How This Couple Saved $9,077.51 on a 15-Day Australian Vacation

Pink lakes, penguin parades, and the chance to take a selfie with an adorable Quokka (go ahead and look that up — we’ll wait) are just some of the reasons Margarita and her husband couldn’t wait to venture down to Australia.

Margarita began planning their trip to Australia about a year in advance. It wasn’t her first time using travel rewards to score nearly free travel; she’s had experience earning rewards with a handful of hotel loyalty programs over the years. But it wasn’t until late 2017 that Margarita began focusing on how credit cards could take her award travel hobby to the next level. And did they ever.

Margarita’s award travel tip: Award travel is “accessible to people at all income levels. A lot of people think that you have to put $10,000 on your credit card every month for it to be lucrative … Not all points cards out there require a super high minimum spend to earn points that are really valuable.

The trip we’re featuring in this award travel success story took Margarita and her husband from Baltimore to California before heading on a 15-hour flight to Australia. Tons of sightseeing, delish food, and a chance to connect with a close friend made this award trip something truly special. Oh, and did I mention they saved more than $9,000 along the way? Yeah, for real.

With a little strategic planning, out-of-the-box thinking, and a desire to learn, you too can travel the world for pennies on the dollar. If you’re interested in taking a trip like Margarita’s, here’s how she did it.

Flights

When she sat down to hash out her travel itinerary, Margarita had already accumulated enough American AAdvantage miles to book a large portion of her airfare entirely with rewards. She earned these miles by using a new AAdvantage^® Aviator^® Red World Elite Mastercard^® to pay for the costs of renovations to her home.

The first leg of the trip had Margarita and her husband flying from Baltimore to Orange County, California, on American Airlines for a total of $224. From there, they would go on their 15-hour flight from California to Australia. Booking her airfare this way cost fewer points than booking airfare all the way through from Baltimore to Australia. The flight to California is what’s known as a positioning flight, and this strategy can often result in significant savings. Another reason Margarita booked this way was because they planned to visit one of Margarita’s best friends who lives in Los Angeles.

Margarita booked their second flight from Los Angeles, California, to Perth, Australia, with a 10-hour layover in Sydney on American Airlines. This was the longest flight she’d ever been on, and despite flying economy, she said it wasn’t all that bad. This flight cost her 72,000 miles plus $160 in taxes and seat selection fees, which she charged to her Amex Platinum. One of the perks of The Platinum Card^® from American Express is a $200 airline fee credit (no longer available), which completely covered the $160 in taxes and fees. So, in total, Margarita didn’t spend any money out of pocket for this leg of the trip. Had they not used points, it would have cost them $1,019 per person, for a total savings of $2,038 on this part of the trip alone.

After arriving in Sydney, Margarita and her husband took advantage of their 10-hour layover to do some sightseeing. They visited the Sydney Opera House and a handful of The Matrix filming locations before grabbing lunch and returning to the airport to catch their flight to Perth.

The third flight from Perth to Melbourne, Australia, was on Virgin Airlines. For this flight, Margarita used 22,700 Chase Ultimate Rewards points. If Margarita had paid cash for this flight, it would have cost $340.50 total for both tickets. This flight ended up a bit of a bummer, though, because Virgin broke Margarita’s suitcase during the flight. Luckily, she had used her Chase Sapphire Reserve^® to book this flight. One of the benefits of using this card for a flight — even if you pay for the flight in rewards — is the lost luggage reimbursement coverage, which also covers damage to your luggage.

Margarita’s fourth flight toward the end of her trip was from Melbourne, Australia, to San Francisco, California, with an hour layover in Los Angeles. For this flight, she and her husband transferred American Express Membership Rewards to top off the Delta SkyMiles she already had to cover the cost of the flight. In total, this leg of the trip came out to 95,000 Delta SkyMiles for both of them, plus $160.53 in taxes. If she paid cash for this flight, it would have cost her $720 per person.

The final leg of the trip took Margarita and her husband from Oakland, California, back to Baltimore, Maryland, on Southwest Airlines. Because they used 24,792 Rapid Rewards points to cover the cost of his ticket and had the Southwest Companion Pass to cover her, they only had to pay $11.20 in taxes for this portion of their trip.

