Finance

Smart Money Podcast: Nerdy Travel Diaries: Getaway to Costa Rica

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

This episode, Sean talks with BaghdadTime journey editor Kevin Berry about his current journey to Costa Rica.

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Our take

Should you traveled within the pre-COVID instances or used a journey bank card of some sort, there’s a good probability you’re sitting on some factors and miles which have amassed over the past two years. Whenever you’re able to journey once more, don’t instantly pay money for these journeys. Take inventory of what factors and miles you’ve got mendacity round which may considerably restrict the amount of money it’s a must to pay.

As Nerds, we take care of this, too. Considered one of our journey editors, Kevin Berry, just lately got down to ebook a giant fifteenth wedding ceremony anniversary journey. Quite than shelling out 1000’s of {dollars} for flights and resorts, he used up a trove of Marriott Bonvoy factors that had been increase over time.

By a mixture of a welcome bonus, enterprise journey, strategically paying money for cheaper journeys and artful use of a fifth-night-free profit, Kevin was in a position to flip his 370,000 Bonvoy factors right into a five-night keep at an all-inclusive resort in lovely Costa Rica for him and his spouse. You are able to do the identical.

Our ideas

  • Perceive your resort’s free night time coverage: A number of main manufacturers provides you with a free night time when reserving on factors.

  • Use factors for belongings you wouldn’t pay for in any other case: Many points-and-miles vacationers prefer to brag concerning the “cents-per-point” price they exchanged for. Don’t get too caught up in that recreation. Quite, give attention to utilizing your factors for issues you wouldn’t in any other case pay money for.

  • Think about positioning flights: Relying on your private home airport, it could actually typically make sense — logistically and financially — to ebook a separate flight to a different metropolis after which ebook your direct flight to your last vacation spot.

Observe that we point out just a few bank cards which are BaghdadTime companions, however that does not have an effect on the best way that we speak about them.

Episode transcript:

Sean Pyles: Welcome to the BaghdadTime Sensible Cash Podcast, the place we normally reply your private finance questions and provide help to really feel a little bit smarter about what you do together with your cash. I am Sean Pyles.

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

This time round, we’re speaking with one in all our journey editors, Kevin Berry. Kevin goes to share the small print of an opulent worldwide journey he booked for a marriage anniversary utilizing factors and miles. He’ll additionally give some ideas for a way you are able to do the identical. Welcome to Sensible Cash, Kevin.

Kevin Berry: Thanks for having me. Excited to be right here.

Sean Pyles: It is nice to have you ever on. And one fast observe earlier than we get into this dialog: We’re going to speak about just a few bank cards which are BaghdadTime companions, however that does not have an effect on the best way that we speak about them.

So that you had, as I discussed, an opulent worldwide journey. Give us the small print of it.

Kevin Berry: Yeah. My spouse and I had our fifteenth wedding ceremony anniversary arising, and we had been simply sitting on a pile of factors — resorts, airways, journey factors — that had amassed through the pandemic, as a result of we simply hadn’t traveled, clearly, through the COVID instances.

So with a giant milestone anniversary and a bunch of factors, it appeared like a reasonably good alternative to attempt to ebook one thing extravagant. And we had traveled fairly extensively domestically and been to the seashores of Mexico quite a bit. However we needed to strive one thing new for the anniversary, and we had a bunch of Marriott factors.

So we set out to determine learn how to burn all of these on a pleasant large journey that perhaps we would not usually pay for. And so we began taking a look at all-inclusive resorts.

Sean Pyles: Attention-grabbing. So it looks like you had these factors and also you let that dictate the place you had been going to spend them — the situation of your large journey post-COVID, or semi-post-COVID, as we’re.

Kevin Berry: Yeah. I imply, actually as a result of factors, usually, they aren’t an funding. They devalue over time, they usually expire. Lodges will change the quantity of factors it takes to ebook a resort, making them much less helpful.

So we wish to spend the factors that we had with the model that we had, and Marriott was the main one.

Sean Pyles: Yeah, positive. And I believe quite a lot of of us who had been in a reasonably comparable scenario and nonetheless are, with quite a lot of factors constructed up over the pandemic, they usually have not been ready to make use of them.

