What is travel hacking?
The basic idea behind travel hacking defined by Chris Guillebeau — the author, entrepreneur, blogger and speaker who mastered the art of travel hacking on his blog, The Art of Non-Conformity, — is that, "Travel doesn’t need to be expensive. Most of us who live in relatively rich countries can travel even if we’re not rich. The reasons why some people don’t travel have less to do with lack of resources and more to do with fear and insecurity."
Travel hacking is a strategy where you can go anywhere in the world for almost free. It goes beyond the normal behaviour of signing up for Aeroplan points. It might even go beyond signing up for the Aeroplan Star Challenge and going to the gas station to gas up in $3 increments despite the disapproval from the gas attendants.While admitting that he does acquire a healthy amount of frequent flier rewards, Guillebeau has stated that twice as many miles are earned on the ground through bank promotions, travel-friendly credit cards and other bonuses tied to spending or financial products.
In Canada, there are some avid travel hackers such as entrepreneur Matt Bailey, who has spoken publicly about his experience with travel hacking and even offers courses on how to master this skilloffers courses on how to master this skill.
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How do I start travel hacking?
There are numerous ways to start travel hacking. First and foremost is to sign up for points on the flight programs and strategically opt for the frequent flyer programs and airlines that you will be using most. For instance, if you travel to Europe a lot compared to Asia, it might be a better idea to choose the frequent flyer program offered by British Airways instead of Asia Miles even though they are part of the same frequent flyer program. Also, sign up for hotel rewards too, such as Marriott or Starwood Preferred Guest.
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Secondly, sign up for a travel credit card and opt for something that gives you a large number of bonus points.
For example, many frequent travellers swear by American Express credit cards when booking travel, especially its Amex Cobalt card. While there is an annual fee of $156, most cardholders end up breaking even by accumulating up to 15,000 points in a year (1,250 per month for spending $750 per month). The real draw, however, is the five times the points earning on groceries and food delivery (there is a spend cap) and three times the points on eligible streaming purchases. There's a host of other perks and rewards but the biggest draw is the 1:1 transfer of points from Amex to several frequent flyer programs like Aeroplan.
Some credit cards in Canada that offer a healthy number of bonus points when you sign up for the credit card include:
Will it affect my credit score?
If you open up credit cards in order to get travel points, it may affect your credit score. As long as you pay off your credit cards on time and don’t make too many new credit card applications on an annual basis, you should be fine.
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Another thing to consider is cancelling your tried and trusted credit cards, as you should probably think twice before cancelling an old credit card in good standing because it might affect your credit score negatively.
Sources:
1. Manitoba Blue Cross:: "The Blue Cross Travel Study reveals Canadians are eager to travel – and are finding creative and cost-efficient ways to do so"
2. Chris Guillebeau:: "Beginner’s guide to travel hacking"
3. The Derek Loudermilk Show: : "Matt Bailey"
