Cruise Line/Airline Credit Cards ... Why?

[jewopaho]

We cruise often (five or six times a year), both domestically and internationally, and have had credit cards from three cruise lines over the years. All have been canceled. What we've discovered is that we're far better off using air miles to offset the overall cost of our cruises, and our Capital One Venture Card offers two for every dollar spent ... any airline, any time. There's also no charge for foreign currency conversion, making it ideal for traveling abroad. Our flight to Alaska and upcoming trip to Dubai will end up costing us zero in airfare, a total savings of close to $4000. Neither cruise is anywhere near that number.

 

We also sail out of Galveston at least three or four times a year, and are able to deduct the cost of the cruises (or any other travel-related expense within a 90-day time frame) dollar-for-dollar. If we haven't accumulated enough points for a total credit, whatever amount we have in the "points bank" is deducted from the cost ... we pay the difference.

 

So ... if we're not limited in any manner, why restrict oneself to a particular airline or cruise line? Granted, there's often a bonus upfront, but it hardly equals the perks we receive from Capital One (and we did get 40,000 miles when we signed up). Yes, there's a $59 annual fee (waived the first year) but it's inconsequential when the savings are calculated.

 

We do use the card for everything ... food, gas, utility bills, health insurance co-pays, etc. ... and do not carry a balance. Points accumulate rapidly, and we're almost as quick to use them ... just paid for our trip insurance with them.

 

If someone can point out the advantages of using a proprietary credit card over our Capital One plastic, I'll be happy to listen.

 

Al

[CruiserBruce]

Generally, we agree with you. However, we have been with Chase United cards for many- over 25, years. We live near, SFO- a major United hub, particularly for international flights. We get several bonuses for booking using the United card, on the United website- things like triple miles for flight purchases. We also pay for many things with our card, to the tune of over $100K annually, all earning miles. Between flying and purchases, we typically earn about 225 or 250K miles annually.

 

 

This has paid back very well- we just did free First Class, round trip, SFO- Sydney for both of us, to celebrate our 30th wedding anniversary. When we got back, I immediately booked free Business SFO-FRA for both of us next summer.

 

 

My point is, your basic concept is very sound, but everyone's needs are a little different. So, Capital One works for you, Chase United Visa works for us, achieving essentially the same thing.

Edited September 26, 2015 by CruiserBruce

[Krazy Kruizers]

We don't have any airline or cruise line credit cards.

We each have our own American Express Platinum credit cards which we use for buying everything. Points are converted over to HHiltonHonors -- have had lots of free hotel stays.

We do each have our own Visa card just for ports where we want to buy something like lunch and don't want to have to worry about identity theft -- they have a low limit on them.

[jewopaho]

Generally, we agree with you. However, we have been with Chase United cards for many- over 25, years. We live near, SFO- a major United hub, particularly for international flights. We get several bonuses for booking using the United card, on the United website- things like triple miles for flight purchases. We also pay for many things with our card, to the tune of over $100K annually, all earning miles. Between flying and purchases, we typically earn about 225 or 250K miles annually. This has paid back very well- we just did free First Class, round trip, SFO- Sydney for both of us, to celebrate our 30th wedding anniversary. When we got back, I immediately booked free Business SFO-FRA for both of us next summer. My point is, your basic concept is very sound, but everyone's needs are a little different. So, Capital One works for you, Chase United Visa works for us, achieving essentially the same thing.

Point well-taken. Being as established as you are, and living where you do, I understand. But every cruise we take is always peppered with announcements and flyers about their credit card ... and how great it would be to earn a free cruise. Of course, you'd have to spend countless thousands over several decades to accumulate enough points. I just think that there are better ways to work the system. We earn somewhere in the 250k-300k miles, thanks to the 2-for-1 arrangement.

 

By the way, congratulations on your 30th anniversary. My three together don't total that much ... but I finally found the right one, so we may have a shot.

