The 10 Drawbacks of Travel Hacking in Canada

Embarking on the thrilling adventure of travel hacking is undoubtedly enticing, especially when you’re eager to explore the world without breaking the bank.

In a country with so many points programs, the allure of discovering new destinations while strategically leveraging credit card rewards and loyalty programs is a tantalizing prospect. However, as with any journey, there are bumps in the road that can catch even the most seasoned travel hacker off guard.

In this blog post, we’ll take a candid look at the downsides of travel hacking in Canada, offering a friendly guide to help you navigate the potential pitfalls. From the limitations of loyalty programs to the challenges of redeeming points, we’ll uncover the realities that can sometimes dampen the excitement of travel hacking in Canada.

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Here are 10 Drawbacks to Travel Hacking in Canada

1. Credit Card Fees

Don’t get fooled by the TikTok videos, it is tough to travel anywhere for ‘free.” Very rarely are you able to take advantage of a completely free flight. The majority of credit cards that offer sign-up bonuses (the catalyst for traveling with points) do come with an annual fee. 

One significant drawback in the realm of travel hacking in Canada revolves around the often-overlooked realm of credit card fees. While the allure of earning points and miles can be tempting, the accompanying fees can quickly erode the perceived value.

Many travel credit cards come with annual fees, and these costs may not always align with the benefits reaped. Canadians need to carefully evaluate whether the rewards earned justify the annual fee, especially when some no-fee options may offer comparable perks. Additionally, the foreign transaction fees imposed by many credit cards can become a silent adversary for globetrotter.

It’s essential for Canadian travelers to analyze the fee structures of their chosen credit cards to ensure that the overall cost doesn’t outweigh the benefits. By being cognizant of these fees, savvy Canadian travelers can better navigate the credit card landscape and make informed choices that align with their financial goals and wanderlust aspirations.

Now, there are a few credit cards that allow you to earn a great sign-up bonus while also waiving the first-year annual fee. For example, the TD Aeroplan Visa Infinite offers a sign-up bonus of 35,00 while also waiving the fee in the first year. That can get you an economy flight to Europe. 

However, those first-year free cards are few and far between. Eventually, you’ll need to fork over a few hundred dollars for those annual fees. Traveling with points allows you to take fantastic vacations for a fraction of the cost, but don’t get fooled by the word “free” 

For example, here is the cost for traveling to Frankfurt on points, from our blog post “How to Travel to Frankfurt from Canada on Points”

2. Fuel Surcharges

Another hurdle in the world of travel hacking, particularly when redeeming points in Canada, comes in the form of the often-dreaded fuel surcharges.

While the allure of using points to cover flights seems like a budget-friendly dream, these surcharges can quickly turn it into a costly reality. Many airlines, even when points cover the base fare, still require travelers to foot the bill for various fees, including substantial fuel surcharges. These fees can significantly offset the perceived value of redeemed points, turning what seems like a “free” flight into a surprisingly expensive venture.

Canadian travelers must be vigilant when planning their point redemptions, researching and understanding the fee structures associated with different airlines and redemption options.

Some loyalty programs and carriers are notorious for imposing hefty fuel surcharges, particularly on international flights, making it crucial for savvy travelers to factor in these additional costs.

By being aware of the potential financial pitfalls posed by fuel surcharges, Canadian travel hackers can better strategize their point redemptions to ensure they get the most value out of their hard-earned rewards without falling victim to unexpected and unwelcome fees.

Here is an example of the fuel surcharge for a business class rewards flight from Vancouver to Istanbul on Air France

How to Tell if Your Flight Has Fuel Surcharges?

Fuel surcharges can range from $0 to as high as hundreds of dollars. This will depend on the airline in which you’re flying.

