Smart Money Podcast: Nerdy Travel Diaries: Use Points to Fly in Luxury

Welcome to BaghdadTime’s Good Cash podcast, the place we reply your real-world cash questions.

On this episode, Liz talks with BaghdadTime journey author Elina Geller about how she books worldwide journey on factors alone.

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Flying in enterprise class utilizing factors is nice, however at all times be sure to’re getting a great deal. In spite of everything, these premium cabin redemptions price loads of miles, and also you don’t need to pay greater than you want to. So how are you aware what’s a great redemption or not? And are all enterprise class flying experiences created equal?

Journey Nerd Elina Geller explains why she initially booked a enterprise class award flight from Amsterdam to New York on United along with her Aeroplan miles however wound up canceling. As a substitute, she discovered a Promo Reward enterprise class ticket on KLM.

The taxes had been larger on the KLM flight, however it price fewer miles. KLM’s cabin configuration, airport location, lounge and different components performed a task in her choice, too. When Elina canceled the Aeroplan ticket, she bought the miles again in her Aeroplan account. To e-book the KLM award, she transferred factors from one in every of her go-to bank cards.

If you wish to use factors for touring, too, verify promos and study which playing cards to make use of when paying for award flight taxes. Additionally, attempt to have transferable factors with completely different packages, in order that if a possibility for a enterprise class award ticket comes alongside, you’ll be able to rapidly e-book it.

• Diversify your miles and factors. And at all times look out for discounted award tickets.

• When paying in money, at all times attempt to earn factors. For instance, Elina used one in every of her journey bank cards to pay for the taxes. That means, she was ready to make use of that card’s journey insurance coverage coverage.

Extra about journey on BaghdadTime:

Liz Weston: Flying enterprise class is fairly candy and in addition fairly costly if it’s important to pay money. Thankfully, there are methods to make use of journey rewards to attain the lie-flat mattress of your touring desires.

Welcome to the BaghdadTime Good Cash podcast, the place we normally reply your private finance questions and enable you to really feel somewhat smarter about what you do together with your cash. I am Liz Weston.

This episode, we’re persevering with our Journey Diaries collection, the place we’ll hear tales from our journey Nerds concerning the journeys they’ve taken and the cash they’ve saved alongside the way in which.

This episode, we’re speaking with BaghdadTime journey author, Elina Geller. She’s going to share the main points of a latest journey to New York and discuss how you should use factors and miles to attain enterprise class flights when you’re able to get again on the market.

Welcome to the podcast, Elina.

Elina Geller: Thanks for having me.

Liz Weston: In case our listeners have not heard earlier than, Elina’s often known as the digital nomad, and he or she principally travels for a dwelling. She makes use of factors and miles virtually solely, and he or she usually books enterprise class for these longer flights.

So Elina, let’s begin with some travel-hacking fundamentals. What are a few of your guidelines for getting and utilizing factors?

Elina Geller: To start with, having a bank card that earns transferable factors. In the event you use a journey bank card that earns factors and it is transferable factors, you might switch these factors to many alternative airways and motels. In order that’s going to provide the most flexibility.

That is additionally higher than having an airline or a lodge card, as a result of you probably have an airline or a lodge card, you are solely incomes miles or factors with that particular airline or lodge — versus a transferable level card, you are going to have the ability to switch these factors when you want to use them.

After which the opposite factor is, clearly, once you’re deciding to enroll in a bank card, you need to purpose for signing up when the sign-up bonus is excessive. So, completely different bank cards will provide completely different sign-up bonuses at completely different instances. You need to have a look and see when the upper sign-up bonuses are supplied.

Simply Google — like no matter card you are enthusiastic about — Google what the sign-up bonus historical past is. After which you will notice if the present bonus that is supplied is larger or decrease than what has been supplied previously.

Liz Weston: And that is essential, as a result of loads of instances, a lot of the factors that you simply get are from these sign-up bonuses, proper?

Elina Geller: Precisely, proper. There’s just a few elements to this passion. First is ensuring that you simply join a card when there is a excessive sign-up bonus. And second is utilizing that card to your on a regular basis purchases, so that you are a points-earning machine.

Liz Weston: Superior. And we should always point out that although we’re charging all the pieces we probably can, we’re additionally paying our balances off in full each month.

Elina Geller: Sure. That is tremendous essential, since you need to just be sure you’re not paying something to earn these factors. So it is tremendous to have a bank card with an annual charge if the cardboard’s advantages are value it to you. However you need to purpose to pay your stability in full each month, as a result of if you are going to be paying finance costs, these finance costs are going to negate the worth of the factors.

So once we discuss spending, utilizing your card for all of your purchases, your spending sample mustn’t change. You shouldn’t be spending more cash simply since you’re utilizing a bank card. It’s best to simply be shifting the way you’re paying for issues.

