How Credit Card Travel Points Actually Work in the Philippines

Travel Points Sound Simple Until You Try to Use Them

"Earn points. Redeem flights. Travel free."

That's what the ad said when Mika signed up for her first travel credit card.

She imagined herself booking flights to Siargao, Palawan, maybe even Japan — all "free" because of points. The brochure made it sound easy.

Three months later, she checked her points balance: 8,000 points.

She tried to redeem them for a Manila–Boracay flight. The system asked for 25,000 points. Or she could convert to airline miles, but 8,000 points only yielded 1,600 miles. Not even enough for a one-way domestic ticket.

"Akala ko ba madali 'to?" she messaged her friend.

Sound familiar?

Spend time on r/PHCreditCards and you'll see the same pattern:

• "Bakit ang baba ng redemption value ko?"
• "Akala ko mas mataas ang worth ng points ko."
• "May miles na ako pero ang laki pa rin ng binayaran ko."

This article explains how travel points actually work in the Philippines.

What Travel Points Really Are (Minus the Marketing)

At their core, travel points are:

• A rebate on spending
• Paid in a non-cash currency
• Governed by conversion rules

They are not:

• Free money
• A discount on everything
• Guaranteed travel savings

Points only become valuable after you redeem them and that's where things get complicated.

Think of points like gift certificates. May value sila, pero hindi cash. And you can't use them anywhere, anytime.

When Mika's officemate told her "I flew to Hong Kong for free," what he didn't mention was: he spent ₱500,000 over two years to earn those miles. And he still paid ₱4,500 in taxes and fees for the "free" flight.

The Three Main Travel Reward Structures in the Philippines

1. Bank Reward Points

Ito yung:

• Earned on everyday spending
• Stored with your bank
• Convertible to miles, hotels, or vouchers

Pros: Flexible and easier for beginners.

Cons: Conversion rates vary wildly. Value is often unclear. Sometimes as low as 0.3–0.9% effective rebate.

Mika's card earned 1 point per ₱30 spent. She needed 5,000 points to convert to 1,000 airline miles. To get 25,000 miles for a one-way international flight, she'd need to spend ₱3.75 million.

2. Airline Miles

Ito naman yung:

• Earned directly via flights or converted from bank points
• Stored with airlines (like PAL Mabuhay Miles)
• Redeemed primarily for flights and upgrades

Pros: Potentially high value on award tickets.

Cons: Complex rules, limited seat availability and may expiry (kailangan active ka or mawawala ang miles).

Mika's friend Janet had 30,000 Mabuhay Miles. She tried to book a Manila–Singapore flight for her birthday.

The website showed "no award seats available" for her preferred dates. She tried different dates. Still nothing. She finally found availability — three months later, on a Wednesday, at 6 AM.

"Sige na lang," she thought. She clicked through. The confirmation page showed: 25,000 miles + ₱6,800 in taxes and fees.

3. Travel Perks (Indirect Rewards)

Examples:

• Airport lounge access
• Travel insurance
• Priority boarding

These feel valuable pero often hindi naman talaga bumababa ang actual travel costs mo.

Mika's premium card came with free lounge access. She used it once at NAIA Terminal 3. Free coffee, free sandwiches, free Wi-Fi.

Nice, yes. But did it reduce her airfare? No.

Lounge access is comfort, not savings.

How You Earn Travel Points (The Reality)

Travel points are usually earned based on:

• Peso spend (₱20–₱50 per point, depending on the card)
• Card category (premium cards may earn faster)
• Merchant type (some cards give bonus points for travel or online purchases)

You don't earn points faster just because a card is labeled "travel."

Many beginners assume all spending earns points equally. It doesn't.

Mika compared two cards:

• Card A (marketed as "Travel Rewards Card"): 1 point per ₱35 on local spend.
• Card B (generic rewards card): 1 point per ₱20 on all spend, 3x points on online travel bookings.

Which one actually earns faster for someone who books Grab flights online? Card B.

Marketing ≠ actual value.

The Conversion Step (Where Confusion Starts)

Most travel points must be converted before use.

This involves:

• Fixed conversion ratios (e.g., 5 bank points = 1 airline mile)
• Transfer minimums (can't convert just 100 points)
• Processing times (sometimes days or weeks)

Mika's experience:

She earned 5,000 bank points after three months of spending. She converted them to 1,000 airline miles. The system required a 5,000-point minimum, so she waited another month to hit it.

When she finally converted, the system said: "Processing time: 7–10 business days."

Two weeks later, the miles appeared in her airline account.

By then, the promo fare she wanted was gone.

This step alone reduces perceived value significantly.

Why "Free Flights" Rarely Feel Free

Even when redeeming miles, you often still pay:

• Taxes (airport taxes, terminal fees)
• Surcharges (fuel surcharges, carrier-imposed fees)
• Other fees (booking fees, seat selection)

Real example: Mika's friend finally redeemed miles for a "free" Manila–Tokyo flight. The confirmation email showed:

• Miles used: 30,000
• Taxes and fees: ₱7,200

"Free" flight. ₱7,200 out of pocket.

This is why many Reddit users feel disappointed after their first redemption. The surprise cash you still owe? That's normal.

The Biggest Beginner Mistake: Chasing Points

Many users admit: "I spent more just to earn miles."

If earning points changes your spending behavior, rewards stop being rewards.

Mika started doing this without realizing it.

She'd buy groceries with her card instead of cash — okay, that's fine. But then she started buying things she didn't need just to hit the next 5,000-point milestone. A new bag. Another pair of shoes. A gadget on sale.

"At least I'm earning points," she told herself.

Except: she spent ₱8,000 extra that month to earn 267 points. Those points were worth maybe ₱50 in redemption value.

She lost ₱7,950.

Signs you're chasing points:

• You're buying things you don't need to hit a bonus
• You're shifting all spending to one card even when it doesn't make sense
• You're carrying a balance just to earn more points

Bottom line: If the points cost you more (in extra spending or interest) than they're worth, you're losing money.

When Travel Points Actually Make Sense

Travel points work best when:

• Spending is already consistent (you're not changing behavior)
• Balances are paid in full every month (interest kills rewards value)
• Travel plans are flexible (you can adjust dates for award seats)
• You enjoy planning redemptions (researching sweet spots, transfer partners)

They fail when:

• You overspend to earn points
• You carry balances (interest charges exceed point value fast)
• You expect instant, guaranteed value

Mika's coworker, Ben, uses points well. He's been using the same card for five years. He pays in full every month. He uses it for expenses he'd make anyway — groceries, utilities, gas.

Once a year, he converts his points and books a trip. He's flexible with dates. He doesn't expect "free" — he just sees it as a small rebate.

Last year, he flew to Bangkok and paid ₱4,000 in taxes for a flight that would've cost ₱12,000. Not free. But a decent discount.

That's realistic.

A Simple Rule for Beginners

If travel points make your finances harder to understand, stop.

Cashback is often better early on. Once you're comfortable managing credit and paying in full, then you can explore points kung interesado ka.

Mika switched to a cashback card after six months. She earns 2% back on groceries, 1% on everything else. Simple. She knows exactly what she's getting.

Travel Points Are Optional

You don't need travel points to travel well.

They're a bonus, not a requirement.

Mika still travels. She books promo fares. She plans ahead. She uses her cashback to offset costs.

She doesn't feel like she's missing out.

Focus on:

• Paying off your balance in full
• Building good credit habits
• Traveling within your actual budget

If points fit naturally into that? Great. If not? You're not missing out.

Travel rewards are a tool, not a lifestyle. Use them wisely, or don't use them at all.