To find out if your flight has fuel surcharges, follow these steps:

• Visit the ITA Matrix Website
• Type in your originating and destination cities
  • Click Advanced Controls right below the Destination search box
  •  Type the airline code (ex: British Airways is “BA”)
• Search your dates
• Choose your cabin
• If applicable, choose nonstop
• Type in your currency in the search box
• Click Search
• Choose your desired flights
• Look for a Carrier-imposed surcharge (YQ/YR)
  • This is your fuel surcharge

3. Airport Lounges Can Get Crowded

One of the perks of holding premium travel credit cards is lounge access. You’ll most likely have lounge access if you hold a business-class ticket, or if you own a premium travel credit cards

In Canada, our premium travel credit cards typically provide access to the following lounge networks:

• Priority Pass
• DragonPass
• Maple Leaf Lounges 

While lounges are fantastic, it’s worth noting that they tend to get busy, and in some cases, they’ll fill up. There have been many instances where I’ve been told that the lounge wait time would be well over an hour. 

Depending on the credit card you hold, there may be alternatives to Airport lounges. For example, Priority Pass also has a network of restaurants that will allow you to receive a free meal. Further information can be found on your lounge network’s mobile application. 

Read about my experience at the WestJet Elevation lounge here

4. It can be difficult to track your credit cards

By leveraging various travel reward programs, Canadians can drastically reduce the cost of their vacations. 

One of the drawbacks to this however is that there is a certain degree of tracking that needs to occur. 

For example, let’s say you sign up for the American Express Aeroplan Reserve card as a way to leverage Aeroplan points for a free vacation. The card comes with a plethora of benefits that can assist you in having a great trip, but it does come with a $599 annual fee. 

The perks & sign-up bonus more than makeup for the cost of this card in year one, but some Canadians may feel like the annual fee is too steep to take into the second year. 

If you’re one of these people, you’ll have to make sure you call and cancel the card before the signup bonus hits your bank account for year 2. 

While one card may be easy to track, this can get rather complicated with you start holding upwards of 10 cards in your wallet. Throw in the ability to downgrade/product switch, and a certain degree of organization is required. 

Here are some credit card organization tips from YouTuber Wise Flys

5. There is a Limit to Churning

Programs like Aeroplan, American Express Membership Rewards & Marriott Bonvoy. are easily accessible to Canadians, and this should be the focus of all points enthusiasts who are beginning their journey.

However, there is a limit to the number of cards you apply for. 

American Express has a “once in a lifetime” rule, meaning that you can only receive a sign-up bonus once. Aeroplan has started implementing terms and conditions that limit repeat sign-up bonuses as well. 

Once you’ve exhausted these programs (which will happen), your points accumulation will be limited.

From there, points enthusiasts will have to look at alternative ways of accumulating points including: 

• Leveraging your spouse/partner (commonly called “P2”)
• Exploring the world of US credit cards
• Dipping your toe into “manufactured spending” 

6. You’ll Need to Be Flexible With Your Travels

Flexibility is the golden ticket when navigating the realm of travel points and miles. The intricate web of blackout dates, limited seat availability, and fluctuating point requirements demands a mindset that embraces adaptability.

When redeeming travel points in Canada, flexibility isn’t just a helpful trait – it’s a strategic necessity. Airlines and loyalty programs often impose restrictions on popular travel dates, especially during peak seasons or holidays.

If your heart is set on a specific destination during a particular timeframe, the rigid constraints of these blackout dates might thwart your plans. However, by being flexible with your travel dates, you open up a world of possibilities to maximize the value of your points.

Moreover, seat availability can be a hurdle when redeeming points for flights, particularly in business or first class. These premium cabins often have limited award seats, and without flexibility, securing that coveted upgrade may become an exercise in frustration.

By being open to alternative travel dates or even considering nearby airports, you increase your chances of finding available seats and optimizing your point redemptions.

Point requirements for flights can also fluctuate based on demand, promotions, or changes in the loyalty program’s policies. Being flexible with your destination or travel class allows you to take advantage of potential point-saving opportunities.

For instance, if your goal is to experience a luxurious business class flight, being flexible with your travel dates might allow you to capitalize on promotional deals or reduced point requirements for specific routes.

