The secret advantage of booking travel with points

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I recently missed my Alaska Airlines flight departing New York-JFK. Even worse, it was the last flight of the day. The check-in agent graciously offered to rebook me on the next flight, but I’d have to wait until the following morning. That meant springing for another night in New York.

But because I had booked my flight with Alaska Airlines Atmos Rewards points, I had more options. I jumped online and found a seat on Alaska’s partner, American Airlines, departing a couple hours later. So nine minutes before takeoff, I manually canceled my current award flight, immediately received my miles back, and used those same miles to book the later flight on American Airlines.

You can’t get that kind of flexibility with cash alone. I love the nearly free travel that points and miles can afford — but the ability to modify your travel plans like this with little-to-no fees can make them just as valuable.

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Airline miles aren’t the only rewards currency that (typically) gives you added flexibility when booking with rewards. Hotel loyalty programs do the same.

As an example, here’s what a night at the Waldorf Astoria Los Cabos Pedregal costs on February 23, 2027:

• Non-refundable rate: $1,886 ($2,217 after taxes)
• Flexible rate: $2,300 ($2,703 after taxes)

With a nonrefundable rate, your reservation is chiseled in stone the second you click “Book.” With a flexible rate, you can cancel up to one week before check-in with no penalty. The difference in price is a whopping $486.

Of course, you’d ideally book the cheaper rate. But the risk is so significant that you’d potentially forfeit thousands of dollars if an unforeseen emergency arises that forces you to change your plans.

Now take a look at the cancellation policy when booking an award night: Free cancellation up to one week before check-in with no penalty — exactly the same terms as the flexible rate.

In other words, booking with points gives you the flexibility of the $2,703 rate instead of the cheapest (and most restrictive) $2,217 rate.

When you book with miles instead of cash, you’ll generally benefit from the most flexible policy.

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Improved flexibility on award flights isn’t a hard rule across all loyalty programs. Be sure to read the change/cancellation policy of the one you plan to use.

Airline programs specifically have wildly different terms. For example:

• Air Canada — Up to 100 CAD for changes (up to 175 CAD for cancellations)
• Air France — 70 euros for changes and cancellations
• Alaska Airlines — No change or cancellation fees
• American Airlines — No change or cancellation fees
• British Airways — $55 for changes and cancellations
• Delta — No change or cancellation fees (though Basic Awards have a fee)
• United Airlines — No change or cancellation fees

Some airlines charge for things like redepositing miles, changing your origin and destination, etc. But you’ll still typically be able to modify them more cheaply than if you had booked a nonrefundable flight.

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