First, Understand What Devaluation Is
A devaluation happens when a loyalty program increases the number of points or miles needed for a flight or hotel stay, without increasing the rate at which you earn them. In other words, the 50,000 miles that could get you a round-trip flight yesterday
might only cover a one-way ticket tomorrow. This can happen through announced award chart changes or, more frequently, through a quiet shift to 'dynamic pricing', where the points cost is tied to the cash price of the ticket. As cash prices for flights rise, so does the points cost, making it harder to find inexpensive reward flights.
Diversify Your Rewards Portfolio
One of the most effective strategies is to avoid putting all your rewards in a single airline's program. Instead, focus on earning transferable points from major bank programs like Chase Ultimate Rewards or American Express Membership Rewards. These points offer crucial flexibility, allowing you to keep them in your credit card account until you find a high-value redemption opportunity. You can then transfer them to dozens of different airline and hotel partners, shopping around for the best deal and insulating yourself if one specific airline devalues its miles.
Adopt an 'Earn and Burn' Mentality
Hoarding points for a far-off dream trip can be a losing game. Loyalty points are a depreciating asset, not a retirement account; their value is almost guaranteed to decrease over time. The smartest approach is often to redeem your points and miles as you earn them. This doesn't mean you can't save for a big trip, but it does mean you should have a clear and relatively short-term goal in mind. By using your rewards regularly, you lock in their current value before the next inevitable devaluation hits.
Book Speculatively to Lock in Value
If you have a potential trip in mind, consider booking the award flights now, even if your plans aren't firm. Many airline loyalty programs offer free cancellations and redeposits on award tickets. This allows you to lock in the current redemption rate long before a potential devaluation occurs. If the program devalues its miles next month, your booking remains safe at the old price. If your plans change, you can often cancel the ticket and get your miles back without a penalty. This strategy works equally well for hotel award nights, which typically have flexible cancellation policies.
Stay Informed to Act Fast
In the past, loyalty programs often gave members months of advance notice before making negative changes. Today, these devaluations can happen with little to no warning. Following dedicated travel and points blogs can give you a crucial head-start. When a program does announce a devaluation, the best protection is to act immediately and book any planned redemptions before the new, higher rates take effect. Being informed allows you to use your points at their maximum value right before that value disappears.
