Travel points are one of the most underused financial tools available to Canadians. Every dollar you spend on the right credit card can quietly accumulate into free business class flights, luxury hotel nights, and family vacations — if you know how the system works. This guide explains everything from scratch.
The Golden Rule: Start With Your Goal
Before you earn a single point, the most important question to ask yourself is: where do you want to go? Which airlines do you want to fly? Which hotels do you want to stay at? Working backwards from your dream trip is the single most important principle in the points game. It determines which programs to focus on, which cards to apply for, and how to spend strategically.
What Exactly Are Points?
There are two main types of travel currencies:
- Transferable Points — earned on general-purpose rewards cards (like Amex Membership Rewards or RBC Avion) that can be moved into multiple airline or hotel loyalty programs. These are the most flexible and powerful.
- Fixed-Value Points — earned on cards like TD Rewards, BMO Rewards, or Scene+. These redeem at a fixed rate (usually 1 cent per point) toward any travel purchase. Simple, but lower ceiling.
- Loyalty Program Points — earned directly with an airline (Aeroplan, Avios) or hotel (Marriott Bonvoy, Hilton Honors). Best used for premium cabin flights and high-end hotels where the value per point is highest.
Cents Per Point (CPP): The Only Number That Matters
CPP tells you how much value you're getting from each point. It's calculated simply:
CPP Formula
- Cash rate ÷ Points rate = CPP
- Example: A hotel costs $1,500 cash or 75,000 points → $1,500 ÷ 75,000 = 2¢ per point
- For flights, target 2¢+ CPP. Above 5¢ is good. Above 7¢ is great. Above 10¢ is outstanding.
- For hotels, target varies by program (Hyatt: 1.5¢ USD, Hilton: 0.5¢ USD, Marriott: 0.7¢ USD)
How Points Are Earned
There are four main ways to accumulate points:
- Organic Spend — your everyday purchases (groceries, dining, gas, bills). The right card multiplies these into points. A card earning 5x on groceries on $1,000/month = 5,000 points a month just from food.
- Welcome Bonuses — the biggest single source of points. A single card can deliver 50,000–100,000+ points just for meeting a spending minimum in the first 3 months. This alone can be worth $900–$1,500 in flights.
- Major Purchase Spend — weddings, renovations, car purchases. Putting a $20,000 renovation on the right card can net 100,000+ points in one shot.
- Credit Card Transfers — flexible currencies like Amex MR and RBC Avion can be transferred into airline programs at a 1:1 ratio, unlocking premium redemptions far above the fixed value.
The Canadian Points Ecosystem
Canada has a unique set of programs and cards that differ from the US. The best transferable currencies for Canadians are:
| Currency | Best Card to Earn | Transfers To | Best Use |
|---|---|---|---|
| Amex MR (Canada) | Amex Cobalt, Amex Platinum | Aeroplan, Avios, Marriott | Business class flights |
| RBC Avion | RBC Avion Infinite | British Airways Avios, Asia Miles | Partner airline bookings |
| Aeroplan | TD Aeroplan, Amex Aeroplan Reserve | Direct redemption | Star Alliance flights |
| Scene+ | Scotiabank Passport | Direct travel redemption | Any travel purchase at 1¢/pt |
Key Terminology
- WB (Welcome Bonus) — the one-time influx of points when you meet a new card's spending minimum
- MSR (Minimum Spend Requirement) — the spend needed to unlock the welcome bonus
- Sweet Spot — a specific redemption that gives outstanding CPP value within a program
- Stopover — on a one-way itinerary, staying in a connection city for 24+ hours (free sightseeing!)
- Open Jaw — flying into one city and out of another on the same ticket
- IATA Codes — YYZ = Toronto Pearson, YOW = Ottawa, YVR = Vancouver, LHR = London Heathrow
Understanding these fundamentals is the foundation for everything else. Once you know your CPP, your goal destination, and your earning options, the rest of the strategy falls into place naturally.