Cash in those bank rewards travel points!

By Sean O'Neill
October 3, 2012

Kudos to the Wall Street Journal for pointing out yesterday an important side effect of the financial problems of Citigroup and other banks:

Credit-card rewards programs are vanishing, especially for travel.

On March 1, Citibank will make a key change to its ThankYou Rewards program for its credit-card holders. You'll have to spend a certain amount each month on your card before you'll be able to earn points for travel.

And travel rewards will become more difficult to redeem, according to a story broken by the Frugal Travel Guy. For example, today you can redeem ThankYou Points for different types of tickets once you've reached a threshold, such as by redeeming 90,000 ThankYou Points for a business-class ticket worth up to $2,700. But under the system the company is about to set up, you'll need to have 100 points per every $1 of airfare. So a $2,700 business-class ticket will now require 270,000 points.

(Citibank defends its move by saying that it will now include the price of taxes and fees as part of its reward. Right now, members have to pay the airline taxes and fees for reward tickets.)

Other news items:

"Last month, American Express eliminated double miles for shopping in a broad range of categories on its Delta SkyMiles card." This may be partly driven by Delta's merger of its frequent flier program with Northwest's program. (The blog One Mile at a Time has sound advice on the best uses of American Express Membership Rewards.)

"Chase scaled back the cash-back bonus opportunities on its Freedom card for new customers."

"Capital One's new No Hassle Rewards Card requires customers to spend at least $1,000 a month in order to earn double miles for each dollar above that threshold. (Customers earn one mile per dollar spent on all other, non-travel purchases.)"

Banks partly blame the airlines, some of which are hiking the mileage thresholds required to redeem free flights.

Banks are also getting more likely to revoke your points before you get a chance to use them. Says the Journal:

If you're late, not only will you likely see your interest rate jump, but you'll also probably forfeit reward points. Under American Express' Membership Rewards program, for example, members who pay late will forfeit their points for that month (although they can reinstate those points by paying a $29 fee).

The short take: Don't bank those points. If you have a stockpile of rewards points, consider redeeming them for rewards now before they are likely to be devalued.

MORE

In a related point, the value of travel points earned in the iDine program have been cut in half, says the mileage blogger Gary Leff.

Plan Your Next Getaway
Keep reading
Budget Travel Lists

Nominate your coolest small town

Rather than blog about the latest airline news or innovation in rental cars (which is what I normally do), I thought I'd put out a little plug instead. We're currently soliciting nominations from readers for our annual "Coolest Small Towns" package in the magazine, and I want you to contribute! Click on this link, and tell us about a cool small town that you think deserves recognition, whether it's for its thriving art scene, eclectic mix of residents, or fantastic local restaurants. We definitely want places with an edge to them—so don’t go for quaint. And the towns MUST have a population under 10,000. Besides that, anything goes. I recently visited a couple of towns we included in this package over the past couple of years, Catskill and Hudson, both of which are in New York's Hudson valley. While Hudson is thriving—it has restaurants that can rival those in New York City—I was saddened to see that Catskill isn't doing that well. Perhaps it's the economy—it's tough for out-of-the-way towns to prosper when nobody's spending money. Catskill is a dreamy little place—the architecture is fantastic, and the few antique and crafts shops on Main Street are well worth a visit if you happen to be in the area. (You can visit Catskill and Hudson the same day; they're across the river from each other.) Maybe getting your small town in our magazine will help boost its economy at a critical time—so fill out this online form! (Please, don't post a comment below on this blog, but instead click on this online form.)

Inspiration

This weekend: An icy Alaskan swim is a cabin fever reliever

File this one under "Crazy-But-True." Alaskans young and old will jump into the icy waters off Seward this Saturday, all to raise money for the American Cancer Society. The 24th annual Polar Bear Jump Off is what it sounds like: Participants don crazy costumes (princesses, penguins, Scooby Doo characters, etc.) and leap into Resurrection Bay, which will be roughly 35 degrees Fahrenheit. "Seventy-five percent of the jumpers are returning and have participated five or more times," says Polar Bear Marilyn, the organizer. Related activities include frozen turkey bowling. The turkeys are in place of the ball, not the pins. Strikes win prizes. There's also a karaoke contest, a quilt show, and a costume contest. Get the full schedule at sewardak.org. Seward is about three hours south of Anchorage. Saturday's forecast is calling for snow showers and a high of 23 degrees. But we're pretty sure that won't stop the plunge-takers. Seward Waterfront Park. Watching the jump is free; some activities cost a nominal fee ($4 to $7). MORE Watch a YouTube video of the Jump Off Get more info on Seward at the Chamber of Commerce For more travel blogs, go to alltop.com

Inspiration

How many places will be worth visiting in 2016?

Last Sunday the New York Times came out with its 44 Places to See in 2009. It's an entertaining list—though not as good as ours— but it also got us a little worried. Last year, about this time, the good folks at the Times came up with a full 53 places to visit, which incidentally included the Hamptons of Germany and a point on the Axis of Evil. (Did you go to either? Shoulda gone.) But 2009's it-list has just 44 places, and that represents a 17% decline. Assuming that this rate of decline holds, and I have no idea why it wouldn't, there will be fewer than a dozen places worth visiting by 2016. That means a whole lot of people trying to check into the same hotel, palace, or yurt, depending on where we're all headed. Yet another reason to hop on a plane today.