For frequent travellers, credit card reward points can be worth far more than the cashback or vouchers they are often redeemed for. With the right strategy, points earned from everyday spending can help pay for flights and hotel stays, substantially reducing travel costs. There are two very different ways to use credit card rewards for travel, and understanding this difference can significantly improve the value you receive.
The first and simplest approach is to use points to book flights or hotel stays directly through a bank’s travel portal. Most premium credit cards in India now offer this option. For instance, HDFC Bank Infinia and Diners Club Black cardholders (among others) can redeem Reward Points on HDFC Bank’s SmartBuy microsite to book flights and hotels for Rs.1 per point value, while Axis Bank cardholders can use EDGE Rewards through the bank’s travel platform, TravelEDGE, for Rs.0.20 per point. In such cases, points are effectively used as currency, with a fixed value assigned to each point.
