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.

Key takeaways