The REAL Cost Of “Free” Travel… Not What You Think

[@SpencerJohnsonOfficial]

EDIT: I misspoke in saying Air Canada and United are a part of the Sky Team Alliance. They’re a part of the Star Alliance instead. My bad! 💲 Download MaxRewards: maxrewards.app.link/spencer (Code: SPENCER)

[@Rediguana33]

Spencer I appreciate you being a real one and talking about this. Many CC KZbinrs wouldn’t call this out. Young and naive people hear the “travel for free” but don’t stop to think “is it really as free as I think it is”. Not knocking anybody’s hustle but it’s best for them to be aware prior to diving headfirst into the points and miles game

[@SpencerJohnsonOfficial]

I'm really glad you resonated with this one. It's a topic I've always been intrigued by and this redemption made for a perfect example to share so I'm glad I got to do so. Thank you so much for watching and commenting!

[@mlgjacob2606]

The best way to utilize points is to use them to save money on a trip you were otherwise already going to go on. For the most part, its wromg to think of points as currency but to think of them as coupons.

[@SpencerJohnsonOfficial]

That's a great way to think about it for sure!!

[@roxys744]

My question, how much actually money do you have to spend to get travel points? Not to include initial welcome offers?

[@lukecoombs3566]

Great breakdown of spend/points. Don't forget, though, that if you book flights and hotel with points, and then us the USBAR RTR for everything else, you could actually travel for free.

[@notNaB2024]

The entire "travel points game" is very interesting psychologically. Everyone thinks of it slightly differently and I think at the end of the day it makes us all feel "cool" to say that we use points to travel as if we are some important folks with "fancy" metal credit cards. I understand how "easily" it can be to open cards left and right and get all these 120K sign up points for each card, but who is spending $4K or $8K in 3 months just to get points. It is almost as if we all want the points, so we convince ourselves that over spending is okay for some "free" dream vacation that realistically never happens the way KZbinrs show them to be. Idk. Just my take. Great for those of you who do it.

[@SpencerJohnsonOfficial]

I completely agree! It's very interesting psychologically. I do want to touch on just one thing here though.. if you're spending $8k in 3 months JUST to get points, you're doing it wrong. Every dollar put on a credit card should be money you would've spent either way, and that's why the points are earned for free. As I always preach, if you overspend to play the credit card game, you've already lost.

[@AbesCreditPointers]

Well clearly just get the credit card when you have a big purchase or lots coming up. Soo obvious that's that I'm doing

[@briangasser973]

Unless you are churning credit cards for SUB or are running a business, most people aren't generating 200,000 chase points a year to burn.

[@SpencerJohnsonOfficial]

That's why I play the game like I do! Welcome offers are so valuable.

[@DiamondRyce]

2:08 im surprised no one has said it yet. Air canada and united are apart of Star Alliance. Not Skyteam. Skyteam is delta, korean air etc.

[@SpencerJohnsonOfficial]

That they are! My pinned comment is updated to reflect that. Thank you for checking me on that!

[@gbouton2011]

Great point. I think most people try and claim they can be super flexible. Makes sense when your young and have no responsibilities but once you have kids and a job, you have small windows of opportunities and stuff forced on you

[@Embrxceyourdemons]

I’m team cash back and this video definitely helped me feel relieved

[@omni875]

Love the CSR, it's the only card we use when traveling, 3x on all expenses, super easy to use/redeem, no foreign transaction fees, keeps things simple. It's underrated imo. People also need to realize that he gets most of his points through referrals and SUBS. It will take the average person a long time to get 200k points through organic spend. At $6k/mo averaging 1.5x that's nearly 2 years of spend. Spend responsibly, never pay interest. Also using business cards for personal expenses is against their terms of service... be careful.

[@soapa4279]

I agree it will take the average person a long time to get 200K. I would consider my household expenses higher than average, and we're only on track to make about 130-150K a year in UR points. An entire year compared to a few months to even match one SUB on the CIP. And that includes me booking a lot of vacations out of pocket. That's why churners preach the only way to really stack a crap ton of points quickly is to churn churn churn.

[@SpencerJohnsonOfficial]

It's such a solid card for me personally! As for accumulating 200k points, referrals definitely help out a ton in that and I'm completely transparent with those numbers. However, from welcome bonuses alone on my Chase cards this year I've earned 210k points (not to mention another 225k+ from other welcome offers) so those numbers are definitely doable! You just have to plan accordingly. Thank you for your comment here!

