Points and Miles: Annual Update, Part 1

As promised, here is the first part of an update to last fall's series on collecting travel reward points and miles. I've highlighted changes and provided links to the original posts.

In Points 1: Canada's Favourite Points Programs, I said that, unlike many points experts who advise you to focus on one program, I take the opposite view. All points and miles have potential value, so I believe in signing up for almost any program, focusing on several, and taking a patient, long-term approach. If like me, you want to collect with the goal of travel, you have to be prepared to play the long game.

Start with a credit card, preferably no-fee or that waives the fee for the first year, that gives you a nice sign-up bonus and 1-2 points per dollar of spending. Add additional cards as better opportunities present themselves and cancel cards you no longer need. Keep several different cards, though: that gives you flexibility. Within a year or two, you'll have enough points for a holiday. Within five years, you can build a large enough portfolio of points and miles to pick and choose your vacation opportunities.

The advice I gave in Points 2, about how to earn Aeroplan miles with a no-fee credit card, no longer applies. Shortly afterwards, Bank of Montreal suddenly changed the terms of its Club Sobeys MasterCard, so that Club Sobeys points earned by spending on the card were no longer eligible for conversion to Aeroplan miles. I described the whole sorry fiasco in Points 8: BMO Club Sobeys MasterCard Snafu. There is one revision to that post: I was allowed to autoconvert the enrolment bonus points. But as I said, this is no way to build loyalty: I cancelled the card. Club Sobeys points earned by shopping at Sobeys can still be converted to Aeroplan miles.

There have been some changes to what I wrote in Points 3: Starwood Preferred Guest American Express Card. Sign-up bonuses have gotten bigger and smaller, and waiving of the annual fee for the first year has come and gone. All the other advantages of the Starwood program and the American Express card still pertain, but best check the details if you're thinking of applying.

I did cancel the SPG Amex after the first year, but did not go with the BMO Club Sobeys MasterCard as my main spending card (for the reason I described above). Instead, American Express offered me its new Gold Rewards card. This card has an annual fee of $150, waived for the first year. I received 15K Membership Reward points as an enrolment bonus and earn 2 points per dollar for spending on gas, groceries, drug store, and travel. All other purchases earn 1 point. This is a "hybrid" card: points can be used for travel booked through American Express; redeemed for merchandise; or converted to points with Air Canada, Delta, British Airways, Hilton Hotels, Starwood (Sheraton, Westin, etc.), Priority Club (Holiday Inn, etc.), and other travel partners, at various conversion rates. Since Aeroplan and British Airways have recently devalued their award charts, and Continental is leaving the program with its takeover by United Airlines, the value of Membership Rewards points is decreasing. Unless there are significant enhancements to the value of the card, I won't be paying $150 to renew it next year.

I'll conclude this update in Part 2, next Tuesday.

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