In big business, it’s more important than ever to have the right points and miles accounts. These are different from frequent flyer programs because they work with an airline or hotel to give you a certain number of points for each dollar spent by you or your company. For example, some airlines might award you five miles for every dollar you spend on your ticket. You can then use those miles at other airlines and hotels for cheaper travel in the future. This guide provides the points and miles basics:
What are points and miles?
Points and miles are essentially incentives from airlines and hotels to encourage business travelers to use their services. When you book a ticket with an airline or a hotel, you are buying a bundle of the points or miles that you will earn overtime. Points can be redeemed for cash through your travel card, a statement credit, or even towards the purchase of additional tickets. You can redeem miles for cash through your travel card, a statement credit, or even purchasing other tickets.
What does it cost?
The cost of flights with an airline with a point program is similar to what it would cost if you booked directly through that airline. The ticket cost will be the same with a discount travel agency. The only difference is that you will have to pay the fee for using a travel agent, and some of that money will go to the agency, and some will go into your points account.
The costs of flights with hotels may vary, depending on which hotel you choose, but it usually is more expensive than if you booked directly through that hotel. Some hotels allow you to spend points on airline tickets, but most do not allow it. That is because the hotel has to pay its point program partner a certain amount per transaction for it to work. Remember, there is no such thing as a free lunch – someone has to pay.
What is the difference between points and miles?
Points and miles are essentially used to describe the same thing – an incentive from airlines to encourage business travelers to use their services. Points can be redeemed for cash through your travel card, a statement credit, or even towards the purchase of additional tickets. When you book a ticket with an airline, you are essentially buying a bundle of the points that will earn overtime.
Miles are earned through airline credit cards or hotel cards and can be redeemed for flights or hotel stays. You can redeem them for cash when you use a travel agent, but it is not necessary as many airlines and hotels publicly post their point and mile charts online.
It is not just about saving money – points and miles allow companies to reward their employees who help boost the business’s profits through their hard work. They also encourage loyalty to certain brands, driving customer satisfaction and repeat purchases over time. Miles can also be stored in an account to track how much you have earned over time.