A model airplane is seen in front of the newly-revealed Air Canada Boeing 787-8 Dreamliner aircraft at a hangar at the Toronto Pearson International Airport in Mississauga, Ont., Thursday, February 9, 2017. Air Canada’s three Aeroplan credit card partners are updating the features of the airline’s main customer loyalty program for travellers.THE CANADIAN PRESS/Mark Blinch

A model airplane is seen in front of the newly-revealed Air Canada Boeing 787-8 Dreamliner aircraft at a hangar at the Toronto Pearson International Airport in Mississauga, Ont., Thursday, February 9, 2017. Air Canada’s three Aeroplan credit card partners are updating the features of the airline’s main customer loyalty program for travellers.THE CANADIAN PRESS/Mark Blinch

Air Miles or cash back? How to manage your travel rewards during a pandemic

The good news is that even travel-focused loyalty programs have become more flexible in recent years

Angela Farquhar is a self-described “sucker for a loyalty program.”

The 32-year-old teacher from Waubaushene, Ont., collects PC Optimum Points and Petro Points, but Air Miles are her favourite. She pays close attention to bonus events in order to rack them up faster.

But with her husband off work for two months due to the pandemic and travel looking unlikely for the foreseeable future, Farquhar — like many Canadians —has had to change the way she uses her rewards. This year, instead of buying airline tickets, she used her Air Miles to buy a backyard slide her daughters, Mackenzie, 3, and Alexandra, 1.

“Mackenzie absolutely loves it and I just started sliding Alexandra down too,” Farquhar says. “She actually thinks it’s more fun taking turns with her sister.”

Charlene Suchy, however, is taking the opposite approach.

The 37-year-old divemaster from Pefferlaw, Ont., is a devoted Air Miles collector, but has decided to save up rather than spend on non-travel items.

“I’m currently looking at either round trip flights or an all-inclusive package using my miles,” she says. I’m not sure of a destination yet, but have a few in mind for when we can travel again. My trip will only be nicer the more miles I can save.”

So which is the right approach when it comes to rewards cards? Save up in the hope a vaccine will make travel possible relatively soon? Or use the points right now?

According to Patrick Sojka, the founder of Rewards Canada and an expert on travel rewards, Canadians are increasingly looking to do the latter, despite the fact that travel typically offers better value.

“The loyalty programs have told us that more people are using their rewards for merchandise, more people are redeeming for gift cards. It’s definitely happening.”

Whether that’s the right strategy depends on your financial situation, says Sojka.

“If you’re an average income earner and you don’t have a way to rack up miles quickly, short-term benefits are probably a healthy way to look at it. A lot of programs tend to devalue over time, and there’s uncertainty over the lack of travel and the global economy generally.”

For those in higher income brackets, continuing to accumulate miles may be the better option. “It might not matter to you that a business class flight will cost 20,000 more miles in a year and a half,” says Sojka.

The good news is that even travel-focused loyalty programs have become more flexible in recent years, including Air Canada’s recently relaunched Aeroplan program.

“Whether it’s merchandise, gift cards, tickets, Amazon purchases, cashback options: there’s a whole gamut of options, depending on the program, says Sojka. “Most of them have added more, you just have to find the program that suits your needs.

The other option is to ditch your rewards card and switch to a cash-back credit card, though Sojka says this strategy has some drawbacks. For starters, cash-back cards tend to offer lower-percentage returns on purchases than travel rewards. And most cash-back cards only pay out once a year, making them less useful for those in search of short-term financial relief, though some, such as TD’s Cash Back Visa, allow you to redeem much sooner.

Whatever rewards strategy you choose, Sojka’s final piece of advice is to check to see when your points expire. Most programs have 12 to 24-month inactivity rules if you’re not earning or redeeming. Many pushed that forward due to the pandemic, but the deadlines will return.

“Either earn a mile or spend some on a reward,” he says. “That keeps them active.”

