I have made no secret of the fact that Chase Ultimate Rewards points are my favorite points currency. Their usability is tops as far as I am concerned, and that’s whether you are spending them directly or transferring Ultimate Rewards points to one of their airline partners like British Airways or United Airlines, or hotel partners like Hyatt or Marriott. One of the questions I get from time to time (OK, five times a day) is what is the best way to leverage points for cruises. My usual response is that there is none, and you should use your points to pay for long-haul flights in a premium class of service. Then, I clarify what I really mean. 🙂 IF you have lots of points in your pocket, and really don’t need or desire to take any long-haul flights, or have enough miles or points to otherwise cover that, then by all means, use your points to pay for all or part of your cruise. You can even use Ultimate Rewards points to pay for one of the more popular shore excursions in Nassau. More on that later. While much (but not all) of what I am going to talk about in this post could be applied to any of the proprietary rewards currencies, the focus of this discussion will be on using Ultimate Rewards.
Earning
You know the drill. Your Chase Sapphire Preferred card earns 2X points per dollar on dining and travel (3X on dining the first Friday of the month right now), and 1x point per dollar on everything else. If you’re new to the card, you can apply now and earn a 40,000 point bonus after spending $3,000 dollars in 3 months from account opening. The Chase Ink Bold and Ink Plus products offer spending bonuses of 5X points per dollar on the first $50,000 spent annually at office supply stores, and on cellular phone, landline, internet, and cable TV services, 2X per dollar on the first $50,000 spent annually at gas stations and for hotel accommodations when purchased directly with the hotel, and 1X per dollar on everything else. If you have yet to apply for these cards and elect to do so, you can earn a 50,000 point bonus after spending $5,000 dollars in the first 3 months from account opening.
Spending
You receive 20 percent off when using your Ultimate Rewards to purchase travel including airfare, hotels, car rentals, and cruises. What does that mean to you? If your cruise costs $1,000 dollars, you will spend 80,000 Ultimate Rewards to pay for it. You cannot book cruises online at the Ultimate Rewards travel site. You must call Ultimate Rewards travel to do so, and they will apply your points to purchase your cruise.
There is, of course, more to the cost of most cruises than meets the eye. There’s onboard spending and shore excursions. If you wish, you can apply for a cash back statement credit for your on board spending. If you spend $500 dollars on board, 50,000 Ultimate rewards points will cover that. In most cases, that’s the only way you can cover shore excursions with Ultimate Rewards as well. I say most cases because one of the better deals I’ve seen using Ultimate Rewards will get you access to the Atlantis water park on Paradise Island, Bahamas. I learned of this from Points and Travel, so Hat Tip here.
Atlantis is not the only hotel on Paradise Island, the Comfort Suites Paradise Island is located adjacent to Atlantis and offers access to many of Atlantis’ amenities including its fantastic water park. Hey, I may be 43 years old, but I ride those water slides and not so lazy river at Atlantis like a champ! In fact, a visit to Atlantis is the only reason I even bother to disembark the ship in Nassau at this point in my cruising career. Cruise lines sell shore excursions to the water park, and they are costly. Currently $169 dollars per adult for my upcoming Enchantment of the Seas cruise, and $119 dollars per child. In other words, $576 dollars for a family of four! There are a couple of approaches to this. If you happen to be an elite member of Amtrak’s Guest Rewards program (or carry the Guest Rewards credit card) you can transfer 10,000 Ultimate Rewards into Guest Rewards. Then redeem those 10,000 points for 30,000 Choice Privileges points. Rooms are currently pricing at 25,000 Choice Privileges points. Lacking the Amtrak option, you can book a room at the resort through Ultimate Rewards travel, and get he same 20 percent off deal that you do for booking your cruise.
Summary
Ultimate Rewards can help you set sail on a cruise vacation. They can be used to pay for all or a portion of your cruise and related expenses. I don’t pretend to represent that this is the best value for your hard earned points, but it is a way to spend them if you desire. I have stated before that I think mileage programs as we know them are going to change, and if this happens, Ultimate Rewards and their alternatives for spending are going to become comparatively more valuable. Much like a cruise vacation, the choice is all yours. Look for future posts on using other rewards currencies for cruises.
-MJ, May 6, 2013
My question is if you pay for a cruise on the Chase Sapphire Preferred card, does that qualify as travel and hence 2x points.
Thanks
Nancy, It does qualify as travel. I pay for most of my cruises with my CSP card, onboard expenses as well. I have always received 2 X points when doing so.
Brilliant Jeff:
I’d rather my idea be “bashed” rather than be called “dumb”. What 2% cash back card are you talking about? An Amex that is not universally accepted or that charges foreign transaction fees? As I said, the Capital One Venture Card is a great “2nd card” for “non-bonused spending”. Although the Fidelity AMEX card that MJ spoke about is also a great card, it is not universally accepted (since it’s an AMEX), and carries fees that the Venture card doesn’t (foreign transaction fees). And since in the example MJ gave, we were booking cruises and trying to find an effective way to use points to do it, there really is no issue utilizing the points. You can even book with the card, get the points, and then use the points in lieu of payment (so you’re even receiving points when you utilize points). So, …. tell me what cash-back card you were talking about ?
IF you have lots of points in your pocket, and really don’t need or desire to take any long-haul flights, or have enough miles or points to otherwise cover that, then by all means, use your points to pay for all or part of your cruise.
That person must be really dumb. Would be better getting 2% cashback if s/he planned ahead.
Cash back is one of the view points I’m going to blog on as I work through the various currencies for cruising.
I won’t bash. Good points. One of the reasons I’m a fan of the Fidelity Amex for many people.
If cruising is your preferred way of using points, then the Capital One Venture card is a great 2nd card in your wallet. Perfect for everyday non-bonused spend. The 2% travel rebate the Venture Card gives you is better than the 1.25% that Ultimate Rewards will credit you. In addition, you can use it for your room bill at then end of the cruise, for expenses like wine, soda, massages, bingo, etc. I believe Ultimate Rewards can only be used to BOOK the cruise. With Cap One, you can book it through any provider. Just charge it with the card. So, it has greater rebate flexibility than most/all other travel cards, and a reasonably high 2% return on all spend. So, if your not buying office supplies with your ink card, then the Capital One card is a good/very good way to go. (I realized I’ll get bashed in this post, but 2% back with no foreign transaction fees, liberal booking options, and liberal rebate use is the best card I have for non-bonused spend.