How Much Will A Travel Credit Card Save Me On A Trip?

How much you can save with a travel credit card

Have an action packed October? You’re not alone – between Thanksgiving, Halloween and the full-force back-to-school slog, it’s natural to yearn for the laid back days of summer and crave a little R and R. But there’s good news for those frazzled by their fall schedules; November is the perfect time to take off for a warm weather getaway. This is the sweet spot between hurricane season and the holiday rush, resulting in steep discounts for hotels and airfare.

How Can I Save Even More On Travel?

Want to take an extra frugal approach to your well deserved getaway? Consider an extra purchasing power boost with a travel credit card. There are many options designed to offset travel costs with points earned over time – and some offer new customers huge point gifts upon signup to get you flying right away.

The best travel reward cards come free of booking and seasonal restrictions, and earn rewards effortlessly with everyday purchases. But when it comes to actually booking – and saving – on travel, how far will a travel rewards card take you?

The Card: Test Flying A Top Option

I decided to put one of the top market options to the test to see if I’d really score a discount on the following travel costs:

– Airfare and accommodation

– Baggage insurance

-Travel medical insurance

-Trip delay and cancellation insurance

– Car rental insurance

 The card I chose for my trip – the Capital One Aspire Travel™ World MasterCard®. This card has very flexible reward return, earning two miles per every dollar spent with no purchase type restrictions. New clients earn 35,000 bonus points on sign up (a $350 value), and will get an additional 10,000 on their cardholder anniversary.

While this card does come with an annual fee of $120, and interest rates at 16.80 per cent plus prime (19.80 per cent at today’s rates), it also includes a key opportunity for savings: it’s loaded with travel insurance options such as travel medical and trip cancellation insurance.

Time To Cash In… On Cancun

To really see the savings power presented by this card, I picked a theoretical seasonal trip destination – an all-inclusive package to Cancun, Mexico. Using Hotwire, I located a flight and hotel deal for $1,283 (including taxes).  Here’s how the card would have helped me save:

 – $350: As a new signup, I’d be able to use my bonus points on travel immediately, bringing my flight and hotel total down to $933.

 – $41: Travel delay and cancellation insurance: The Capital One Aspire World Travel will reimburse travelers up to $1,000 per person should they have to cancel their trip due to illness or injury. It also offers up to $5,000 per person should they have to interrupt their trip for those reasons. I would have paid $41 out of pocket for this coverage from an external insurer.

 – $15: Travel medical insurance: Some disclosure here: I’m a 28-year-old non smoking female without a medical history, and a non smoker, so I was offered a brilliant rate from the top external insurer for $5 million in emergency travel coverage. However, I could have saved this and been covered for up to $500,000 over 22 days with the card’s insurance.

 -$25: Rental car collision insurance: Had I wished to rent a vehicle at my destination, I’d be plunking down roughly $25 – $30 to insure it for accidents. Not with my card though – coverage is automatically included for collision and damage for all rentals.

 Total Savings: $431 – not too shabby for just being a cardholder!

“The interest rates, fees, rewards details, benefits and other details of the Capital One product(s) described in the article may have changed since the time of publication. Please consult the product information pages on the Capital One website for accurate product details. In the event of any conflict between the product details in this article and the Capital One website, the details on the Capital One website shall prevail.”

Related Topics

Credit Card Reviews / Using Your Credit Card

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