Credit card spends: Did you know you could avail free hotel accommodation for your vacation?

Vijay loves enjoying two short vacations of one week each with his family every year. He explores different cities and stays at 3 star and 5 star hotel properties. However, Vijay doesn’t pay for hotel accommodation from his pocket.

His credit card benefits/reward points take care of the hotel accommodation. Would you also like your credit card benefits/reward points to sponsor your stays at luxury hotels?

Hotel loyalty programs

Various hotel groups in India offer loyalty programs through which they provide various benefits to their members. Some of these include:

  1. Marriott Bonvoy: The hotel loyalty program that provides access to 8000+ hotels worldwide.
  2. NeuPass: Earlier known as Taj Innercircle, the Tata group loyalty program got merged into Neupass.

    It includes access to Taj Hotels and other brands within the Tata group.

  3. Club ITC: The loyalty program by ITC Group Hotels.

Apart from the above, there are other hotel loyalty programs like Accor Live Limitless (ALL), IHG One Rewards, etc. All these hotel loyalty programs allow you to either:

  • Transfer your credit card reward points to the hotel loyalty program and then redeem the loyalty points for hotel stays, or
  • Redeem credit card reward points for purchasing hotel chain gift vouchers and then redeem the vouchers for hotel stays.

Now that we have an idea of the various hotel loyalty programs let us understand how credit card benefits can help you earn hotel gift vouchers or reward points that can be transferred to hotel loyalty programs. READ MORE: 10 valuable benefits of using a credit card

Credit card benefits: Hotel gift vouchers or reward points

Annual spend-based milestones

Some credit cards have annual spend-based milestones, which, when achieved, reward the cardholder with either hotel gift vouchers or bonus reward points.

You can use the reward points to purchase hotel gift vouchers or transfer them to a hotel loyalty program. For example, the American Express Platinum Travel Credit Card provides 15,000 bonus reward points on spending Rs.

1.9 lakhs in a year. When the cardholder spends Rs.

4 lakhs in the same year, they get an additional 25,000 bonus reward points plus an Rs.

10,000 Taj Hotels gift voucher. In the above scenario, the 40,000 bonus reward points can be redeemed for Taj Hotels gift vouchers worth Rs.

20,000 or transferred to the Marriott Bonvoy hotel loyalty program. You can then use the Taj Hotel gift vouchers to settle stay bills during Check-out, or Marriott Bonvoy points to book hotel accommodation for your vacation.

The SimplyCLICK SBI Card provides Rs.

2,000 Cleartrip vouchers on annual online spends of Rs.

1 lakh and an additional Rs.

2,000 Cleartrip vouchers on annual online spends of Rs.

2 lakhs. You can use the Rs.

4,000 vouchers to book a hotel of your choice through Cleartrip.

Regular spend-based offers

Some credit cards provide regular spend-based offers (spanning over a month or two) from time to time. Cardholders are given specific spending targets against which they get specified gift vouchers or reward points.

Booking accommodation and paying with reward points

Credit cards, such as IDFC FIRST Bank and American Express, allow you to pay for your online transactions with credit card reward points.

So, you can book hotel accommodation directly on the hotel website or an online travel aggregator (OTA) website and pay with your credit card reward points. Most cards will give you a redemption value of Rs.

0.25 per reward point.

Redeeming reward points for booking hotel accommodation directly on the bank portal

Some banks provide you with portals for booking hotel accommodation. For example, HDFC Bank provides the SmartBuy portal for booking flights, hotel accommodation, and buying other products by redeeming reward points.

You can book hotel accommodation on the SmartBuy portal and pay with your credit card reward points. When you book through a premium credit card, such as HDFC Infinia, you get a redemption rate of Rs.

1.00 per reward point.

Redeeming reward points for hotel or OTA gift vouchers

In the above section, we saw how you could use the SmartBuy portal for booking hotel accommodation using your HDFC Bank credit card. If you don’t have an HDFC Bank credit card, you need not worry.

You can redeem your credit card reward points to buy gift vouchers of the hotel brand or an OTA. You can then use the gift voucher to book your hotel accommodation.

Transferring reward points to hotel loyalty programs

In the first section of this article, we saw the various hotel loyalty programs offered by different hotel groups. You can use your reward points to either:

  • Convert them into gift vouchers of specific hotel brands or
  • Transfer them to the hotel loyalty program.

Various banks have tied up with hotel loyalty programs to allow their cardholders to use their reward points.

  • HDFC Bank allows you to transfer reward points to Accor Live Limitless (ALL), IHG One Rewards, Wyndham Rewards.
  • Axis Bank allows the transfer of reward points to Marriott Bonvoy, Club ITC, and IHG One Rewards.
  • American Express allows the transfer of reward points to Marriott Bonvoy.

