Inflation is significantly affecting the way we spend our money. And it’s not just the essentials — like supermarket spending or gas purchases — it’s also taking a toll on our travel plans. A September 2022 survey by Bankrate found that rising prices are causing 79 percent of holiday travelers to modify their plans.

One of the most popular money-saving strategies is opting for cheaper destinations and accommodations, which 1 in 4 holiday travelers say they’re doing this year. Finding more affordable destinations is fairly simple, like choosing Mexico City over San Francisco for a winter escape. But no matter where you travel to (some people are already tied to specific destinations to visit friends or family, especially around the holidays), finding affordable accommodation can greatly reduce the financial burden.

Bankrate senior industry analyst Ted Rossman says lodging is only up 1 percent over last year, which isn’t too bad. But since airline fares are up 28 percent over last year, cutting costs on accommodation means you might be able to afford that pricier airfare. If you have a few travel rewards credit cards in your wallet, you should maximize the perks, benefits and points that come with them to leverage cheaper accommodation. Here’s how to do so.

Maximize your points

There’s no sense in sitting on a big stash of points just waiting for the right time to spend them. Now’s that time! In fact, points are most valuable when cash prices are high, which is usually the case on peak holiday travel dates. And many travel and hotel co-branded cards have hefty point bonuses that can get you a few (or even several, if you play your cards right) free nights at a hotel. Here’s how to use your credit card points for cheaper accommodation.

Flexible point currencies

Flexible point currencies such as Chase Ultimate Rewards, American Express Membership Rewards, Citi ThankYou points and Capital One Rewards are some of the most useful point currencies to have because they offer various options for transferring them to hotel programs or booking travel via credit card travel portals.

Transferring credit card points to hotel programs

Flexibility is what makes these points the most valuable. For example, Chase has three hotel partners: Marriott, IHG and Hyatt. If you have Chase points but Marriott hotel points rates are sky-high and there aren’t any IHG hotels in your chosen destination, you can still transfer them to Hyatt for a redemption. Make sure to find your chosen redemption before transferring your points, as you can’t move them back. Here’s a cheat sheet for transferring flexible reward currencies to hotel points.

  • Chase Ultimate Rewards: IHG One Rewards (1:1), Marriott Bonvoy (1:1) and World of Hyatt (1:1)
  • Amex Membership Rewards:  Marriott Bonvoy (1:1), Choice Privileges (1:1) and Hilton Honors (1:2)
  • Citi ThankYou Points: Choice Privileges and Wyndham Rewards (ratios vary depending on which Citi card you hold)
  • Capital One Rewards: Choice Privileges (1:1) and Wyndham Rewards (1:1)

The ratios indicate how many credit card points make up a hotel loyalty point when you transfer them. For example, the 1:2 ratio associated with transferring Amex points to Hilton Honors means that 50,000 Amex Membership Rewards points would equal 100,000 Hilton Honors points.

Note that sometimes, offers and promotions change the point ratio by offering bonus points when transferring.

Using points to book travel in travel portals

You can also book hotels using points through each bank’s travel portal. While this option may not always offer the best value for your points, it does allow you to book hotels that don’t participate in loyalty programs, boutique hotels, B&Bs, hostels, home rentals and beyond. This creates a lot of flexibility for travelers who need a vacation rental for a large family or group or are visiting a destination that may not have any large brand hotel properties like Hilton or Marriott.

Co-branded hotel credit card points (and perks)

Those who hold co-branded credits with large hotel chains like Marriott, Hilton, Hyatt, IHG and beyond can use these points for free or discounted hotel stays. (Some programs offer a ‘Pay with Points and Cash’ option if you don’t have enough points to cover your whole stay.)

Note that programs such as Marriott, Hilton and IHG offer free nights when booking with points. Each program has its own rules and limitations.

Hilton’s program offers the fifth night free on the average nightly rate to members with elite status booking stays with points on up to a 20-night stay. IHG offers every fourth night free, though you’ll have to hold a specific co-branded card for this perk: the IHG Rewards Premier Credit Card, the IHG Rewards Traveler Credit Card or the IHG Rewards Premier Business Credit Card. Marriott offers to fifth night free on points stays but comps the most affordable night.

Use hotel elite status perks

Many credit cards offer cardholders elite status — both co-branded hotel cards and flexible travel rewards cards. Some of the most popular are the Marriott Bonvoy Brilliant® American Express® Card, which offers Bonvoy Platinum status, and the IHG Rewards Premier Credit Card, which offers IHG Platinum status. The Hilton Honors American Express Aspire Credit Card offers Hilton Diamond status and The Platinum Card® from American Express offers both Bonvoy Gold and Hilton Gold status.

Although elite perks vary by program and status level, some of the advantages are listed below. Make sure to check the specific programs for exact details.

  • Free breakfast or dining credits
  • Early check-in/late check-out
  • Room upgrades
  • Additional points earnings
  • Lounge access
  • Free Wi-Fi

While elite status won’t necessarily get you a free stay, you can definitely take advantage of money-saving benefits like dining credits and room upgrades.

Know your card benefits

There are numerous one-off credit card perks that can make lodging more affordable. Here are some money-saving benefits you should look for:

Annual travel credits and free night certificates

Many travel cards offer annual discounts or free stays. For example, the Chase Sapphire Reserve® has a $300 travel credit, meaning if you spend $300 on a hotel, vacation rental (or airfare, or anything else travel-related), you’ll see it refunded on your statement as a credit. The Amex Platinum has a $200 hotel credit on hotels in the Fine Hotels & Resorts Program and the Hotel Collection. Many co-branded hotel credit cards offer a free night certificate each year, like the newly rebranded Marriott Bonvoy Brillant card that offers a free night under 85,000 points every year after your card renewal month.

Promotional offers

Keep an eye on your email inbox and rewards portal for any limited-time promotions your issuer may be offering. Many American Express cards feature Amex Offers, which offer perks like statement credits for spending a certain amount on specific hotels and other retailers. Other cards, like the Capital One Venture X Rewards Credit Card also have promotional offers, like a credit of five percent back on VRBO rentals.

The list goes on, but there’s no need to have it memorized. If you have a travel credit card—especially one you pay an annual fee for—be sure to log in to your account and investigate what benefits are available to you. A few minutes of research may save you hundreds.

The bottom line

It’s true that many of the aforementioned credit cards have annual fees. But if you work to ensure you obtain the full value that comes from each card’s perks and benefits, you can really come out on top when it comes to accommodation savings, especially during an expensive holiday travel season.