[@isao_the_2nd]

@@SpencerJohnsonOfficial I don't think the "invite only" J.P Morgan Reserve card gets enough recognition. The CSR isn't the only underrated travel credit card in my opinion

[@reptilesgamers00]

9:43 Nutty I traveled to Japan for 12 days spending $2800. I can't imagine paying for flights using a limited flight portal to Japan. I wager you'd save money choosing your airline and dates in advance, but if your going to take a trip based on whatever Chase supports I can see the value.

[@TREX213]

United and Air Canada are Star Alliance, not SKYTEAM, that’s Delta, Virgin and Air France

[@SpencerJohnsonOfficial]

Correct! My pinned comment is updated to reflect that. Thank you for checking me on that!

[@LukesPointsandMiles]

Awesome video Spencer! I’ve booked that BahaMar twice and I keep canceling it. The food bill would cripple me. On the topic though - my free travel is my largest single living expense. I would be so much better off financially if I didn’t travel for free.

[@SpencerJohnsonOfficial]

Thank you so much brotha! Those food prices are insane... I can only imagine what it would be with the whole fam. And that last statement is so true dude. My biggest expense this year is my "free" travels as well 🤣 Thanks for watching Luke!

[@TheProfessor-YouTube]

"On the topic though - my free travel is my largest single living expense. I would be so much better off financially if I didn’t travel for free." This is the essence of the video and a message that isn't preached enough. Well done @SpencerJohnsonOffficial and well said, @LukesPointsandMiles!

[@AndyRenwick1]

If you stay 20 nights at Hyatt hotels, you can get two Club access awards. I stayed at the Grand Hyatt Kauai using those Club passes and we were able to use it for breakfast and snacks, which helps. Or you have a friend that can gift you a pass. Also, eating in the area and not at the resort can be a lot cheaper. I think you would find cheaper costs overall if you did beach vacations in Mexico. For example all-inclusive resorts. I stayed at the Hyatt ziva Puerto Vallarta for 20,000 points a night and that covered food and hotel. I think now it's up to 25 k.

[@SpencerJohnsonOfficial]

@@AndyRenwick1 There are a bunch of great opportunities out there with points and miles for sure. But travel almost always has some kind of cost!

[@DJOctober]

I got started on the CC game for two things: 1. get my credit as strong as possible 2. Travel for as close to free as possible This video really puts into perspective that “as close to free as possible” still can equal a couple of grand if careful planning is not executed! On a personal note, happy to see you’re in a relationship - do what makes you happy! I’m glad you got to travel most of the year, that’s a goal of mine for sure! Thanks for keeping it real always! Love your content. - Ivan

[@shinobi211]

This

[@SpencerJohnsonOfficial]

Amen!

[@chriscaraballo7079]

Nice video. Another point I consider if the annuals fees I pay for my cards minus the offsets for the effective card cost. Most can come out ahead of the card cost but if the effective card cost is 100 bucks a year and since I am team travel I factor it in. For example effective card cost divided by number of trips per yr is the cost of the game to play to unlock all the points and value. Just a thought

[@diegogarciadiego1]

Hey Spencer. Nice video, but the math is a little off. Even if you’re on team travel, you have to discount the value of the points you redeemed (i.e. count them towards the cost of travel). If you spend $750 plus 200,000 points, the “real” cost of travel is around $2,750 even if you’re not planning to cash those points. Still a way better option than paying cash, but the $750 is not the only cost incurred even if it’s the only cash lit of pocket. Keep up the good work!

[@yankeeman311]

Late to the party but appreciate this video as a travel enthusiast myself. But I travel a lot differently than you lol. That's not a knock, it's just different styles. Im a very spur of the moment traveler which makes it harder to commit to an airline/hotel rewards program. Examples. I travel to Southeast Asia almost yearly now, very hard to use CCs on the ground there but I try to stock up on flight/lodging bookings. But the American airlines/hotels are just bad deals over there to stay loyal to one brand. Even in Europe this summer I found that to be the case. Saved $200-300 taking an airline I've never flown before compared to one I fly more commonly. Thats just me though. Everyone has different experiences and expenses in life. If anything I'm talking myself into trying to increase my natural expense for something like the CSR haha. Great content man hope you enjoyed the Bahamas. +1 subscriber

[@markcorneliuslau]

Air Canada is not SkyTeam. I think you meant to say Star Alliance and misspoke

[@SpencerJohnsonOfficial]

That I did! My pinned comment is updated to reflect that. Thank you for checking me on that!