The Southwest Companion Pass is a benefit that allows you to choose one person to fly with you and all you pay is $5.60 in taxes per one-way trip. To earn the Southwest Companion Pass, you need to either fly 100 qualifying one-way flights or earn 135,000 Rapid Rewards points in a calendar year. Once you earn the pass, it’s good for the remainder of the year in which you earn it and the following year. If you time it correctly, you can essentially get the Companion Pass for two full years.

Expense category	Regular price	What Margarita paid
Flight from Baltimore, Maryland, to Orange County, California	$224	$224
Flight from Los Angeles, California, to Perth, Australia	$2,038	$0
Flight from Perth to Melbourne, Australia	$340.50	$0
Flight from Melbourne, Australia, to San Francisco, California	$1,440	$160.53
Flight from Oakland, California to Baltimore, Maryland	$1,218	$11.20
Flights total (for two people)	$5,260.50	$395.73

Hotels

For the one night in California, Margarita and her husband stayed at the Kimpton Hotel Wilshire in Beverly Hills for 50,000 IHG points. Margarita opened the IHG^® Rewards Premier Credit Card specifically to earn the points needed for this one night. She used 50,000 of the 140,000 bonus points she received from earning the card’s welcome offer.

These points came in handy because Margarita had originally planned to stay with her best friend that night to save some money. But, between the time she booked the trip and the start of her adventure, the plans changed when her friend moved to San Francisco. So, Margarita and her husband needed a hotel — ideally, still for free. Luckily Margarita’s award travel knowledge saved the day. Because they used points for this one night, they saved $328.62.

Margarita’s flight from Los Angeles to Perth flew out the next day at noon. This gave them the entire day after arriving in California to spend sightseeing in Los Angeles. They visited the LA County Museum of Art, hiked the Wisdom Tree trail, and took a Warner Bros. Studio Tour of the set of Big Bang Theory — yes, it was a busy day, to say the least.

Once they arrived in Perth, Margarita and her husband stayed at the Quay Perth Hotel. Margarita booked their room for three nights for a total of 25,922 Chase Ultimate Rewards points, saving them $367.32. The first of three nights in Perth they walked around the downtown area and grabbed some food at a local restaurant. The next morning, they took the train to Fremantle, where they hopped on a ferry to Rottnest Island to see the Quokkas with hopes of grabbing a selfie with one of these adorable creatures (she managed to get one).

After three days in Perth, they rented a car and took an eight-hour road trip to Esperance where they stayed for two nights at an Airbnb. This would have cost $287.04, but the expense triggered the travel credit on Margarita’s Chase Sapphire Reserve Card. The Chase Sapphire Reserve is one of the best credit cards for Airbnb because it comes with a $300 annual travel credit. In this case, Margarita was able to cover the cost of the Airbnb entirely. In Esperance, they booked a flyover over Middle Island to see the famous pink Lake Hillier.

Upon returning to Perth, Margarita and her husband dropped off the rental car and hopped on a flight to Melbourne where they stayed four nights. For the first night, they took a shuttle from the airport and stayed at a nearby Best Western as their flight got in after midnight. They paid $96.75 for this one night as Margarita didn’t find it worthwhile to use points.

The next morning, Margarita ordered a local car service to get downtown where they stayed for three nights at the Grand Hyatt Melbourne. One of Margarita’s friends holds the World of Hyatt Globalist status (Hyatt’s highest status), which allowed them to designate Margarita and her husband as their “Guest of Honor.” This perk basically allows a Globalist member to share their in-hotel benefits, and as a result Margarita received a suite upgrade for all three nights for a total of 60,000 World of Hyatt points. This suite was going for $750 a night at the time.

For their time in Melbourne, Margarita and her husband visited Flinders Street railway station, ate lots of good food, and visited local shops. On their last full day, Margarita and her husband rented a car to drive to Phillip Island. There, they watched a colony of penguins return ashore at sunset after a hard day’s work fishing.

Upon returning to the U.S., Margarita stayed two nights in San Francisco at The Laurel Inn. She used 40,000 World of Hyatt points for what would have cost her $620.76 in cash. Margarita and her husband both opened The World of Hyatt Credit Card before the trip, and the points they earned from the cards’ welcome offers went toward these two nights. After some more sightseeing and finally getting to visit with their friend, Margarita and her husband headed to Oakland airport to catch their flight back home.