 

Al

Edited September 26, 2015 by jewopaho

[snowskier]

The perks with United Explorer card work best for us. Free baggage on every flight we book using the card, lots of extra miles when we book cruises. United Club passes. Less miles required for a flight than the general credit cards require. All flights across the Atlantic or Pacific have been free in Business First which is a significant savings for any trip. Just booked another one today.

 

We stay with one hotel chain but do not have their credit card. Just did 4 nights in Paris and two in London 100% free with hotel points. The free nights did not require any credit card points.

 

It is just a case of picking the card that offers the perks / benefits that enhance your lifestyle and then making sure you maximize the return -- and most important -- never carry a balance or all the benefits are offset by the interest being paid.

[FlyerTalker]

In general, cruiseline-branded cards give a very poor return on spend. You won't find me defending them, nor will you find most credit-card "players" who give them much regard.

 

One disadvantage of Capital One is that the "double points" are a marketing promo spin to hide the fact that each point is only worth $0.01. So the "double" only takes it to two cents - a reasonable metric for return. And the points can never get you greater value - or less.

 

Airline and hotel cards (along with transferable points like Amex MR) give the opportunity to leverage points for return of greater than $0.02 per point. The downside is that the points may be more restrictive. In addition, you can utilize point transfer bonuses such as the Starwood rate of 25K miles for 20k Starpoints. Or their deal for "nights and flights" that far exceeds the value of two cents.

 

Overall, there is no "best" for everyone...your own spending patterns can make one card more desirable than another. So, like so many things, do your research, become an informed consumer and beat the crowd.

[chipmaster]

Points/double points, cash back etc. etc. are all YMMV

 

One dollar, versus one point have different values based on value or points needed for redeeming.

 

Recently was pitched a Time share with hundreds of thousand of bonus points, sounded great, till I realized it took 25K points for their entry level hotel while on my current AMEX for 14K I get a 1000/night ski-in ski out at Whistler...

 

Do your research and makes sure the restrictions or value is there, sometimes less $ is worth more than thousands of points that return less than 1% cash value.

 

FWIW I get almost 14,000 points/$ to $1000 value for my card, its paid for many of my Christmas and friends lodging... ;)

Edited September 26, 2015 by chipmaster

[Scrapnana]

I don't fly enough to make a cc from one airline worthwhile. I have a credit card from AAA that gives triple points for any travel related purchases. I always use the cash back option (which paid for one of my cruises this year) and there is no annual fee. This works for me.

[leaveitallbehind]

We have an RCI Visa card which I use for cruise purchases, flights, and all my business expenses. Along with flight mileage points, the earned points, which are accrued by dollars spent, can be applied as cash value towards RCI cruises in the form of OBC and direct cruise cost reduction. To date we have had one free RCI 7-night cruise resulting from points applied and OBC's on others. To us it's worth it for that alone.

[jewopaho]

We have an RCI Visa card which I use for cruise purchases, flights, and all my business expenses. Along with flight mileage points, the earned points, which are accrued by dollars spent, can be applied as cash value towards RCI cruises in the form of OBC and direct cruise cost reduction. To date we have had one free RCI 7-night cruise resulting from points applied and OBC's on others. To us it's worth it for that alone.

Glad it works for you ... but what if you spotted a deal on Carnival or NCL or Princess that you'd like to pursue? We've sailed several cruise lines, flown different airlines, paid for ancillary amenities (shore trips, insurance, etc.), all using the same card. Miles are doubled on every purchase, and it's a dollar-for-dollar match on the redemption. Just move the decimal point two spots left, and apply the amount toward travel/vacation (doesn't matter what) ... and since we only spent half that amount accumulating the miles, we figure that we're well ahead of the game.

 

We've already cashed in over $12,000 in benefits, including flights. As noted above, carrying a balance largely negates the deal. Thankfully we've never paid a finance charge on a credit card in our lives. Our monthly Capital One statement is generally around $5000 (we really do use it for everything we can), and is paid the moment it arrives. So ... lots of freebies (not to mention a FICO score in the 830's) just for spending what we normally do, only putting it on plastic. Gotta love it.

