The Unspoken Truth: Why Points Devalue
Credit card rewards are not a fixed currency; their value is at the discretion of the bank. In 2026, several major Indian banks like HDFC, Axis, and SBI have adjusted their reward programs. This trend, known as devaluation, happens when banks increase
the points needed for a flight or hotel stay, reduce earning rates, or cap redemptions. These changes are driven by shifting economics, including higher costs for banks and efforts to improve profitability. For cardholders, this means the business class flight that was 1,00,000 points yesterday might cost 1,20,000 points tomorrow. The core message is clear: your points are a depreciating asset. Hoarding them is a losing game.
Step 1: Conduct a Full Points Audit
Before you can create a strategy, you need to know what you're working with. Take a comprehensive inventory of all your points and miles. Log into each of your credit card and airline loyalty accounts. Create a simple spreadsheet listing the program (e.g., HDFC Infinia, Axis Magnus, Vistara), the current points balance, and any expiry dates. While some points never expire, many do, and keeping track is essential to avoid losing them. This audit gives you a clear picture of your total 'travel wealth' and helps you prioritize which points to use first, especially those tied to programs with recent negative changes.
Step 2: Prioritise 'Transferable' Points
Not all points are created equal. The most valuable points are 'transferable currencies' from bank programs like American Express Membership Rewards, HDFC Reward Points, or Axis Edge Miles. These points give you flexibility because you can move them to various airline and hotel partners. This is your best defence against devaluation. If one airline partner devalues its chart, you can simply transfer your points to another. Co-branded card points (e.g., a card tied only to one airline) are less flexible and should generally be used for their intended program. Your strategy should focus on using these less-flexible points first, while preserving your valuable transferable points for high-value redemptions.
Step 3: Master High-Value Redemptions
The secret to maximising value lies in how you redeem. Using points for cash back or merchandise often provides the lowest return. The highest value is almost always found in redeeming for premium travel experiences like international business or first-class flights and luxury hotel stays. A balance of 50,000 points might get you ₹15,000 in vouchers, but it could also cover a business class ticket worth over ₹1,00,000. Identify your travel goals, research potential redemptions across airline partners like Singapore Airlines or British Airways, and find the 'sweet spots' where your points stretch the furthest.
Step 4: Book Now, Decide Later
One of the most effective strategies to lock in current rates is to make speculative bookings. Many airline loyalty programs offer flexible cancellation policies, allowing you to cancel an award ticket and have your points redeposited for a small fee or sometimes for free. If you anticipate a devaluation, booking a flight for a future date, even if your plans are not firm, can be a smart move. This hedges against a potential increase in the number of points required for the same flight. Always read the cancellation rules carefully before booking, but use this 'book now, decide later' approach to your advantage.
Step 5: Don't Wait for the 'Perfect' Trip
Many people hoard points waiting for a once-in-a-lifetime trip, only to see their balances devalued before they can use them. While it’s wise to avoid low-value redemptions, it’s equally unwise to wait indefinitely. The prevailing wisdom in the travel hacking community has shifted from 'earn and save' to 'earn and burn'. This doesn't mean redeeming recklessly, but it does mean having a clear goal and acting on it. Whether it's a weekend getaway or a family vacation, using your points for valuable experiences now is almost always better than holding onto them for a hypothetical future that may never come or may cost you more points.