The same flexibility is required when booking hotels

You can see below the redemption range for the Westin Harbour Castle in Toronto

As you can see, certain dates will require far less points.

In essence, flexibility is the secret sauce that transforms the occasionally unpredictable landscape of travel points into a rewarding and cost-effective adventure. Whether it’s adjusting your travel dates, considering alternative airports, or being open to various destinations, a flexible approach empowers you to navigate the challenges and seize the opportunities inherent in the world of travel hacking in Canada.

So, embrace the unexpected, adjust your sails, and let the winds of flexibility carry you to new and exciting destinations without compromising the value of your hard-earned travel points.

7. Changing Point Vales

The landscape of travel rewards is dynamic, and one significant drawback that avid point collectors often encounter is the unpredictable nature of changing point values. Loyalty programs wield the authority to alter their point valuation systems, and this fluctuation can have profound implications for travelers.

Picture this: you diligently accumulate a substantial number of Cathay Pacific Asia Miles, envisioning a luxurious getaway, only to find out that the program has devalued its points, rendering your hard-earned currency less valuable.

The risk of devaluation is a cloud that looms over the travel hacking community. Airlines and credit card companies may tweak their redemption rates, adjust the value of points when transferred to partner programs, or modify the rules governing point usage.

Such changes can swiftly diminish the purchasing power of your accumulated points, forcing travelers to reconsider their strategies and recalibrate their expectations.

The reasons behind these adjustments are varied and often tied to economic factors, shifts in the industry landscape, or modifications in the program’s profitability models. As loyalty programs strive to strike a delicate balance between enticing new members and maintaining their own financial viability, changes in point values become an unfortunate byproduct.

To navigate this challenge, savvy travelers must stay vigilant and adapt to the evolving nature of loyalty programs. Regularly monitoring program updates, understanding the terms and conditions, and staying informed about industry trends are essential practices.

Additionally, diversifying your points portfolio across multiple programs can act as a hedge, minimizing the impact of devaluation in one program on your overall travel plans.

While the changing nature of point values presents a hurdle, it shouldn’t deter enthusiasts from embracing the benefits of travel hacking. Instead, it underscores the importance of a strategic and flexible approach, ensuring that your points strategy remains resilient in the face of an ever-shifting landscape. In the world of travel rewards, knowledge truly is power, and staying informed is the key to maximizing the value of your points in the long run.

8. High Spending Requirements for Bonuses

Embarking on a journey to accumulate travel points often involves the enticing prospect of sign-up bonuses offered by credit card companies. However, a significant drawback that may give some travelers pause is the high spending requirements associated with unlocking these bonuses.

In the quest for lucrative rewards, credit card issuers often set substantial spending thresholds within a specified timeframe, demanding cardholders to charge a significant amount to their cards to qualify for the promised bonuses.

While these bonuses can be alluring – ranging from substantial point boosts to complimentary elite status or other perks – meeting these spending requirements may prove challenging for individuals with modest budgets or conservative spending habits.

The pressure to meet these thresholds can lead to unnecessary expenses or tempt users into making purchases they wouldn’t otherwise consider. Furthermore, for those who may not have large planned expenditures coinciding with the bonus timeframe, achieving the required spending level solely through routine, everyday expenses becomes a potential hurdle.

It’s crucial for aspiring travel hackers to assess their own financial habits and consider whether the pursuit of these sign-up bonuses aligns with their spending capacity and lifestyle.

While these bonuses can undoubtedly unlock exciting travel opportunities, the associated high spending requirements underscore the importance of a thoughtful and measured approach to ensure that the pursuit of points doesn’t inadvertently lead to financial strain or impulsive spending decisions.

As the saying goes, “Know thyself” – understanding one’s financial habits and comfort level with spending is paramount when delving into the world of travel hacking and credit card rewards.

