TRAVEL REWARDS Credit Card Analysis

Updated 05-23-2013

Travel reward credit cards are a great way to earn rewards to help pay for your next vacation. But how much are those points, miles or other rewards currency really worth? We put the leading travel reward cards to a real-world test by booking actual flights and hotel rooms with each card's currency. Our results show how much real money you can expect to earn for every $100 you spend with each card. For more on how we did it, see the sidebar on the right.

Our Results Summary

A summary of the travel rewards card values appears in the chart below. For the full context and explanation, see the detailed information for each credit card by clicking the "+" button to the left of the credit card name.

Values per $100 spent:

Program Name	Flight	Hotel
1. Barclay Arrival™ World Mastercard^® - Earn 2x on All Purchases	$2.00	$2.00
Barclay Arrival^™ World Mastercard^® - Earn 2x on All Purchases won first place for value in our travel rewards cards analysis, providing more value than the other cards we looked at. With a lofty $2.00 flight and hotel redemption value for every $100 spent, this many-faceted card combines high value with very flexible miles usage making it our "top travel rewards card" choice. The Barclay Arrival^™ World Mastercard^® - Earn 2x on All Purchases earns 2 points per dollar spent on every purchase. To use rewards, cardholders just book their travel and then redeem points for a statement credit. Rewards can also be redeemed for gift cards, merchandise or a straightforward statement credit. As an added bonus, if the points are used to pay for travel, users earn an additional 10% in points. This means if you spend 10,000 in points on travel you'll get a 1,000 point bonus deposited to your rewards bank — a huge benefit we have not seen with any other rewards card. In addition, cardholders earn 40,000 bonus miles after spending $1,000 in the first 3 months of card membership, equal to $400 that users can spend on travel or even as a statement credit. Apply for Barclay Arrival™ World Mastercard^® - Earn 2x on All Purchases \| Our full review
2. Capital One^® Venture℠ Rewards Credit Card	$2.00	$2.00
Coming in a very close second, the Capital One^® Venture Rewards℠ Card also offers a fabulous $2.00 flight and hotel redemption value per $100 spent. And just like the Barclay Arrival World Mastercard, cardholders can book their travel however they'd like and with any airline or hotel they prefer. However, we ranked this card second because it didn't feature the 10% point bonus for booking travel that the Barclay Arrival World Mastercard did. Additionally, the Barclay Arrival World Mastercard offers a 40,000 point bonus (equal to $400), while the Capital One Venture Rewards only offers a 1,000 point bonus (equal to $100). Capital One^® Venture Rewards℠ Card users will earn a very generous 2 points per dollar spent on every purchase. Users can book their travel however they want - from any travel site, agent or airline - and then redeem their earned points for a statement credit. Cardholders can also earn 10,000 bonus miles whey they spend $1,000 in the first 3 months of card membership, equivilant to $100 in travel. Apply for Capital One^® Venture℠ Rewards Credit Card \| Our full review
3. Starwood Preferred Guest^® Credit Card from American Express	$1.35	$2.61
With an amazing $2.61 hotel point value, Starwood Preferred Guest^® Credit Card from American Express featured the highest hotel redemption value of any card in our study. While their value for flight redemption was much lower at $1.35 per $100 spent, it is still higher than some airline rewards cards. Starwood Preferred Guest^® Credit Card from American Express users earn a hefty 4-5 points per $1 spent at Starwood hotels and 1 point per $1 spent on all other purchases. The combined point earnings mean that cardholders can effectively earn $2.61 for every $100 they spend with the card, assuming they use their rewards for hotel stays. This is the highest hotel value we found for any travel card in our study. Additional perks include a 10,000 point bonus with first purchase and another 15,000 point bonus after spending $5,000 in the first 6 months. Apply for Starwood Preferred Guest^® Credit Card from American Express \| Our full review
4. Southwest Airlines Rapid Rewards^® Premier Card from Chase	$1.72	$1.00
Coming in at number 4, the Southwest Airlines Rapid Rewards^® Premier Card from Chase genererously rewards users with a $1.72 value for flights and a lesser $1.00 value for hotel stays.The high flight value makes this a strong choice for Southwest devotees who can now use their points for both free Southwest flights and international flights. Southwest Airlines Rapid Rewards^® Premier Card from Chase users will earn 2 points per $1 spent on all Southwest flights, AirTran Airways flights, Southwest Rapid Rewards Hotel and Car Rental Partners, and 1 point per $1 spent on everything else. Our full review
5. United MileagePlus^® Explorer Card	$1.75	$0.92
The United MileagePlus^® Explorer Card offers its users a generous $1.75 free flight payout per $100 spent, placing them at number 5 in our countdown. Although the value of redeeming points for free hotel stays was considerably lower at $0.92, this program is still a very strong choice, especially for users who like to fly United and want the option of staying at a variety of quality hotels. United MileagePlus^® Explorer Card members earn 2 points for every $1 spent when they purchase tickets from United, and 1 point for every $1 they spend on everything else. Extra card benefits include earning 30,000 bonus miles after spending $1,000 in the first 3 months, priority boarding privileges, the ability to check your first bag for free on United flights and 2 annual complimentary passes to the United Club. Apply for United MileagePlus^® Explorer Card \| Our full review
6. Blue Sky from American Express^®	$1.33	$1.33
Blue Sky from American Express^® comes in at number 6 in our countdown, with a $1.33 travel value for every $100 spent. Although not quite as competitive a value as the cards with better rankings, Blue Sky is still a solid choice if you'd like to earn travel rewards. Blue Sky from American Express^® users earn a basic 1 point for every $1 spent on all purchases. Additionally cardholders can earn 7,500 bonus points when they spend $1,000 within 3 months. It would be nice if users had the opportunity for higher point payouts, but with a $1.33 travel value per $100 spent, it is still a good pick. Cardholders can redeem every 7,500 points they receive for a $100 statement credit toward any airline ticket, hotel stay, or car rental. Apply for Blue Sky from American Express^® \| Our full review
7. Citi^® Platinum Select^®/AAdvantage^® Visa Signature^® Card	$1.80	$0.84
