The Smarter Way to Start 2025

Happy New Year! 

Let’s kick off 2025 by rethinking how we approach travel rewards. 

This week’s Leverage Letter focuses on why collecting the right points matters and how a smarter strategy can save you thousands. 

Dive into insights that can redefine your travel and financial goals.

Airline Miles vs. Credit Card Points: A Smarter Choice

Think of it this way:

• Airline Miles: Like a grocery store gift card—limited options, limited flexibility.

• Credit Card Points: Like a Visa gift card—flexible, valuable, and usable across multiple airlines.

Airline miles tie you to one loyalty program. While they grant status and perks, they come with restrictions and higher redemption costs. 

Credit card points, on the other hand, are transferable to multiple airlines, giving you the freedom to find the best value for your rewards.

Case Study: Delta Diamond Dilemma

One of my clients, a Delta Diamond Medallion member, spent over $70,000 on a Delta credit card in 2024, aiming for the invite-only Delta 360 status. (advised against this!)

Despite their efforts, the invitation never came.

The opportunity cost of using a single airline card is significant. 

Here’s why:

• Paris to LA: Delta (375,000 miles) vs. Virgin Atlantic (67,500 miles).

• Amsterdam to Salt Lake City: Delta (375,000 miles) vs. Virgin Atlantic (67,500 miles).

• London to Detroit: Delta (375,000 miles) vs. Virgin Atlantic (47,500 miles).

That’s up to 5x more miles for the same flights when booking through Delta instead of its SkyTeam partner. 

Have points and ready to book? Check out our Award Booking Service. 

By focusing on transferable points, my client could earn more valuable points to secure better future travel value.

Why Focus on Transferable Points?

1. Flexibility: Redeem with multiple airlines, not just one.

2. Better Value: Take advantage of transfer bonuses to stretch your points further.

3. Strategic Multipliers: Maximize your earning potential by using the right card for specific spending categories.

Example Scenario: A business owner spends $120,000 annually, with $80,000 on ads and $40,000 on other expenses:

• Using just the Amex Business Gold:

  • Ads: $80,000 x 4 points = 320,000 points

  • Generic: $40,000 x 1 point = 40,000 points

  • Total: 360,000 points

• Using the Amex Business Gold for ads and Capital One Venture for general spending:

  • Ads: $80,000 x 4 points = 320,000 points

  • Generic: $40,000 x 2 points = 80,000 points

  • Total: 400,000 points

That extra 40,000 points could cover a business-class ticket to Europe!

Hot Take: Are Airline Loyalty Programs Overrated?

Frequent “flyer” programs have turned into frequent “buyer” programs. 

Airlines reward spending over loyalty, devalue miles with dynamic pricing, and raise requirements for elite status yearly.

The Truth:

• Elite Status Benefits: Ideal for weekly business travelers or families flying economy.

• Transferable Points: Better for premium cabin travelers seeking flexibility and value.

For instance, Amex Membership Rewards points can be transferred to multiple airlines, including Delta – though that’s rarely the best use. 

Why lock yourself into one airline when you can transfer points to multiple partners for better value?

The Power of Strategic Partnerships

Leverage Alliance Partners:

• Use transferable points to book flights through alliance partners.

• Save significant miles compared to booking directly with the airline.

For example, you can book a United flight at a cheaper rate through its Star Alliance partners like Avianca and Air Canada. 

Pro Tip: 

Only transfer points after confirming award availability. This ensures your points are used efficiently.

Take Advantage of Promos: 

For example, during a 30% bonus transfer promo, 39,000 Amex Membership Rewards points convert to 50,000 airline miles—enough for a business-class ticket from the U.S. to Europe.

How to Diversify Your Points Portfolio

Having multiple types of transferable points (Amex, Chase, Capital One) gives you maximum flexibility:

• Category Multipliers: Different cards offer more points in different spending categories.

• Partner Networks: Capital One has partnerships that Amex doesn’t, and vice versa.

Are Virgin’s Dynamic Pricing Changes a Win?

Virgin Atlantic recently switched to dynamic pricing. While this typically means higher rates, you can still find one-way business-class flights to Europe for only 29,000 points. 

This rate won’t last forever, so act fast.

My Perspective

My role is to educate, not dictate. 

When advising clients, I prioritize their goals over my preferences. 

Here’s what I’ve learned:

• Listen First: Understand the client’s travel patterns and objectives.

• Present Options: Highlight the trade-offs and let the client decide.

• Empower Informed Choices: Education is key to building trust and delivering value.

Your 2025 Strategy: Action Steps

1. Earn Transferable Points: Focus on cards from Amex, Chase, or Capital One that offer flexible points.

2. Leverage Partnerships: Use alliances like SkyTeam or OneWorld to book flights at lower rates.

3. Maximize Promotions: Stay updated on transfer bonuses to stretch your points further.

Pro Tip: Use tools like CardPointers to optimize daily spending. 

Freemium Traveler fans receive a 30% discount on the Pro version.

Final Thought

2025 is the year to travel smarter. 

Whether you’re building a points portfolio, booking premium cabins, or deciding if elite status is worth it, the right strategy can transform your travel experience.

Let’s make your spending work for you.

Ready to level up? 

Click here  to discover how to turn your spending into luxury travel. 

Together, we’ll build a personalized strategy that aligns with your goals.

Here’s to a year of smarter choices and unforgettable journeys!

Thank you, 

Ade.