So are you able to stroll me by means of your thought course of on the way you ended up selecting that particular location? And what elements had been the main drivers for you?

Kevin Berry: Yeah, positive. As is journey within the COVID period — that was at all times the primary impediment, proper? The place are you able to get in? Not all nations are letting individuals in. What’s your tolerance when it comes to vaccination charges, and the place do you are feeling comfy going? You have to have a COVID check to get again into the U.S., so how prevalent are these within the nation you are taking a look at? In order that was a part of it.

As I discussed, we knew we needed to go to a Marriott, and we knew we needed to go to an all-inclusive. That fairly shortly narrows you right down to about 20, 25 resorts.

And I believe the large factor that we had been actually searching for is: We needed a spot that — since we had been utilizing our factors — we needed a spot that we might by no means pay for with precise cash. Prefer to have an expertise that we would not shell out the money for, however since we’re utilizing these factors, it is one thing that you simply would not get to expertise in any other case.

Sean Pyles: Yeah, it seems like free cash in some methods. And so you may spend it in maybe a extra luxurious vogue than you’d your individual {dollars}.

Kevin Berry: Proper. There is not any literal method for me to show all these Marriott factors into money in my fingers. I’d as effectively use them to remain at a resort I would not in any other case pay for.

Sean Pyles: Cool. So the place did you land?

Kevin Berry: We ended up at a Weston all-inclusive in Costa Rica, which was a brand new nation for us.

Sean Pyles: And we should always make clear that Westons are Marriott properties.

Kevin Berry: Proper. So it checked all of the packing containers: nice climate, simple to get to, Marriott, all-inclusive and the COVID logistics had been fairly manageable.

Sean Pyles: And Costa Rica is gorgeous. So it is a fantastic place to go to. It is really the final spot that I traveled to internationally, August 2019. And I am glad I used to be in a position to really take that journey, as a result of it has been a very long time since I traveled internationally.

Kevin Berry: Yeah. It is exhausting to go fallacious in Costa Rica. Anybody I talked to previous to the journey that had been, nobody ever wavered. They had been at all times like, “Oh, you are going to find it irresistible. It is implausible.”

Sean Pyles: It is in contrast to anyplace else. The pure great thing about the place, the Cloud Forest, the animals in all places, the indigenous tradition. It is unbelievable.

Kevin Berry: Sure, it undoubtedly is. And also you get a variety of geography in that nation too, relying on the place you wish to go.

Sean Pyles: Yeah, very cool. Properly, let’s get into among the specifics of your journey plans and see what we will study out of your technique.

So let’s begin together with your resort. What had been the small print of your reserving, and what recommendation do you’ve got for the remainder of us trying to ebook large journeys like this?

Kevin Berry: After I stated a mountain of Marriott factors, particularly it was 370,000 of them.

Sean Pyles: It is an enormous quantity.

Kevin Berry: It’s a lot, however that is not essentially a novel scenario to be in. Bank card sign-up bonuses — you will get 100,000 factors in the event you qualify for these and meet the minimal spend. And I traveled for work fairly a bit in my earlier job, and people factors had piled up.

So we took that and cashed it in for 5 nights on the Weston all-inclusive. It is a resort the place the money price is $500, $600 per night time. So paying $3,000 for a visit is simply not one thing that we might usually do. Possibly some individuals journey like that. Good for them. That is not how we journey.

It was a reasonably good use of our Marriott factors. Right here at BaghdadTime, we do all these valuations of “What are your factors price?” and “What must you attempt to get?” And a Marriott level is price about seven-tenths of a cent, per level.

And I acquired a little bit bit higher price of that, however I believe the large factor that you simply wish to have a look at once you’re reserving a visit is: You do not have to maximise the worth in the event you’re getting an expertise that you simply would not in any other case get.

And in order that was actually what it got here right down to for us. It was like: It is a good redemption, however we might by no means get to go right here in any other case, and that is what made it attractive for us.

Sean Pyles: Yeah. So what was so interesting about that property itself? What had been you getting from this reserving the place you stated, “That is the posh journey that we would like”?

