Should you save your miles for future travel or cash them out now?
Reader Questions are answered twice a week by TPG Senior Points & Miles Contributor Ethan Steinberg.
While no one knows exactly when travel will begin to return to normal, experts around the world are predicting a slow recovery and that it will take several years for demand to return to pre-pandemic levels. Many award travelers are using this time to build up their account balances and plan for future trips, but some are considering cashing out their points and taking a different approach. TPG reader Cynthia is trying to decide which course is right for her ...
[pullquote source="TPG READER CYNTHIA"]I am totally committed to earning points, but is it wise to bank those miles at this point for international travel like we always have before or should we spend them on merchandise or domestic travel? Our balances are getting very high and we don't expect to travel internationally until probably 2022.[/pullquote]
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
This is a personal decision to make, and what's right for Cynthia might not be right for you or your family. Normally, we strongly recommend against hoarding points and miles. "Earn and burn" is the name of the game, because points and miles lose value over time. This doesn't happen continuously and incrementally as it does with monetary inflation, but every time an airline devalues its award chart or adds new award booking restrictions, your miles are worth less.
It seems like Cynthia normally plays a pretty high-value points and miles game, especially if she saves up her points to use on longer international trips. I'm happy that she mentioned that she doesn't plan to travel much until 2022, because time is the most important factor in making this decision. The longer you let your points and miles sit there without using them, the more susceptible they are to devaluations.
While most of us are itching to travel again, you need to be realistic with yourself about what your return to travel will look like. Maybe you won't be traveling as much for work now, maybe you'll be prioritizing shorter domestic trips over longer international ones, or even taking more road trips instead of flying.
I've always found earning points and miles to be the much easier side of the equation, especially compared to redeeming them. There will be plenty of options to earn more points in the coming years, including travel rewards credit card welcome offers and limited-time bonus categories. If Cynthia really doesn't expect to travel for more than a year and a half, I see no problem with cashing out some of her points for cash or merchandise she can use today.
I would encourage her to leave six to nine months worth of points in her account so when she's ready to start traveling again she'll have some cushion to do so. I'd also encourage her to be strategic in her cashouts, trying to get at least one cent per bank point or frequent flyer mile whenever possible. Obviously she won't be getting as good as value as if she were redeeming for flights, but there's no reason to throw away all that value in a fire sale either.
Related: Not traveling for now? How to maximize your rewards points on other redemptions
Bottom line
The return to travel is going to be slow and gradual, and for some people it might be a few years before they're traveling the way they did before the coronavirus hit. Hoarding points and miles is a bad idea as you're exposed to the risk of devaluations. Still, I wouldn't cash everything out either, but rather try and strike a balance where you keep some of your points and miles around but also redeem some for cash or gift cards you can use today.
Thanks for the question, Cynthia, and if you're a TPG reader who'd like us to answer a question of your own, tweet us @thepointsguy, message us on Facebook or email us at info@thepointsguy.com.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees