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

Just Posted

From left: Thomas Kuecks, David Lane, John Ivison, Denis Berger, Rod Gray, and James Kuecks are Cabin Fever. Catch their performance on the Cowichan Performing Arts Centre website. (Ashley Foot photo)
A&E column: Music Festival winners, CVAC awards, and Cabin Fever

The latest from the Cowichan Valley arts and entertainment community

BC Green Party leader and Cowichan Valley MLA Sonia Furstenau introduced a petition to the provincial legislature on Thursday calling for the end of old-growth logging in the province. (File photo)
Cowichan Valley MLA Furstenau introduces old-growth logging petition

BC Green Party calls for the end of old-growth logging as protests in Fairy Creek continue

The city-owned lot at 361 St. Julien St., which has been home to a temporary homeless site for more than a year, will be sold and plans are to build a three-storey mixed-use development there, Peter de Verteuil, Duncan CAO explained at a recent council meeting. (File photo)
New development planned for homeless site in Duncan

Lot on St. Julien Street would see three-storey building

Historian and longtime Citizen columnist T.W. Paterson photographs the historical wreckage of a plane on Mount Benson. Paterson recently won an award from the British Columbia Historical Foundation. (Submitted)
Cowichan’s Tom W. Paterson wins award for historical writing

British Columbia Historical Federation hands Recognition Award to local writer

This electric school bus is the newest addition to the Cowichan Valley School District’s fleet. (Submitted)
Editorial: New electric school bus good place to start

Changing public transit like buses to electric really is important.

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

The Co-op gas station at Whiskey Creek is burning after a camper van exploded while refueling just before 4 p.m. on Thursday, June 17, 2021. (FACEBOOK PHOTO)
Exploding camper van torches Highway 4 gas station between Qualicum Beach and Port Alberni

Highway traffic blocked after Whiskey Creek gas station erupts into flames

Helen Austin performing with Trent Freeman at the 2018 Vancouver Island MusicFest. Austin is one of the many performers listed for the 2021 event.
Vancouver Island MusicFest goes virtual for 2021

Black Press to stream 25 hours of programming July 9-11

Greater father involvement in the home leads to improved childhood development and increased marital satisfaction, says expert. (Black Press Media file photo)
Vancouver Island researcher finds lack of father involvement a drag on gender equality

Working women still taking on most child and household duties in Canada: UVic professor

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

Most Read