Liz Weston: Yeah, precisely. As a result of it would not make any sense to make purchases you would not in any other case, or to hold a stability that is going to wipe out any profit you get from the rewards.

Elina Geller: Completely. For instance in the event you’re a bank card and the sign-up bonus is nice, however you want to spend a big sum of money in a brief period of time and that is not possible, then that is not the precise card for you. Wait till a unique provide comes alongside.

Liz Weston: All proper. For individuals who haven’t but flown enterprise class, are you able to discuss somewhat bit about what the large deal is and why enterprise class is so significantly better?

Elina Geller: Yeah, completely. There’s additionally just a few nuances to this, proper? So worldwide enterprise class — and after I say worldwide, I imply one thing like a flight from the U.S. to Europe, a flight from the U.S. to Asia. Once you’re flying lengthy distances, crossing oceans, that is what I imply.

That could be a completely different product than, as an instance, one thing like first-class that is home inside the U.S. or enterprise class that is home inside Europe, as a result of these are simply seats which are barely greater within the entrance of the aircraft. And that is not a real enterprise class product. You are simply getting a barely superior product than economic system on a brief flight.

What I am speaking about is worldwide, long-distance enterprise class: once you’re in a separate cabin, the seat transforms right into a mattress, there’s individualized service, it’s completely different meals, it’s completely different leisure choices. It is only a fully completely different expertise.

Liz Weston: Yeah. And once you get to wherever you are going — at the least this occurred the primary time I did it — I did not need to get off the aircraft. It was the primary time in my life that I bought to my vacation spot like, “No, not but. I am not able to go but.”

Elina Geller: I do know — I really feel the identical means. If I am flying in enterprise class, and as an instance if it is a flight from the U.S. to Europe, oftentimes these are in a single day flights. So whereas it is nice to sleep in enterprise class on a flat mattress — clearly you get up as contemporary as a daisy after having a pleasant meal — you do not really get to expertise all of the enjoyable that enterprise class is.

And you probably have a day flight, which is normally what occurs once you fly from Europe again to the U.S., you actually find yourself experiencing all of enterprise class, and it is very nice. And also you simply actually get to take pleasure in all of the perks: the meals, the champagne, the precedence boarding, the faster your check-in, simply all these good issues — the snacks, the range, the great leisure choices, the area. I imply the perks are simply superior.

Liz Weston: Yeah. After which there’s the lounges on prime of that. That is normally included within the ticket, proper?

Elina Geller: Completely. So there’s lounge entry that is offered once you fly in enterprise class or first-class, in fact. And you too can get lounge entry by means of some bank cards and thru Precedence Cross.

However typically, in the event you’re fortunate, the lounge that you’re going to be accessing for what you are promoting class flight might be completely different than Precedence Cross and might solely be accessible by passengers flying in these premium cabins.

The lounge goes to be lots much less crowded, and it will be quieter. Possibly you may have higher meals choices.

Your flight expertise actually begins from the second that you simply get to the airport once you’re flying in premium. And it is simply, like, a pleasant expertise from begin to end.

Liz Weston: Now, all of these items doesn’t come cheaply. Are you able to discuss concerning the typical price of a global enterprise flight versus economic system?

Elina Geller: Typically, you are wanting into hundreds of {dollars}. Like, it might price $3,000 spherical journey — $4,000, $5,000, $6,000. It is at all times costly.

Clearly, like, that is in distinction to what it prices for an economic system ticket. I used to be simply some costs of round-trip economic system flights, they usually had been like $500 or $600. That is between the U.S. and Europe.

Liz Weston: Effectively, discuss somewhat bit about what number of factors you want and what the distinction is between economic system and enterprise.

Elina Geller: For instance, for instance, from the U.S. to Europe — as an instance an economic system ticket will price 30,000 miles. It is very possible {that a} enterprise class ticket will price 60,000 miles. So we’re speaking a couple of double of the factors, proper?

Nonetheless, once you evaluate that to the fee in money, when a enterprise class ticket is within the hundreds of {dollars}, such as you’re paying far more than double. You are getting extra out of your miles.

Liz Weston: So though utilizing factors to fly enterprise class is usually a actually good use of these factors, you are additionally utilizing loads of factors, even in the event you get a deal. So how do you resolve when to journey enterprise class?

Elina Geller: My basic rule is that if I am crossing an ocean and it is a lengthy flight, I need to have a pleasant expertise. I at all times need to ensure that I am listening to my miles balances with my completely different packages, as a result of I by no means need to be ready the place I haven’t got sufficient miles for a redemption.

Liz Weston: May you discuss particularly about your latest journey, the place you flew from Amsterdam to New York on enterprise class?

Elina Geller: There are two nonstop choices. There’s both United, which flies Amsterdam to New York, or KLM that flies the very same route.

