Jun 16, 2021
When price drives the travel
strategy, she starts with these resources:
- Generally speaking Heidi is a thrifty person
who likes a good deal and has been traveling long enough to know
her benchmark for a one-way domestic flight is about $100.
That is the price point she uses when determining when and where to
travel and maintain their $2,500 yearly travel budget. Most
travel is determined by flight sales and the price
points.
- If there are specific destinations in mind
(such as cities with Major League Baseball stadiums), Heidi uses a
subscription service called Scott’s Cheap Flights ($79/year) to
track fare sales and mistake fares. Scott’s Cheap Flights,
through the premium version allows you to set up departure airports
and specific destinations alerts and give you options. There
is a free version, however I have found the Premium version to be
much more robust. The average savings is $550 per ticket so
the ROI is worth it. If you are interested, use the
link https://ordinarysherpa.com/scott
to sign up and Ordinary Sherap will
receive credit for the referral. The service also highlights
locations that she wouldn’t likely be aware of.
- Scott’s Cheap Flight is built on Google
Flights, which is a great source to find cheap flights on all
airlines. SkyScanner is another option, but I use Google
Flights for specific destinations and compare prices and
schedules.
- Her total out of pocket flight related expenses
were $228.48 for 5 people on 6 flights, baggadge, TSA PreCheck for
2 adults (kids under 12 are included with paid adult).
Airport Parking would add an additional $136 ($364.48
total)
- If you aren’t aware of Travel Rewards, Episode
018 Family Travel Rewards Tipswith Melissa Lagerquist and Episode
019, Our Travel Rewards Strategy they would be helpful context and
background.
When a destination guides the travel strategy,
she uses the following process:
- When Hawaii came on her radar, she started to
follow several airlines that were viable options. United is
not a preferred airline for Heidi, She loves Delta but their travel
rewards program is not as family friendly. Heidi’s top four
were Hwaiian Airlines, Alaskan Airlines, American Airlines
and Southwest Airlines. Southwest Airlines was the most
travel rewards friendly and family friendly (more on that
later).
- What airports have direct flights to your
destination? Having this information can help you design your
itinerary and not let the airline choose that for you. Direct
Flights to Hawaii are most prevalent from the west coast (such as
airports: SEA, PDX, SJC, BUR, LAX, BUR, SFO, OAK and possibly PHX,
and LAS). Once you choose your airline, check the airline route
maps to your desired destination. Compare the direct route
maps with Google Flights to see which airports had the cheapest
direct flights.
Why did we choose Southwest
Airlines?
- Have open seating which means they do not
assign seats. If travel with someone under the age 6, family
boarding is between sections A & B. You can pay an upgrade
fee for section A seating.
- 2 checked bags fly free per passenger.
The weight limit per checked baggage is 50 pounds so it’s better to
have more bags that weigh less. On most other airlines check
baggage expenses are $40-$50 per flight.
- Southwest Airline uses Rapid Rewards (RR) as
their travel rewards currency. The redemption for number of
rapid rewards is based on a cost per point equivalency. In
comparison many other airlines have a charts (ie minimum of
25,000 points = $250 flight) with Southwest some of your
redemptions might be under 10,000 Rapid Rewards points. See
redemption chart below.
- No blackout dates for reward travel.
Given that her husband is a teacher this is really important since
they don’t have flexible travel and most of the summer and holidays
would typically be black out dates for other airline travel reward
redemptions.
- Companion Pass is a premier travel rewards
feature.
What is Southwest AIrlines
Companion Pass?
- The Dusek family has 5 people (2 adults and 3
kids between the ages of 5-11). They are operation in
2-player mode for travel rewards with both adults having their own
credit cards, but they can transfer their rewards currency between
family members
- We plan our credit applications when we know we
are going to have an increase spend.
- We now only use Travel Rewards credit cards
(and got rid of all other credit cards such as Target, Costco, etc)
and currently we each have 5 different credit cards
active.
Adult 1:
- Chase SW Premier ($3,000 minimum spend in 3
months for 40,000 RR)
- Chase SW Business Premier ($5,000 minimum spend
in 3 mon for 60,000 RR)
$8,000 minimum spend would give
a minimum of 8,000 RR + 100,000 RR from bonuses (Note: many
purchases are eligible for 2x-5x per $1 spent)
Adult 2:
- Chase SW Premier ($3,000 minimum spend in 3
months for 60,000 RR bonus )
- Chase SW Performance Business ($5,000 minimum
spend in 3 months of 80,000 RR bonus)
$8,000 minimum spend would give
8,000 RR + 140,000 Bonus RR (note: RR earned can be 2x on up based
on the category of your spend)
- With 2 credit cards and 3 months (based on when
he applied for the credit card) he had already achieved the 125,000
RR required in a calendar year to achieve Companion
Pass
- Companion Pass is earned when 125,000 RR are
earned within a calendar year. Once achieved it is good for
the remainder of that calendar year, and the entire following
calendar year.
- Sign up for SW Credit cards in October but
don’t meet minimum spends for 2 cards until January and you will
have 23 months on Companion Pass eligibility
- Companion Pass allows you to have a companion
fly with you for free an unlimited number of times. You can
change the companion 3 times in one year.
- Adult 1 has Child 1 as companion (free); Adult
2 has Child 2 as companion (free). Adult 1, Adult 2 and Child
3 use the bank of Rapids Reward points to pay for their flights
(plus September 11th security fees)
Hawaii Flight Itinerary with
redemptions
- MKE - SJC: (Adult 1, Adult 2, Child 3)
(9,702 RR) + ($5.60)
- SJC - KOA Adult 1, Adult 2, Child 3 (10,764 RR)
+ ($5.60)
- ITO - HNL Adult 1, Adult 2, Child 3 (4,938 RR)
+ ($5.60)
- HNL - OGG Adult 1, Adult 2, Child 3 (4,938 RR)
+ ($5.60)
- OGG - LAX Adult 1, Adult 2, Child 3 (17,082 RR)
+ ($5.60)
- LAX - MKE Adult 1, Adult 2, Child 3 (12,744 RR)
+ ($5.60)
Companion 1 pay $5.60 per flight ($5.60 x 6 =
$33.60)
Companion 2 pay $5.60 per flight
($5.60 x 6 = $33.60)
Total fees for Adult 1, Adult 2
and Child 3 ($16.80 x 6 = $100.80)
Total: $228.60 + 180,504
RR
Other tips to save on travel
expenses and understand travel rewards:
- Cheapest Flights are typically Tuesday or
Saturdays
- Southwest Airlines releases their itineraries 6
months in advance
- You can continue to study this, but many of the
redemption optimizations are not ideal for families. Do what
works for you! Don’t stress about getting the best redemption
rates.
- Southwest Airlines: does not have many
international flights
- Use Chase Ultimate Rewards for Car rentals and
Hotels. TSA PreCheck is also a free benefit from our Chase
Sapphire cards ($85 value for 5 years)
- Use Capital One Venture for a travel eraser
card to wipe out expenses for things such as Airbnb.
Resources listed during this episode:
Downloadable
strategy:https://ordinarysherpa.com/rewards/
Scott’s Cheap Flights:
https://ordinarysherpa.com/scott