Is Travel Hacking a Scam? Debunking the Myths

Last month, I wrote an article on how to travel anywhere for $1000, utilizing a combination of saving techniques and budget-friendly strategies to make any trip a reality. While $1000 might seem like a lot of money, with a few strategic financial maneuvers, it can be managed to make travel affordable.

Picked Destinations and Purpose

I chose expensive destinations as examples to avoid the criticism that it would be too easy to travel to cheaper places. By focusing on more expensive locations like Australia and considering points and miles for flights and accommodations, I aimed to show that even for destinations that cost a significant amount, it is achievable within the budget.

Backlash and Criticism

Unsurprisingly, some readers and social media users commented that using points and miles is misleading, arguing that it’s too hard for people to accumulate and that they have a cost. One commenter highlighted that to earn 80,000 miles, one would need to spend nearly $40,000, and then another $100,000 for hotel points. Another criticized the idea, stating that the advice given was aimed at those who find $1000 a lot of money.

Responding to Critics

While acknowledging that points and miles do require some effort to accumulate, I maintain that it’s not as difficult or expensive as it seems. Here’s why:

Understanding Points and Miles

Points and miles are essentially just rewards for spending money. If you spend wisely and strategically, you can earn them without much extra effort. For instance, I earn multiple points per dollar spent by using a variety of credit cards and shopping portals. Here is how I manage my spending to maximize points and miles:

Optimizing Spending with Credit Cards

I have a chart that outlines which card to use for each expense to ensure the maximum number of points and miles. Here are some of the strategies I use:

Shop during earnings periods when credit cards offer bonus points. Use airline shopping portals to earn extra points. Buy gift cards at stores like Office Depot for bonus points and redeem them for extra points on other rewards programs. Answer surveys for points.

Through these methods, I earn a million or more miles per year without spending an unreasonable amount of money. Here’s a detailed breakdown of where I earn my points and miles: click here.

Viewing Points and Miles as Free Money

To me, points and miles are free money. There is no cost to earn them, and they provide significant benefits that outweigh the credit card fees. For example, my 450-per-year Chase card gives me:

300 in airline credit 3x points on travel and restaurants Global Entry every five years Purchase protection for lost, damaged, or stolen items A priority pass for lounge access Trip insurance A free IHG night stay and free checked bags with my American Airlines card

These benefits are essentially free rewards for good spending habits. Furthermore, my credit score has improved over time, which is an added bonus.

Travel Hacking and Finance Myths

Many people believe that travel hacking is complicated and that it hurts your credit score, which is not the case. These are just myths perpetuated by others, and it’s important to debunk them:

Credit Cards are Bad: Credit cards can offer valuable perks, especially if used responsibly. Never Pay Fees: Some credit cards offer significant benefits that outweigh the annual fees. Your Score is Sacred: Your credit score can improve with responsible use, not hurt.

Travel hacking is about using your money strategically to collect points and miles, which can greatly reduce the cost of travel. It’s not about hurting the banks or airlines, but rather about taking advantage of the system to save money.

Conclusion

Travel hacking is a powerful tool to reduce the cost of travel. Whether it takes you a year to earn a free flight, taking that flight is still better than not taking the flight. By embracing travel hacking, you can significantly reduce your travel expenses and make traveling more accessible to everyone. If you’re interested in learning more about how to collect points and miles, download my book on travel hacking for step-by-step instructions, tips, and strategies.