You can then use the hotel gift vouchers or hotel loyalty points to book hotel stays.

You can transfer credit card reward points to a hotel loyalty program like Marriott Bonvoy at a specified ratio. For example, you can transfer American Express reward points to Marriott Bonvoy in a 1:1 ratio. So, for every 1 American Express reward point transferred, you will get 1 Marriott Bonvoy point.

While booking a Marriott group hotel using loyalty points, the number of points required for per night stay is specified. The value per point is usually in the Rs.

0.50 to Rs.

2.00 range. In some rare cases, the value may go beyond this range.

Let credit card spends take care of your hotel stays

Are you a travel freak?

Also, do you use credit cards regularly for monthly spends? If you answer yes to both questions, consider a credit card that will reward you with free hotel stays. After all, why spend from your pocket for hotel stays when your credit card benefits/reward points can provide you with the same, free of cost!

Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience.

He can be reached at LinkedIn

Article

5 Credit card myths to avoid

First Published: 25 Mar 2023, 09:32 AM IST

Topics to follow

Tags:

ebay listed on couponmatrix.ukbest-heating listed on couponmatrix.ukcoverforyou listed on couponmatrix.ukcruise-nation listed on couponmatrix.uknorwegian-air listed on couponmatrix.ukpurely-pets listed on couponmatrix.uk
ebay listed on couponmatrix.ukA bastion for independent brands and second-hand sellers alike, eBay has long solidified itself as THE internet marketplace to buy anything and everything. Whether you’ve got your sights set on a particular product or looking to snap up something spontaneous, an eBay discount code can secure savings on everything from outdoor furniture to champagne flutes. Regardless of if you’re looking for fashion, homeware, toys or electronics – if you’re looking, then there’s likely someone who’s eager to sell it on eBay.
best-heating listed on couponmatrix.ukWith a huge range of heating solutions available, BestHeating pride themselves on offering customers a lot of choice, with options ranging from the likes of traditional column radiators to trend-setting designer models, heated towel rails and modern underfloor heating. A range of accessories and renewables are also available, alongside their diverse collection of radiators. So if you don’t want to compromise on style for the sake of price, so be sure to check out our Best Heating discount code, to pick up some extra savings.
coverforyou listed on couponmatrix.ukRather than worry over worst-case scenarios, opt to protect your property with CoverForYou, the online insurance providers where customers always come first. Whether you need to insure travel plans, your phone, laptop or a hire car, a CoverForYou discount code will guarantee you top value on comprehensive cover during your tenure. Named Best Travel Insurance Provider by Forbes in 2022, rest assured you’re protected by the best in the business with CoverForYou.
cruise-nation listed on couponmatrix.ukLooking for a deal on your next cruise? Look no further than Cruise Nation. They offer unbeatable deals on all the top cruise lines and package deals, so you can sail away for less. What are you waiting for? Book your dream cruise today and enjoy big savings with Cruise Nation deals. Thank you! At Groupon, we believe that everyone deserves a great deal. That's why we work hard to find the best discount codes for Cruise Nation. We want to help you save money on your next cruise, and we're always updating our codes, so you can get the biggest savings. So be sure to check back often and take advantage of our exclusive Cruise Nation deals. We have everything you need for finding the best price on your next cruise! Discover the bestselling deals such as European escapes, where you can explore European cities for the best price. Looking for a great deal on a Cruise Nation cruise? We've got you covered. So whether you're looking for a last minute deal or planning ahead, be sure to check us out first. And don't forget to use our exclusive Cruise Nation voucher code to get an extra discount - You don't want to miss the exclusive savings on your next adventure!
norwegian-air listed on couponmatrix.ukTake to the skies with Norwegian Air and whether you’re travelling for business or pleasure you’re in for a high quality yet low cost treat. Use your Norwegian Air discount code to cut the cost of your flight without compromising on comfort, and journey to more than 150 destinations worldwide without breaking the bank. With affordable basic tickets and an array of add-ons for your convenience, you need never spend more than necessary with Norwegian Air on board.
purely-pets listed on couponmatrix.ukWhether you prefer things that purr or bark, every animal owner will find a firm friend with Purely Pets pet insurance. Offering customised pet policies for both cats and dogs, all you’ll need to secure savings on some comprehensive pet cover is a Purely Pets discount code from Groupon. With 0% interest monthly payments available alongside With round-the-clock access to professional advice and the option to tailor your policy as you go, you get both flexibility and quality whenever you protect your pet at Purely Pets.