[@s_artem9]

How do you make your money? You never talk about that on this channel

[@SpencerJohnsonOfficial]

This KZbin channel and the surrounding business is my full time job! Maybe I should make a video breaking everything down for y'all someday.

[@silent__9147]

@@SpencerJohnsonOfficial Yes! would be a super interesting watch!

[@LK_EBM]

200k Chase UR is $2,000 to your bank! Would like to see how you budget for your vacations or general personal finance, given that you disregard the "opportunity cost" of your points

[@SpencerJohnsonOfficial]

For those on team cash back, you're 100% right! But speaking as someone on team travel, these points are a part of my "travel fund" meaning that I don't associate a dollar amount to them until I redeem them for a trip. The points still have an opportunity cost by the definition of the word, but I don't ever subtract that from the value my points gave me since it’s not a hard cost. Another way to think about this is that I consider my points to be more of a coupon or discount than actual currency, hence why I never consider the cash value of them. Hopefully that makes sense!

[@sawhneyshivam]

Best VIDEO EVER! SPENCER

[@SpencerJohnsonOfficial]

I love to hear that! I'm really glad you enjoyed this one.

[@Onso.1387]

Will be a better fit for international travel and better benefits between Venture X and Sapphire Reserve?

[@SpencerJohnsonOfficial]

I should make a comparison video between the two to answer this fully, but it really all comes down to personal preference and what lounges you frequent the most in my opinion. You could even use both if you wanted to though! It just all depends on your personal situation.

[@TheMrbrayn]

There’s a niche case where free travel is actually free: my parents live in India, and I like to visit them at least once a year. A round trip economy flight could easily cost me 150k points, but there’s no price for visiting loved ones and having home cooked food. Daily expenses are also much lower (my Uber rides in India cost about $2 on average, for example). If I were to factor this all in, spending those points and saving money for 3-4 weeks at home makes me feel SO much better about what would otherwise be a very expensive trip to see my family.

[@SpencerJohnsonOfficial]

You're absolutely right! This video is not meant to dissuade people from traveling on points. Making memories with loved ones is priceless!

[@luismunoz1213]

Great Video

[@SpencerJohnsonOfficial]

Thank you so much! Glad you enjoyed!

[@BobI-jb4rk]

Very inspiring!

[@SpencerJohnsonOfficial]

I'm glad you liked it Bob!

[@justgaming6245]

Yeah. What people don't understand is using points doesn't make it free. It's literally just bartering, the points still have value even though it's not literally money. Overall, no one travels for free.

[@SpencerJohnsonOfficial]

Agreed!

[@jamesyu613]

I use my CSP when I travel internationally

[@SpencerJohnsonOfficial]

Definitely a solid choice!

[@jamesyu613]

@@SpencerJohnsonOfficial I agree

[@stevensabia7550]

You have to spend money to get points.

[@SpencerJohnsonOfficial]

That you do, but as long as it's money you'd be spending anyways, you're earning free value for doing that spend.

[@stevensabia7550]

@@SpencerJohnsonOfficial yes 100%. Just need to make sure people understand that and don’t spend just to spend for “travel points”.

[@PABU427]

Was the resort all-inclusive?

[@SpencerJohnsonOfficial]

Not at all! Some resorts are though, and those are much more close to free than this one would have been.

[@eprohoda]

enjoyed. amazing , 🖐

[@SpencerJohnsonOfficial]

That's awesome to hear man. I appreciate you!

[@eduardoosorio9410]

In your experience is it worth it booking trough the chase travel portal to take advantage of the .5 boost with the chase sapphire reserve? I thought the chase travel portal is more expensive.

[@LK_EBM]

Do your own comparison for your future trips, but the prices have been pretty equal to other booking methods.

[@SpencerJohnsonOfficial]

I always recommend assessing all your options, but a lot of times the portal is actually super competitive in my experience, hence why I tend to use it for certain redemptions. It all depends on your exact itinerary though, so be sure to compare prices!

[@Ritchie_The_CEO]

Did you try the noodle place? That’s where we ate most of the time. 😅

[@SpencerJohnsonOfficial]

Dude we tried a bunch, but not that one funny enough. We went to a really good Chinese place that was probably my favorite. Solid restaurants all around, just really pricy!

[@Ritchie_The_CEO]

@@SpencerJohnsonOfficial very pricey! I wanted to go to the steak place but we didn’t make reservations in time. Also, hope you guys checked your charges at checkout. We had heard lots of stories of people being charged for things they didn’t get so we checked. And sure enough, we had a dinner at one of the restaurants we never went to charged to our room.

