5 Hidden Costs to Watch Out for When Booking Award Flights

Booking award flights with points and miles can feel like winning the travel jackpot. However, while you might avoid paying cash for the ticket itself, award flights aren’t always as “free” as they seem. From taxes to hidden fees, unanticipated costs can quickly add up and diminish the value of your redemption. Here are five hidden costs to watch out for when booking award flights and how to avoid them.

1. Taxes and Carrier-Imposed Surcharges

One of the most significant hidden costs when booking award flights is taxes and carrier-imposed surcharges, often referred to as fuel surcharges.

• Examples of High Surcharges:

  • British Airways: Long-haul flights often come with surcharges exceeding $600 per round trip in business class.

  • Lufthansa: Similarly high fees on premium cabin redemptions.

• How to Minimize:

  • Book with airlines known for low surcharges, like United Airlines, Turkish Airlines, or Air Canada Aeroplan.

  • Use Avios to book Iberia flights from Spain to avoid high fees typical of British Airways.

  • Avoid originating from countries with higher departure taxes, such as the UK.

Pro tip: Search for flights that originate outside of high-tax regions to save on fees.

2. Partner Booking Fees

Booking flights on partner airlines through loyalty programs can unlock incredible value, but some programs charge additional fees for partner redemptions.

• Example: American Airlines charges $75 for award tickets booked within 21 days of departure, and Alaska Airlines applies a $12.50 booking fee per direction for partner flights.

• How to Minimize:

  • Plan and book your award flights well in advance to avoid last-minute fees.

  • Focus on programs like Aeroplan or Chase Ultimate Rewards, which typically don’t charge partner booking fees.

Pro tip: Look for promotions or waived fees during loyalty program campaigns.

3. Seat Selection Charges

Even after redeeming miles for a ticket, you might face additional fees to select your preferred seat—even in premium cabins.

• Examples:

  • Lufthansa and British Airways charge for seat selection in business class unless you have elite status.

  • Basic economy award tickets often don’t include seat selection.

• How to Minimize:

  • Choose airlines like Qatar Airways or Singapore Airlines, which include complimentary seat selection in business and first class.

  • Opt for elite status with an airline to unlock free seat selection perks.

Pro tip: If you don’t mind waiting, select seats at check-in when many airlines release unsold premium seats for free.

4. Change and Cancellation Fees

Life happens, and sometimes you need to adjust your travel plans. While many loyalty programs have reduced or eliminated change fees post-pandemic, some still charge penalties.

• Examples of Fees:

  • Delta SkyMiles: No change fees for most tickets, but beware of ticket expiration policies.

  • American Airlines AAdvantage: No change fees but non-refundable taxes and fees apply.

  • Emirates: Charges up to $75 for changes or cancellations depending on the region.

• How to Minimize:

  • Choose flexible programs like Southwest Rapid Rewards or Alaska Mileage Plan, which offer free changes and cancellations.

  • Always read the program’s cancellation policy before booking.

Pro tip: If possible, use points that allow full refunds for cancellations, like Chase Ultimate Rewards bookings through their portal.

5. Connection and Stopover Costs

Long layovers and stopovers can add value to your trip, but they may also come with hidden costs.

• Examples:

  • Certain loyalty programs charge additional miles or cash for stopovers (e.g., Emirates).

  • Stopovers may require an extra visa or accommodation, depending on the location.

• How to Minimize:

  • Use programs like Aeroplan or Alaska Mileage Plan, which allow free or low-cost stopovers on award tickets.

  • Plan layovers in cities where visas aren’t required for your nationality.

  • Book airlines that offer complimentary stopover packages, such as Qatar Airways in Doha or Turkish Airlines in Istanbul.

Pro tip: Research stopover policies for your chosen airline before finalizing your itinerary.

Bonus: Fuel Economy for Redemptions

While not a direct “cost,” the way you spend your points can also impact your overall travel budget. Inefficient redemptions can mean using more miles than necessary:

• Examples of Inefficient Redemptions:

  • Using miles for low-value redemptions like short-haul economy flights with high fees.

  • Booking dynamic pricing flights during peak times.

• How to Maximize Value:

  • Look for sweet spots, such as transferring points to ANA Mileage Club for round-trip business class to Japan or to Turkish Airlines for affordable long-haul redemptions.

  • Take advantage of transfer bonuses from programs like Amex Membership Rewards or Chase Ultimate Rewards.

Conclusion: Plan Smart, Save Big

Booking award flights can unlock incredible travel experiences, but hidden costs can quickly add up if you’re not careful. By understanding taxes, fees, and other potential pitfalls, you can make informed decisions and maximize the value of your points. With a little research and planning, you can enjoy the luxury of award travel without the surprise expenses.

Have you encountered hidden costs when booking award flights? Share your tips and tricks in the comments, or tag us in your travel stories on Instagram at @roaming.cactus. Let’s make award travel smarter and more rewarding for everyone!