What is travel hacking?

Travel hacking, often referred to by Brad Barrett as travel rewards, is a strategy to earn free or discounted travel through smart credit card usage. The core idea involves:

1. Credit Card Sign-Up Bonuses: Opening specific credit cards that offer substantial bonuses, such as 50,000 points or miles, when a certain spending requirement (e.g., $3,000 in the first three months) is met.
2. Regular Spending: Redirecting regular expenses to these new cards to meet the spending requirements.
3. Paying Off Balances: Ensuring the credit cards are paid off in full and on time each month to avoid interest charges.
4. Maximizing Bonuses: After earning the initial bonus, moving on to another card to earn more rewards.

This approach can yield significant savings on travel, effectively giving users a substantial rebate on their normal spending 1.

For instance, Jonathan Mendosa shared how this method allowed him to afford expensive flights to visit his wife's family in Zimbabwe, which typically would have cost around $6,000 every two years. By utilizing travel hacking, they were able to save substantial amounts of money 2.