Use your airline rewards for more than seats
Put extra points towards hotels, car rentals, gifts
Ask a question.
Dear Cashing In,
Can I use American AAdvantage miles to purchase anything other than air travel, such as hotels, car rental, resorts, etc. If not, can I transfer miles to any other credit card that does permit such uses? – Joe
When it comes to using reward points and miles, airline frequent flier programs tend to have the least flexibility compared with other rewards.
Sure, you can redeem them for flights in probably thousands of different ways. Airline partnerships with other airlines mean that you are not limited to just the airline on which you have frequent flier miles. In the case of American, for instance, you can use the miles for flights on international OneWorld partners such as British Airways and Qantas.
Now, redeeming for flights could cost you a lot of miles. Airlines restrict the number of seats they make available at the lowest mileage levels. Cashing in miles for flights at the lowest levels probably represents the best value in redeeming miles.
There are other options to redeem airline miles, but they tend to offer an inferior value.
In the case of American Airlines miles, the possibilities include redeeming then for hotel stays, rental cars, vacation packages, newspapers or magazine subscriptions, gift cards, flight upgrades and airport lounge membership. If you examine these offers a little more in depth, though, you will see that the value at redemption is not so great.
For instance, let’s look at hotel redemptions. Searching for hotel bookings for a night in Chicago in mid-April, the American Airlines site returns dozens of choices. One of them is the Hilton Garden Inn Chicago (North Loop) for 26,100 American miles. Book that same room through Hilton, and the cost is $199. That works out to a little less than 0.8 cents per mile. For about that same number of miles, you could probably book a domestic round-trip on American that costs $300 or $400, which would be a much better value.
But if you would rather spend those miles on hotels, rental cars or something else, there’s nothing wrong with that. To see your options, go to the American Airlines site, click on AAdvantage and then “Redeem miles.”
Just know that in general, you usually receive the best value from redeeming points or miles with the company that offers the cards. American Airlines miles can be more valuable when redeeming with American than with Hilton, just as Hilton points can be more valuable when redeeming with Hilton than with some other company.
With airline cards and miles, you do have options. However, they are limited when compared with other types of reward cards. Programs with more flexibility include the points programs operated by major banks and generic travel reward cards that can be used for virtually any travel purchase.
Of course, the most flexible rewards are with the cards that offer cash.
Meet CreditCards.com's reader Q&A experts
Does a personal finance problem have you worried? Monday through Saturday, CreditCards.com's Q&A experts answer questions from readers. Ask a question, or click on any expert to see their previous answers.
- Will I lose elite status if I transfer my airline card's balance? – An airline credit card holder won't lose miles earned toward elite status if the card's balance is transferred to a lower interest credit card ...
- When spending big, watch for category bonus limits – If you're planning on spending a lot on a card in a certain category, make sure you know the limit to what you can earn so you can maximize your rewards ...
- 5 times you should call your bank about your card – If you need certain services done with your card or have questions redeeming your rewards, calling your bank might be best ...