Travel Points Glossary
38 terms explained in plain English — no jargon, no condescension. Bookmark this page and come back whenever you hit a term you don't recognize.
A
Annual Fee
A yearly charge for holding a credit card. Premium travel cards typically charge $95–$695/year, but the benefits (lounge access, travel credits, bonus points) often far exceed the cost. Some cards waive the fee the first year.
Authorized User
A person added to your credit card account who gets their own card and can make purchases. Their spending earns points on your account. Adding your spouse as an authorized user is one of the easiest ways to meet minimum spend requirements faster and earn more points from everyday household spending.
Award Chart
A published table showing how many points or miles are needed for flights to different regions. Some programs (like United MileagePlus) still use fixed award charts, while others have moved to dynamic pricing. Fixed charts are generally better for travelers because the prices are predictable.
Award Flight
A flight booked using points or miles instead of cash. You still pay a small amount in taxes and fees (usually $5–$100 domestic, $50–$200 international), but the "ticket" itself is covered by your points. This is how people fly business class for $47.
B
Blackout Dates
Dates when an airline or hotel blocks award bookings — usually during peak travel times like holidays. The good news: many modern programs have eliminated blackout dates entirely. Chase Ultimate Rewards and Amex Membership Rewards, for example, have no blackout dates.
Bonus Category
A spending category where your credit card earns extra points. For example, the Chase Sapphire Preferred earns 3x points on dining and 2x on travel, but just 1x on everything else. Knowing your bonus categories and using the right card for each purchase is one of the easiest ways to earn points faster.
C
Cash Back
A credit card reward where you earn a percentage of your spending back as cash (typically 1–2%). While simple, cash back is almost always less valuable than travel points. A dollar of cash back is worth $1, but a point transferred to an airline partner can be worth 1.5–3 cents — meaning your "1x points" are actually worth more than "1% cash back."
Cents Per Point (cpp)
The standard way to measure how much value you're getting from your points. If you use 50,000 points for a flight that costs $750 in cash, you're getting 1.5 cents per point (750 ÷ 50,000 = 0.015). For most travel rewards programs, 1.5–2 cpp is good and 3+ cpp is excellent. Always calculate this before redeeming.
Centurion Lounge
A premium airport lounge network operated by American Express. Open to Amex Platinum and Centurion cardholders. Features complimentary food, cocktails, showers, and quiet workspaces. Generally considered among the best domestic lounges — a step above Priority Pass lounges.
Companion Certificate
A perk offered by some airline credit cards that lets you book a second ticket for free (or for just the taxes/fees) when you buy one. The Delta SkyMiles Reserve and United Club Infinite cards both offer these. It can save you $300–$800 per year if you travel with a partner.
Credit Score Impact
Opening a new credit card typically causes a small, temporary dip of 5–10 points due to the hard inquiry and reduced average account age. For most people over 55 with established credit histories, this impact is negligible and recovers within 2–3 months. Your long credit history is actually an advantage.
D
Devaluation
When a loyalty program increases the points required for the same award — meaning your existing points become worth less. This happens regularly (airlines have done it every 1–2 years historically). The lesson: don't hoard points forever. Earn them with a plan and redeem them before they lose value.
Dynamic Pricing
An award pricing model where the points cost fluctuates based on demand, similar to cash ticket prices. Airlines like Delta and some hotel programs use this. It means the same route might cost 30,000 miles one day and 90,000 the next. Programs with fixed award charts are generally more predictable and traveler-friendly.
E
Elite Status
A tier in an airline or hotel loyalty program earned by frequent travel or spending. Benefits include upgrades, priority boarding, late checkout, bonus points, and dedicated customer service. If you fly a lot, status is valuable. If you fly 1–2 times a year, don't chase it — focus on points instead.
F
Flexible Points Currency
Points earned through bank credit cards (Chase Ultimate Rewards, Amex Membership Rewards, Capital One Miles, Citi ThankYou Points) that can be transferred to multiple airline and hotel partners. Far more valuable than airline-specific miles because you have options. The flexibility means you can always find the best deal.
Foreign Transaction Fee
A fee (usually 3%) charged by some credit cards on purchases made in foreign currencies. All good travel cards waive this fee. If your card charges foreign transaction fees, it's not a travel card — and you should seriously consider switching before your next international trip.
G
Global Entry
A U.S. Customs program that lets pre-approved travelers skip the immigration line when returning to the US. Costs $100 for 5 years, but many premium travel cards reimburse the fee automatically. Also includes TSA PreCheck. If you travel internationally, this is a must-have.
H
Hard Inquiry
When a credit card company checks your credit report as part of an application. Each hard inquiry may lower your score by 5–10 points temporarily. The impact fades after about 12 months and drops off your report after 2 years. For context, most people over 55 have credit scores well above the approval thresholds.
Hotel Transfer Partner
A hotel loyalty program that accepts point transfers from your credit card. For example, you can transfer Chase Ultimate Rewards points to Hyatt, or Amex Membership Rewards to Hilton and Marriott. Hotel transfers can deliver tremendous value — a free night at a $500/night resort might cost just 25,000 points.
L
Lounge Access
The ability to enter airport lounges before your flight. Lounges offer free food, drinks, Wi-Fi, comfortable seating, and sometimes showers. You can get lounge access through premium credit cards (like the Amex Platinum with Centurion Lounges), Priority Pass membership, or by flying business/first class.