Citi^® Platinum Select^®/AAdvantage^® Visa Signature^® Card tallied up a $1.80 in flight value for every $100 spent — a great deal for anyone who likes to fly American Airlines and get free flights. The hotel value was not so lofty at $0.84, so users might want to focus their reward points on free flights instead of free hotels. Citi^® Platinum Select^®/AAdvantage^® Visa Signature^® Card users earn 2 points per $1 spent on American Airline flights, and 1 point per $1 spent on all other purchases. Users will also earn 30,000 bonus points after making $1,000 in purchases in the first 3 months, enjoy a free first checked bag on American Airline flights and receive priority boarding privileges. Apply for Citi^® Platinum Select^®/AAdvantage^® Visa Signature^® Card \| Our full review
8. Hyatt Credit Card from Chase	$0.82	$1.68
Hyatt Credit Card from Chase offers a great hotel travel value of $1.68 with a lesser flight value of $0.82, a good choice for those who want to stay at a Hyatt but aren't as interested in earning free flights. Users can't book flights directly, instead they need to exchange their points for miles with a partner airline and then wait 30 days to use the miles. To keep the playing field even we obtained the flight value by exchanging points for American Airlines miles — another program featured in our analysis. Hyatt Credit Card from Chase users earn 3 points for every $1 spent at Hyatt locations, 2 points for every $1 spent at restaurants, airline tickets and car rental, and 1 point for every $1 spent on all other purchases. Cardholders will also earn 2 free nights at a Hyatt after spending $1,000 in the first 3 months. Users must exchange their earned points for miles with a partner airline in order to use their points for flights. Our full review
9. Capital One^® VentureOne℠ Rewards Credit Card	$1.25	$1.25
Capital One^® Venture One℠ Rewards Card comes in mid-pack with an decent travel value of $1.25 per $100 spent. Capital One^® Venture One℠ Rewards Card users will earn 1.25 points for every dollar spent. In addition users can earn a bonus of 10,000 points once they spend $1,000 in the first 3 months, equal to $100 in travel. Just like the Capital One Venture rewards card (our #2 ranked card), users can book their travel however they want — from any travel site, agent or airline. Once they've earned points, they can be redeemed for travel, cash, gift cards, brand-name merchandise, and more. Apply for Capital One^® VentureOne℠ Rewards Credit Card \| Our full review
10. Chase Sapphire Preferred℠	$1.05	$1.05
Chase Sapphire Preferred℠ features a respectable $1.05 travel value for every $100 spent. It ranks above the Chase Sapphire card due to a greater point earning potential and the fact that users earn bonus points for travel. However, it's important to note that this higher potential comes at a cost of $95 per year (first year annual fee is $0). For those who dine out more than they travel, the Chase Sapphire card with it's no annual fee policy may be a better deal. Chase Sapphire Preferred℠ users earn 2 points per $1 spent on travel and dining and 1 point per $1 spent on everything else. They can also earn 40,000 bonus points after spending $3,000 in the first 3 months. Like most other non-branded travel cards in this survey, users can redeem their points for travel, gift cards or statement credits. One thing this card offers that the other non-airline and non-hotel cards don't is that users can also transfer their points at a 1:1 value to Chase airline and hotel partners. Additionally, if cardholders book their trips through the online reward portal they'll use 20% fewer points to pay for travel. Apply for Chase Sapphire Preferred℠ \| Our full review
11. Chase Sapphire℠	$1.05	$1.05
Chase Sapphire℠ is the sister card to the Chase Sapphire Preferred card. Both cards offer a travel value of $1.05 per $100 spent, but the Chase Sapphire card has no annual fee and doesn't offer bonus points for travel. Chase Sapphire℠ users will earn 2 points per $1 spent on dining and 1 point per $1 spent on all other purchases. They can also earn 10,000 bonus points after spending $500 in the first 3 months — that's $100 toward travel rewards. Similar to other non-branded travel cards in this survey, users can redeem their points for travel, gift cards or statement credits. A different feature this card offers is the fact that users can also transfer their points at a 1:1 value to Chase airline and hotel partners. Additionally, if cardholders book their trips through the online reward portal they'll use 20% fewer points to pay for travel. Apply for Chase Sapphire℠ \| Our full review
12. Marriott Rewards^® Premier Credit Card from Chase	$0.64	$1.13
The Marriott Rewards^® Premier Credit Card from Chase offers its members a decent value of $1.13 for free hotel stays, so it might make sense for loyal Marriot customers. However the low flight value of $0.64 doesn't make it a favorable card for earning free flights. With the Marriott Rewards^® Premier Credit Card from Chase, users earn 5 points for every $1 spent at Marriot locations, 2 points for every $1 spent on qualifying airline, dining and rental car purchases and 1 point per dollar for all other purchases. Users also earn 50,000 bonus points after spending $1,000 in the first 3 months, plus one free night after account approval — together redeemable for up to 7 free nights. Apply for Marriott Rewards^® Premier Credit Card from Chase \| Our full review
13. Citi^® Hilton HHonors™ Reserve Card	$0.59	$1.06
The Citi^® Hilton HHonors™ Visa Signature^® offers a decent $1.06 redemption value for hotel stays but a less-than-optimal $0.59 flight value, overall not adding up to a particularly high value program. Users cannot book flights with their points, instead earned points need to be exchanged for airline partner miles and there is a 4 week delay before you can use these miles. To ensure a fair comparison with the rest of the programs we researched, we based the flight point value on an airline already included in our analysis — American Airlines. Citi^® Hilton HHonors™ Visa Signature^® allows users to earn 6 points for each $1 spent at a participating hotel within the Hilton Worldwide portfolio, 3 points for each $1 spent on purchases at supermarkets, drugstores and gas stations and 2 points for each $1 spent on all other purchases. Card holders also acquire Hilton HHonors Silver status for as long as they remain a cardmember. Users cannot directly book flights with their earned points, instead they must exchange their points for miles with a partner airline. Apply for Citi^® Hilton HHonors™ Reserve Card \| Our full review
14. Gold Delta SkyMiles^® Credit Card from American Express	$0.63	n/a
Gold Delta Skymiles^® from American Express trailed the pack with only a $0.63 value towards free flights. Another strike against them is that members can only use their points on flights as there are no hotel options available. Gold Delta Skymiles^® from American Express users earn 2 miles per $1 spent on Delta flights and 1 mile per $1 spent on everything else. It also includes bonuses like earning 30,000 bonus miles after spending $500 on the Card in the first 3 months and the ability to check your first bag for free on Delta flights. The downside to this card is that members are unable to book free hotel stays. Apply for Gold Delta SkyMiles^® Credit Card from American Express \| Our full review