 

Al

[JVilleGal]

Am currently in Budapest and flew to Europe for a river cruise. We paid $5 per person total for business class seats, San Francisco to Amsterdam. Did this by using Alaska Airlines partner KLM. We use our card for daily things, gas, groceries and out to dinner. A vacation once or twice a year.

The Miles add up fast and a free trip to Europe in the front of the plane is priceless!

[jewopaho]

Am currently in Budapest and flew to Europe for a river cruise. We paid $5 per person total for business class seats, San Francisco to Amsterdam. Did this by using Alaska Airlines partner KLM. We use our card for daily things, gas, groceries and out to dinner. A vacation once or twice a year. The Miles add up fast and a free trip to Europe in the front of the plane is priceless!

Enjoy your vacation ... but what if the flight were on United, Lufthansa, Emirates, or other non-affiliated airline? Having the choice to fly whichever one works best for us is a perk we're not willing to relinquish. We flew Alaska Airlines to Fairbanks in May, and will be aboard Turkish Airlines on our trip to Dubai ... used the same credit card and wound up paying zero for both flights.

[JVilleGal]

In our neck of the woods (Pacific NW) Alaska takes us everywhere we want to go. Their list of partners is amazing. Will be flying Quantas to Australia on my Alaska miles and London on BA. It just works for us!

We gave up on United and Awards seats started getting to hard to get.

 

Alaska Partners: Emirates, British Air, American, Delta, KLM, Cathay Pacific, Icelandair, Air France, LAN (others I can't remember).

Edited September 27, 2015 by JVilleGal

[Flatbush Flyer]

Generally, we agree with you. However, we have been with Chase United cards for many- over 25, years. We live near, SFO- a major United hub, particularly for international flights. We get several bonuses for booking using the United card, on the United website- things like triple miles for flight purchases. We also pay for many things with our card, to the tune of over $100K annually, all earning miles. Between flying and purchases, we typically earn about 225 or 250K miles annually.

 

 

This has paid back very well- we just did free First Class, round trip, SFO- Sydney for both of us, to celebrate our 30th wedding anniversary. When we got back, I immediately booked free Business SFO-FRA for both of us next summer.

 

 

My point is, your basic concept is very sound, but everyone's needs are a little different. So, Capital One works for you, Chase United Visa works for us, achieving essentially the same thing.

 

 

United VISA Explorer Card for sure. Don't forget the travel insurance benefits, United Club passes, Star Alliance partner travel etc. as well as most of the Capital One perks.

 

SFO is our home port and Star Alliance group beats all others for diversity of international destinations. Next time your in a hub airport like ORD, LAX, etc, look over at any obvious air commuter and you'll notice that the credit card in hand is probably a United Explorer VISA.

Edited September 27, 2015 by Flatbush Flyer

[leaveitallbehind]

Glad it works for you ... but what if you spotted a deal on Carnival or NCL or Princess that you'd like to pursue?

 

To date we have been exclusive to RCI and will soon include Celebrity, for which we can also use the card points. We would not likely have an interest in Carnival or NCL, and if we saw a cruise we liked on a different line we would just pay for it as we do currently with RCI. Just our preference.

 

I also have other cards that provide benefits as you describe and use air miles frequently as well. The choice to use the RCI card for RCI benefits is intentional. It works for us in a manner of our choosing and was a response to the OP's question regarding the use of cruise line credit cards.

Edited September 27, 2015 by leaveitallbehind

[calliopecruiser]

Most of it depends on your individual options and needs.

 

If you live in a location with a preponderance of options from one airline over others (i.e. you're in a hub city), there might be great perqs to getting points/miles with them, whereas if you're options are spread across the board, you might be better with Membership Rewards or even cash back. Ditto for hotel and cruise cards......if you usually choose a particular brand because you actually prefer their product, you might as well take advantage of rewards for a product you'd choose 80% of the time anyway. On the other hand, if you choose various brands (of hotel or cruise) based on location and cost, it makes no sense to get a single-branded credit card because you'll be diluting your spending.

