Why the Holiday Travel Season is Actually the Best Time to Use Your Points

If you've been hoarding travel points for the "perfect trip," here's something that might surprise you: the holiday season—when airfare and hotel prices skyrocket—is actually one of the best times to cash in those hard-earned rewards. While conventional wisdom says to save points for off-peak travel, the math tells a different story when flights that normally cost $300 suddenly jump to $800 or more.

Let's explore why holiday travel is prime time for points redemptions and how you can maximize the value you get from your rewards.

1. Point values stay fixed while cash prices soar

Here's the secret savvy points users understand: many airline and hotel loyalty programs use fixed or semi-fixed award charts, meaning the number of points required for a flight or hotel stay doesn't always increase in proportion to the cash price.

For example, a domestic round-trip flight might cost:

• Off-peak: $250 in cash or 25,000 points

• Holiday peak: $750 in cash or 30,000 points (or sometimes still 25,000!)

In the first scenario, you're getting about 1 cent per point in value. During the holidays, you might be getting 2.5 cents per point or more—that's a dramatic difference in value. While you might use a few more points during busy travel periods, you're often saving far more in actual dollar terms.

This is especially true for programs that have award charts (like many airline frequent flyer programs) rather than dynamic pricing that always mirrors cash prices.

2. Cash fares become unreasonably expensive

Let's be honest: holiday airfare can be painful. Flights around Thanksgiving, Christmas, and New Year's often cost 2-3 times their normal price. A cross-country flight that might typically run $350 can easily hit $900 or more during peak holiday dates.

This is exactly when points become most valuable. Instead of draining your bank account on overpriced tickets, you can use points you've already earned. Yes, you'll "spend" your points, but that's what they're for—and you're getting maximum value for each one.

Think of it this way: if you use 50,000 points for a flight that costs $1,000, you've gotten 2 cents per point in value. If you save those same points for an off-season $300 flight, you're only getting 0.6 cents per point. The holiday flight is a much better redemption value, even though it feels more "expensive" in points.

3. Hotels fill up fast—but award availability still exists

During major holidays, hotels in popular destinations fill up quickly and prices surge. That boutique hotel that normally costs $150 per night might jump to $400 during the holidays. Hotel chains often have award nights at standard rates even when cash prices are inflated.

Many hotel loyalty programs (like Marriott Bonvoy, Hilton Honors, and IHG Rewards) have category-based pricing. A Category 4 hotel might cost 25,000 points per night, whether it's a random Tuesday in March or Christmas Eve—even though the cash price could vary by hundreds of dollars.

Additionally, hotels sometimes release award availability even when they show "sold out" for cash bookings. If you're flexible with your points, you might be able to secure a room during the holidays when paying cash isn't even an option.

4. You can visit family without the financial stress

For many people, holiday travel isn't optional—it's about spending time with loved ones. The pressure to visit family, combined with expensive peak-season pricing, can create real financial stress.

Using points for holiday travel removes this burden. Instead of choosing between seeing your family and staying on budget, you can do both. The emotional value of being home for the holidays, combined with the monetary savings, makes this one of the most worthwhile ways to use your points.

Plus, when you're not stressing about the cost of travel, you can actually enjoy the holidays more. You might have extra cash to spend on gifts, contribute to family meals, or simply have a cushion for unexpected expenses.

5. Flexibility options protect your investment

One concern about holiday travel is that plans might change—bad weather, family emergencies, or unexpected work obligations. The good news? Points bookings often come with better flexibility than deeply discounted cash fares.

Many airline award tickets can be canceled or changed for little to no fee (especially after airlines eliminated change fees for most domestic tickets). Hotel points bookings typically offer free cancellation up until the day of arrival. This flexibility is invaluable during the unpredictable holiday season.

Compare this to those cheap advance-purchase cash fares that are completely non-refundable. If you need to change plans, you might lose the entire value. With points, you usually get your points back and can rebook for another time.

6. Premium cabin awards offer even more value

If you've been dreaming of flying business or first class, the holidays are when those redemptions really shine. Premium cabin cash fares during the holidays are astronomical—we're talking $5,000-$8,000 for seats that cost about half that during other times of the year. 

But the points required for business class, even during the holidays, are often just 80,000-120,000 miles for an international round-trip — potentially the same number of points required during off-peak times. The value you extract from each point in this scenario is incredible, sometimes reaching 5-10 cents per point.

Making the most of holiday points redemptions

Ready to use your points for holiday travel? Here are some strategies to maximize your success:

Book as early as possible: Award availability is limited, and the best redemptions get snatched up quickly. Start searching as soon as the calendar opens (close to a year out for most airlines) if you can. But, if you missed the early window, don’t despair. Snagging a great points fare list minute if often possible. 

Be flexible with dates: Flying out on Thanksgiving Day instead of the day before can save thousands of points. Similarly, returning on the holiday itself (or a day later) is often cheaper than peak return days.

Search one-way awards: Sometimes you'll find better availability or pricing by booking each direction separately, potentially even on different airlines or loyalty programs.

Consider nearby airports: If you live between two airports or can pick up family from a different arrival city, you'll have more options to find award availability.

Set up alerts: Use tools that notify you when award space opens up on your preferred routes. Award availability can appear suddenly as airlines adjust their inventory.

Mix points and cash: Some programs offer the option to use points plus a cash co-pay. If you're a few thousand points short, this can be a good compromise.

The bottom line

The conventional wisdom about saving points for off-peak travel isn't wrong—but it's incomplete. Yes, you'll use fewer points for that random Tuesday flight in February. But if you're measuring true value (the cash price you're avoiding), holiday travel often represents the best possible use of your points.

Your points are a form of travel currency, and like any currency, they're meant to be spent when they provide the most benefit. For most people, that means using them when travel is most expensive and most meaningful—during the holidays.

So stop feeling guilty about "wasting" points on holiday travel. Instead, feel smart about getting 2-3 times the value from your redemptions while everyone else is paying inflated cash prices. After all, the best time to use your points is when they save you the most money and bring you the most joy.