Comments on: Buying into a tourist trap? Reward programs revisited http://www.twortw.com/2009/07/22/buying-into-a-tourist-trap-reward-programs-revisited/ Planning, preparing and packing for a round-the-world trip Thu, 09 Sep 2010 00:46:50 +0000 hourly 1 http://wordpress.org/?v=abc By: Daniel http://www.twortw.com/2009/07/22/buying-into-a-tourist-trap-reward-programs-revisited/comment-page-1/#comment-168 Daniel Thu, 23 Jul 2009 16:01:22 +0000 http://www.twortw.com/?p=569#comment-168 Interesting trackback here — especially the points made regarding the way that humans regard fiat money in a different way — I find that very enlightening. Your post got me to reading and have come across some interesting articles — one regarding hyperinflation of reward points. Thanks for providing a different perspective! I feel a new post coming on in the next week or two! Interesting trackback here — especially the points made regarding the way that humans regard fiat money in a different way — I find that very enlightening. Your post got me to reading and have come across some interesting articles — one regarding hyperinflation of reward points. Thanks for providing a different perspective! I feel a new post coming on in the next week or two!

]]> By: Travel Cards Part II | THINKchua http://www.twortw.com/2009/07/22/buying-into-a-tourist-trap-reward-programs-revisited/comment-page-1/#comment-167 Travel Cards Part II | THINKchua Thu, 23 Jul 2009 15:24:49 +0000 http://www.twortw.com/?p=569#comment-167 [...] an email exchange with Tim (who I am always surprised when he emails, not twitters me), and a post Daniel I realize my main message did not come across.  NOTE: The post I wrote came as a result of a [...] [...] an email exchange with Tim (who I am always surprised when he emails, not twitters me), and a post Daniel I realize my main message did not come across.  NOTE: The post I wrote came as a result of a [...]

]]> By: Daniel http://www.twortw.com/2009/07/22/buying-into-a-tourist-trap-reward-programs-revisited/comment-page-1/#comment-157 Daniel Thu, 23 Jul 2009 01:44:36 +0000 http://www.twortw.com/?p=569#comment-157 Chua—I'm glad that you read the post in the spirit that it was intended, ie that there are a plurality of travelers, each with their own style. The choice, is very subjective. After rereading my post above, I wasn't sure that I was being totally fair and am glad that you took it in the way I intended. And in fact, I agree with you regarding the future value of any sort of a rewards program. As an independent traveler, it's best to simplify and to protect your investment—something that you cannot do without cold hard cash. I just wish I could find a real-world cash investment that would guarantee me a 6% return in two years time! Unfortunately, the cash-back options for credit cards in Canada are pretty poor compared with the choices you have stateside. So after hunting around, I'm still left with the MBNA card. But thanks for the reply, and in the coming days I'm going to amend my original post with your take on things (with you permission and a link to your site of course) so that the broadest spectrum of opinions are included. I'm glad for your opposing viewpoint, and feel that Tim and I are lucky for having been challenged on it! Have just started reading your blog by the way. Getting married on the tallest mountain in Africa—that's pretty damned cool. You're allowed to talk about that one all you like (meant tongue in cheek, of course)! Chua—I’m glad that you read the post in the spirit that it was intended, ie that there are a plurality of travelers, each with their own style. The choice, is very subjective. After rereading my post above, I wasn’t sure that I was being totally fair and am glad that you took it in the way I intended.

And in fact, I agree with you regarding the future value of any sort of a rewards program. As an independent traveler, it’s best to simplify and to protect your investment—something that you cannot do without cold hard cash. I just wish I could find a real-world cash investment that would guarantee me a 6% return in two years time!

Unfortunately, the cash-back options for credit cards in Canada are pretty poor compared with the choices you have stateside. So after hunting around, I’m still left with the MBNA card.

But thanks for the reply, and in the coming days I’m going to amend my original post with your take on things (with you permission and a link to your site of course) so that the broadest spectrum of opinions are included.

I’m glad for your opposing viewpoint, and feel that Tim and I are lucky for having been challenged on it! Have just started reading your blog by the way.

Getting married on the tallest mountain in Africa—that’s pretty damned cool. You’re allowed to talk about that one all you like (meant tongue in cheek, of course)!

]]> By: chua http://www.twortw.com/2009/07/22/buying-into-a-tourist-trap-reward-programs-revisited/comment-page-1/#comment-156 chua Thu, 23 Jul 2009 01:29:54 +0000 http://www.twortw.com/?p=569#comment-156 Good post, I realize that I quickly penned a very long post on the subject and didn't mean to belittle your travel, in fact, literally last week I was in Zanzibar, Tanzania and stayed in a 5 star hotel. I paid cash and still believe that the rewards cash was more valuable than having reward points. For more travelers it is better to accumulate the savings and cash to fund a trip and not focus on time consuming, and possibly "not what you expected", returns on your investment. Your personal strategy for travel is obviously personal, but I do believe this advice is applicable to the largest number of people rather than points. Credit cards are about investing time and what you will get out of them. From all I can estimate, the NPV is greater with a good cash return card than with the rewards programs (I welcome any math that proves consistency otherwise). I completely understand the desire to stay in nice places, do things nicely and have used several reward programs previously, but in real world use found the points didn't live up to the marketing promises. I believe the best way to have a flexible trip is to have cash. You may lose a couple percent in "potential" return, but for me to recommend to anyone traveling it is to have flexibility offered by cash. Good post, I realize that I quickly penned a very long post on the subject and didn’t mean to belittle your travel, in fact, literally last week I was in Zanzibar, Tanzania and stayed in a 5 star hotel. I paid cash and still believe that the rewards cash was more valuable than having reward points. For more travelers it is better to accumulate the savings and cash to fund a trip and not focus on time consuming, and possibly “not what you expected”, returns on your investment. Your personal strategy for travel is obviously personal, but I do believe this advice is applicable to the largest number of people rather than points.

Credit cards are about investing time and what you will get out of them. From all I can estimate, the NPV is greater with a good cash return card than with the rewards programs (I welcome any math that proves consistency otherwise). I completely understand the desire to stay in nice places, do things nicely and have used several reward programs previously, but in real world use found the points didn’t live up to the marketing promises. I believe the best way to have a flexible trip is to have cash. You may lose a couple percent in “potential” return, but for me to recommend to anyone traveling it is to have flexibility offered by cash.

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