How Travel Points Work in Canada is one of the first questions many beginners ask when they start learning about travel rewards.
If you've ever heard someone talk about flying in business class, staying at luxury hotels, or taking family vacations using points and wondered, "How do they do that?" you're not alone.
Many Canadians collect points through credit cards, loyalty programs, and everyday spending. But earning points is only part of the equation. The real value comes from understanding how different points programs work and how to use them strategically.
The good news? You don’t need to be an expert to get started.
In this guide, we’ll walk through how travel points work in Canada in a simple, beginner-friendly way—so you can start using them for your own trips.
What Are Travel Points?
Travel points are rewards you earn from:
- Credit cards
- Loyalty programs (like airlines and hotels)
- Retail and online shopping (Uber, LCBO, Aeroplan Estore etc)
You can redeem these points for things like:
- Flights
- Hotel stays
- Car Rentals
- Travel experiences
Think of them as a type of “travel currency.”
How Do You Earn Travel Points in Canada?
There are a few main ways Canadians earn points:
- Credit Card Welcome Bonuses
This is the fastest way to earn a large number of points.
When you sign up for a credit card and meet a minimum spending requirement, you receive a bonus.
Example:
Spend $3,000 in 3 months → earn 30,000 points
- Everyday Spending
You earn points when you use your credit card for:
- Groceries
- Gas
- Dining
- Recurring bills
Some cards give bonus points in specific categories.
- Travel Bookings & Loyalty Programs
You can also earn points when you:
- Book flights directly with airlines
- Stay at hotels
- Use partner programs
How Do You Use Travel Points?
Once you’ve earned points, you can redeem them in a few different ways:
- Book Travel Directly - Some programs allow you to book travel through their portal. This is simple, but usually not the best value.
- Transfer Points to Airline or Hotel Programs - This is often where you get the most value. For example: You can transfer points from your bank to airline programs and book flights using miles instead of cash.
- Use Points for Fixed Value Redemptions - Some programs let you apply points like cash toward travel purchases. This is straightforward and beginner-friendly but again, usually not the best value.
Types of Travel Points in Canada
Not all points work the same way.
Here are the main types:
- Transferable Points - Can be transferred to multiple airline or hotel programs Offer more options and potential value. Examples: American Express Membership Rewards Royal Bank of Canada Avion Rewards
- Fixed-Value Points - Have a set value (e.g., 1 point = 1 cent) Easier to use, but less flexible. Examples: TD Rewards CIBC Aventura Points Scotiabank's Scene+
- Co-Branded Points (Airline and Hotel Programs) - Tied to one airline or hotel program Best used within that system. Examples: Air Canada Aeroplan WestJet Rewards Marriott Bonvoy Hilton Honors
Why Travel Points Are Valuable for Families
Travel points can make a big difference for families:
- Reduce the cost of flights
- Make travel more accessible
- Allow for better travel experiences without a bigger budget
Even earning points slowly can add up over time.
Common Beginner Mistakes to Avoid
When starting out, it’s easy to make a few mistakes:
- Putting all of your spend on one credit card
- Choosing credit cards that do not align with your travel goals
- Applying for too many credit cards too quickly
- Not applying for cards because the annual fees seem expensive (most cards offer more value than the annual fee, at least for Year 1)
- Carrying a balance (interest charges will offset your travel benefits!)
Keeping things simple is the best approach.
FAQ
What are the best travel points programs in Canada?
- For most beginners, I recommend American Express Membership Rewards and RBC Avion - the only transferables points programs in Canada
- Air Canada Aeroplan is also a solid choice, as more often than not Canadians will be taking flights on Air Canada and their partners. .
Do I need to travel often to earn points?
- No. Most points are earned through everyday spending.
Are points free to earn?
- Not exactly. You need to pay for credit cards' annual fees (you should always check if you are getting more value than the fees you are paying). However, You earn them through spending, but they can significantly reduce travel costs.
Can I get my entire trip for free?
- Not usually. You will have to pay out-of-pocket for taxes and fees for your flights and personal expenses during the trip.
Can families use points together?
- Yes. Many programs allow you to pool or use points for multiple travelers.
Is it hard to get started?
- No. Starting with one card and one program and following our content is a great place to start! You can apply for more cards and learn more advanced strategies when you are ready!
