Loyalty programs continue to limit non-travel redemptions
Editor's Note
This is a recurring post, regularly updated with new information.
While many frequent flyer and hotel loyalty programs offer a wide array of redemption options, at TPG we tend to focus primarily on the ones that get you the most bang for your buck. This almost always means travel-specific redemptions, using your frequent flyer miles for flights and your hotel points for free nights.
For a long time, many programs have expanded their non-travel redemption options, allowing you to use your points for things like gift cards, merchandise, car rentals and more. The catch is that these redemptions usually represent pretty bad values, with your hard-earned points often being worth less than 1 cent each — though we have seen higher options from credit card issuers like Chase and Capital One in recent months.
As the novel coronavirus first burst on the scene, we saw a number of loyalty programs restrict the ability to use points and miles for non-travel related redemptions. This is a logical move to protect cash flow, especially if a large number of customers without immediate travel plans decided to suddenly cash out their points for something else.
Unfortunately, as the pandemic continues to stifle travel demand both in the U.S. and internationally, this trend continues — with Delta Air Lines as the most recent culprit.
Here's a run-down of the significant changes that we've seen from loyalty programs in 2020.
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Hertz Gold Plus Rewards
The coronavirus is affecting every corner of the travel industry, not just airlines. Hertz is one car rental company that's been hit hard, formally filing for bankruptcy protection in late-May. Unfortunately, around that time, Hertz blocked the ability for Gold Plus Rewards members to redeem points for things other than rental cars, including transferring points to airline partners and using them to bid on experiences.
Related: Maximizing points and miles with Hertz car rentals
Virgin Australia
While many airlines around the world are in precarious financial positions, Virgin Australia has been the first major airline to buckle under the pressure. Earlier in the year, Virgin Australia voluntarily entered into administration (similar to bankruptcy protection in the U.S.) and almost immediately suspended all redemptions from its Velocity frequent flyer program for four weeks. Thankfully, redemptions have since resumed for domestic flights within Australia.
Velocity is run by a separate company within the Virgin business that is itself not under administration. However, Virgin promised customers that their miles would be protected and would not expire or disappear during this suspension.
American Airlines
Doctor of Credit reported that American Airlines has also begun limiting non-travel redemptions, specifically by blocking redemptions via points.com. This partnership was somewhat limited to begin with, in that you needed to hold American Airlines elite status or have at least 25,000 miles in your account. But through points.com, you were able to convert your miles into gift cards from a variety of different merchants.
Related: How to redeem miles with American Airlines AAdvantage
Delta SkyMiles
Delta has always been a leader in innovative redemption options, and it was the first of the U.S. legacy carriers to switch to dynamic award pricing. Through its SkyMiles Marketplace, Delta allows customers to redeem their miles for merchandise, gift cards, car rentals, hotel stays, cruises and more.
On March 16, 2020, Delta added restrictions to the SkyMiles marketplace. While this has always been limited to Medallion elite members and Delta Amex cardholders, the option to redeem miles for gift cards disappeared entirely.
Then on Aug. 27, 2020, Delta took the SkyMiles Marketplace completely offline. Members are now greeted with a "Check back soon for updates to the SkyMiles Marketplace" screen when attempting to load the site. The airline told Rene's Points the following:
“Given the evolving nature of the COVID-19 pandemic and its impact on our business, we have decided to pause SkyMiles Marketplace. Existing SkyMiles Member Marketplace purchases will be honored.”
Related: How to redeem miles with the Delta SkyMiles program
Southwest Rapid Rewards
Southwest's customer-friendly fee structure, cheap fares and easy-to-use rewards program have made it a customer favorite for many years. Rapid Rewards members also have the ability to redeem their points for non-travel options like merchandise, gift cards and more via the "More Rewards" portal.
As of now, More Rewards has been temporarily suspended and most Southwest members can only use their Rapid Rewards points to book Southwest flights. Similar to Delta, the airline is only allowing Chase Southwest Rapid Rewards credit card members to redeem points for things other than flights.
Related: How to redeem points with the Southwest Rapid Rewards program
Best Western
Best Western has also paused the ability to redeem points for gift cards and merchandise through its Redemption Mall portal. However, as of now you can still donate your points to charity, convert them to miles with 14 different airline frequent flyer programs, or redeem them for a AAA/CAA membership, in addition to redeeming them for free hotel nights.
Related: The best hotel credit cards
Bottom line
Despite a record-setting government bailout, many companies in the travel industry are in very precarious financial positions. Expect to see more airlines and hotels follow the lead of these companies, and limit non-travel redemptions to protect cash flow.
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Rewards
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| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
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- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.