4 money workarounds to book your vacation rental with credit card points

Even before the pandemic, international home booking sites like Airbnb and Vrbo were becoming increasingly popular with travellers worldwide. The opportunity to have a homelike experience, complete with full kitchen, extra living space and local flavour, was more appealing than a standard hotel room for many.

Global surveys show an up and coming trend where an increasing number of people now like to book homes for family trips rather than run-of-the-mill hotel rooms. A growing majority now likes vacation rentals that feel homier and are often in a neighbourhood rather than on hotel room, study respondents reveal.

During COVID-19 times, home rentals became even more appealing. Travellers could enjoy a much-needed change of scenery but not be surrounded by other people in a crowded hotel. They could rent a home large enough to accommodate friends and family in their ‘bubble’ and take part in a comfortable shared experience.

The problem? For many savvy travellers who like to use rewards points to cover the cost of lodging, most of the big vacation rental companies don't have loyalty programs. That means when you book a trip, you can't earn points that can be redeemed toward the next one. You can't sign up for a co-branded credit card and earn rewards for your next home rental stay, either.

But booking a home with points isn't impossible. And with the next vacation possibly around the corner, you might be looking to book a cozy getaway for a weekend of foliage-gazing and apple-picking. Here are some options to use your rewards from credit cards or hotels to help pay for your next vacation rental.

1. Use cash rewards

One simple option is to take rewards earned from a cash-back credit card and put that money toward your home rental. If you have good credit, there are a variety of credit cards available that offer as much as 5 per cent cash back on certain purchases, often for no annual fee.

And as Winnie Sun, financial adviser and managing director of US-based Sun Group Wealth Partners, notes, “Even if it's not a cash-back credit card, you can often redeem your points for cash.” Many credit card points that are typically redeemed for travel can also be turned into cash, though you may not get the best value.

Plus, unlike some travel rewards, when you use cash, you won't be bound by any blackout dates or fine-print restrictions.

2. `Erase' your charges

Some travel credit cards offer the ability to book any travel you like and ‘erase’ the purchase with a statement credit. Here's how it works: Use the card to pay for your vacation home rental. Then, after the charge goes through, log in to your credit card account, select the purchase and redeem your rewards to cover the cost.

In some cases, there may be a limit on how long the charge is eligible to be erased with statement credit. Make sure you know the terms before you plan on this option.

3. Use flexible points

Large global credit card issuers like Citi and American Express have their own rewards points that cardholders can earn and use in a variety of ways. While most options you'll find when redeeming points for travel are traditional hotels, it's possible to find vacation rental bookings, too.

For instance, the home may be available to rent directly through several home rental sites, but let’s say you also found it on your credit card’s travel portal, then understandably you would jump at the chance to redeem your points from there.

For example, if you thought Switzerland was an incredibly expensive country, saving the cash and booking with points instead will be helpful because on-the-ground costs like food and trains add up quickly. Certain international credit cards give up to 50 per cent more redemption value when you use points toward travel booked through the issuer's portal.

4. Re-examine the big chains

While traditional hotel settings are still the bread and butter for most hotel chains, home rental options are quietly cropping up.

Experts point out that it's also possible to find homelike accommodations at some hotel properties. If you're looking for more space than standard hotel room offer, consider using your points to book a suite. Or, some hotels have options that are more private. Certain hotel chains have brands that are fully apartment-style and offer extra space and amenities, too.

Booking a homelike accommodation through a hotel program can be smart, as there may be more flexible cancellation options. With many home booking platforms, the host can choose a cancellation policy that may not be fully refundable. However, experts reiterate that no matter what you book, make sure you read the cancellation policy carefully.