A
Alliance
A partnership between multiple airlines that allows them to share routes, lounges, and loyalty benefits. The three major alliances are Star Alliance, oneworld, and SkyTeam. Miles from one airline can often book flights on alliance partners.
Annual Fee
A yearly charge for holding certain credit cards. Premium travel cards often have annual fees of $95-$695, offset by benefits like welcome bonuses, travel credits, and lounge access.
Award Availability
The seats that airlines make available for booking with miles instead of cash. Limited availability is the main challenge in redeeming points—just because a flight exists doesn't mean you can book it with miles.
Award Chart
A pricing table showing how many miles are needed for flights between different regions. Award charts provide predictable pricing, unlike dynamic pricing which fluctuates based on demand.
B
Bonus Category
Spending categories that earn extra points on a credit card, like 3x on dining or 5x on groceries. Maximizing bonus categories is key to earning points faster.
Business Class
Premium cabin seating between economy and first class, typically featuring lie-flat seats on long-haul flights. Business class is often the sweet spot for award redemptions—much better than economy, but more available than first class.
C
Chase 5/24
An unofficial rule where Chase will deny most credit card applications if you've opened 5 or more credit cards (from any bank) in the past 24 months. Important to consider if you want Chase cards.
CPP (Cents Per Point)
A way to measure the value of a points redemption. Calculated by dividing the cash price by the points required. Example: $500 flight / 25,000 points = 2 cents per point.
Co-branded Card
A credit card issued in partnership with a specific airline or hotel (like the United Explorer Card or Marriott Bonvoy card). Points go directly to that program, unlike transferable points.
D
Dynamic Pricing
Award pricing that fluctuates based on demand, similar to cash tickets. Delta and United use dynamic pricing, meaning the same flight can cost vastly different mile amounts on different days.
H
Hard Inquiry (Hard Pull)
A credit check that appears on your credit report when you apply for credit. Typically causes a small, temporary drop in your credit score (5-10 points).
M
Minimum Spend
The amount you must charge to a new credit card within a specified time (usually 3 months) to earn the welcome bonus. Example: "Spend $4,000 in the first 3 months."
Miles
The currency earned in airline loyalty programs. Called "miles" because they were originally earned based on distance flown. Now used interchangeably with "points" for travel rewards.
P
Partner Booking
Using one airline's miles to book a flight operated by a different airline (usually an alliance partner). Often provides better value or availability than booking with the operating airline's own miles.
Points
The currency earned through credit cards, hotels, or airlines that can be redeemed for travel. Credit card companies typically call them "points" while airlines call them "miles."
S
Sweet Spot
A redemption that offers unusually good value due to favorable award chart pricing. Sweet spots are specific routes or programs where you get much more value than typical redemptions.
Surcharge (Fuel Surcharge)
Additional fees charged on top of award bookings, especially common with British Airways and certain other carriers. Can range from $5 to $600+ depending on the airline and route.
T
Transfer Partner
An airline or hotel program that accepts point transfers from credit card programs. For example, United is a transfer partner of Chase Ultimate Rewards. Transfers usually happen at a 1:1 ratio.
Transferable Points
Credit card points that can be moved to multiple airline and hotel partners. The major transferable programs are Chase Ultimate Rewards, Amex Membership Rewards, Capital One Miles, Citi ThankYou, and Bilt.
W
Welcome Bonus (Sign-Up Bonus)
A large point bonus earned after meeting minimum spend requirements on a new credit card. Welcome bonuses are typically the fastest way to earn a significant number of points.