And the United flight was about 60,000 miles, and the taxes are fairly low. After which I do know that KLM has — it is 57,500 miles — however the taxes are fairly excessive. They’re near about $300.

I at all times draw back from the KLM flight as a result of, to me, the entire level of this passion is to not pay for journey. And paying $300, even when it is taxes, continues to be paying. I desire to only spend as little as attainable.

Liz Weston: How a lot had been the taxes on the United flight?

Elina Geller: They had been round $90.

Liz Weston: OK, so $200 extra in taxes to fly KLM.

Liz Weston: So that is the flight you went with — the United flight?

Elina Geller: Yeah. So in fact there is a story to this, proper? I booked that flight, paid the $90 in taxes, and I assumed that that was that.

Liz Weston: After which what occurred?

Elina Geller: I knew at the back of my thoughts that KLM releases month-to-month Flying Blue promo rewards. And the following day I used to be like, “Wait a second, let me simply rapidly verify simply to see perhaps — perhaps there can be a reduced promo reward from Amsterdam to New York.”

And normally one thing like this by no means aligns for me, however I noticed that there was a reduced award ticket in enterprise class on KLM from Amsterdam to New York: 43,125 KLM miles plus $290 in taxes. So now I’d be principally saving 20,000 factors however paying an additional $200.

Liz Weston: OK. And what had been the benefits and downsides of KLM?

Elina Geller: The benefits had been that it was a more moderen aircraft. The configuration in enterprise class is a one-two-one configuration, which implies that in the event you’re sitting on the edges of the aircraft, there’s just one seat. And within the center, there’s two seats.

In the event you’re touring with somebody, choosing two seats within the center is nice since you might discuss. There is a divider; you might put it up, you might put it down. However in the event you’re touring solo, it is good to have a seat by the window, as a result of you do not have to step over any passenger that is subsequent to you.

Versus on the United flight, it is a two-two-two configuration. So in the event you’re sitting on both facet of the aircraft, you will have to step over the passenger subsequent to you. I did not like that. In order that’s a drawback of United.

One other benefit of the KLM flight was there’s a greater lounge in Amsterdam. It is a KLM Flying Blue lounge, and it is only a lot nicer than the United lounge, as a result of United makes use of a Precedence Cross lounge, and it is much more crowded. And the KLM lounge is simply far more lovely. So I like that lounge.

Additionally, once you fly in KLM in enterprise class, you get somewhat blue Delft collector home. In order that’s similar to a cute little present.

Elina Geller: Yeah. I flew this route earlier than, so I’ve one other home. So now I’ve two. So it’s extremely cute.

Liz Weston: Oh, that sounds nice. Not one thing you’d need to pay additional for, simply to get that home. Nevertheless it’s type of a pleasant add-on.

Elina Geller: Precisely. It is a cute little present, they usually provide you with a alternative of various ones to select. So you’ll be able to just be sure you get a set of all completely different homes.

And naturally, one of many cons of KLM is the truth that it flies into JFK, versus United — which flies into Newark — and that is far more handy for me. I dwell on the West Aspect in Manhattan, and that is a more in-depth airport trip.

Liz Weston: OK, so what did you finally resolve?

Elina Geller: I finally determined that I used to be going to fly KLM. To start with, it is much less factors basically. And clearly it is a nicer enterprise class expertise, as a result of it is a greater seat, newer aircraft and all that good things.

Liz Weston: The pliability to cancel and have the factors come again — that is one other good thing about reserving with factors. In case your plans change, in the event you change your thoughts a couple of flight, you’ll be able to simply simply cancel it, get the factors again and transfer on.

Elina Geller: Effectively, that is not at all times the case.

Liz Weston: Oh, good to know.

Elina Geller: Yeah, truthfully, it has been such a very long time since I checked out what the precise cancellation insurance policies had been earlier than the instances of COVID. It is tremendous versatile now, however I do not know if each single airline is tremendous versatile.

There is no laborious and quick rule of how a lot flexibility you’ve gotten. All the pieces fully depends upon the airline and the kind of fare you booked and once you’re touring.

Liz Weston: OK, that is good. So it is one other factor you need to analysis earlier than you decide?

Elina Geller: At all times. It is similar to any type of reserving. You at all times need to know: Is it free cancellation? Is there a charge? Are you able to get your miles again? Do you get your a reimbursement, or is it going to be a journey credit score? What are you going to get once you cancel?

Liz Weston: Elina, you do an amazing job of sniffing out the offers. And typically once you have a look at an award chart for enterprise class, they need an outstanding quantity of miles. Typically it is not 60,000; typically it is 500,000.

So how do you discover the candy spots? How do you discover these nice offers?

Elina Geller: Proper. So it is true that costs can range considerably. And what you are speaking about — the actually, actually excessive redemption, prefer it’s costing 300,000 miles or 400,000 miles.

