Best cards for earning travel rewards — and how to actually use them

Travel rewards cards promise free flights and hotel nights in exchange for your everyday spending. The reality is more nuanced — some programmes deliver outstanding value while others trap your points in devaluations and redemption restrictions. Here's how to earn rewards intelligently without paying more in fees than you earn in points.

How travel rewards cards work

Travel rewards cards award points, miles, or cashback on every purchase. These are accumulated in a loyalty programme — Avios (British Airways), Membership Rewards (Amex), Nectar (Sainsbury's/Amex), Airmiles (various) — and redeemed for flights, upgrades, hotels, or cash. The earning rate varies: a basic card might earn 0.5 points per £1 spent; premium cards earn 1–3 points per £1 and bonus multipliers in categories like dining, travel, or overseas spend. The crucial calculation is the redemption value per point. Avios spent on off-peak short-haul flights (London–Edinburgh, London–Amsterdam) deliver excellent value (1–1.5p per Avios). Avios used to buy merchandise or Amazon vouchers deliver poor value (0.5p). Always calculate the value of your redemption before booking.

The UK's best travel rewards programmes

British Airways Avios is the UK's dominant programme, usable on BA, Iberia, Qatar, Cathay, Finnair and many others. Amex Membership Rewards points transfer to multiple airlines and hotels, making them the most flexible. Amex earns transfer 1:1 to Avios, Marriott Bonvoy, and various airlines. Virgin Atlantic Flying Club is excellent for long-haul Upper Class redemptions, particularly to the US and Caribbean. Hilton Honors and Marriott Bonvoy are the leading hotel programmes; both have Amex-linked cards for earning. The key advantage of Amex Membership Rewards is optionality — you collect in one programme and decide later which airline to transfer to. This avoids programme devaluations and lets you target specific redemptions.

Overseas spending multipliers: the travel rewards sweet spot

Many rewards cards give bonus points on overseas spending — 2x or 3x the standard rate. This makes them attractive for travel, but you must check the foreign transaction fee. Almost all UK rewards cards charge 2.99% on non-sterling transactions. If a card earns 2 Avios per £1 and Avios are worth ~1p each, you're earning 2% back — but paying 2.99% in forex fees. You are losing money relative to a zero-fee card. The exception: Amex's overseas spending multiplier on the Platinum card (3x MR points) at ~1.2p per point = 3.6% back, which can exceed the 2.99% forex fee if you redeem well. But the £650 annual fee must be offset by your full benefits package, not just forex rewards.

The right strategy: rewards for home, zero-fee for abroad

The optimal travel rewards strategy for most UK travellers is: earn Avios or Membership Rewards on UK home spending with a rewards card, and use a zero-fee card (Starling, Wise) for all overseas spending. Charge large travel bookings (flights, hotels, car hire) to your rewards credit card for Section 75 protection and rewards, but switch to your zero-fee card at the airport. This captures the best of both: free flights from home spending without paying forex fees abroad. In practice, a heavy UK spender (£2,000/month) putting everything on an Amex Gold earns ~34,000 Avios per year — enough for a return economy flight to New York.

Hidden costs and programme devaluations

Travel rewards programmes devalue regularly. British Airways increased Avios prices significantly in 2023; Marriott and Hilton devalue periodically. Points sitting idle lose value over time. Annual fees on rewards cards are the most obvious cost; read-through opportunity cost (you could put the fee into cheap flights directly) is another. Expiry policies matter: most programmes expire points after 24–36 months of inactivity. Tax and surcharges on award flights are often overlooked — BA Avios flights from London to the US in economy are 'free' in Avios but charge £300–£400 in taxes and surcharges. Check total cost before committing Avios.

Points programmes and redemption value

The stated earn rate on a rewards card is almost meaningless without understanding redemption value. 1 Avios per £1 is worth 0.5p–6p depending on how you redeem — that's a 12x range. Redeeming Avios for a short-haul economy upgrade might deliver 0.5p per point; redeeming for a long-haul business class seat might deliver 4–6p per point. American Express Membership Rewards points transferred to Singapore Airlines KrisFlyer and redeemed for First Class on a premium carrier can theoretically deliver 10p+ per point — but only if you actually use those redemptions. Points that accumulate and expire are worth zero. Be honest with yourself about your redemption habits when choosing a points card.

The 2-4-1 companion voucher: when it changes everything

The British Airways American Express Premium Plus card includes a 2-for-1 companion voucher when you spend £15,000 in a card year. This voucher allows you to book two seats on a BA operated flight for the Avios price of one, in any cabin. Used for business class to Tokyo, Cape Town, or New York — where cash prices are £3,000–7,000 per seat — the voucher potentially saves £3,000–7,000 in a single redemption. This effectively means the card can deliver extraordinary value with a single annual use. The £250 annual fee becomes negligible in comparison. The caveat: you need to fly BA (not partner airlines) and need the Avios to cover one seat at the cabin you want.

Maximising rewards without overspending on fees

The cardinal rule of travel rewards cards is that the card should be paid in full every month. Carrying a balance at 20–30% APR eliminates any rewards value within weeks. For UK travellers, the most straightforward rewards approach is an American Express card for eligible spending (1.5–2 Avios per £1 at supermarkets and standard retailers) paired with a zero-fee debit card for all foreign spending. Never use a rewards credit card abroad if it carries a foreign transaction fee — the 1–2% reward accumulation is completely wiped out by the 2.99% forex charge on every overseas transaction.

Non-Amex alternatives for points earners

American Express has lower acceptance globally than Visa or Mastercard, which creates a practical problem for overseas spending. For spending in countries where Amex is frequently declined — much of Southeast Asia, many smaller European businesses — a Visa or Mastercard points card is more practical. The Barclaycard Avios Plus Visa earns Avios on all spending with zero foreign transaction fees and a £20/month fee that includes other perks. The NatWest Reward Mastercard earns NatWest reward points redeemable for cashback, retailer vouchers, and charity donations. For travellers who want Avios without Amex dependence, the Barclaycard Avios Visa is worth evaluating.

The honest advice on points cards

Points programmes are powerful tools for experienced travellers who understand redemption value and use them consistently. They are poor value for travellers who accumulate points without a redemption plan, switch programmes frequently, or redeem for low-value options like cashback or Amazon gift cards. The honest evaluation of any points card: calculate your monthly spending, apply the earn rate, and estimate annual points earned. Then look up the cost in points of a redemption you would actually use — a specific flight or hotel booking in the next 12 months. Divide the points required by your annual earn rate to see how long it takes to accumulate one redemption. If the redemption represents genuine value (a business class ticket that would otherwise cost £2,500 requires 100,000 Avios at 2.5p per point value), and you'd realistically earn those points in a reasonable timeframe, the card is worth it. If you're unlikely to ever actually redeem at premium values, a card with zero fees and zero annual cost outperforms any points programme.

The hidden value: status and experiential benefits

Beyond points accumulation, premium travel credit cards often include status benefits that have independent monetary value. Marriott Bonvoy American Express includes automatic Marriott Silver Elite status — free room upgrades, late checkout, and bonus points on stays at 30+ night stays. IHG Rewards Premier Mastercard includes IHG Platinum Elite status — priority check-in, room upgrades, 50% bonus points on IHG stays. These status benefits are activated simply by holding the card, without spending any specific threshold. For travellers who stay regularly at these hotel chains, the room upgrades and late checkout benefits alone can represent value exceeding the card's annual fee. A traveller who books IHG hotels for business travel 10 times per year, receiving an average room upgrade worth £30 per stay, receives £300 in upgrade value from card status — material when compared against a £100 annual fee.

Key takeaways