have redeemed tens of thousands of dollars in nearly free travel.

If you’re not ready to join, following budget travel hacking accounts (like mine!) can help inspire and teach you travel hacking skills, too.