Maximizing business travel expenses through the strategic use of travel rewards credit cards can provide huge benefits for companies of all sizes. By earning points, miles, or cashback on business spending, companies can offset future travel costs and make the most of their travel budgets. In this comprehensive guide, we’ll explore the ins and outs of leveraging travel rewards credit cards for business trips.
We’ll start by understanding what travel rewards cards are and how to pick the right one for your company’s needs. Next, we’ll do a deep dive comparison of some of the most popular options for business travelers. You’ll learn strategies for optimizing your earnings potential with these cards, from tracking expenses to combining rewards programs.
Later on, we’ll discuss best practices for redeeming your accumulated rewards, whether for flights, hotels, or other options. We’ll also cover important considerations like travel protections and emergency services. To wrap up, we’ll showcase real-world examples of travel rewards success stories.
By the end, you’ll have actionable tips and advice for implementing an effective travel rewards program at your own company. Let’s get started exploring how travel rewards credit cards can help your business maximize its travel budget!
Understanding Travel Rewards Credit Cards
What are Travel Rewards Credit Cards?
Travel rewards credit cards allow cardholders to earn points, miles, or cash back that can be redeemed for travel-related purchases. Unlike traditional credit cards that offer cash back or rewards points on general spending, travel rewards cards incentivize spending that is specific to travel and accommodations.
The main types of travel rewards offered by these cards include:
- Airline miles – Can be redeemed for free flights on partner airlines. May include additional airline-specific perks.
- Hotel points – Good for free hotel nights with affiliated hotel chains. May include elite status and other benefits.
- Flexible travel points – Generic points that can be transferred to multiple travel partners or redeemed directly for travel purchases.
- Cash back – Cash rewards typically earned as a percentage on travel spending. Can be redeemed as statement credits.
How Travel Rewards Cards Differ from Traditional Cards
Travel rewards cards differ from traditional cash back and general rewards cards in several key ways:
- They earn higher rewards rates on travel spending categories like airfare, hotels, taxis, rental cars, etc.
- They offer travel-specific redemption options, including airline and hotel transfers and bookings.
- They provide travel protections and benefits like rental car insurance, trip delay coverage, and lost luggage reimbursement.
- They may provide access to travel perks like airport lounge access, elite status with hotels or rental car agencies, and travel concierge services.
Types of Travel Rewards
The main types of travel rewards available with these cards include:
- Points – Generic rewards points that can be transferred to travel partners or redeemed for travel purchases directly through the card issuer’s booking portal. Generally provide a fixed value per point.
- Miles – Airline-specific miles that can be redeemed for award flights or upgraded seats on partner airlines. Value may vary depending on airline and route.
- Hotel points – Used to book free hotel nights with affiliated hotel chains. Value depends on the specific hotel’s award chart.
- Cash back – Typically earned as a percentage on travel purchases and redeemed as statement credits against travel expenses. Value is fixed.
Factors to Consider When Choosing a Travel Rewards Card
Annual Fees
Most travel rewards cards have annual fees ranging from $95 to $550. Cards with higher fees often provide more valuable benefits and earnings potential, so weigh the fee against the potential reward value.
Earning Rates
Pay attention to bonus category earning rates for things like airfare, hotels, dining, etc. Pick a card aligned with your expected business spending.
Redemption Options and Values
Compare redemption values for flights, hotels, and cash back. Transferable points typically provide the best value.
Loyalty Program Affiliations
If your company frequently uses a specific airline or hotel chain, prioritize cards that boost status and offer mileage/point transfers.
Additional Perks and Benefits
Factor in other benefits like lounge access, travel credits, rental car coverage, and concierge services.
Comparing Popular Travel Rewards Credit Cards
Here’s an overview of some of the top travel rewards credit cards used by businesses:
Chase Sapphire Preferred/Reserve
- Benefits – 2x/3x points on travel and dining, 1:1 airline and hotel transfers, travel protections, Priority Pass lounge access (Reserve only).
- Annual Fee – $95 for Preferred, $550 for Reserve.
- Welcome Bonus – 60,000 points after spending $4,000 in 3 months. Worth around $750 in travel.
American Express Platinum/Gold
- Benefits – 5x points on flights and hotels, airline fee credits, lounge access, hotel elite status.
- Annual Fee – $695 for Platinum, $250 for Gold.
- Welcome Bonus – 100,000 points for Platinum after spending $6,000 in 6 months.
Capital One Venture/Spark Miles
- Benefits – 2x miles on all purchases, transfer miles to airline partners, travel statement credits.
- Annual Fee – $95 for Venture, $95 for Spark Miles.