How to Meet Minimum Spending Requirements

Meeting minimum spending requirements for a travel credit card can be a breeze with a bit of creativity. Here are five strategies:

• Everyday Expenses: Channel your daily spending through your travel credit card. Whether it’s groceries, gas, or your morning coffee, make your card the default for routine purchases. Just be sure to stay within your budget and avoid unnecessary splurges.
• Strategic Timing: Time your card application with significant upcoming expenses. If you’ve got planned purchases like home repairs, insurance premiums, or even holiday shopping, use this opportunity to knock out a chunk of your minimum spend in one go.
• Online Shopping Bonanza: Explore your card’s online shopping portal or check for bonus points with specific retailers. Many travel credit cards offer extra rewards for purchases through their designated portals or with partner merchants. This way, you can earn points on things you were planning to buy anyway. An example of this is the Aeroplan estore
• Group Expenses: Coordinate with friends or family for group expenses. Whether it’s splitting the bill at dinner, sharing vacation costs, or organizing a group gift, have everyone pay you back, and you can put those reimbursements toward your minimum spend.
• Freelance or Side Gig Payments: If you have a side hustle or freelance gig, consider using your travel credit card for client payments. This way, you’re turning your skills into points and meeting your minimum spend while doing what you love.

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Here’s how you can earn money through Great Canadian Rebates:

9. Expiration of Points

The looming expiration of points poses a significant challenge for travel enthusiasts navigating the world of loyalty programs. Many programs institute policies that render accumulated points null and void after a certain period of inactivity, adding a ticking clock to the race against expiration.

This temporal constraint can catch even the most diligent points collector off guard, especially for infrequent travelers or those who prefer to consolidate their points over an extended period.

The pressure to utilize or accrue points within a specific timeframe may lead to rushed and potentially suboptimal redemption decisions. To mitigate the risk of losing hard-earned points, individuals must stay vigilant about program policies, tracking expiration dates, and implementing strategies to keep their accounts active.

This may involve making small transactions, participating in promotional activities, or strategically planning point redemptions. The expiration of points underscores the importance of regular engagement with loyalty programs and a proactive approach to ensure that the fruits of one’s loyalty and travel hacking efforts don’t fade away unused.

Ultimately, navigating the expiration game is an essential aspect of mastering the art of maximizing travel rewards.

10. Compex Redemption Processes

Ah, let’s chat about the maze that is a complex redemption process in the world of travel points.

Navigating these waters can sometimes feel like decoding ancient hieroglyphics. Picture this: you’ve got a stash of hard-earned points, ready to fuel your next adventure, and then bam! You find yourself lost in a labyrinth of rules, blackout dates, and elusive fine print.

From deciphering loyalty program websites to figure out how to transfer points between partners without feeling like you need a PhD in pointsology, it can be a bit overwhelming.

Some programs even require a secret handshake (well, almost). The key here is patience and a healthy dose of research. Take a deep breath, grab a coffee, and dedicate some time to understanding the ins and outs of your chosen program.

Trust me; it’s worth it.

Conclusion

In the vast landscape of travel hacking and point redemption, it’s essential to acknowledge the potential drawbacks that come with the territory.

From limited seat availability and high fuel surcharges to the ever-shifting nature of point values and complex redemption processes, the journey isn’t always a smooth ride.

Yet, armed with knowledge and a dash of flexibility, these drawbacks need not overshadow the myriad benefits of travel points. Embracing the challenges becomes an integral part of the adventure, fostering a community of savvy travelers who navigate the point redemption landscape with resilience and savvy strategy.

It’s a reminder that much like any journey, the path to unlocking the full potential of travel points may have twists and turns.

So, fellow wanderers, approach the pitfalls with a sense of adventure, adaptability, and a commitment to mastering the nuances. In the end, the experiences gained and the destinations explored through the clever use of travel points make the hurdles along the way not just worthwhile but an integral part of the exhilarating journey.

Here’s to turning those drawbacks into opportunities and ensuring every point becomes a stepping stone to your next unforgettable adventure.