Quit wasting money on travel — your next getaway could already be paid for

Nothing beats the thrill of booking a trip with points instead of cash. Whether you’re planning a European getaway, a tropical escape, or a quick weekend adventure, rewards-based credit cards can dramatically reduce the cost of your trip — and in some cases, eliminate it completely.

Travel rewards programs allow you to earn points or miles on purchases you’re already making. Groceries, gas, dining out, and even streaming subscriptions can turn into discounted flights, hotel stays, airport upgrades, and more. But to get the most out of your card, you need to understand how to strategically earn, redeem, and optimize rewards.

Here’s how to make your next trip smoother, cheaper, and more rewarding using loyalty programs rather than cash.

Maximize your everyday spending

Using your loyalty-based credit card for daily purchases is the simplest way to reduce vacation costs. Many rewards programs offer accelerated earn rates on categories Canadians spend heavily on — think groceries, dining, gas, transit, and travel.

Sponsored

Smart investing starts here

Build your own investment portfolio with CIBC Investor’s Edge online and mobile trading platform. Enjoy low commissions on trades and special pricing for active traders, students and young investors.

Get started today

How to turn everyday spending into vacation savings

Use one primary rewards card

Consolidating spending helps you hit high-value redemption thresholds faster (such as a free flight or hotel night).

Focus on bonus categories

Some loyalty programs offer 3x, 5x or more points on food delivery, groceries, or dining. Redirecting weekly spending to these categories can accelerate earnings significantly.

Pay your balance in full

Rewards only matter if they don’t cost you interest. Pay off your balance monthly to ensure your “free trip” doesn’t become the most expensive one you’ve ever taken.

Which types of credit card loyalty and reward programs to look for

Instead of chasing a specific card, look at the rewards ecosystem:

• Airline programs (e.g., Aeroplan, WestJet Rewards) for travellers who mostly fly within North America or to major global destinations.
• Flexible bank rewards programs (e.g., Membership Rewards, Scene+, RBC Avion) that allow point transfers to airlines or hotels.
• Hotel loyalty programs (e.g., Marriott Bonvoy, Best Western Rewards) ideal if accommodations are your largest travel expense.

By matching your lifestyle with your earn categories, you’ll steadily stockpile points — without changing how you shop.

Sponsored

Take control of your money with Monarch

Simplify your finances with Monarch, the all-in-one app designed to help you budget, track spending, and hit your goals faster. For a limited time, get 50% off your first year with code WISE50.

Start your free trial today

Fly for less: How to maximize your points

Reward redemptions can drastically cut airfare costs, but the value depends on how and where you redeem.

Strategies to stretch your credit card and loyalty reward points

• Book during off-peak periods: Airline loyalty programs often require fewer points for mid-week departures or non-holiday dates.
• Use flexible points for best value: Points that can be transferred to airline partners give you more options when seat availability is limited.
• Avoid high-fee flights: Some redemptions still come with steep taxes or surcharges. Look for flights known to have lower carrier-imposed fees.
• Redeem for upgrades, not just flights: If you already have enough points for an economy seat, using a small additional number of points to upgrade to premium economy or business class can yield exceptional value.

When airline loyalty makes sense

Travellers who regularly fly a single carrier (like Air Canada, WestJet, Alaska, or United) benefit most from:

• Priority boarding
• Free or discounted checked bags
• Better redemption availability
• Preferred pricing for members

These perks apply broadly across their loyalty programs — not just specific cards.

Airport perks that make a difference

Airports can be stressful — long lines, crowded gates, and pricey food. Rewards programs associated with travel cards can soften the experience significantly.

How loyalty programs can elevate your airport experience

• Lounge access: Many premium reward programs include access to Priority Pass or a proprietary lounge network. These lounges offer complimentary food, drinks, Wi-Fi, and quieter seating — particularly valuable during long layovers.
• Priority check-in and boarding: Airline loyalty programs for frequent travellers often include faster airport processing, early boarding, and sometimes priority security lanes.
• Free checked bags: A single free bag per trip can save families hundreds of dollars annually.

Why these perks matter

For many Canadians, vacation time is precious. A smoother airport experience reduces stress, saves money on meals, and lets you start relaxing before you even board.

Comprehensive travel insurance

Travel insurance is one of the most overlooked benefits of rewards-based credit cards — and one that can save travellers thousands.

What good travel insurance typically includes

Most premium loyalty programs offer coverage for:

• Emergency medical expenses abroad
• Trip cancellation or interruption
• Lost, stolen, or delayed baggage
• Rental car collision or damage

This insurance applies when you charge your trip to the card associated with the program, but many offer partial protection even if you redeem points instead of paying cash.

Why insurance matters for vacation savings

A minor accident, lost suitcase, or cancelled flight can quickly turn a budget-friendly trip into a financial nightmare. Built-in insurance ensures that unexpected events don’t derail your travel budget.

Easily accessible travel cards

Not all travellers want cards with high annual fees. Fortunately, many rewards programs offer entry-level options with lower fees — or incentives like annual-fee waivers for the first year.

How to earn meaningful rewards without paying a premium

• Choose a program with low redemption thresholds: Some loyalty programs allow you to redeem small amounts of points for statement credits, gift cards, or modestly priced flights.
• Prioritize flexible points: Even low-fee cards often earn points that can be transferred to airline or hotel partners when you’re ready for a bigger trip.
• Use partner earning opportunities: Many loyalty programs allow you to earn additional points through affiliated retailers, online shopping portals, gas partners, or dining programs.

These entry-level options are ideal for those dipping their toes into travel rewards for the first time.

Final takeaway: The right rewards plan can take you further

A great travel rewards program is more than a way to pay — it’s a tool that helps you save money, upgrade experiences, and travel more often. Whether your goal is to fly for less, enjoy luxury airport lounges, stretch your budget with insurance protections, or simply dip into travel rewards without a high fee, there’s a loyalty ecosystem that fits your needs.

Your next vacation could be closer — and more affordable — than you think. Start earning rewards today, redeem them wisely, and get ready to take off.