If you’ve listened to a few episodes of Departure Digest, you’ve probably heard us mention "transferable points" and thought… cool, but what does that actually mean?

Same. I nodded along for months before it finally clicked.

So let’s slow it down. Here’s what transferable points are, why we talk about them so often, and when they’re actually worth your time.

To understand transferable points, it helps to understand what they aren't.

Most airline and hotel points are locked in. If you earn Delta SkyMiles, you can generally only use them on Delta flights or a small set of partners. If you earn Marriott Bonvoy points, you are booking Marriott hotels. You are committed to that brand, whether you like the price or not.

Transferable points (also called flexible points) work differently.

These rewards are not tied to a single loyalty program. Instead, they are generally issued by a bank and live in a central account until you’re ready to book.

When you want to travel, you can move, or “transfer,” those points to a variety of airline or hotel programs. If one option is overpriced, you can pivot. That flexibility is the entire point.

When we say “transferable points,” we’re usually talking about one of these programs:

Each program has its own transfer partners. Some overlap. Some don’t.

That’s why transferable points are so powerful. If one airline wants an absurd number of miles, you can check another program. If hotel prices spike, you can look elsewhere.

You’re not committed to anything until you click “transfer.”

Once you have transferable points, you usually have two ways to turn them into a trip.

You can book flights or hotels directly through the program’s travel portal, which works a lot like Expedia.

You find a flight, and you pay with points at a fixed value, usually around one cent per point. It’s easy, predictable, and totally fine for a lot of trips.

This is where the magic happens.

Instead of booking through the portal, you move your points from the bank to an airline or hotel loyalty program and book through that program instead.

Here’s why the math can work in your favor:

Let’s say you want to fly from Miami to Vail for a ski trip. A nonstop flight on American Airlines might cost around 35,000 points one way if you book through a travel portal.

But American Airlines partners with Alaska Airlines. That means you can book the exact same American Airlines flight using Alaska Atmos Rewards.

Instead of spending 35,000 points, you could transfer just 12,500 points to Atmos Rewards and book the same seat. Same flight. Same experience. Over 60% fewer points.

One quick warning: You can technically redeem transferable points for cash back, gift cards, or merchandise. However, we rarely talk about those options because the value is almost always terrible compared to travel. Friends don’t let friends burn valuable points on toasters.

Transferable points work best in specific situations.

They tend to shine when:

They’re less exciting when:

There’s no shame in choosing convenience over optimization. The win is knowing you had options.

If you fly the same airline every week for work, a co-branded card can make sense.

If you travel once a year and want zero mental load, cash back might be easier.

Transferable points are best for travelers who want flexibility without turning travel into a second job. People willing to compare two or three options, not twenty.

If that sounds like you, this is the type of currency we’ll keep coming back to.

If you value simplicity above all else, cash back is fine. 

But transferable points are the best option for travelers who want flexibility without making travel planning a hobby. They give you leverage when prices spike or availability disappears.

You don’t need to memorize award charts or master every partner. That’s our job. You just need to know the option exists, and when it’s worth using.

Once you understand that, the rest gets a lot less intimidating. Start accumulating them now. Your future self (sipping champagne at 30,000 feet) will thank you.