Expense category	Regular price	What Margarita paid
One night in Los Angeles	$328.62	$0
Three nights in Perth	$367.32	$0
Two nights in Esperance	$287.04	$0
Four nights in Melbourne	$2,346.75	$96.75
Two nights in San Francisco	$620.76	$0
Hotels total	$3,950.49	$96.75

Rental cars

Margarita rented a car on multiple occasions during her trip to Australia. For each rental, she used her Chase Sapphire Reserve so she could take advantage of the card’s auto rental collision damage waiver. She also earned 3X points for future trips in the process because car rentals fall under the card’s travel category.

Here’s a breakdown of each car rental and what she paid:

• Orange County to Los Angeles, California: One-day rental – $55
• Roundtrip from Perth to Esperance, Australia: Two-day rental – $50
• Melbourne, Australia: One-day rental – $40

Renting a car and driving the eight hours to Esperance was a no-brainer given the cost of flying that leg instead. Flight prices were $300 to $400 per person, which was more than Margarita and her husband paid out of pocket for flights for the entire trip.

Expense category	Regular price	What Margarita paid
Rental car	$145	$145

Other special deals

Margarita and her husband took advantage of Priority Pass lounge restaurants using her Chase Sapphire Reserve every chance they could, as well as an Amex lounge in Oakland. They arrived at the airport three to four hours early to hit these restaurants before their flights, and it was well worth it. Because they received a $29 food credit at each Priority Pass restaurant they visited, all they paid was gratuity.

• Priority Pass restaurants/lounges at LAX: $118 value
• Priority Pass restaurants/lounges at MEL: $116 value
• Escape Lounge at OAK: $100 value

In addition, Margarita was also reimbursed $15 for her Uber ride when she and her husband went out to eat in Melbourne. This perk comes as a benefit of The Platinum Card from American Express. Margarita also saved another $10 after using a new rider code for the local rideshare service she used to get to her hotel in Melbourne.

Expense category	Regular price	What Margarita paid
Airport lounge restaurants	$334	$0
Rideshare	$58.83	$33.83

The travel rewards cards Margarita used

Card name	Welcome offer	Earnings rate	Annual fee	Special perks
AAdvantage® Aviator® Red World Elite Mastercard®	Earn 50,000 bonus miles after you make your first purchase in the first 90 days	2X miles per dollar spent on eligible American Airlines purchases, and 1X mile per dollar spent on all other purchases	$99	First checked bag free; $25 statement credit for inflight Wi-Fi; 25% in-flight savings on food and beverages
The Platinum Card® from American Express	Earn 80,000 Membership Rewards points after spending $6,000 on purchases in the first 6 months	5X points per dollar spent on eligible airfare (on up to $500,000 per calendar year, after that 1X) and eligible hotel purchases, and 1X points per dollar on all other eligible purchases	$695 (terms apply)	$200 annual Uber credit; reimbursement for Global Entry or TSA PreCheck application fee; access to Global Lounge Collection (Certain benefits require enrollment or activation)
Chase Sapphire Reserve®	Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening	5X points on flights and 10X points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually; 3X points on other travel and dining & 1X points per dollar on all other purchases	$550	Priority Pass lounge access; $300 annual travel credit; Global Entry or TSA PreCheck application fee credit
The World of Hyatt Credit Card	Earn up to 60,000 bonus points: 30,000 points after you spend $3,000 on purchases in your first 3 months from account opening, plus up to 30,000 more bonus points by earning 2 points total per $1 spent in the first 6 months from account opening on purchases that normally earn 1 bonus point, on up to $15,000 spent	up to 9X points on stays at Hyatt hotels (4 bonus points plus 5 base points as a World of Hyatt member); 2X points on restaurants, airline tickets purchased directly from the airlines, local transit and commuting and on fitness club and gym memberships; and 1X points on all other purchases	$95	Cardmember anniversary free night
IHG® Rewards Premier Credit Card	Earn 140,000 bonus points after spending $3,000 on purchases in the first 3 months from account opening	up to 26X points on stays at IHG hotels & resorts; 5X points on travel, gas stations, and restaurants; and 3X points on all other purchases	$99	Cardmember anniversary free night; fourth reward night free; Global Entry or TSA PreCheck application fee credit
Southwest Rapid Rewards® Priority Credit Card	Earn 60,000 bonus points (plus a 30% off promo code) after spending $3,000 in the first 3 months	3X points on Southwest purchases; 2X points on participating Rapid Rewards hotel and car rental partners; local transit and commuting, including rideshare; and on internet, cable, phone services, and select streaming; and 1X points on all other purchases	$149	7,500 anniversary points each year; $75 Southwest annual travel credit; four upgraded boardings each year when available
Southwest® Rapid Rewards® Premier Business Credit Card	Earn 60,000 points after you spend $3,000 on purchases in the first 3 months your account is open	3X points on Southwest Airlines purchases, 2X points on rideshare and Rapid Rewards hotel and car rental partners, plus 1X points on all other purchases	$99	6,000 anniversary points each year
Marriott Bonvoy Boundless® Credit Card	Earn 3 Free Night Awards after spending $3,000 in the first 3 months from account opening (each night valued up to 50,000 points)	up to 17X points at over 7,000 hotels participating in Marriott Bonvoy; 3X points at grocery stores, gas stations, and dining on the first $6,000 spent in combined purchases each year; and 2X points on all other purchases	$95	Free night award each anniversary year

