The number one way to save money on travel is to use a travel credit card. Travel credit cards allow you to earn miles, points, or cash that can be redeemed for travel-related purchases. This article focuses on the Southwest Rewards card, which is what I used to fly my family to Cancun for free* (*I paid taxes and fees).
I initially got a Southwest Plus Credit Card because I already had an Airtran rewards credit card, when the two airlines merged in 2014. I like flying Southwest because they fly out of the major airports I frequently use and they are pretty affordable. As an added bonus. Southwest lets everyone check up to two bags for no additional expense.
I earn Southwest points through flights, hotel bookings, shopping through the Southwest shopping portal, and using the credit card for most of my purchases. The best way to earn points is to charge everything you can. But, only go this route if you can pay of your balance every month. You don’t earn the points until you have paid off your charges.
If you travel with points, flexibility is helpful to get the most out of your points. When I planned our trip to Mexico, we did not have a destination in mind. I knew we had a ton of points available and that Southwest flew to a few destinations in Central America and the Caribbean. I started comparing the cost of different destinations and landed on Cancun. We had enough points to cover the flights. However, airline points to not cover taxes or fees. Therefore, our free* flight still cost $104.65 per ticket or $313.95 for three roundtrip tickets.
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Shopping Portal
Many airlines offer online shopping portals where you can earn points or miles by shopping through them. You can also install a Google Chrome extension to your browser so you can see whether an online retailer earns you points and how many points per dollar. I do not consistently use the shopping portal, but I do try to use it during the Christmas holiday shopping season. There is usually a bonus available at different spending levels.
Use the Right Card for Bonus Categories
I make sure that certain expenses are charged to the credit card that has bonuses for specific categories. For example, you can earn 2 points per $1 for purchases for Rapid Reward hotel and car rental purchases, local transit and community purchases, internet, cable, phone, and some streaming services. In contrast, other purchases earn 1 point per $1. (Always check Southwest for current reward policies.)
Hotel Bookings and Rental Cars
You can book hotel and rental cars directly through Southwest’s website. You will earn 2 points per $1 for partner purchases. However, there are some hotels and rental cars with bonus points.
Transfer Points
It is possible transfer points from one frequent flyer to another, but it costs money. In my household’s case, I am the primary account holder which means all the points go to my account. My family only earn points through flying and occasionally shopping. I try to use one of their accounts for shopping so that eventually, they will have enough for a free flight. You are however, able to book flights for more than one person through one member’s account. I booked all three of our flights through my account. I was able to use my points for the purchase, though each member of the group earned points for flying on their own accounts. In short, there is not really a reason to transfer points. It might make your flight cheaper, but you lose by paying to transfer points.
Buy Points
The Points Guy values Southwest points at 1.35 cents each (April 2024). I have bought points once to have enough points to get a discounted flight. For me, the majority of the time it does not make sense to buy Southwest points, even when they are discounted.
Charge Everything, Payoff Monthly Balance
The most important part of using credit card rewards is charging only what you can pay off every month. Do not carry a balance to earn travel rewards.
Get the Right Card to Help You Achieve Your Travel Goals
There are numerous travel credit cards out there and plenty of travel experts have their favorite. At this point in my travel journey, the Southwest card makes sense as part of my household’s financial picture and it helps us achieve some of our travel goals. It is one of three travel credit cards my household uses because it achieves specific purposes.
Read More About Our Cancun Road Trip
10-Day Mexico Roadtrip from Cancun
5 Hotels for Your Cancun Road Trip
Staying Safe on Your Trip to Mexico
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