Earlier this month, a software engineer from Jharkhand took his family on a luxury vacation to Masai Mara, a national reserved wilderness in Kenya, and stayed at the ultra-luxury JW Marriott's lodge for five nights. The family went on ultimate luxury safaris, lived in tented suites with swimming pools, and drove around in Land Rovers. The cost of the entire experience was Rs 27.5 lakh, but Anirban Chowdhury did not have to pay a single rupee.
"I paid for it using Marriott Bonvoy points," he told Moneycontrol. Marriott Bonvoy points are the loyalty rewards currency for Marriott International's loyalty programme. Users can earn and redeem points for a variety of travel experiences and stays at the company's hotels and resorts. These points can also be bought and are priced dynamically. On Wednesday, $1 (about Rs 84) could buy you 10 Marriott Bonvoy points. But Chowdhury did not buy the points, he earned them.
The 34-year-old, who is passionate about travelling and credit cards, often uses the points he collects while using the cards to pay for his travel. "I own more than 40 credit cards but mostly use four or five of them. My wife and I collected points for a year for us to be able to afford this trip solely by using the points," he told the publication. "Almost all our expenses -- including grocery, utilities, insurance and even school bills -- are paid using credit cards, especially Amex (American Express)."
When he made arrangements for the trip a year ago, JW Marriott Masai Mara Lodge was charging 1.06 lakh points per night. They also had an offer for guests who make reservations using their loyalty points -- if they book their stay for four nights, the accommodation for the fifth night is free. "So I paid 4.24 lakh Marriott Bonvoy points for my five-night stay. I did not have to pay a penny extra. My invoice was zero," Chowdhury told Moneycontrol.
The charges included not just accommodation, but food, travel in luxury cars, sundowners, and safari rides.
Earning reward points by using credit cards
"I do not use debit cards. I am a credit card enthusiast and have been using them for about a decade now and 95 percent of my payments are made using credit cards; be it school bills or insurance premiums," Chowdhury said. "Now, American Express has a set of cards that offers good returns in points. For example, their Gold Charge card gives you 1,000 points when you spend Rs 6,000 in batches of Rs 1,500 x 4. If you spend Rs 72,000 using that card, it'll give you about 20,000 in Marriott Bonvoy points. Two other sets of Amex cards gives you around 50,000 to 60,0000 points for spends worth Rs 4 lakh and 35,000 points for Rs 2.4 lakh worth of spends in a year."
Even while using UPI, Chowdhury prefers using RuPay-based UPI credit cards which gives him points that can be redeemed for travel expenses. "Even if you have to buy bread and butter, you can pay for it using a RuPay credit card and get 2 percent returns in the form of points," he said.
The software developer added that for families who spend Rs 10 lakh to Rs 14 lakh a year, it is fairly easy to earn about 3 lakh reward points using credit cards. He added that his wife also uses the same credit cards for expenses making it easier for them to collect points faster. The couple collected the 4.24 lakh Marriott Bonvoy points in a year, Chowdhury said.
Buying vouchers to multiply reward points
Chowdhury may earn his points by using his credit cards, but vouchers from departmental stores help multiply them. That's why he shops for groceries from franchises such as Smart Bazaar and Big Basket. "These companies offer vouchers and when you buy from their affiliated portals, you get accelerated returns. For example, if my grocery shopping for the month amounts to around Rs 10,000, I buy 10,000 Reliance Smart Buy vouchers from Amex portal and I get five times the number of points," he told Moneycontrol.
The techie is now gearing up for a trip to Singapore in October which was also paid for using reward points. "I'll be flying first class on Singapore Airlines suites which costs around Rs 3 lakh. It is an aspirational experience for all aviation geeks and I paid only Rs 3,000 for it. The rest was funded by the reward points,' Anirban Chowdhury said," Chowdhury said.
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