ALSO READ: Latest COVID-19 travel advice another blow to B.C. tourism

Alex McClintock, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Air TravelCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

RCMP stock photo. (Black Press)
Missing Maple Ridge teen safely located

14-year-old girl went missing on Thursday evening

Kai Chand and his four-legged companion, Rosie, walk through the mall with Kai’s mother, Tara. (Special to The News)
Invaluable canine companion motivates teen to give back

Maple Ridge’s Kai and Rosie recently took part in a challenge to raise money for service dogs

If you have a letter you’d like to submit to the editor for consideration, please email us at <a href="mailto:editor@mapleridgenews.com"><strong>editor@mapleridgenews.com</strong></a>. Look forward to hearing your thoughts.
LETTER: Shame on local businesses not enforcing mask wearing

Maybe a list should be published saying where not to do business because it’s unsafe

If you have a letter you’d like to submit to the editor for consideration, please email us at <a href="mailto:editor@mapleridgenews.com"><strong>editor@mapleridgenews.com</strong></a>. Look forward to hearing your thoughts.
LETTER: There’s good reason for councillor’s actions

Councillor Kiersten Duncan has given much to this community, and deserves some understanding

The City of Maple Ridge is developing a concept plan for the new park area at 241A St. and 112 Ave. (City of Maple Ridge mock-up screenshot/ mapleridge.ca)
City of Maple Ridge hears back from public on new park

The Maple Ridge Parks, Recreation & Culture department engaged with the community… Continue reading

Kyle Charles poses for a photo in Edmonton on Friday, Nov. 20, 2020. Marvel Entertainment, the biggest comic book publisher in the world, hired the 34-year-old First Nations illustrator as one of the artists involved in Marvel Voice: Indigenous Voices #1 in August. THE CANADIAN PRESS/Jason Franson
VIDEO: Indigenous illustrator of new Marvel comic hopes Aboriginal women feel inspired

Kyle Charles says Indigenous women around the world have reached out

This 2019 photo provided by The ALS Association shows Pat Quinn. Quinn, a co-founder of the viral ice bucket challenge, died Sunday, Nov. 22, 2020, at the age of 37. (Scott Kauffman/The ALS Association via AP)
Co-founder of viral ALS Ice Bucket Challenge dies at 37

Pat Quinn was diagnosed with Lou Gehrig’s disease, also known as amyotrophic lateral sclerosis, in 2013

Minister of Justice and Attorney General of Canada David Lametti speaks with the media following party caucus in Ottawa, Tuesday, January 28, 2020. THE CANADIAN PRESS/Adrian Wyld
Exclusion of mental health as grounds for assisted death is likely temporary: Lametti

Senators also suggested the exclusion renders the bill unconstitutional

Claudio Mastronardi, Toronto branch manager at Carmichael Engineering, is photographed at the company’s offices in Mississauga, Ont., Thursday, Nov. 19, 2020. As indoor air quality becomes a major concern in places of business, HVAC companies are struggling to keep up with demand for high quality filtration systems. THE CANADIAN PRESS/Chris Young
Business is booming for HVAC companies as commercial buildings see pandemic upgrades

‘The demand right now is very high. People are putting their health and safety ahead of cost’

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Bank of Montreal, located on Burrard Street in downtown Vancouver. (Google Maps)
Heiltsuk man files human rights complaint against Vancouver police, BMO after bank arrest

Pair remains distraught after employee falsely reports fraud in progress leading to their arrest

RCMP Cpl. Cory Lepine pictured at BC Livestock Producers Co. in Kamloops, Nov. 16. (Phil McLachlan - Black Press Media)
Meet B.C.’s only cowboy cop; a voice for the livestock industry

Cpl. Cory Lepine serves as a bridge between the law and those who make a living off the land

BCHL
BCHL pushes back season start due to provincial health orders

The delay is minimal, just six days, for now. But the league is open to starting up after Christmas

Most Read