Indian Traveler Uses Credit Card Rewards to Reduce International Airfare from Rs 2.2 Lakh to Rs 4,600
India-Europe Airfare Surge: How Credit Card Points Can Reduce Costs
Air India, Axis Atlas, and Air Canada's Aeroplan frequent flyer programme are among the key players in a recent case study highlighting the potential of credit card points to reduce airfare costs. As Iran's war continues to disrupt air travel, Mumbai-London airfares have surged above Rs 2 lakh for economy fares.
However, a recent case study by SaveSage, a rewards management and optimisation app, shows how using credit card reward points strategically can significantly reduce airfare costs. Amit Jain, a 40-year-old Mumbai-based traveller, booked an Air India flight from Mumbai to London Heathrow using Axis Atlas credit card points, reducing the fare from Rs 2,20,000 to Rs 4,600.
How Point Bookings Work
Unlike cash bookings, which are highly dynamic and can change based on demand, time to departure, and geopolitical factors, point bookings follow a different structure. Airlines are part of global alliances, which allow partner loyalty programmes to access the same seats and price them in points instead of cash. These point requirements are generally more stable and don't spike the way cash fares do.
Benefits of Strategic Point Redemption
When cash prices rise sharply, the relative value of points can increase significantly, creating an opportunity for passengers to extract more value from their points. In this case, Amit Jain used 17,750 credit card points (converted to 35,500 airline miles) to book the same flight, extracting an effective value of roughly Rs 12 a point.
When to Pay Cash
Read also: Missing a Single EMI Payment Can Adversely Impact Credit Profile
Experts warn that such outcomes are not guaranteed and that points are not always the better option. On cheaper routes or during sales, paying cash can offer better value. The decision depends on the fare at the time of booking and the number of points required.
Maximising Credit Card Points
Industry experts estimate that a large portion of users either do not track their points actively or redeem them inefficiently. To maximise value, users should:
- Choose the right credit card for their spending habits
- Understand which airline programmes to transfer points to
- Know when the redemption makes sense
By following these strategies, users can make a significant difference in reducing their airfare costs using credit card points.
Investor Takeaway
Consider using credit card reward points to reduce travel costs.
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