[@SpencerJohnsonOfficial]

@@Ritchie_The_CEO I cross referenced my statement and didn't see any double charges so we were all set I hope. I wouldn't be surprised if they snuck something in there though.

[@thecleaningteacher638]

Great video full of truth…thanks for shining a light on the idea that there is no free lunch. Resort fees are ridiculous. That’s my number one complaint of the whole “resort” experience.

[@SpencerJohnsonOfficial]

That means a lot! I'm glad you resonated with this one. Those resort fees add up so quick... I feel you!

[@SOXGATORS]

Hope you’re feeling better

[@SpencerJohnsonOfficial]

Thanks so much my man! Feeling back to normal again so that's nice.

[@DonutDeflector]

Loving how the price breakdowns really uncover the "true" price of travel, despite all the credit card rewards we can reap. Taking a page out of RJ's playbook might be useful for those who want as close to "free" travel as possible. I've been using points for hotels/flights and bank bonuses for all other expenses. Of course, bank bonuses are taxable, but it's one of the few ways to put cold hard cash in your hands.

[@SpencerJohnsonOfficial]

I completely agree! We can definitely get even closer to "free travel" by redeeming some of our points for cashback or hunting those bank bonuses. Great idea!

[@matthewshannon9]

Should have used Aeroplan to book flights on United. It is by far the best way!

[@SpencerJohnsonOfficial]

That's exactly what I was discussing here! If I had more time to make the booking happen, I would've used that for sure. That's a great strategy for sure!

[@Francisco-l3i]

Banger video bro, not sure if I've seen a video like it. Good work 🙌🏽

[@SpencerJohnsonOfficial]

Dude thanks so much for the kind words! I'm glad you enjoyed this one.

[@elielruiz4936]

are you a model ? youve had a crazy glow up in your latest videos

[@SpencerJohnsonOfficial]

I'm definitely no model, but I appreciate the kind words!

[@TheCreditFrog]

Great message here Spencer! Traveling is fun, but it certainly is not free. There's always going to be another cost that's incurred, but at least the travel is highly subsidized. The one takeaway I got was to make sure I bring my own sunscreen to the Bahamas because $30 for some Coppertone is no bueno.

[@SpencerJohnsonOfficial]

Thank you Stan! I completely agree with you here. Those sunscreen prices definitely hurt. That's what I get for not checking a bag and bringing my own! Could've taken a taxi to a store to get some too, but those things weren't cheap at all either.

[@Milkinporsche]

This is why i never call it 'free travel". In reality it should be called "highly subsidized travel".

[@kingsamvisuals]

Bingo

[@SpencerJohnsonOfficial]

Absolutely man. Of course it's harder for us to title videos like that here on KZbin, but in making this video I hope it gives people a bit of a mental reset when thinking about booking their next trips.

[@TravelBossNas]

That’s awesome! I love it when points turn into an amazing trip with great memories. Also, not sure if you knew this but the charges to your room bill with Hyatt earn you Hyatt points! On top of the points in the CSR. Great way to double dip.

[@SpencerJohnsonOfficial]

Oh shoot dude I didn't even think about that last part! I definitely should've charged more to my room then. That's good to remember for next time!

[@FrequentFlyer_MIA]

It takes money to make money points are just a perk. Wake up.

[@MrJreed03]

Book all Inclusive resorts….

[@SpencerJohnsonOfficial]

You can definitely do so! But not all of them accept credit card points so it just depends on where you're going.

[@jpknowledge8852]

Great video! It is misleading when creators say it is "free". Instagram is way worse than KZbin with throwing around the word "free". It is heavily discounted, and that is what makes it great. Taxi's, food and activities do add up quickly. $30 for sunscreen is just stupid 🙄

[@TheProfessor-YouTube]

I agree. However, I think travel can be free or close to it if people traveled like @Dugroz Reports. Dugroz pays for everything, or nearly everything, for a trip with points and cash back earned from credit cards.

[@SpencerJohnsonOfficial]

I appreciate you JP! It's definitely a phrase that's thrown around a lot (even by myself at times) but it's good to take a step back and really calculate what these trips cost us. The sunscreen costs were wild man... that's the price I paid for not checking a bag and bringing my own sunscreen!

[@shinymonktouchymonk3662]

This is the best video smd best channel on Yt !!! Mark, I'm 70 and a Real Estate Broker In Laguna Beach and Las Vegas. Thx

[@SpencerJohnsonOfficial]

That really means a lot! I appreciate the kind words.