M
Membership Rewards
American Express's flexible points currency earned on cards like the Gold Card and Platinum Card. Has the most transfer partners of any program (21+) including Delta, Hilton, ANA, and British Airways. Excellent for international travel and hotel stays. The Amex ecosystem is strong but has fewer merchant acceptance locations than Visa/Mastercard.
Miles vs Points
Miles are typically earned through airline-specific programs (Delta SkyMiles, United MileagePlus) and can only be used with that airline. Points are earned through bank cards (Chase Ultimate Rewards, Amex Membership Rewards) and can be transferred to multiple airline and hotel partners. Points are generally more flexible and valuable.
Minimum Spend
The amount you need to charge to a new credit card within a set period (usually 3 months) to earn the sign-up bonus. For example: "Spend $4,000 in 3 months, earn 80,000 points." The key is to use everyday spending — groceries, gas, utilities, insurance premiums — not to buy things you wouldn't otherwise.
P
Partner Airline
An airline that has a cooperation agreement with another airline, allowing you to book flights on one carrier using the other's miles. For example, you can book a Cathay Pacific business class flight using Alaska Airlines miles. This is how savvy travelers access premium international flights — often at much lower point costs than booking direct.
Phantom Availability
When an award booking tool shows seats available, but the airline won't actually let you book them. This is a frustrating bug in the system, not a scam. It happens most often with partner airlines. A good workaround: call the airline directly or use a Concierge service that knows how to navigate these issues.
Points Transfer
Moving points from your credit card program to an airline or hotel loyalty program. This is the key to getting outsized value. For example, 60,000 Chase points transferred to Hyatt might cover 3 nights at a $400/night hotel. The same 60,000 points redeemed through the Chase travel portal would only cover $900 worth of hotels.
Priority Pass
The world's largest independent airport lounge network with 1,400+ lounges globally. Many premium travel cards include a Priority Pass membership for free. Quality varies widely — some lounges are excellent, others are basically a room with pretzels and coffee. Check reviews before planning your lounge visit.
R
Redemption Value
How much your points are worth when you use them. This varies dramatically. The same 50,000 points could be worth $500 (at 1 cent each through a travel portal), $750 (at 1.5 cpp via a transfer to United for a domestic flight), or $2,000+ (at 4 cpp via a transfer for international business class). Always compare before you redeem.
Retention Offer
A bonus or discount offered by your credit card company when you call to cancel a card. They might waive the annual fee, offer bonus points, or provide a statement credit to keep you. Always call before canceling a card with an annual fee — the retention offer often makes keeping the card worthwhile for another year.
S
Sign-Up Bonus
The large chunk of points you receive for meeting the minimum spend requirement on a new credit card. This is the single fastest way to earn points. A typical bonus is 60,000–100,000 points for $3,000–$5,000 in spending over 3 months. One good sign-up bonus can fund an entire domestic trip.
Statement Credit
A travel-related benefit on premium cards that automatically reimburses certain purchases. For example, the Amex Platinum offers a $200 annual airline fee credit and a $200 hotel credit. These credits effectively reduce the "real" cost of the annual fee. Always make sure you're using all your credits before your cardmember year resets.
Status Match
When one loyalty program gives you equivalent elite status based on your status with a competitor. For example, if you have Marriott Platinum status, Hilton might match you to Diamond. Not guaranteed, but worth asking about — especially when switching hotel loyalty programs.
Stopover
A deliberate stop of more than 24 hours at a connecting city, built into a single award ticket. Some programs (like Aeroplan) let you add a free stopover — meaning you can visit two cities for the points price of one. For example, fly New York → London → Rome, spend a few days in London, then continue to Rome, all on one ticket.
Sweet Spot
An award booking that delivers exceptionally high value — significantly more than the "average" redemption. For example, transferring Chase points to Hyatt for category 1–4 hotels can get you $200+/night rooms for just 8,000–15,000 points. These sweet spots are what make the points game worth playing.
T
Transfer Partner
An airline or hotel program that accepts point transfers from your credit card. Chase Ultimate Rewards has 14 transfer partners including United, Hyatt, Southwest, and British Airways. Amex Membership Rewards has 21+ including Delta, Hilton, and ANA. The number and quality of transfer partners is one of the most important factors in choosing a points credit card.
Travel Portal
A booking website operated by your credit card company (like Chase Travel or Amex Travel) where you can use points to book flights and hotels. It's simple but usually gives you less value than transferring points to partners. Think of it as the "easy but less rewarding" option. Good for simple bookings; transfers are better for premium travel.
U
Ultimate Rewards
Chase's flexible points currency earned on cards like the Sapphire Preferred, Sapphire Reserve, and Freedom Unlimited. Widely considered the most versatile points currency because of strong transfer partners (United, Hyatt, Southwest) and a solid travel portal. If you're starting from scratch, Chase Ultimate Rewards is often the best place to begin.
Upgrade
Moving to a higher cabin class (economy to business, or business to first) either for free (via elite status or at check-in) or by using points. Some credit cards like the Amex Platinum offer enhanced upgrade chances. Points-based upgrades can be excellent value if you've already booked a paid economy ticket.
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