By FMTeam Karan booked a return flight from Delhi to Bangkok last month. The ticket cost ₹28,000. He paid zero rupees from his bank account. The entire trip was funded by reward points he had quietly accumulated over three years on his HDFC Diners Club credit card.
His friends were stunned. “How is that even possible?” they asked. The answer is simple — Karan understood his credit card’s reward system. Most Indians do not.
Here is exactly how you can do the same.
Why Most People Waste Their Reward Points
Indian credit card users earn lakhs of points every year. Yet, the vast majority let those points expire, redeem them for low-value merchandise, or convert them at terrible rates.
The reason is lack of awareness. Banks rarely advertise the best redemption options. Their websites push electronics, vouchers, and gift cards that offer poor value per point. The real goldmine — flight bookings — sits quietly in a corner.
A point used for a toaster might be worth 25 paise. The same point used for a flight can be worth ₹1 or more. The difference is enormous over time.
Which Cards Give the Best Flight Redemption Value
Not all credit cards offer flight redemption. The best Indian cards for converting points to flight tickets include:
- HDFC Diners Club Black / Privilege — points convert to airline miles at strong rates
- Axis Magnus / Reserve — direct flight booking through Axis Travel Portal
- ICICI Emeralde / Sapphiro — flight redemption via ICICI rewards portal
- American Express Platinum Travel / MRCC — Membership Rewards programme
- SBI Aurum / Elite — flight bookings through SBI Rewards
- Standard Chartered Ultimate / EaseMyTrip — direct portal redemption
Each card has its own rate of conversion. Always check the rupee value per point for flights specifically.
How to Calculate Your Real Point Value
Here is a simple formula every cardholder should use.
Point value = Ticket price in ₹ ÷ Number of points required
Example: A ₹15,000 ticket needs 15,000 points. Value = ₹1 per point. That is excellent.
If the same ticket needs 60,000 points, value = ₹0.25 per point. That is poor.
Always compare before redeeming. A 10-minute calculation can save thousands of rupees worth of points from being wasted.
Two Main Ways to Redeem Points for Flights
1. Direct Booking Through Bank’s Travel Portal
Most banks have a travel portal where you can book flights using points directly. Examples:
- HDFC SmartBuy
- Axis Travel Edge
- ICICI iShop
- SBI Rewards Portal
- American Express Travel
You log in, search flights like you would on MakeMyTrip, and pay using points. The portal automatically deducts the right number of points.
2. Transfer Points to Airline Miles
Premium cards allow direct transfer of points to airline frequent flyer programmes like:
- Air India Maharaja Club
- IndiGo BluChip
- Singapore KrisFlyer
- Etihad Guest
- British Airways Avios
This route often gives the highest value, especially for international business class tickets, but requires planning.
Step-by-Step Process to Book a Flight Using Points
Step 1: Check Your Point Balance
Log into your bank’s credit card portal or mobile app. Locate the rewards section to see your current point balance and expiry dates.
Step 2: Calculate Affordability
Browse flights on a regular site like Google Flights to find your route’s price. Then check the bank’s portal for the same route’s point requirement.
Step 3: Compare Redemption Routes
Decide between direct flight booking on the bank portal or transferring to an airline programme. For domestic flights, direct booking is easier. For international or premium cabin redemptions, airline transfers often win.
Step 4: Book on the Bank Portal
Log in to the travel portal. Search for your flight. Choose dates and times. At payment, select “Pay with Points” — the system shows how many points are needed.
Step 5: Confirm and Receive E-Ticket
Once confirmed, you get the e-ticket directly from the airline. The booking is identical to a normal paid ticket. You can web check-in, choose seats, and earn airline miles too.
Tips to Maximise Your Reward Points
1. Spend on Bonus Categories
Most premium cards offer 5x to 10x points on travel, dining, and online shopping. Concentrate your spending in these categories.
2. Use Co-Branded Cards for Specific Airlines
If you fly Air India often, an Air India SBI Signature card earns miles directly. Same logic applies to InterMiles and Vistara cards.
3. Time Big Purchases with Promotions
Banks often run “5x points on flight bookings” or “10x on weekends” offers. Plan large expenses around these.
4. Pay Utility Bills and Insurance on Credit Card
Big annual expenses like car insurance or property tax can be paid via credit card to earn points (after checking if convenience fees offset the benefit).
5. Avoid Cash Withdrawals
Cash withdrawals earn no points but incur heavy fees. Always use the card for spending, never for cash.
Common Mistakes That Waste Points
- Redeeming points for electronics or gift cards at poor conversion rates
- Letting points expire because of inactivity
- Booking flights through bank portals when direct airline pricing is cheaper
- Ignoring the convenience fee on point redemptions
- Not transferring points to airline miles when international travel is planned
- Cancelling flights booked with points without checking refund rules
A few minutes of homework before redemption prevents thousands of points from going to waste.
Hidden Costs to Watch Out For
Point redemption is not always 100% free. Some banks charge:
- Convenience fee of ₹100 to ₹500 per booking
- Cancellation charges higher than regular bookings
- Taxes and surcharges that must be paid in cash even when the base fare is covered by points
Always read the fine print before confirming. A “free” ticket may still cost ₹2,000 to ₹3,000 in taxes.
When Points Outperform Cash
Reward points give the best value when used for:
- International flights, especially business class
- Last-minute domestic travel where cash fares spike
- Premium routes like Delhi to London or Mumbai to Singapore
- Peak season travel like Diwali, summer holidays, or Christmas
A 30,000-point redemption for a ₹50,000 business class ticket gives ₹1.67 per point, far better than any merchandise option.
Final Thoughts
Reward points are not just numbers on a statement. They are a parallel currency that most Indians earn, ignore, and lose. With a little planning, those same points can fund family vacations, business trips, and weekend getaways at zero cash outflow.
The trick is to spend mindfully on the right card, track your points monthly, and redeem only on high-value categories like flights. The next time you book a holiday, check your reward balance first. You may already have the trip paid for, without knowing it.
FAQs
Q. Do reward points expire?
A: Yes. Most cards have a 2 to 3-year expiry from the date of earning. Premium cards often offer no expiry.
Q. Can I book international flights with points?
A: Yes. Most bank travel portals and airline transfer partners cover international routes.
Q. Are taxes covered by points?
A: Some banks cover full ticket cost including taxes. Others ask you to pay taxes in cash. Always check before booking.
Q. Can I cancel a flight booked with points?
A: Yes, but cancellation rules vary. Some banks refund points, others charge a fee.
Q. Which is better — direct booking or airline transfer?
A: Direct booking is easier. Airline transfer gives better value for premium and international travel.
Q. Can I combine points with cash for a flight?
A: Yes. Most portals allow part-payment using points and the rest with the credit card.
Q. Do flights booked with points earn airline miles?
A: Yes, in most cases. You still get frequent flyer miles from the airline.