How To Choose The Right Business Credit Card To Cut Down On Luxury Travel Expenses

How To Choose The Right Business Credit Card To Cut Down On Luxury Travel Expenses

The world is now recovering from the pandemic, which means that travel restrictions are now slowly being lifted across all borders. For those who turned to traveling as a way of entertainment before the pandemic came into the picture, this is amazing news, especially now that they can once again fly to any destination they have on their bucket list.

However, airline ticket prices are at an all-time high today, which means that most of the major costs associated with traveling will surely hurt your pocket if you do not exercise wise judgment with your finances. A few years ago, $1,000 could have taken you far, but now, it might not even be enough to get you a round-trip ticket.

One way to ensure that you won’t be left empty-handed during your next business trip is to use a business travel rewards credit card. These won’t be anything like your typical instant approval credit cards, as they offer varying travel perks that will make your trip a delight as long as you choose the right one. So read on to find out how to choose the best business card to help you save on luxury travel.

What Is A Business Travel Card?

A travel card is a type of rewards credit card that rewards you for travel-related purchases and that comes with a set of desirable travel perks like free flight tickets, hotel stays, travel insurance, and more. Generally speaking, travel cards work the same way as any conventional credit card does. The only difference with these types of cards is the travel perks they offer.

A business travel card is basically the same thing, only instead of it being in your name, it’s in your business’s name and only affects your business’s credit score.

These types of credit cards reward you with “miles” and “points” you can later exchange for merch, travel benefits, and more. If you have a card specifically used for an airline, it’s most likely that you will receive “miles” as the form of rewards they give you for subscribing to their loyalty program. On the other hand, cards for hotel loyalty programs usually reward points instead of miles.

It should also be noted that travel credit cards grant you points or miles for both your travel and non-travel purchases, albeit the amount you receive will be higher in the former case.

Should You Get A Travel Credit Card?

If you are a frequent flier, the short answer is yes. The general purpose of a travel credit card is to offset some of the costs related to travel just by paying with your card. This has the potential to make even a luxury trip affordable.

While the benefits of a travel credit card can be subjective depending on the client's perspective, a travel credit card is still a must-have for a good amount of luxury travelers who still want to save a few dollars on their next trip. If you own a travel credit card with enough points to convert into rewards, you do not have to worry about spending a lot of money for an extra night’s stay, getting your things insured while traveling, or even waiting in line just to get on your flight.

Ultimately, a travel credit card comes in handy if you are someone who values convenience over anything else, and you can definitely experience a lot of convenient benefits if you own a card that can save you a lot of money while flying and having the time of your life.

What Are The Types Of Business Travel Credit Cards?

In the world of credit cards, you’ll see that they come in all shapes and sizes (not literally, though, as they’re all the exact same size. I’m talking about how they work). You’ll find anything from prepaid credit cards that work more like debit cards, to high-end, invite-only credit cards like the famous American Express Black Card.

For you to maximize your options and find the best fit when it comes to choosing your business travel cards, it’s important to know what types are available. Here’s a summary of the different travel cards you can apply for.

Airline credit cards Received as part of your subscription to an airline’s loyalty program. Common perks include free flights and free flight upgrades, as well as priorities for boarding and a checked bag for free.
Hotel credit cards Focuses on the perks that you can get when making hotel-related purchases and reservations. Points that are earned can be redeemed for a free night’s stay or a room upgrade.
General travel cards This card grants greater flexibility as opposed to the other types of cards, and you can also earn points for a variety of transactions other than those related to traveling. You can also transfer your points to a hotel or airline loyalty program taking full advantage of the added value they’ll offer.

Choosing A Business Credit Card For Travel—How To Do It Right

With the different types of travel cards and all the brands that offer them, you are most likely to have a hard time choosing the best one that fits your traveling needs before actually deciding on it. As such, here are some things you can consider if you are torn on what travel card is best for you and your business.

#1 Look At The Welcome Offer

First impressions last, and it’ll certainly be the same when you choose a credit card for traveling. The first thing you need to look into is how generous their welcome offer is. Oftentimes, a travel card that does not go small with its welcome offer is a good sign that you are in for more perks.

Another reason why you should opt for a card that has a tremendous welcome offer is it might just give you some perks right off the bat. A free night at a hotel or a room or flight upgrade is a common benefit for these types of cards, and they often offer a welcome gift of around 40,000 to 60,000 points.

Of course, there’s a catch behind these large welcome offers, and it usually comes in the form of a single purchase or a minimum spending requirement. Depending on the terms and conditions of the card, you could be earning as much as 5 times the amount you originally spent on your annual fee.

#2 Does It Have A Low Spending Minimum?

One of the most often overlooked aspects of choosing a card for traveling is the minimum spending it requires for you to enjoy the welcome bonus and other perks. Many who apply for cards realize only late in life that the minimum spending for the card they applied for is too high for their usual spending behavior, so they end up not using it at all.

#3 Which Travel Perk Add The Most Value?

With so many cards to choose from, expect that you will be offered a wide array of perks that vary depending on the issuer. Choosing the best options means choosing the one that maximizes your perks and rewards for the typical shopping you do.

So, looking at your travel behavior and comparing that to a business credit card’s top points earning categories is a great way to shortlist your best options.

Do you spend the most on hotel bookings? Do you frequently check into a VIP lounge at every airport you touch base on? Do you spend hundreds of dollars on travel insurance? Or do you just dine out a lot when you travel? The way you normally enjoy your luxury business trips is what should determine what card to choose, not the other way around.

#4 Is It Worth The Annual Fee?

When it comes to annual fees, you’ll find them for all wallet sizes. Business credit cards with travel perks and rewards aren’t usually free,  but some of them are very affordable. Others, on the other hand, can cost you a whopping $800 or even more every year.

You may think “this is no biggie!” but you didn’t get to a point where $800 isn’t an issue unless you made sane financial choices, so why stop when choosing a credit card?

If you have the muscle to cough out $1K on your next business credit card, you should definitely consider what you’re getting for your money. The good news is that, on most high-end credit cards, even the ones that cost multiple hundreds of dollars, the perks and benefits far outweigh the annual fee, no matter how high it is. But if you’re wondering how, then, can credit card companies afford this? the answer is very simple: most people only use a small fraction of their benefits and rewards.

But if you choose your credit card wisely and ensure that its benefits clearly align with your spending habits and the way you’ll use the card, you’ll easily get much more value from it than what you pay, saving you hundreds of dollars when traveling while having the time of your life.

#5 Take Into Account Your International Trips

Many business trips can take you to foreign countries in Asia, Europe, or somewhere else where you must pay in a different currency than the one you use at home. Therefore, it’s important that you consider if your chosen card is likely to be accepted at your destination and whether or not it’ll charge you a fee for paying in a foreign currency.

These fees typically fall in the range of 3% to 5% on every purchase you make, plus you may also lose money de to spreads and unfavorable currency exchange rates. So, if you’re a frequent international traveler, make sure to choose a card that doesn’t charge a foreign transaction fee. The best ones don’t.

To Sum Things Up

Choosing a business credit card to save on travel is not only possible, but it’s also a good idea. Travel cards are worth getting if you’re a frequent traveler and you can make the most of the perks and travel benefits that come with them. This is usually more than enough to cover and offset even the highest annual fee.

When choosing your card, it’s very important to ensure that the card’s reward categories align with your spending habits and rewards you the most for your most frequent purchases. By doing that, you’ll be able to save hundreds of dollars every trip, while enjoying the VIP lifestyle you’ve always wanted.

Article by Jordan Bishop