Kevin Berry: I believe it was a mixture of a pair issues. To begin with, within the Marriott system, you are in a position to get a fifth night time free once you ebook. So we solely needed to pay 4 nights’ price of factors, however we acquired to remain for 5 nights.

So once you take that on high of a $500-, $600-a-night all-inclusive, and you have this lovely resort and these high-end eating places, it simply actually begins to pencil out, since you really feel such as you’re getting a very good take care of the fifth-night-free perk.

And Marriott’s not the one one which does that. Hilton has a fifth-night-free profit. IHG has a fourth-night-free profit. So it form of provides you this chance to get outsized worth, in case you are strategic concerning the kinds of resorts that you simply decide to spend your factors at. And you are able to do fifth night time free on the Courtyard by your native airport, or you are able to do fifth night time free at an all-inclusive in Costa Rica. So there’s a little bit little bit of technique there that performed into that.

Sean Pyles: I might love to listen to a little bit bit concerning the different facilities of the place you stayed within the location itself. For instance, after I stayed in Costa Rica, my accomplice and I stayed within the Cloud Forest at a resort there. And the resort provided guided excursions of natural world at night time. We did an evening tour of the native jungle within the space, which was very lovely.

However then we additionally stayed at an all-inclusive resort that had nothing of the kind. It was near the ocean, however most folk stayed within the pool, which we discovered form of baffling.

So did you get to expertise the pure great thing about the world? What was that have like?

Kevin Berry: Our journey was a little bit distinctive. The primary two days and the primary night time that we had been there, we really stayed on this little seashore city that was seven minutes from the resort. And we did rather more of the native bed-and-breakfast, native restaurant, consuming down by the seashore and simply strolling round city.

After which we went to the resort for the 5 nights. And once you’re on the resort, there’s a lot to do on the resort that we by no means felt the necessity to go away it. I now really feel the necessity to return to Costa Rica and do all the opposite issues.

However the resort had these nightly exhibits, whether or not it was this like fire-dancing present or a Caribbean-themed present. There was coffee-tasting and drink-making. So there have been all these totally different actions.

And actually at an all-inclusive, a minimum of at a high-end one like we had, we had been lucky sufficient to go to, the meals grew to become the exercise, with the, “The place might we get the reservation for dinner tonight?” And also you began scheduling round that, as a result of the steaks had been so good and the Italian meals was so good. It grew to become a foodie journey, actually.

Sean Pyles: I form of love once you’re at a resort like that. And it nearly feels such as you’re regressing again into your childhood, the place you are simply being fed and brought care of. And you do not have to really make any choices by yourself, apart from the place your subsequent meal is coming from.

Kevin Berry: Yeah, precisely. It was undoubtedly like that, particularly with the drinks simply coming to the pool everytime you raised your hand.

Sean Pyles: Very good. Properly, did you make it out to the Cloud Forest in any respect once you had been in Costa Rica?

Kevin Berry: We didn’t. Cloud Forest is on the following journey’s checklist.

Sean Pyles: You bought to do it. There are a variety of the way to do it. Some of us will take a bus from San Jose. And we considered doing that.

We ended up renting a automobile, as a result of we needed to drive past the Cloud Forest to the place the precise resort was that we had been staying at ultimately. And in the event you prefer to drive off-road, and you are not fearful of steep mountain roads, I might advocate it. It was quite a lot of enjoyable, and it provides you a certain quantity of freedom. It was a good time for us.

Kevin Berry: Very good. Sure. I’ll take that suggestion to coronary heart for my subsequent journey.

Sean Pyles: Properly, I wish to return to all of these factors, since you accrued an enormous quantity of them. How did you really get all of these Bonvoy factors?

Kevin Berry: The massive method — and that is open to most individuals and that is what we speak quite a bit about at BaghdadTime — is bank card sign-up bonuses.

Marriott has playing cards with Chase and with American Categorical. And in the event you qualify, they provide you a welcome bonus, or a sign-up bonus, for spending a sure sum of money in a sure time-frame.

Now, clearly you wish to try this and pay the invoice on time. You do not wish to incur curiosity fees, as a result of then that takes the worth away of the factors.

However you will get upwards of 100,000 factors or extra, relying on the promotion they’re providing. In order that’s half one.