- Welcome Bonus – 75,000 miles for Venture after spending $4,000 in 3 months.
Citi Premier/Prestige
- Benefits – 3x points on airfare, gas, restaurants, and hotels. Priority Pass access and 4th night free on hotels.
- Annual Fee – $95 for Premier, $495 for Prestige.
- Welcome Bonus – 80,000 points for Premier after spending $4,000 in 3 months.
Maximizing Earnings with Travel Rewards Credit Cards
Identifying and Tracking Business Expenses
The first step is to analyze your company’s typical business travel spending. Categorize expenses like airfare, hotel stays, rental cars, dining, and transportation.
Once you understand your spending patterns, pick a travel rewards card that aligns with your major categories and offers the highest earning rates.
Use expense tracking software to identify recurring travel expenses that can be put on the card.
Optimizing Card Usage
Strategically use the right card for the right types of purchases in order to maximize earnings in bonus categories.
Automate and streamline billing for recurring expenses whenever possible – this helps meet minimum spending requirements.
Earning Signup Bonuses and Referrals
Take advantage of lucrative signup bonus point offers by meeting the minimum spend requirements within the required timeframe.
Refer employees for the same card to earn referral bonuses. Encourage employees to meet their own minimum spend for more points.
Combining Travel Rewards with Other Programs
Linking Travel Rewards Accounts with Loyalty Programs
Connect your travel rewards account with frequent flyer and hotel loyalty programs like American AAdvantage, Marriott Bonvoy, etc.
Transfer points and miles between programs to maximize redemption value. Take advantage of bonus transfer promotions.
Utilizing Partner Programs and Promotions
Many travel booking sites like Orbitz and Hotels.com have their own rewards programs that can be combined with credit card rewards.
Participate in seasonal partner promotions to earn bonus points and stretch the value of your rewards.
Redeeming Travel Rewards
Understanding Redemption Options
Major options for redeeming travel rewards include:
- Booking travel directly on the card’s website
- Transferring points/miles to various airline and hotel partners
- Getting statement credits to offset travel purchases
- Using rewards towards gift cards for travel-related retailers
Maximizing Redemption Value
Identify the redemption options that provide the best per-point value for your preferred types of travel.
Use points for high-value awards like international business class flights and luxury hotel redemptions.
Avoid using points for lower-value options like magazine subscriptions or retail gift cards.
Handling Travel Disruptions and Emergencies
Review your card’s travel protections for coverage on things like:
- Trip delays – reimbursement for expenses like hotels, meals, transportation.
- Lost or delayed luggage – provision of essential items and reimbursement of replacement costs.
- Rental car damage – coverage for collision damage and theft.
- Medical emergencies – emergency medical transportation assistance.
Utilize concierge services to help with rebooking canceled or delayed trips.
Case Studies and Success Stories
Consultancy Firm Earns 500,000 Points for Business Travel
A management consultancy firm issued employees a Capital One Spark Miles card for business expenses. Over 2 years, they earned over 500,000 miles, primarily through airfare and hotel spending. Employees redeemed miles for business class flights to client sites worldwide.
Marketing Agency Offsets Travel with Cash Back Rewards
A marketing agency chose the Bank of America Premium Rewards card to earn 2.5% cash back on all purchases. Employees put all travel expenses on the card, earning over $10,000 cash back in the first year. They redeemed these rewards as statement credits to offset future travel costs.
Architecture Firm Earns Free Hotel Stays
An architecture firm frequently stays at Hyatt hotels for client projects. They used the World of Hyatt credit card to earn points on hotel spending and other bonuses. In just one year, they earned enough points for dozens of free nights at Hyatt properties.
Tips for Implementing a Travel Rewards Program
- Analyze your company’s travel spending and patterns to pick the optimal cards and loyalty programs.
- Set policies for employee card use – establish rules, spending limits, and review processes.
- Provide training on how to maximize earning potential and redemption value.
- Incentivize employees to participate by letting them redeem some points for personal travel.
- Consider getting corporate cards to earn more points and simplify expense tracking.
- Consolidate rewards accounts and points balances across employees for easier program management.
Conclusion
Implementing a strategic travel rewards program can help your business maximize its travel budget by offsetting future expenses. But realizing the benefits requires picking the right credit cards for your company, optimizing spending habits to maximize earnings, understanding high-value redemption options, and establishing effective policies and processes.
Use the tips in this guide to evaluate your current business travel spending and explore implementing a customized travel rewards program. Your company could be earning free flights, hotel nights, and statement credits to make the most of your travel expenses.
