Credit Card Rebates for Frequent Travelers

A Credit Article Contributed by Kris Griebe

What is a Credit Card Rebate Program?

Rebate programs that come with certain credit cards are very similar to reward programs. Instead of accumulating points, with a rebate program, you get instant discounts on certain products and services. In the case of a rebate program geared towards travelers, you would get instant rebates on airline flights, or hotel rooms, or both.

Rebate programs, though usually very specific to the items that are discounted, can save the consumer plenty of money, if used frequently. The rebate may be small, only 2% (though the actual rebate varies from program to program), but 2% of a $300.00 plane ticket is still $6.00. When you add that up over time, it can turn into a large sum!

What Kind of Rebate Programs are Offered on Credit Cards That a Traveler Can Take Advantage Of?

The most common rebate programs for a frequent traveler are those that award the customer discounted prices on airline fare. These programs typically restrict the airlines you can receive the rebate from, but they try to maintain a fair balance of flights available.

When you apply for your credit card, you can look through the information on the website of the card you are applying for to find out which flights and airlines work with your card. The rebate may vary, for some it could be a 1% rebate, others could be as high as 5%.

You must also remember that different cards will work with different airlines, and offer different bonuses. If you have a favorite airline that you try to book your flights with, it would be appropriate to find a credit card that works with the corresponding airline.

Not all airlines have a rebate program through a credit card, but most of the major airlines do. This helps them acquire more business, as people are more likely to fly their airline if they get a discount on the flight. It also means that those who may not have flow will, simply because they can save money by flying, rather than traveling by some other means, such as train or car.

How Can I Determine How Much Money an Airline Rebate Program on My Credit Card Could Save Me?

The amount you will save depends on how often you fly, and which flights you choose.

Let's consider a hypothetical situation in which Bob is going to be traveling to conferences for his small business.

Bob has to fly round trip once a month. He has a credit card rebate program that gives him a 5% discount on every flight. If Bob books a flight that would cost $400.00 round trip, he would save $20.00 on those flights. If he flies once every month, each month of the year, he would save $240.00 over the course of the year.

That may not seem like much when he is paying $400.00 per round trip flight, but you have to think of it outside the actual amount. Bob has to fly no matter what. He could pay the full amount, but, by using his credit card, he is saving $240.00. Every dollar he saves is a dollar he has to spend on something else. It is especially beneficial when you consider that Bob has to fly once a month, whether he uses a rebate card or not.

So, as you can see, a rebate program geared towards travelers can save you hundreds of dollars each year!