It seems like a majority of travelers that are involved in this little hobby of ours are a lot like JD and myself. We don't really travel for work that often, and if we do it's just a few times a year for just a few days. Instead we just travel for fun to destinations in the US or we travel to see family all over the country. Most of the time that results in us purchasing airfare and trying to find a hotel to stay for a few nights if you don't have family to stay with.
This travel style got me thinking about the value of airline credit cards versus hotel credit cards and which had the higher "value" to a traveler that is like us. Both JD and I have used our airline miles to go on a few great trips and have used it to get us into Business Class and First Class, but those trips happened just once or twice in the past few years...a normal trip for the both of us looks like the back of the airplane in Economy with a carry-on (The very back row if you are crazy like JD).
Looking at most of the airline credit cards their value, in my opinion, starts to dip quite a bit when you exhaust the initial sign-up bonus. Most of the common cards offer at least one free checked bag, some type of early boarding and one or two club passes. Some other cards have other benefits like a companion pass which can be useful to bring down the cost of an expensive ticket if you need to purchase more than one.
But if we look at the current state of air travel does a free bag and some type of early boarding really matter that much? If the airport gate area is any indication most people are not checking a bag these days and are often just try to stuff their "rollar board" into the overhead while the rest of the plane tries to figure out how they managed to get that suitcase through security. If you are really that averse to bag fees and are carrying a carry-on suitcase you can often just wait until boarding time and wait for the sure to happen announcement that "The plane is very full and we will gladly check any bags to save space" and boom...you avoided the bag fees.
Early boarding of some kind is a nice perk and this one can provide lots of value if you get on and don't have to stuff that bag 30 rows behind you. But I've run into the problem that not all airline credit cards will give you early boarding if you don't book with that card, I'm looking at you U.S. Airways, so if you are trying to use airfare to help meet a spend on another card or you just forget to put it on your branded credit card you may find yourself at the gate with no early boarding. But if you are someone that just flies every couple of months...this might not be as big of a deal to you.
The other benefits of a club pass, companion pass and reduced redemption rates can come in handy when you are traveling and need a little bit extra so I am not totally downplaying the useful value of airline credit cards. They are great for the initial sign-on bonus and some of the benefits are nice to have, but if the annual fee is more work than keeping the card, they can be of less value to you as time goes on.
But, hotel cards continue to keep their value as time goes on. I personally have the Hyatt Visa Card and the Hilton Reserve Visa and I have seen incredible value from the both of them. The best part in my opinion is the granted status just by holding the card, Platinum for Hyatt and Gold for Hilton. The initial sign-up bonus of points or free nights at properties all over the world are also great values. People all over the blogosphere have used them for great redemptions at Park Hyatt's and Hiltons or Insert Awesome Property in Bora Bora here, so that part of the sign-up really holds water in the end.
But if you are an average traveler who only takes those grand vacations once or twice a year the real value comes from the other amenities that you get with hotel cards. With the Hyatt card I have received upgrades to higher floors and nicer rooms every time I have stayed and the service from their associates has been great for the most part (always a few bad apples). But even better than Hyatt is the benefits from the Hilton Reserve Card. Not only have we received upgrades, but those upgrades have been to Executive Level floors and that opens the door to the Executive Lounge which often will feature snacks, drinks and an evening reception which is perfect if you just want a snack in the afternoon or to have a few drinks in the evening before dinner, but don't want to pay out the wazoo for them in a city where you don't know the best places to go. This has saved us many times over so we can save a few dollars on snacks and drinks and go to a nicer dinner to celebrate visiting a new city.
Beyond that the Gold status given with the card also entitles you to a free breakfast for every guest in the room. Now I have heard that this can often vary in nature from a Continental type breakfast to a full buffet breakfast depending on the property, but this is the real money saver in the end. Multiple Hilton properties we have stayed at had beautiful restaurants where the price for the buffet or a basic "American Breakfast" was anywhere from $15-25 per person. Instead of paying that price we just presented our vouchers and chowed down. For travelers on a tight budget this can save you so much money over time on your trips big or small.
The added benefits of the hotel cards have really changed the added value calculation for me in comparison to airline cards. The airline cards do provide some value beyond the sign-up bonus and you should consider keeping them a part of your portfolio of cards if you can justify the annual fee for the benefits you get. But when it comes to hotel cards you should look at how often you stay at the property, the benefits you get and how much added value you get out of the card on every stay and take advantage of every benefit you can!