After which half two is, relying in your monetary scenario, typically you wish to pay money on your journeys. After we go to Mexico, and the charges are inexpensive — they’re $100, $120 an evening — we select to pay for these.

After which, as a result of we have now standing at Marriott and I’ve a Marriott bank card, I earn like 23 ½ Marriott factors for each greenback that I spend. So you are able to do the mathematics on 23 ½ instances every week in Mexico — that begins so as to add up fairly quick.

And thirdly, I might say, in the event you journey for work, it is price it to exit of your option to keep at a constant model, as a result of these factors begin to pile up, even when your organization’s paying the invoice. You are still the member, and you are still buying these factors. So that you wish to consolidate these.

Between work journeys, and paying money, and incomes factors and bank card sign-up bonuses, attending to 300,000 or 400,000 factors is definitely not as exhausting because it sounds.

Sean Pyles: I wish to speak a little bit bit extra concerning the time that you simply spent in Costa Rica. You talked about that you simply had some unbelievable meals, some nice espresso, which Costa Rica is thought for. What else did you do throughout your time there?

Kevin Berry: We had a really totally different expertise the primary two days versus the final 5 days. And the primary two days that we had been there, after we had been down within the seashore city, little bed-and-breakfast, native eating places, native espresso outlets.

And that was only a actually cool form of, get a really feel for what a seashore city in Costa Rica is like. It was only a a lot totally different really feel than as soon as you bought to the luxurious resort.

And as soon as we acquired to the resort, it grew to become all concerning the meals. And there was a schedule day by day of the place you possibly can get reservations. There was a schedule of actions day by day. It was about discovering what seat on the pool you possibly can get and hunker down with for the day.

So there have been some logistics concerned with that. However yeah, it was only a very totally different expertise being at this luxury resort, but in addition attending to type of expertise the native Costa Rica vibe the primary two days.

Sean Pyles: It sounds form of “White Lotus”-esque with out perhaps the horrible snobbery, I am hoping.

Kevin Berry: Yeah, precisely.

Sean Pyles: OK, cool. So how a lot did all of this price — these actions through the day? And what did you do to save cash?

Kevin Berry: Yeah, I imply, the fantastic thing about an all-inclusive is way of it’s already in the fee. Like, we did not must pay for the exhibits. Clearly, we did not must pay for the meals.

The one issues usually, once you go to an all-inclusive — like if you wish to go to the spa — it is further. If you wish to play on the golf course, it is further. So aside from some souvenirs, after we had been on the resort, we did not spend any cash.

We actually centered on getting probably the most out of our time on the resort. There was this cool bar, they usually’d have music and dancing at night time — no price. No price for the drinks, no price to point out up.

That is the bonus to an all-inclusive, proper? You take away this decision-making and it type of means that you can simply benefit from the journey a little bit bit extra, as a result of it is simply all included there.

Sean Pyles: One tip that I’ve for folk who would possibly keep at an all-inclusive resort like that is to purchase sunscreen earlier than you arrive on the resort, as a result of that is one thing that I didn’t buy earlier than I acquired to my resort in Costa Rica. I ended up having to purchase some there, and it was $50 for a not-big bottle of sunscreen, which you needed to have.

In order that may be one tip. Cease by the native pharmacy earlier than you get there, as a result of when you land there, you are not going to wish to go away.

Kevin Berry: Sure, precisely. We did simply that. The day we had been within the seashore city, we hit up an area grocery retailer and picked up necessities and the sunscreen was very moderately priced down there.

Kevin Berry: No, not $50. We acquired waters and sunscreens and all of the toiletries that we did not wish to pack. It was like $60 for all of it. And, yeah, not dangerous. And it was sufficient sunscreen to get us by means of the week, and it was nice.

Sean Pyles: Cool. So Kevin, when it got here time to ebook flights, what was your thought course of there?

Kevin Berry: Flying on this COVID period, particularly with all of the reductions which have occurred staffing-wise with airways, we had been legitimately nervous. As a result of, I imply, look, we learn it within the information on a regular basis about flights getting canceled and delays. And no person desires to overlook a connecting flight after they’re occurring trip, proper, and you’ve got spent 370,000 Marriott factors — you wish to get there on time.