AAdvantage^® Aviator^® Red World Elite Mastercard^®

Margarita funded a portion of her airfare using miles she accrued from opening an AAdvantage® Aviator® Red World Elite Mastercard®.

When you open the AAdvantage® Aviator® Red World Elite Mastercard® as a new cardholder, you can earn a great welcome offer: Earn 50,000 bonus miles after you make your first purchase in the first 90 days. After that, you can earn 2X miles per dollar spent on eligible American Airlines purchases, and 1X mile per dollar spent on all other purchases. In addition to no foreign transaction fees, you’ll also have a number of travel protections, and your first checked bag is free.

The Platinum Card^® from American Express

The Platinum Card from American Express came in handy during Margarita’s trip to Australia as it allowed her to transfer Membership Rewards points to Delta SkyMiles to cover some of her airfare. On top of that, she benefited from the card’s Uber credit and access to an airport lounge.

As a new cardmember, you're eligible for an excellent welcome offer: Earn 80,000 Membership Rewards points after spending $6,000 on purchases in the first 6 months. Then, you can earn 5X points per dollar spent on eligible airfare (on up to $500,000 per calendar year, after that 1X) and eligible hotel purchases, and 1X points per dollar on all other eligible purchases. If that hasn’t sold you, you’ll also receive $200 in annual Uber credits and reimbursement for a TSA PreCheck or Global Entry application. Select benefits require enrollment or activation.

Get more details at our Amex Platinum Card review.

Chase Sapphire Reserve^®

Margarita used her Chase Sapphire Reserve to pay for the taxes on her flights and for car rentals throughout her trip, as this card comes with top-notch travel protections — not to mention she earned 3X points as car rentals falls under the travel category.

In addition to all the Chase Sapphire Reserve’s benefits, new cardmembers can get a great welcome offer: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. With this premier travel rewards credit card, you can also earn 5X points on flights and 10X points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually; 3X points on other travel and dining & 1X points per dollar on all other purchases, a $300 annual travel credit, and a Global Entry or TSA PreCheck application reimbursement credit.

Get more details at our Chase Sapphire Reserve review.

American Express^® Gold Card

Margarita applied for the World of Hyatt Credit Card specifically to earn the welcome offer to fund her three-night stay at a Hyatt property in Melbourne.

When you apply for this card, you're eligible for its sign-up bonus: Earn up to 60,000 bonus points: 30,000 points after you spend $3,000 on purchases in your first 3 months from account opening, plus up to 30,000 more bonus points by earning 2 points total per $1 spent in the first 6 months from account opening on purchases that normally earn 1 bonus point, on up to $15,000 spent. If you continue to spend on this card, you can earn up to 9X points on stays at Hyatt hotels (4 bonus points plus 5 base points as a World of Hyatt member); 2X points on restaurants, airline tickets purchased directly from the airlines, local transit and commuting and on fitness club and gym memberships; and 1X points on all other purchases.

