Should I book flights with cash or points?

When it comes to planning my travel adventures, I always make sure to reference multiple price points for the flights and accommodation that I need. Before I knew about the world of credit cards and points, I always thought about costs in terms of cash. I would often be bummed and get frustrated since I couldn’t afford paying cash for all the flights and hotels I would need.

Credit card points can be extremely useful and powerful when used correctly. However, as with cash, points aren’t unlimited and are finite. Whenever I redeem points, I always seek to make sure that I am attaining the highest value possible for the points. I don’t use my points in all situations, and I strategically use cash when the point redemption options aren’t optimal.

Step 1: Scoping Out Cash Prices

The first step I take when it comes to planning trips is going on Google Flights and scoping out cash prices. When determining the value of a point redemption, I need something to compare the point redemption against: the cash price. I also scope out cash prices to find the most optimal and cheapest route that I can take to reach my destination.

Google Flights is perfect for me because I can choose multiple cities to depart from and return to, and I also love using Google Flights’ Explore feature to look at the cheapest flights to and from a certain destination.

After scoping through the options available, I choose the cheapest and most optimal flight itinerary that I would pay cash to take. I often take into consideration the price of the flight with baggage included, since the point redemption options often exclude basic economy fare, which can exclude baggage when paid outright with cash.

Step 2: Searching For Point Redemptions

Looking for all the points redemption options for flights and hotels can be a very complicated and time-consuming process, but it is vital to ensure that you are getting good value for your points. Points are valuable and take a lot of effort to come by, and you shouldn’t redeem your points in situations where you’d be decreasing the points’ value below their base value.

I reference multiple mileage/point programs, and I search for the itinerary that I want to take to find the cost of the point redemption. I often like to use award redemption search engines to achieve this, such as Roame and Seats.aero. I also like to reference credit card travel portals such as Chase Travel℠, American Express Travel, Capital One Travel, etc.

Step 3: Calculating Cent Per Point (CPP) Value

To find out if a point redemption is worth it, I calculate the CPP value that I would achieve for the redemption. To calculate the CPP, the cash fare I found earlier comes into play as it serves an important function for the calculation. First, take the cash fare, and then subtract any taxes and fees associated with the point redemption. Divide this result by the number of points that the redemption requires, multiply the quotient by 100, and you are left with the CPP.

Now that I have the CPP, I determine if a point redemption is worth it if the CPP is around or above 1.50 (but this CPP target can vary from person to person). Anything below 1 CPP is a weak valuation for the points and should not be redeemed. A CPP between 1 and 1.50 is not optimal, but I’d book it if it were the highest value I could attain for the points, and I simply cannot afford the cash price. Anything above 1.50 CPP is perfect and is what you should aim for when redeeming points.

Final Remarks

Maximizing the value of your credit card points isn’t about blindly redeeming them. It’s about making informed decisions and comparing every redemption opportunity against other options.

By using tools like Google Flights and award search engines, I can better understand when to use points versus when to pay cash. At the end of the day, points are a limited resource. That’s why I only redeem them when I’m getting great value, ideally above 1.50 CPP. It takes a bit of effort and number crunching, but the payoff is huge: more travel, more flexibility, and smarter spending. With a bit of planning, anyone can learn to stretch their points like a pro.