So we selected to mitigate a few of that. I reside in Portland, Oregon, and it is not a direct route right down to Costa Rica. So we booked a separate flight into Denver, as a result of we might get from Denver to Costa Rica direct.

And we simply went a day early. And we simply used a free-night certificates at an airport resort. In order that method, we knew we had been in Denver the night time earlier than the flight, we had been on a direct flight to Costa Rica, and that mitigates quite a lot of the chance of lacking a connection or one thing going fallacious.

And all of it labored out and we acquired there on time, however simply much less stress on our finish. And usually once you value it out, it would not price extra. Typically it is really cheaper since you’ve acquired some flexibility.

Like, I can decide a budget flight from Portland to Denver to get there, after which I purchase my ticket Denver to Costa Rica and it finally ends up being cheaper than the airline routing me there themselves.

Sean Pyles: Yeah. And I believe the truth that you possibly can get a virtually free resort that night time makes a giant distinction as effectively. As a result of I used to be trying to ebook some journey from Portland to London for the summer time, and I used to be contemplating flying into Chicago first, spending an evening there after which flying from O’Hare to Heathrow, as a result of O’Hare is such a giant worldwide hub.

I ended up wanting on the value of a resort and the whole lot else that was going to be concerned in it, and it did not make sense for me. I believe due to lodging alone, it actually pushed me over the sting.

And I stated, “OK, I’ll spend just a few hundred bucks extra for a flight straight from Portland to Heathrow, however ultimately, I am popping out forward.” So the truth that you had some factors to make use of, I believe makes it price it for you.

Kevin Berry: Yeah. And I additionally encourage individuals to verify your resort accounts, since you might need free-night certificates you have forgotten about. You’ll have earned them by means of a bank card perk you used to have.

There’s varied methods, relying on the manufacturers, that you simply get these free-night certificates. They usually’re normally solely good for a sure degree of resort, a certain quantity of factors per night time. However these airport resorts are normally on a budget finish, and that is typically a great way to burn these.

Sean Pyles: Proper. All proper, that is smart. Properly, so what about your return flight, and the way did that go?

Kevin Berry: We had an attention-grabbing return flight. We had been equally booked Costa Rica direct again to Denver. And [on] our airplane on the best way again, the bathrooms stopped working.

Kevin Berry: And our flight nearly acquired rerouted to Houston, which clearly would have prompted us to overlook our connecting flight to get again residence. And the pilot got here on and defined the scenario. And there was very a lot the sentiment on the aircraft of like, “All of us have to get to Denver; we’re all simply going to carry it.”

And we did. We acquired to Denver, all of us stopped utilizing the bathrooms for like an hour and 20 minutes. And the airline was good, to their credit score. Every week later, all of us acquired $100 vouchers for the inconvenience. In order that’s, you recognize … Yeah, we’ll take that.

Sean Pyles: That is good. It might have gone a really totally different method. So I am glad it wasn’t that large of a difficulty.

Kevin Berry: It undoubtedly might have. After which as soon as we acquired to Denver, we had been really on United Airways from Denver to Portland, and we acquired upgraded to top quality totally free, which was nice.

I’ve Silver standing with United, which I really acquired as a advantage of being a Titanium member with Marriott. It is a factor that I believe will get missed quite a lot of instances: You probably have standing by means of no matter — by means of your work, by means of a bank card, otherwise you simply earned it — you might need Elite standing with one in all their companions as effectively. And typically it’s a must to activate that.

So there is a web page on the Marriott website to activate that Silver membership for United. And simply by doing that, we acquired lucky and acquired upgraded to top quality for the journey residence for no further price. So …

Sean Pyles: That is fairly cool.

Kevin Berry: Yeah. You wish to know what your choices are.

Sean Pyles: How can of us know what their choices are? As a result of these varied platforms may be form of complicated to navigate, as a result of there are all of those totally different relationships between totally different corporations. What did you do to determine that you simply had that chance?

Kevin Berry: To begin with, you probably have Elite standing someplace, go have a look at their membership web page. Go have a look at the Marriott Titanium web page, or go have a look at the Alaska Airways Gold web page, or no matter it’s that you’ve got. They usually’re fairly good at explaining what these advantages are.

