(WBBM NEWSRADIO) — Americans are sitting on top of a mountain of airline and hotel rewards miles. What should they do?
The COVID-19 pandemic brought travel to a standstill in 2020. While many trips were canceled or delayed, people continued to spend money and bank the rewards miles.
Airlines are adjusting to the glut of miles by reducing their buying power.
"It's something that happens a lot," Ted Rossman, industry analyst for CreditCards.com told the Noon Business Hour on Monday.
He said airlines and hotels want customers to pay cash.
"The number one way they do this is basically just requiring more miles or more points to get that free hotel or that free flight than it used to take," Rossman said.
He added that some airlines are already starting to adjust the value of their miles.
"Southwest recently devalued their miles by 6 percent," Rossman said.
But, he noted, there are deals to be had, especially on international flights.