Redeeming your travel rewards? Some add-on costs can come as surprise to you

Dubai: If you’ve ever tried to redeem your travel rewards, be it the number of points or miles you have accumulated, chances are you’ve seen variations in the fees you have to pay when you do.

“Any frequent traveller would agree that travel rewards make it possible to stretch his or her travel budget as far as it can go and book trips that couldn't be afforded otherwise,” said Dubai-based travel agent and itinerary consultant Richa Dev. “But what’s often overlooked are the add-on costs.

“While it only makes sense in theory that you shouldn’t have to pay extra when you’re redeeming points, often times you will realise that it still doesn’t justify paying high surcharges and fees. So it pays to keep your out-of-pocket costs as low as possible.”

How fuel surcharges are added on to travel costs

Fuel surcharges are fees assessed by a carrier – be it in road, sea or air travel – to account for regional or seasonal variations in fuel costs. Technically levied as ‘carrier-imposed surcharges’, these are add-on fees that airlines charge in addition to the base airfare.

Fuel surcharge is an arbitrary fee fixed by each airline worldwide and generally depends on the route. These surges don’t directly affect those paying for their tickets, because the ticket prices remain the same while surcharges increase.

“Fuel surcharges most often affect only award travellers because they remain largely hidden to non-award travellers who are presented with the all-inclusive price,” explained Sophia Sanchez, travel planning manager at a UAE-based European tour operator.

Can award travellers minimise fuel surcharge costs?

“There's not much you can do about fuel surcharges, other than shopping around among different airline loyalty programs to find routes with minimal fees. However, if you have flexible reward points you can transfer to other airlines or use to book flights with any airline through a travel portal.”

This way you can compare several routes and award fares to see how they stack up. “Apart from booking through an airline mileage program that doesn't pass along these fees, you can also depart from a country that limits fuel surcharges or you can,” Sanchez added.

Additionally, experts have widely flagged other costs that travellers need to be aware of when making use if their award points either to fly business class or stay at a resort in the country you’re flying to. These come in the form of ‘checked baggage fees’, ‘resort fees’, among many other costs.

Paying ‘extra’ for services outside of travel rewards

“Some airline credit cards offer a first checked bag free as a cardholder perk. However, you won't necessarily qualify for a free checked bag if you don't have a card that offers this benefit — even if you used miles for your flight,” explained Dev.

“If you don't have a co-branded airline credit card, in fact, it's likely you'll need to pay for any luggage you bring on your trip outside of a carry-on bag and personal item that fits under the seat in front of you.”

Dev further cautioned that you need to keep ‘seat selection fees’ in mind — particularly if you want to choose your airplane seat ahead of time. “Where some airlines will let you select a seat ahead of time without any charge, others charge extra for seat selection up until 24 hours before departure.”

‘Checked baggage’, ‘seat selection’, and more add-ons

When traveling, it’s also advisable to check and see if the hotel you are staying at charges similar add-on fees. When it comes to staying at a particular resort overseas, Sanchez suggested paying attention to not only the amount, but also if it's a per-person fee or a room fee.

“Prepaying for your stay on a websites often bundles your fees together ahead of time, so you can clearly see if you'll be paying an add-on. Even if you cash in flexible travel credit or hotel loyalty points for a free resort stay, you may be asked to pay for ‘extras’ outside your rate,” she said.

“Another popular fee people complain about is parking, and especially compulsory valet parking fees. If you plan to use hotel points for a hotel stay and you happen to have your own car or a rental car, make sure to find out ahead of time if parking fees are assessed, and if so, how much they cost.”

Key takeaways

It's possible to use airline miles for flights that could otherwise easily cost you extra and with enough hotel points, you can book stays at luxury resorts that would typically be beyond your reach.

However, add-on costs often appear in the fine print when it comes to travel rewards. Not only are there travel-related fees you may need to pay, but there are also hidden travel expenses that can wreck your finances if you aren't aware they exist.

If you have a travel credit card or two and a big stash of points and miles, it's crucial to know about hidden fees and expenses you'll need to plan for before any big trip.

Rewards flights are kind of free -- but they aren't completely free. As long as you're aware of this before redeeming travel points, you can strategise to find a flight with low fees.