[@SolidLiquidFox]

Thanks for sharing this. Not having a Hyatt card on this trip was a bummer. Overall a good use points in a real life situation. I don't think people realize that ultimately its about coming out of pocket as little as possible while trying to maximize points value. Usually in that order.

[@SpencerJohnsonOfficial]

That's a good point. Getting an extra 1x back on all my charges billed to the room would've been nice, but I'm okay with earning Chase points instead. I completely agree with you here though! All I try to do is make my trips as cheap as possible, but that's rarely ever completely free.

[@balloonpark]

For things you can get charged to your room; would you rather take 3x chase points with the CSR, or get 4X hyatt points with the hyatt card?

[@SpencerJohnsonOfficial]

In reality, I should've charged everything to my room because that would've given me 5x back as a Hyatt member on top of what my card gave me. But that's a great question of 3x on the CSR vs. 4x with Hyatt. I generally prefer to earn transferrable currencies even if I earn a bit less for doing so, but that depends on what trips I have coming up. If I had the Hyatt card, I would've used that in this situation.

[@Tonys_Finance]

Hi Spencer! You mentioned that 'free travel is never truly free,' which really resonated with me. What strategies do you use to budget for those unexpected costs like resort fees and expensive meals?

[@supermandar]

Great video. I have been to this exact same resort (with Chase --> Hyatt redemption obviously), and boy, I know how expensive the food is. But the overall experience was truly amazing. Free travel can get very close to actually free in places like Mexico where you can get an all inclusive resort. Also this calculation works a bit differently for families with kids, so we have to be mindful of that too.

[@SpencerJohnsonOfficial]

I completely agree with you! I really enjoyed the resort overall and the price was still well worth it. And as for the all-inclusive resorts, those are amazing deals a lot of the time. Thanks for the comment man!

[@anthonywilliams9415]

That's a big dog 🐕😮

[@SpencerJohnsonOfficial]

Yes he is!

[@HA1999-8]

Wellll whennn you think abouttt itttt, it is free if you dont pay them back ... and mess up your credit by doing so HAH

[@SpencerJohnsonOfficial]

That is definitely NOT the approach I'd recommend lol 😂

[@HA1999-8]

@@SpencerJohnsonOfficial that’s just boy math “technically….” 😭😂

[@Juliozev96]

I would be wary of valuing the chase travel portal at 1.5 cpp. Idk when it started but most recently, i can see almost every flight on the chase portal cost atound 10-20% more than with the airline directly. So with the reserve, i would say a portal redemption is more like 1.3cpp, and with the csp like 1.1 cpp.

[@MontyTheCardNerd]

I'm sure many folks (myself included) have justified spending more on food & activities during travel when they've redeemed the flights & hotels with points, a very interesting psychological phenomenon. I'd say as long as you're still saving & investing per your long term goals, go elevate the travel & make those memories! Love your perspectives here Spencer, awesome video.

[@SpencerJohnsonOfficial]

I completely agree with you Monty. Making memories is always the most important thing to me as long as I'm not overspending to do so.

[@Anthyoine-qk8fj]

Every time im in the global entry line its only me

[@SpencerJohnsonOfficial]

So far that's been the case for me too!

[@jsmooth2057]

I felt the same about food cost in the Bahamas 🇧🇸

[@SpencerJohnsonOfficial]

It's pricy!

[@AndrewLoYT]

Great microphone choice

[@SpencerJohnsonOfficial]

I appreciate that!

[@randomaccount9212]

Please do the story about the travel portal. We should be aware if we are doing the 50% with Chase!! Thanks!

[@SpencerJohnsonOfficial]

Thanks for the input! I may need to make a "travel portal horror stories" video.

[@SOXGATORS]

😊

[@SpencerJohnsonOfficial]

👑 The king of IG and YT today

[@geraldalves9107]

This is where bank account bonuses come in that fills the gap of vacation expenses while on the trip!

[@SpencerJohnsonOfficial]

Very true! Great point!

[@robert8311]

How I see cash back opportunity cost is unless you make some really bad redemptions The alternative of cashing out and leaving the cash in a HYSA It won’t out pace the redemption of 2ccp imo and sense yes I could do X or Y with those points and they do have a cash value but again unless your redemption is very bad you come out ahead Besides not like if I went full cash back I would get 5x everything which is possible I just personally wouldn’t do it and more multipliers you can get on cash back and points cards for the same value

[@joemascaro4281]

I mean, if you travel to all inclusive properties you can actually have an actual free vacation. I understand the points you made though