And shameless plug: Try BaghdadTime’s content material as effectively, as a result of we have now Elite standing articles about all of those airways and resorts that can lay out what comes with them and what else you would possibly be capable of get with them.

And the second factor I might say is … verify together with your employer. A variety of corporations have journey advantages due to bigger contracts or offers that they’ve with journey companies or the airways instantly.

My spouse, for instance, has perks on three or 4 totally different airways by means of her work, however she has to choose into it. So it’s essential learn about them, and it’s a must to give them your frequent-flyer quantity with the intention to set off these advantages. So ask your HR rep, ask your journey particular person, or nonetheless your work is ready up, and see what you might need entry to by means of work as effectively.

Sean Pyles: Properly, I might love to listen to about your favourite second of the journey.

Kevin Berry: That is a fantastic query. I’ll cheat and provide you with two favourite moments.

I believe the primary one which involves thoughts was the primary dinner meal that we had there on the primary night time. We did not know what we had been in for, I believe. We knew we had been at it all-inclusive, however we did not know concerning the high quality of the meals.

And we went to a steakhouse, and the filet mignons got here out, and you narrow into that for the primary time, and we had been like, “Oh, that is what we’re in for all week.” That is when the sunshine bulb went on that this was not going to be common meals. This was high-level stuff.

I might say that, after which additionally simply the primary night time of the journey within the seashore city, strolling by means of the little native city and consuming on the beachside restaurant, at sundown. It was only a actually low key, Costa Rica seashore vibe.

What an effective way to start out a visit and simply chill out and simply type of reset your self. And particularly [because] we have all been by means of a tough two years. And it was nice to lastly get away and really feel protected about it. These are the 2 that stick out to me probably the most.

Sean Pyles: Yeah, I completely relate to that final one. Typically when you’ve got that second on a trip the place you are with somebody that you simply love and you actually take within the place that you’re in collectively, may be so significant, particularly in spite of everything that we have been by means of over the previous couple years.

Kevin Berry: Yeah, for positive.

Sean Pyles: Properly, Kevin, do you’ve got any takeaway ideas for our listeners?

Kevin Berry: One, if you are going to ebook resorts, be sure you perceive your resort’s free-night coverage. Like we stated earlier, Marriott and Hilton: Should you’re reserving on factors, your fifth night time’s free. IHG: fourth night time’s free. You may get quite a lot of outsized worth and lengthen your journeys for no price once you try this.

Quantity two could be: Use your factors to take journeys you would not in any other case be comfy paying for. That is the time to splurge is once you’re not spending “actual cash” on a visit.

And I might say this, and we have not talked about this but, however do not be afraid to spend cash once you want one thing that’s high quality. And I say that within the sense of: We spent cash on transportation to and from the airport. We did not attempt to be low cost about it. We did not attempt to, like, frugal our method by means of it, as a result of it was an hourlong journey, and we acquired non-public van transportation. We had nice guides that acquired us there. As you talked about, the roads in Costa Rica may be fairly bumpy and exhausting to navigate, and that was simply effectively price it.

So there’s instances to be frugal, there’s instances to make use of your factors after which typically you simply have to pay for one thing actually good. And that is OK.

Sean Pyles: Simply to make issues simpler for your self. That is smart.

Kevin Berry: Yeah. There is definitely a comfort issue and simply not having to fret about sure issues. You probably have the cash to unravel an issue, you not have an issue. So do not be afraid to spend it you probably have it.

Sean Pyles: All proper. Properly, thanks a lot for sharing your story with us, Kevin.

Kevin Berry: Thanks, no drawback. And that is all we have now for this episode.

Do you’ve got 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 can even e-mail us at [email protected]

Additionally, go to nerdwallet.com/podcast for more information on this episode. And bear in mind to comply with, price and assessment us wherever you are getting this podcast.

Sean Pyles: And right here is our temporary disclaimer, thoughtfully crafted by BaghdadTime’s authorized crew. Your questions are answered by educated and proficient monetary writers, however we’re not monetary or funding advisors. This Nerdy information is offered for normal academic and leisure functions and should not apply to your particular circumstances.

Kevin Berry: And with that stated, till subsequent time, flip to the Nerds.

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