Is a Travel Credit Card Worth it for Occasional Travelers?

Travel credit cards promise lucrative rewards and benefits for frequent travelers. But what if you only travel occasionally for vacation or to visit family out of state? Are premium travel cards still valuable if you aren’t jet-setting every month?

As an infrequent traveler, you need to weigh the pros and cons to determine if paying an annual fee is justified by the perks you will use. 

What are Travel Credit Cards?

Travel credit cards are designed specifically for travelers and offer bonus rewards and additional benefits not typical of regular credit cards.

Common features include:

·  Rewards can be used to book flights and hotel accommodations. rental cars, cruises and more

·   Airport lounge access for complimentary food, drinks, Wi-Fi and a comfortable place to relax during connections

·   Travel and emergency medical insurance when travelling

·  No foreign transaction fees on international purchases

The most significant advantage of travel cards compared to standard cash-back cards is the ability to increase the value of your points through transfer partners.

Advantages of Travel Credit Cards for Infrequent Travelers

While frequent jet-setters will maximize travel card perks, even occasional travelers can benefit in the following ways:

1. Reward Points

Most travel cards offer 2-5x points on eligible travel purchases. So, whether it’s your once-a-year big vacation or occasional domestic journeys to connect with friends and family, you can rack up points towards future travel faster with a dedicated travel card. Even infrequent travelers may earn enough rewards over 2-3 years to offset a year’s annual fee.

2. Lounge Access

Premium travel cards offer complimentary airport lounge access, making those 1-2 trips per year feel like first-class travel. Enjoy comfortable seating, free food and drinks, and a relaxing space during connections. 

3. Discounts

Cardholders can enjoy special discounts, upgrades, and loyalty perks with rental car companies, hotels, and cruise lines. Even occasional travelers can benefit from VIP treatment. 

Drawbacks of Travel Credit Cards for Occasional Travelers

Before signing up, occasional travelers should also weigh the following drawbacks:

1. High Annual Fees

With many premium travel cards charging annual fees, infrequent travelers may not earn enough rewards or utilize enough card benefits to appear ahead in a single sentence. 

2. Limited Reward Usage

If you don’t travel often enough to accumulate and redeem points continually, your hard-earned rewards could expire in a single sentence. 

3. Specialized Perks

Perks such as airport lounge access and Global Entry fee reimbursement may go unused for those who travel infrequently.

Essential Considerations When Selecting a Travel Credit Card

Before paying an annual fee for premium travel rewards and benefits, occasional travelers should evaluate the following: 

1. Travel Frequency

Estimate your upcoming travel over the next 3 years. Will you earn enough rewards through sign-up bonuses and ongoing point earnings to justify the annual fee? Include possible “aspirational trips” like dream vacations when making projections. 

2. Spending Habits

Calculate your average monthly/annual spending in common travel categories: airfare, hotels, rental cars, trains, rideshares, travel agencies, and dining. A travel card should reward your most frequent purchase categories. 

3. Reward Redemption Flexibility

If you end up with unused points from infrequent trips, ensure you have decent alternative redemption options. Some travel cards allow cash back, gift cards or transfers to airline/hotel partners. 

Alternatives for Occasional Travelers

If premium travel credit cards seem too costly and unnecessary for your needs, consider these options instead: 

1. Regular Credit Cards with Travel Perks

Some no-annual-fee cash-back cards include essential travel benefits like lost luggage reimbursement, travel accident insurance, and discounted rates on rental cars and hotels. You can also earn rewards on all purchases for the occasional trip. 

2. No-Fee Travel Credit Cards

A select few travel rewards cards offer a first-year annual fee waiver., offer a downgrade path to a no-fee version after year 1, or have no yearly fee. While rewards and benefits will be less, it’s an affordable way to enjoy some travel perks. 

3. Standalone Travel Insurance

For maximum flexibility, consider purchasing separate trip/medical insurance as needed from a third-party provider or travel agent. Policies can often be customized to your specific trip details at a reasonable one-time cost. 

Conclusion

Even if you only travel occasionally, you can still gain from travel credit cards. Cards with lower annual fees provide nice rewards and protections, too. When you take trips, these cards help by giving you extras like insurance and faster points. Over time, those benefits help save money. Yet infrequent travelers must carefully evaluate whether they will utilize enough benefits over a year to justify the annual fee.

Factoring in your travel habits, spending patterns, and redemption goals can determine whether a fee-based travel card, no-fee alternative, or a general cash-back card for the odd trip best suits your needs and budget.

spot_img

Hot Topics

Related Articles