So when an airline will launch award availability, they’ll launch a sure variety of seats in enterprise class you can e-book with miles at the usual, as an instance award-chart charge. So 60,000 miles, proper?

So perhaps there will be 20 seats in enterprise class, and perhaps 5 can be accessible to e-book with miles at that normal charge. As soon as these 5 are booked up, or perhaps as soon as the cabin is usually full with passengers who pay for income tickets, the airline will take away these normal charges.

So all that is going to be accessible is the book-at-anytime type of fare in miles, which goes to only be a totally dynamic quantity that would range, might price a whole bunch of hundreds of miles. And I’ll by no means e-book with these.

I simply know after I see that, that I have to be extra versatile. Possibly I have to fly on one other date. Possibly I have to fly into one other airport.

That is one other factor that is essential to consider once you’re stepping into miles and factors, is that it’s important to be versatile, proper? It is not like you are going to look and say, “OK, I need to fly on Friday and are available again on Monday, and I need the most cost effective flight. And if I am unable to get it, then this passion would not work.”

No, in the event you’re making an attempt to get these redemptions, typically chances are you’ll have to fly on a Thursday, or perhaps chances are you’ll have to have a connection.

It is not at all times the case. Nearly all of the time, I will discover the redemptions that I need. However typically you do need to be versatile, particularly round holidays.

Liz Weston: Do you’ve gotten every other hacks that you simply used on this specific journey?

Elina Geller: Sure, as a result of I’ve a number of bank cards that give me Uber credit, I used to be capable of get $25 off my Uber trip dwelling.

That is one other essential factor: journey insurance coverage. In case you have a bank card that provides you journey insurance coverage, and you utilize that bank card to pay for the tax part of your flight, you’re going to get the journey insurance coverage advantages.

So initially, try this. After which second of all, once you’re paying for these taxes, clearly use a bank card that earns factors so that you simply’re at all times incomes factors.

Liz Weston: OK. That is nice recommendation, as a result of journey insurance coverage may be type of costly and having that triggered for simply paying the taxes with the cardboard — that is a fairly good hack.

Liz Weston: OK. How do you retain observe of all of the completely different advantages your playing cards provide so that you simply remind your self to make use of them?

Elina Geller: There’s an app that I exploit. It tracks loads of this for me. However truthfully I do not actually use it on a regular basis, as a lot as I ought to. A whole lot of it I simply hold in my head.

Liz Weston: Yeah, as a result of it is what you do for a dwelling.

Elina Geller: Mainly. It has been my way of life for 11 years now. It’s loads of what I take into consideration probably the most.

Liz Weston: OK, superb. I really put some notes on my calendar to remind me to make use of sure advantages earlier than they expire, as a result of I had a bunch that went away earlier than I had an opportunity to make use of them. And I simply hate that. I hate once you get a profit, and you aren’t getting to make use of it. Drives me nuts.

Elina Geller: I do know. It is since you need to flip your bank card right into a moneymaker, and it is laborious to do this in the event you’re letting the advantages go unused.

Liz Weston: All proper. Effectively, do you’ve gotten every other recommendation for folks in the event that they need to get into this travel-hacking recreation?

Elina Geller: I’d say begin studying newbie guides, as a result of there’s loads of data on the market. It might appear overwhelming.

However begin studying newbie guides, get your self conversant in airline miles, lodge factors, transferable bank card factors. How do you utilize them? What’s an airline that is shut — your house airport? The place do you need to go? What number of miles would it not price on what airline? How are you going to get these factors? And so forth.

Simply begin wanting primarily based on a particular journey that you’ve got arising, and that can be a simple option to study somewhat bit about this.

Liz Weston: That is good recommendation. So Elina, do you’ve gotten any takeaway ideas for us?

Elina Geller: Yeah, completely. I’ve two. One, it is an amazing concept to diversify your miles and factors and at all times be looking out for discounted award tickets.

And two, in the event you’re paying in money, at all times attempt to earn factors. For instance, I exploit the bank card that not solely earns factors on journey purchases, however it additionally provides journey insurance coverage, which implies that I bought journey insurance coverage safety on my flight.

Liz Weston: And that is all we have now for this episode. Do you’ve gotten a journey or cash query of your individual? Flip to the Nerds and name or textual content us your questions at 901-730-6373. That is 901-730-NERD. You may also e-mail us at [email protected]

Additionally go to nerdwallet.com/podcast for extra data on this episode. And bear in mind to comply with, charge and evaluate us wherever you are getting this podcast.

Elina Geller: And this is our temporary disclaimer, thoughtfully crafted by BaghdadTime’s authorized staff. Your questions are answered by educated and gifted finance writers, however we aren’t monetary or funding advisors. This Nerdy data is offered for basic training and leisure functions and will not apply to your particular circumstances.