Consumers who love to earn miles for purchases may want to know which credit card offers the fastest track to a free flight ticket.
The Consumer Council has looked into the Travel Rewards Program offered by 14 card issuers which enable credit card holders to convert spending to mileage in 15 airline programmes.
The study shows that the local spending required may vary as much as fourfold from HK$3 to HK$16.6 per mile. And for the 4 card issuers that offer higher flight rewards for overseas spending, the cost ranges from HK$3 to HK$5.33 a mile.
Such a variation between different cards in credit card spending for redeeming a flight ticket could make a big difference amounting to tens of thousands of dollars. For instance, the redemption of a roundtrip economy class ticket between Hong Kong and Taipei could be as low as HK$45,000 and as high as HK$250,000.
The contrast is more striking in the case of a longer distance journey. To claim a roundtrip economy class ticket for a flight between Hong Kong and Tokyo, it would require at least HK$90,000 to as much as HK$500,000 in credit card spending.
Consumers are advised to take note of the miscellaneous charges attached to Travel Rewards Program. Four card issuers require consumers to register for the programme in advance, with 2 of them carrying a joining fee of HK$240 and HK$300 respectively.
Handling charges for mileage redemption will be another cost item to consider: 8 card issuers charge HK$50 to HK$500 either per award or per the required mileage redeemed, depending on the card type. The majority of card issuers (12 issuers) would also set a minimum mileage redemption requirement from 500 to 10,000 miles.
Consumers should keep track of the expiry date for the redemption of bonus points as most card issuers (11 issuers) set a redemption period spanning from 15 months to 5 years.
The October issue of CHOICE magazine offers tips for consumers when joining a credit card Travel Rewards Program:
- While credit card issuers often offer mileage as an attraction for new subscribers, consumers should read the terms and conditions for mileage redemption thoroughly before making an application.
- Consider the factor of airlines when choosing a programme: such as which airlines are available for selection; whether the airlines you regularly patronized are included; and whether it provides an extensive network of airlines.
- Think twice before converting the credit card bonus points to mileage as the conversion is irreversible while the transaction fee is often non-refundable.
- Plan ahead and make early booking if you intend to travel during the peak season as it generally takes 4 to 6 weeks to process a request for mileage redemption.
- Consider merging bonus points from different credit cards to expedite the redemption of mileage and to save handling charges.
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