HOTEL
Analysis

First we looked at what it costs to book hotel stays with each program. We did this by comparing the standard prices of hotels in San Francisco, Los Angeles and Washingon D.C. at different times of year with the number of points required to book a free stay. We used the same dates and locations for each program, and picked dates in the high summer season as well as less traveled fall season to account for seasonal fluctuation. When possible we also attempted to book stays in the same hotel for each card.

FLIGHT
Analysis

Next we employed the same real-world type of test to determine the point exchange value for free flights. We booked flights through each rewards program website, then compared the number of points required to book an economy flight with the actual dollar value of the flight. The dollar value of the flight was obtained by matching up the exact same flight with the cost on the actual airline site. We booked roundtrip flights from San Francisco to Washington D.C. and Los Angeles to New York in both the summer and fall, and used the same criteria for each program.

REWARD
Analysis

To calculate the actual reward card value, we employed a basic formula. First we took the dollar value of the reward and divided it by the number of points required to purchase that reward.

Point Value = Reward Price / Number of Points Required to Purchase

Then we assumed a spend of $100, with 5% ($5) spent on high point rewards like hotel stays and flights. The remaining 95% ($95) was allocated to standard point earning spends.

Value per $100 Spent = (High Point Earn * $5 * Point Value) + (Standard Point Earn * $95 * Point Value)

For efficiency purposes, we use the term "points" to descibe the rewards earned, even though programs members can earn either miles or points. The final value per $100 spent is displayed in U.S. dollar currency ($x.xx). You can see the values in the results section to the left.

To see the results of last year's Travel Rewards Program Analysis, click here.

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TRAVEL REWARDS Credit Card Analysis

Our Results Summary

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