The Shifting Rewards Landscape
In 2026, several major banks in India, including ICICI Bank, SBI Card, and American Express, have revised their credit card reward structures. These changes often mean it's harder to earn points and perks that were once standard. For instance, some banks have tightened
the conditions for airport lounge access, shifting from complimentary visits to a spend-linked model where you need to spend a certain amount in the previous quarter. SBI Card, for example, stopped awarding points for rent payments on many of its cards and revised cashback caps. This trend of 'devaluation' means the points you've been saving could be worth less tomorrow than they are today. While some changes are restrictive, others present new opportunities. Air India recently overhauled its Maharaja Club program, reducing the points needed for award flights on many routes by up to 30%, making it a good time to redeem.
Step 1: Conduct a Thorough Points Audit
The first step is to know exactly what you have. This means logging into every loyalty account—including airline frequent flyer programs and credit card rewards portals. Create a simple spreadsheet or use a tracking app to list each program, your current points balance, and, most importantly, any expiration dates. While many programs have eliminated expiration dates, it's crucial to check the fine print. Don't forget to check for missing points from recent flights or purchases. Most airlines allow you to retroactively claim miles for flights taken in the past few months, so it's worth checking your travel history against your statements. This comprehensive overview is the foundation for your spending strategy.
Step 2: Define Your Redemption Goal
With a clear picture of your points portfolio, you can decide what to do with it. Your goal will determine the best way to use your points. Are you saving for a once-in-a-lifetime international business class ticket, or would you prefer several domestic economy flights? Perhaps you're more interested in hotel stays or merchandise. Setting a clear goal helps you focus your efforts and assess whether you have enough points or need to consolidate them. For example, if your goal is a premium flight, you might need to transfer points from a credit card program like American Express Membership Rewards or HDFC Bank to an airline partner like Air India or Emirates.
Step 3: Understand the True Value of Your Points
Not all points are created equal. Redeeming points for merchandise or gift cards often provides the lowest value. The highest value is typically found in redeeming for premium cabin flights (Business or First Class). A business class ticket that costs lakhs of rupees might be available for a fixed number of miles, giving you exceptional value per point. To calculate the value, divide the cash price of the flight or hotel stay by the number of points required. This will give you a 'rupees per point' value, helping you compare different redemption options and ensure you're getting a good deal. Always compare the points price to the cash price before making a decision.
Step 4: Smart Strategies for Spending
Once you have a goal and understand your points' value, it's time to act. Given the trend of devaluation, holding onto points for too long can be risky. If you have a specific, high-value redemption in mind, like an international trip, it's often best to book it as soon as you have enough miles. For those with smaller balances scattered across various programs, consider consolidating them. Many credit card reward programs allow you to transfer points to a wide range of airline and hotel partners. This can help you pool your points to reach a valuable redemption threshold faster. Also, keep an eye out for transfer bonuses, where credit card programs offer extra miles when you transfer points to a specific airline partner for a limited time.
Beating Devaluation and Using Perks
The key to navigating the changing landscape is to be proactive. Regularly review your loyalty programs and the credit cards you use. If a card's benefits no longer align with your spending habits, especially after perks like lounge access are removed or restricted, it might be time to re-evaluate. Don't let your points expire or devalue by sitting on them indefinitely. The best strategy is often to 'earn and burn'—continuously use your points for valuable redemptions rather than hoarding them. By staying informed and acting decisively, you can ensure your loyalty continues to be rewarded, turning your everyday spending into meaningful travel experiences.
