If rising travel costs are holding you back, the right credit card could help. The best travel rewards credit cards feature many unique perks that allow you to save on travel costs, from booking flights to dining out.
Beyond savings, some cards can also upgrade your experience, offering late check-outs, resort credits and room upgrades when you book through their travel portals.
To show how much value these cards can deliver, we’ve broken down how much you could save on a $10,000 trip using two top travel rewards cards.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For spend categories, we kept things simple by breaking down costs into four categories:
- Flights: $3,000
- Hotel: $2,500
- Dining: $2,000
- Misc: $2,500
From there, we factored in special points, cash back and miles incentives for each spending category. We also included sign-up bonuses and annual travel credits where available, while subtracting each card’s annual fee to give a clearer picture of its true value.
With that in mind, let’s compare one luxury travel card and one lower-fee option to see how much each could save you on a $10,000 trip.
The Platinum Card® from American Express
Best for: Luxury travelers
The Platinum Card® from American Express is one of our favorite cards because it offers many luxury travel perks to make up for its $695 annual fee.
For starters, you might be eligible for as high as 175,000 Membership Rewards® Points after spending $8,000 in eligible purchases on your new Card in your first six months of membership. Welcome offers vary, and you might not be eligible for an offer.
The conversion rate for this card is one point equals $0.01, meaning if you qualify for the 175,000 points, you'll earn up to $1,750 just for meeting this threshold, which your $10K trip would do. Here's a breakdown of what you would earn in each category:
Flights: $3,000 | Hotels: $2,500 | Dining: $2,000 | Misc: $2,500 |
|---|---|---|---|
Earn 5X Membership Rewards® Points when booked through Amex Travel | Earn 5X Membership Rewards® Points when booked through Amex Travel | Earn 1X Membership Rewards® Points | Earn 1X Membership Rewards® Points |
Cashback: $150 | $125 | $20 | $25 |
In addition to these savings, you'll earn a $200 airline credit for booking eligible flights. Therefore, on a $10K trip, if you qualify for the highest intro bonus, you'll earn $1,750 for the bonus, $200 for the airline credit and cashback rewards of $320.
Subtract the annual fee of $695, and it leaves you a total savings of $1,575.
Bonus perk: This card earns you up to $200 back in hotel credits when you book through Amex's Fine Hotels + Resorts®. Platinum Card Members can also enjoy complimentary breakfast for two and guaranteed 4 p.m. check-out with Fine Hotels + Resorts bookings — the only credit card issuer program to offer it.
Capital One Venture X Rewards Credit Card
Best for: Regular travelers looking for elevated perks without the higher annual fees.
The Capital One Venture X Rewards Credit Card works well for the seasoned traveler who's looking for a travel credit card with a lower annual fee. The card features an annual fee of $395, but also comes with plenty of cost-savings to help you lower your total trip costs.
The card offers a sign-up bonus of 75,000 miles when you spend $4,000 in the first three months of opening the card. This is a value of $750 at a conversion of one point equals $0.01. You'll also gain more savings for travel purchases through its generous perks:
Flights: $3,000 | Hotels: $2,500 | Dining: $2,000 | Misc: $2,500 |
|---|---|---|---|
Earn 5 miles per dollar spent on flights when booked through Capital One Travel | Earn 10 miles per dollar spent on hotels when booked through Capital One Travel | 2 miles per dollar | 2 miles per dollar |
Cashback earned: $150 | $250 | $40 | $50 |
Capital One also rewards Venture X cardholders with a $300 annual travel credit you can use on this vacation.
Breaking this down, you'll receive $750 for the introductory bonus, $300 for the annual travel credit and cashback incentives of $490 on travel expenses, giving you a savings of $1,540.
Once you subtract the annual fee of $395, you'll save $1,145 on your trip.
Bonus perk: Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary. This, coupled with your annual travel credit, offsets your annual fee.
Things to consider with travel credit cards
Before signing up for one of our top picks, there are a few things you should consider:
- Use wisely: Paying off your balance each month ensures you're maximizing your perks.
- You might not receive the best deal: Credit cards offer better perks when you book through their travel portals; however, they might not offer the best prices on bookings.
- Fees: If you travel overseas often, consider a credit card with no foreign transaction fees, as it can help you save significantly.
- Brand loyalty: Some travelers prefer a certain airline or hotel brand. Should this apply to you, consider a credit card with that company, as you can maximize travel perks much more easily.
- Consider travel habits: Examine how you travel and match your preferences to a card that maximizes value, such as Uber rides, car rentals, dining out and more.
- Is it worth it? For less frequent travelers, you might not use the perks enough to justify the annual fees imposed. If this applies to you, consider one of our best cash back credit cards that rewards you more for everyday purchases.
Overall, travel credit cards are expensive, but they come packed with valuable perks. As this example shows, both these cards can save you more than 10% on a $10,000 trip
In addition, it's important to match your travel needs to a card that maximizes your value. That way, you can enjoy the perks you want and save on future travel purchases.
As an independent publication dedicated to helping you make the most of your money, the article above is our view of the best deals and is not the opinion of any entity mentioned such as a card issuer, hotel, airline etc. Similarly, the content has not been reviewed or endorsed by any of those entities. This article only reviews select credit cards. We may get compensation if you visit partner links on our site. We may not cover every available offer. Our relationship with advertisers may impact how an offer is presented on our website. However, our selection of products is made independently of our relationship to advertisers.
Related content
-
Boost Your Retirement Savings in Your 50s with These Six MovesIf you want to supercharge your nest egg in the run-up to retirement, follow these strategies.
-
7 Emotional Habits to Avoid If You Want Financial SuccessThe same traits that make people emotionally intelligent can also keep your money decisions on track.
-
Boost Your Retirement Savings in Your 50s with These Six Moves
If you want to supercharge your nest egg in the run-up to retirement, follow these strategies.
-
7 Emotional Habits to Avoid If You Want Financial Success
The same traits that make people emotionally intelligent can also keep your money decisions on track.
-
Want to Advance on the Job? Showing Some Courtesy and Appreciation Could HelpTwo business professors share their insights about the impact of digital communication on the social skills of some in Gen Z and the importance of good manners on the job.
-
How Five Retirees Turned Their Passion into a BusinessFor these entrepreneurs, later life has little to do with winding down. Find out how they turned hobbies and passions into businesses — and how you can, too.
-
From Job Loss to Free Agent: A Financial Professional's Transition Playbook (and Pep Talk)The American workforce is in transition, and if you're among those affected, take heart. You have the skills, experience and smarts that companies need.
-
A Financial Planner's Top Five Items to Prioritize When Your Spouse Is IllDuring tough times, it's easy to overlook important financial details, but you'll be so much better off if you take care of these things right now.
-
'Rich' Tricks to Volunteer and Donate in RetirementThere may be some tax benefits to giving back in retirement.
-
An Expert Guide to Outsmarting Inflation: Don't Let It Restrict Your RetirementInflation is often underestimated when estimating retirement income, education funding or investment returns. These strategies can help preserve your purchasing power and reduce your financial anxiety.
