Saving on travel: Buying gift cards at a discount for your vacation
HOUSTON - A secret to saving money on travel is getting some serious buzz. It involves paying for airfare with airline gift cards that are sold at a discount, sometimes up to $50 off per card.
The key is to buy the gift cards at a discount from wholesale clubs, so that when you use them to book a flight, you're getting a ticket for less money.
Costco currently offers a $500 Southwest Airlines gift card for about $450, both in-store and on its website. When you book a flight with one of these gift cards, it can save you $50.
"Maybe it's been a membership secret that folks who belong to those clubs haven't shared, but those can be a great way to save some money on an upcoming trip," said Eric Rosen, Director of Travel Content with The Points Guy.
(Photo by Bruce Bennett/Getty Images)
A customer is limited to purchasing five Southwest gift cards, and can only use three of them at a time.
But Rosen says you can stack up more savings.
"I would also say try to use a credit card that might get you extra bonus rewards or cash back if you're a member of Costco for this deal specifically. If you're an Executive Club member with them, that means an extra 2% back on your purchase," explained Rosen.
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Costco also offers other discounted gift cards that could save money on trips, such as Spafinder and Golfnow, each offering two $50 gift cards for $79, which is a $21 savings.
Sam's Club members can buy discounted gift cards for Southwest, Disney, and Airbnb.
And BJ's Wholesale offers gift cards with small discounts to Southwest, Delta, Amtrack, AirBNB, Disney, and Sea World.
If you have gift cards for other retailers that you don't plan to use, you can turn them into air miles.
United Airlines has a MileagePlus Gift Card Exchange program for cards from 100 retailers, including Starbucks, Target, even Southwest Airlines. The website says for a $100 gift card, you'll get at least 2,660 miles on United. The cards must have at least $15 in value, there is a 7.5% federal excise tax, and the MileagePlus account must have been open for at least 90
Lastly, Alaska Airlines and United mileage plans currently offer 35% off Avis and Budget rental cars, plus air miles.
Southwest Airlines offers its members 1000 Rapid Rewards bonus points if you file your taxes through TurboTax.
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Check your airline loyalty program for discounts that you may be able to cash out before you check in.
Discounted airline gift cards are usually only sold through wholesale membership clubs. Compare whether you'll save more on their gift cards or other items than the cost of the membership.
The airline gift cards do not expire, but they are usually non-refundable. Make sure you plan to fly that airline before buying a gift card.