Get more details at our World of Hyatt Credit Card review.

IHG^® Rewards Premier Credit Card

Just as she did with the World of Hyatt Credit Card, Margarita opened the IHG Rewards Premier Credit Card specifically to cover the cost of her one-night stay in Los Angeles to kick off her trip. When Margarita opened this card, the welcome offer was 140,000 bonus points, which was more than enough to cover the 50,000 points needed for the night.

If you open the IHG Rewards Premier Credit Card today, you can earn its welcome offer: Earn 140,000 bonus points after spending $3,000 on purchases in the first 3 months from account opening. If you continue using this card for your regular spending, you can earn up to 26X points on stays at IHG hotels & resorts; 5X points on travel, gas stations, and restaurants; and 3X points on all other purchases.

Get more details at our IHG Rewards Premier Credit Card review.

Southwest Rapid Rewards^® Priority Credit Card

Margarita used the Rapid Rewards points she earned using her Southwest Rapid Rewards Priority Credit Card to pay for the last flight of the trip from Oakland to Baltimore.

If you’re a frequent Southwest flyer, this card can be a great way to earn free travel. New cardmembers can get this card's sign-up bonus: Earn 60,000 bonus points (plus a 30% off promo code) after spending $3,000 in the first 3 months. Then, you can earn 3X points on Southwest purchases; 2X points on participating Rapid Rewards hotel and car rental partners; local transit and commuting, including rideshare; and on internet, cable, phone services, and select streaming; and 1X points on all other purchases. As an added benefit, you’ll receive $75 in annual travel credits for Southwest purchases and four upgraded boardings each year when available.

Get more details at our Southwest Rapid Rewards Priority Credit Card review.

Southwest^® Rapid Rewards^® Premier Business Credit Card

Margarita’s husband earned the Companion Pass using the Southwest Airlines Rapid Rewards Premier Business Credit Card. This allowed Margarita to fly for free, aside from paying $11.20 in taxes.

As a new cardholder, you can earn a welcome offer: Earn 60,000 points after you spend $3,000 on purchases in the first 3 months your account is open and then 3X points on Southwest Airlines purchases, 2X points on rideshare and Rapid Rewards hotel and car rental partners, plus 1X points on all other purchases.

Get more details at our Southwest Airlines Rapid Rewards Premier Business Credit Card review.

Marriott Bonvoy Boundless^® Credit Card

Margarita opened the Marriott Bonvoy Boundless Credit Card ahead of this trip and used it for all her spending while traveling. She did this in order to hit the minimum spend requirement to earn the welcome offer.

Currently when you apply for the Marriott Bonvoy Boundless Credit Card, you can earn 3 free night awards after spending $3,000 in the first 3 months from account opening (each night valued up to 50,000 points). Then, you can earn up to 17X points at over 7,000 hotels participating in Marriott Bonvoy; 3X points at grocery stores, gas stations, and dining on the first $6,000 spent in combined purchases each year; and 2X points on all other purchases.

Get more details at our Marriott Bonvoy Boundless Credit Card review.

Bottom line

Expense category	Regular price	What Margarita paid
Flights	$5,260.50	$395.73
Hotels	$3,950.49	$96.75
Rental car	$145	$145
Food	$1,804.70	$1,470.70
Transportation (rideshare, public transit, parking, and gas and tolls,)	$322.61	$297.61
Activites	$989	$989
Total	$12,472.30	$3,394.79

Margarita’s biggest expense during her trip to Australia was food, but she and her husband allowed themselves to indulge a bit. How can you blame them, considering how much they saved elsewhere?

Margarita was able to save an enormous amount of money by strategically opening some of the best travel credit cards and taking advantage of their welcome offers. This let her cover the cost of her airfare and hotel stays without having to dip into her cash spending all too much. These savings meant she could spend her money where she wanted without having to feel guilty about it. Because isn’t that what award travel is all about? 

Although you might not be able to follow in Margarita’s footsteps exactly as costs for things such as hotels and flights change throughout the year, her trip to Australia is a solid template you can use to create your own award trip. This, along with our Ultimate Guide to Travel Rewards, will put you on the right track to get started in award travel.

So how about it, mate? Where are you heading next?