 

Personally I had an Aeroplan credit card, because the preponderance of my flight options were Air Canada, and I preferred it to almost any other North American carrier. However, when they started spreading their horrible Rouge brand, I now will choose another carrier most of the time (unless I can get a first class seat at a great deal) - so I switched from carrying my Aeroplan-points credit card to an Amex with Membership Rewards that are more flexible (but not as good value). And I use my grocery store branded credit card more often, LOL.

[navybankerteacher]

We happen to like Jet Blue and Delta cards because of the free baggage as well as the miles - and we wind up getting at least one free flight per year by being able to use either set of points - again, to each his own.

[sail7seas]

I never have used Airline or Cruise line connected cards. My late DH and I never saw any benefit that meant much to us.

 

[JVilleGal]

Free airline tickets to Europe is why I use them! :)

[buggins0402]

Same here. Two nearly free flights to Europe (had to buy a few miles to make it happen). Then, between one hotel card and a flex card, we have two free nights in Madrid with two other nights at a reduced rate at a decent 4* and two free nights in Córdoba.

 

The trip insurance benefits on another card have more than paid for the annual fees (Chase United). We had a delayed luggage claim and they paid with no hassles.

 

I just charge every day things and pay the balance in full.

Edited September 27, 2015 by buggins0402

[Kartgv]

We have 3 credit cards that we alternate using, depending on our goals over the next 6-12 months. Our American Express Starwood card has provided us with at least a dozen free nights in upgraded, high-end hotels (such as the Westin Bayshore in Vancouver, tower harbor view corner room), as well as preferential treatment almost every time we check into an affiliated hotel (ranges from upgraded rooms to a plate of warm chocolate chip cookies or fruit & cheese delivered to the room). Our Capital One MasterCard provides no charge on foreign currency purchases, as well as points that can be applied 'after the fact' to any travel-related purchase. Our United Visa card provides us with approximately one free flight a year, as we were flying back and forth between LAX and Hawaii at least 2X a year and accumulating points quickly. We also have a Marriott Visa, but we rarely use it because they charge an outrageous number of points for a 'free' hotel night compared to the Starwood card.

 

As others have said, it's important to pay off all the cards monthly to avoid having the perks offset by finance charges. We feel no need for a cruise line card, as we pick a cruise primarily for the itinerary, choosing from mostly RCI, Celebrity, and Princess, with an occasional 'other' thrown in.

[sail7seas]

Free airline tickets to Europe is why I use them! :)

 

AmEx Platinum provided us with that and more.

 

[jewopaho]

Lots of variables ... location, cruise line preference, accommodations, etc. That's precisely why we use just one card, since it provides all of it ... and what we don't use in air miles, we apply toward other travel expenses, including baggage fees, hotels, and even trip insurance. Having "cashed in" some $12,000 in freebies and substantial discounts in just a few short years, our Capital One Venture Card will remain our plastic of choice.

 

Al

[plane2port]

My very first rewards credit card was a Royal Caribbean card. I was so excited when I had enough points for a free cruise. I have to chuckle when I remember how naive I was then about cc rewards.

 

Now with a combination of credit card sign up bonuses and spend, I have a war chest of miles and points that I use to fly to cruises and land vacations. I joke that I haven't bought a ticket since 2008--I did buy a couple last year from Ryanair and Easy Jet (less than $50 each for Europe short-haul).

 

On our upcoming Med cruise our round-trip airfare will cost us less than $200 (taxes), thanks to a sign-on bonus and furious spend with the Delta Amex.

 

For me, applying for cards for the sign up bonuses is the way to go. And BTW, I still have excellent credit.

[Aquahound]

My very first rewards credit card was a Royal Caribbean card. I was so excited when I had enough points for a free cruise. I have to chuckle when I remember how naive I was then about cc rewards.

 

I agree. I had that same card back in 2004 and I thought it was great that I was receiving rewards on one solitary cruise line. Boy, was I naive. Now I've got a real rewards card and I can't remember the last time I paid for a hotel or flight with anything other than points.

 

Unless a cruise line card partners with an airline or hotel chain, they're pretty much nothing more than a gimmick.