How much “free” award travel actually costs

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Free travel often isn’t completely free. Taxes, fees, and carrier surcharges on an international business-class award can run into the hundreds of dollars each way, and hotels tack on resort fees you pay at the front desk, long after the booking felt settled.

Once you know where those charges come from, though, you can sidestep most of them.

Here’s what those costs actually look like, and how to get as close to free as possible.

British Airways is one of the most well-known airlines that charges exorbitant taxes and fees on award tickets, especially in premium cabins. For instance, your one-way business-class flight from Los Angeles (LAX) to London (LHR) on British Airways priced at 110,000 Avios plus $508 in taxes, fees, and carrier charges at the time of writing — and the return from London runs even higher. All in, your “free” round-trip clears $1,000 out of pocket.

Lufthansa’s own program is no better. Book the nonstop from Washington, D.C. (IAD) to Munich (MUC) in first class through Miles & More and you’re looking at roughly $1,500 in taxes and surcharges each way. Book that same cabin through a partner program and the cash portion drops to a fraction of it.

Hotels are better, but not by much. Book an award stay at The Ritz-Carlton, Dove Mountain, and you’ll owe a daily resort fee of $60. For a five-night stay, that comes to $300, and it can’t be paid with your Marriott Bonvoy points.

There are a few ways to get the cash portion close to zero, but you have to be deliberate.

First, pay attention to the program you book through, not just the airline you fly. Surcharges are passed on by loyalty programs, so the same seat costs wildly different amounts of cash depending on where you redeem. Miles & More, Emirates Skywards, and British Airways Executive Club all pass them through. Avianca LifeMiles doesn’t, on its own flights or on Star Alliance partners, which can cut hundreds of dollars off the same Lufthansa seat.

Watch where your ticket starts, too. For instance, the U.K. imposes an Air Passenger Duty on most flights departing from the U.K., which can add a few hundred dollars, regardless of the carrier and whether or not you booked with miles. It could be worth repositioning yourself to depart from a country that doesn’t charge these fees.

Hilton Honors and World of Hyatt both waive resort fees on stays booked entirely with points, regardless of your status. Plus, if you have Hyatt Globalist status, you won’t pay resort fees on paid nights. However, Marriott and IHG are both known to impose paid resort or destination fees on award nights in select destinations.

Once you’ve gotten your taxes and fees as low as you can, use a credit card that can reimburse you for travel expenses. For instance, you can redeem Capital One Miles against travel purchases charged within the past 90 days at a flat rate of 1 cent per mile. It’s not the best cents-per-point play, but it wipes out the cash cost.

Or lean on a co-branded card. Pay the taxes, fees, and carrier charges on a British Airways award flight with the British Airways Visa Signature Card, and you’ll get a statement credit of $100 in economy and premium economy or $200 in business and first, up to three times a year for a $600 annual maximum. The itinerary has to be transatlantic, with that leg originating in the U.S. on a British Airways–operated aircraft, and the credit posts per booking rather than per traveler.

The other option is to skip award tickets and book through a credit card travel portal like Chase Travel or Amex Travel. Your points cover the entire fare there, surcharges and taxes included. The cents-per-point value is usually worse, but the out-of-pocket cost is zero.

Award travel is rarely free. But the difference between a $1,500 surcharge and a $50 one usually comes down to which program you booked through, and that’s a choice you get to make.

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