TRAVEL IS A UNIQUE BUSINESS. Part of it is an industrial juggernaut, dependent upon big-shouldered cruise ships, fleets of airplanes and skyscraper high hotels. But at its core, travel is an emotional experience, a way to create lifelong memories and to recharge batteries in an increasingly frenetic world. And that’s why earning and redeeming travel reward points and miles is so important. With some smart planning, travel reward credit cards can pay for your next vacation.
The problem, of course, is where do you start. Currently, Canadians can choose from more than 100 credit card loyalty programs, each featuring slightly different tweaks. Magnifying the fine print is Patrick Sojka, the guru of travel rewards. In 2001, the Calgary-based Sojka launched www.rewardscanada.ca, which is now the definitive source for information on the industry and includes an annual ranking of travel reward credit cards, a weekly roundup podcast and reports on the latest deals on dozens of programs.
Above: Canadian travellers have more the 100 loyalty cards to choose from.
“When we started, there was a growing buzz around reward points but no one was covering the space in Canada,” says Sojka. “Today, interest in rewards programs has exploded and Canadians are now considered some of the most active and engaged collectors in the world.”
Over the past 16 years, Sojka has compiled a list of tips which help consumers pick and then use a credit card profitably — everything on how to use your loyalty program to double and even triple-dip with purchases to gain extra miles, to revealing which cards are worth the annual fee. Do they offer the freedom to use points on any airline or any kind of travel, with no blackout dates? And can you use points to cover all the costs of travel, including taxes and fees?
He also recommends joining a variety of travel related rewards programs such as those offered by hotels and car rental agencies. “That way, you get into their databases and when they start offering deals on room rates and rentals, you will be the first to know.”
Lately, Sojka has noticed an uptick in questions about credit cards and their emergency travel medical insurance coverage. “I’ve received a number of emails, asking me about what kind of things are covered in the fine print. It is a real concern for people when they are selecting a card.”
Sojka has put together a summary of cards and their medical insurance coverage on his website and stresses that before picking a card primarily for the travel medical insurance coverage, be sure to read the policy closely to see what is and isn’t covered, length of coverage periods and types of activities and illnesses that are excluded from coverage. For instance, if you are travelling nine weeks prior to or after giving birth, some cards will not cover you if any medical issues arise that are related to the pregnancy. Also, if you are young (or young at heart) and go to a party say in Cancun during Spring Break, many of the cards will not cover you for medical emergencies that happen while you are intoxicated.
Information
The Canadian Bankers Association (CBA) reveals stunning stats on credit cards:
• According to the CBA, there are now more than 68.5 million MasterCard and VISA cards in circulation in Canada. These cards were used in $452 billion worth of annual purchases, with the average purchase coming in around $100.
• The CBA also reports that 58 per cent of Canadians pay their credit card balance in full every month and that credit cards account for approximately 5 per cent of household debt.
• Seventy-two per cent of Canadians carry at least one credit card that has a rewards program and for 82 per cent of Canadians, rewards are a priority when selecting a credit card. (In fact, 92 per cent of Canadians believe that consumers have a responsibility to shop around for a credit card that best meets their needs.)
• Credit cards are the engine driving the e-commerce boom. Last year, Canadians used their credit cards for $30 billion worth of online transactions.
Travel trends:
• The best rewards cards let you use your points to cover almost any sort of travel or perk. A poll released by TripAdvisor shows just what consumers are looking for when they plan their vacations.
• The Travel Barometer revealed that free amenities are big influencers on where we book. At the top of the list were no-cost WiFi in the room, free breakfasts, free parking, free shuttle and taxi service and free pillow menu. The poll also concluded that female travellers care more about the free shuttle services while males were more concerned about the quality of the bar.
About the Author
Ian, seen here with golfing legend Greg Norman, has been scribbling stories and chasing the little white ball around the globe for the past 30 years. He is a better scribbler than golfer and his stories have been published in Golf Digest, The Sunday Times Magazine, Maclean's and the inflight magazines for Air Canada and American Airlines. He is also the golf travel columnist for the Toronto Star.