It would seem sometimes that the press enjoys sounding alarms. Actually, the do not “enjoy” being alarmists as much as it is their duty. Reporting on the status quo in not exactly reporting since status quo refers to a situation where nothing has changed. So, when something deviates from the norm the press is quick to report it. This, sometimes, leads to minor panics and conclusion jumping. Case in point, several money and finance news services are reporting that the collapsing airline industry is rendering airline reward cards worthless. It is true that problems in the airline industry have had a ripple effect on accrued reward miles. However, the notion that this effect is devastating is over hyped.
Here are a few facts: the high rising price of fuel has led to fewer flights taking off. The costs of running the same number of flights this year is far greater than it would have cost three years ago. So, the adjustment in the number of flights is understandable. Also, several airlines have slashed ticket prices to attract more flyers. (Yes, some have also raised prices as well) These changes have impacted rewards cards in two ways. First, the less flights that are available, the less choice one will have when redeeming travel miles. Secondly, if the price on flights drops then the redemption value of the points is lowered. That is, the same points that would acquire a $500 ticket are now being used to acquire a $400 ticket.
These two points of contention are valid but not indicative that airline miles are worthless. They simply reflect the common ebbs and flows of the market. The free market is always in a state of flux. It will always react positively or negatively to economic factors. Airline travel cards simply get caught up in the mix. This is neither a good thing nor a bad thing. Its just simply the way the economy works.
“What do you mean there’s a blackout date? You telling me I can’t redeem my points for a ticket?” Actually, that is exactly what they are saying. Your rewards card has a number of restrictions and blackout dates. Yes, this creates a problem in terms of choice.
As much as we would wish the world to be perfect, it is not. Perfection is found nowhere on earth. If you are looking for perfection in travel rewards cards then you will REALLY be disappointed. Of course, all travel rewards cards have benefits. The fact that they offer “free stuff” would certainly be the most obvious one. But, sometimes all that free stuff comes with a string attached. Surely, you have heard horror stories about blackout dates and redemption restrictions. These horror stories are often true. Now, before you get too depressed, here is some good news: the problems associated with these restrictions are often avoidable. You just need to know that they exist in order to deal with them.
While some travel cards place such information in the fine print, the fact remains the information is there. You just need to read the fine print. Actually, as any savvy consumer will tell you, the fine print is the very first place you need to look! Contrary to popular belief, the wording in the fine print is not confusing or misleading. (If it was any contract between applicant and issuer would be invalid) If there is blackout dates and reward restrictions such information will be easy to find. You just need to read the application’s terms and conditions from top to bottom. This doesn’t take as long as some assume, either. A cursory reading will often reveal most major points. So, read the application fully and avoid any surprises. This is just prudent business.
No matter how hard we try, we are not always successful when budgeting travel plans. There are a number of reasons for this. The most common involves not understanding all the costs associated with travel. For example, when you tip taxi drivers and tour guides you are adding expenses to your travel budget. Now, this does not mean that you should cut out tipping out. It simply means that you need to have a clearer idea of the totality of your budget. It also means that you need to look into various ways of saving money. This is where travel rewards credit cards can provide a huge benefit. They have the ability to shave a few dollars off a budget here and there. Actually, they often can shave off more than a few dollars…
When we think of travel expenses we think of “gross” expenses such as car rentals, plane tickets, and hotel accommodations. The costs of meals at the hotel or putting gasoline into those rental cars may escape us. That is why it is critical to employ the use of a travel card. After all, whatever money you shave off the costs of those plane tickets, car rentals, and hotel accommodations will work towards covering the costs of those unforeseen expenses.
Some the secret to cutting costs off a travel itinerary involves some overblown plan. However, the reality of the situation is that simple steps work wonders. In particular, minor adjustments of a budget can run into enormous savings over time. Actually, they also cut cost immediately as well. Ultimately, the bottom line is whether or not you can cut your budget when traveling. If you use travel reward cards then it is pretty much guaranteed you can. This way, a trip needs not be a budget buster no matter where your destination is.
The best advice for anyone who has miles on a travel card would be to actually redeem the miles! This may seem like an academic point, but it is also something that slips people's minds. They work very hard at accruing travel miles and then do not redeem any tickets. Often, this is done without any true intent to disregard the miles. The cardholder simply forgets the miles are there. Now, some may scoff at this assessment but people do completely forget to redeem their miles.
How does this happen? Well, it takes a long time to accrue enough points for an airline ticket. When planning on using the free ticket for an exotic location then you will need a lot of miles. This can take a great deal of time. Sometimes, amount of time that elapses can lead to the holder forgetting about their miles. A free vacation to Fiji might was a motivating factor in acquiring a card in 2003. By the time 2008 rolled around, the cardholder may have forgotten about Fiji. This is a shame because all those free travel miles are still there.
Actually, a travel rewards card may hold thousands of miles that the cardholder is not accessing. One of the main ways reward cards earn money is by never having to pay out rewards that are owed. After all, if you don’t redeem they can not issue them. This is why it is important to never forget the original purpose of the card. It is also important not to forget those miles are worth free vacations! To do so involve cheating yourself out of that Fiji vacation you always dream about. Thankfully, those reward points don’t expire so it is never to late to take that vacation.
It is never it easy to succeed in a start up business. Now, that does not mean that one can never succeed in a business. It just means that a little extra effort might be required. This is especially true of a new business so it can become profitable. Sadly, many businesses find themselves derailed quicker than what was initially imagined. There are two reason for this: bad management and undercapitalization. Bad management is fairly self explanatory. Poor decisions simply make success difficult if not impossible. Undercapitalization refers to simply not having enough money to remain in business. Then, there is a third version and it is a hybrid of the two hour aforementioned reasons. That is, poor decisions lead to undercapitalization. If you think properly capitalizing a business involves complex decisions you are only partially right. In actuality, there are minor decisions that can sink a businesses ship.
Let it be known that any amount of money you can save will benefit a small business (or a large business) dramatically. For example, if your business required a number of items that could be purchased from a retail store such as Target or K-Mart. A rewards card reimburses you for such items. Obviously, this would be very financially helpful! Similarly, if your business requires a great deal of travel, acquiring a travel rewards card would be a smart move as well.
Shaving the costs of car rentals, gasoline, the airline tickets, hotel accommodations, and other expenses help a business’ budget. In some cases, the money travel cards save can keep a company solvent. That is why the value of rewards card to a business can never be underestimated. So, if you are running a business that involves travel look into travel reward cards. They are that helpful for a small business’ success.
