In this episode of Miles Ahead Deep Dives, Daniel, Reed, and Josh from FrugalFlyer.ca delve into the intricacies of the Refundable Hotel Trick, a strategy used by Canadian travel enthusiasts to convert reward points into cash or statement credits.
They explore the nuanced process of booking and refunding travel arrangements to redeem points, the potential risks, and the specifics of using this trick with various Canadian bank reward programs. The episode also covers redeeming annual travel credits via this method, as well as the pitfalls and considerations to keep in mind.
(00:28) Defining the Refundable Hotel Trick
The refundable hotel trick is a method to turn your rewards points into cash or statement credit.
- Read More: The Refundable Hotel Trick
(01:39) How to Execute the Refundable Hotel Trick
Executing the refundable hotel trick can vary between rewards programs, but the general process is first to book a refundable hotel room, apply the rewards redemption, and cancel the hotel booking.
(02:44) Important Considerations & Warnings
There are a few considerations to keep in mind, mainly that you ensure that your booking is refundable so you don’t end up on the hook for a non-refundable hotel booking you didn’t want. Also, use this trick with caution, and preferably use the points as intended.
(03:34) Using the Refundable Hotel Trick for Minimum Spending Requirements
The refundable hotel trick can also be used to prolong the minimum spending requirement period when working towards a welcome bonus on a credit card.
(05:03) Handling Statement Credits & Negative Balances
If you generate a statement credit or negative credit card balance through the refundable hotel trick, there are a few approaches that you can use to liquidate that credit.
(06:56) Scene+ Rewards Program
Scene+ Rewards points are worth 1 cent per point when used on travel redemptions. While points can be cashed out via this method, they are already so easy to use for normal travel redemptions.
- Read More: Scene+ Rewards Loyalty Program Guide
(09:03) CIBC Aventura Program
CIBC Aventura points can be redeemed via their “Shopping with Points” feature at a rate of 1 cent per point. Note that you can only redeem points against transactions that are pending when using Shopping with Points.
- Read More: CIBC Aventura Loyalty Program Guide
- Read More: CIBC Shopping with Points
(10:19) BMO Rewards Program
BMO Rewards points are worth less than other bank loyalty programs at a rate of 0.67 cents per point.
- Read More: BMO Rewards Loyalty Program Guide
(11:32) TD Rewards Program
TD Rewards points can be redeemed for “Book Any Way” travel purchases at a rate of 0.4 cents per point, or via Expedia for TD at a rate of 0.5 cents per point.
- Read More: TD Rewards Loyalty Program Guide
- Read More: Expedia For TD
(13:21) Using Annual Travel Credits
The refundable hotel trick can also be applied toward specific annual travel credits, but it varies how can they be used as certain financial institutions require them to be used on a specific booking portal. These travel credits are easy to use naturally, and it is best to utilize them this way.
(15:38) Conclusion
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