Is it a good idea to hoard frequent flyer and hotel points. In most circumstances it is never a good idea as all points devalue over time. Think of it like cash. Do you think keeping cash under your pillow is better than keeping it in a high-interest savings account? Of course not! When you consider factors such as inflation then your cash actually is worth less today than yesterday.
This is the same with points. Don’t save a million points but then only to have the frequent flyer program devalue by half. Obviously have a goal to reach for but once you get it redeem it as soon as possible so there is less chance of a devaluation thus reducing the value of your points.
So how many frequent flyer programs should you accumulate points with? Well it all depends how often you fly. If your work flies you around the country or even internationally then try to stick with one program. In Australia you really have Qantas and Virgin so if you fly domestically within Australia pick one of these programs not just to rack up your miles but to gain status credits for elite treatment later on.
What if you don’t fly often? Then the best avenue to earning points is through credit cards. My personal favourite which is the American Express allows you to transfer to 10 different airlines. Thus I am accumulating points through the credit card and can transfer to my chose airline frequent flyer program when I am reading to redeem the points.
By holding the points in your credit card as long as you don’t cancel it – you’re points will not expire unlike if you have your points in a frequent flyer program where they can expire in as little as 18 months if there has not been any activity on it thus making your points forfeited.
In conclusion my recommendation is to redeem your points as soon as you can if your have your points in an airline frequent flyer program. Otherwise if you are collecting your points in a credit card reward system you have a bit more time to redeem as there are more airlines and offers that you can take.
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