Understanding the Devaluation Game
Devaluation is when a loyalty program increases the number of points required for a reward, like a flight or hotel stay, without notice. In recent years, and particularly in 2026, major Indian banks and airlines have been tightening their reward structures.
This happens in several ways: increasing the points needed for a flight, introducing dynamic pricing where costs fluctuate with demand, reducing the value of points when converted to partner airlines, or even capping how many points you can earn. For instance, some banks have made it harder to get lounge access or removed reward points for categories like rent payments. These changes mean the thousands of miles you've saved for a dream trip might not cover it by the time you book.
First Step: Audit Your Miles
You cannot manage what you do not measure. Your first strategic move is to get a clear picture of all your accumulated rewards. Create a simple spreadsheet listing every credit card and airline loyalty program you are a part of. For each, note down the current point or mile balance and, crucially, the expiration date. Most Indian bank reward points expire within two to three years. Knowing this timeline is essential. Use apps or websites designed to track loyalty points to centralize this information and set up alerts for when miles are about to expire. This audit gives you a clear inventory of your assets, forming the foundation of your spending strategy.
Adopt an 'Earn and Burn' Philosophy
The golden rule of loyalty points in 2026 is to avoid hoarding. Like cash, the value of your points is unlikely to ever be higher than it is right now. Saving for a speculative, far-off 'perfect' trip is a risky strategy in an era of constant devaluations. Instead, adopt an “earn and burn” mindset. As you accumulate enough points for a valuable redemption, use them. This strategy protects you from sudden, unannounced changes that can wipe out a significant portion of your points' value overnight. The goal is to consistently extract value from your rewards rather than letting them accumulate indefinitely and risk depreciation.
Prioritize Flexible Point Currencies
Not all points are created equal. The most powerful points are those held with bank programs like American Express Membership Rewards or HDFC Bank, which can be transferred to multiple airline and hotel partners. These are known as transferable currencies. By keeping your points in the bank's program, you maintain flexibility. You are shielded from a single airline's devaluation because you have other transfer options. The best strategy is to keep your points with the bank until you have found a specific flight or hotel award you want to book. Then, and only then, transfer the exact number of points needed to complete the redemption.
Look Beyond Just Business Class Flights
While redeeming miles for international business class flights often provides the highest per-point value, it's not the only option. Sometimes the best redemption is the one you can actually use. Explore all the possibilities within your loyalty programs. This includes booking hotel stays, renting cars, or even redeeming for gift cards and merchandise, although the latter usually offers lower value. Some programs even allow you to use points to bid for upgrades or donate them to charity. Being flexible about how you redeem your miles can ensure they don't expire worthless while you wait for a perfect but elusive flight deal.
Book in Advance to Lock in Rates
If you have a specific trip in mind, booking it far in advance is a smart way to lock in today's redemption rates. Many airlines release award seats up to 11 months ahead of the travel date. By booking early, you protect yourself against any devaluations that might occur between your booking date and your travel date. Just be sure to check the airline’s cancellation and change policy for award tickets. Many programs have become more flexible, allowing you to cancel and get your miles back, sometimes for a small fee. This tactic allows you to secure a good deal now with the option to change your plans later if needed.
