Introduction
Ever wondered which points program reigns supreme in Canada? You’re not alone.
I get asked this question all the time. The answer ultimately depends on several key factors including: personal spending patterns, programs currently used, and travel and redemption goals. So, we’ll dive into the top contenders, focusing on maximizing value, flexibility, and simplicity (ease of use). And, at the end, I’ll share my top pick and why it might be right for you.
Ready to learn? Lets go.
TLDR
- For fixed-value points, CIBC Aventura provides the best value at 1.25 CPP.
- For variable-value points, both Aeroplan and American Express have a TRV of 2 CPP with American Express being the most flexible.
- For ease of use, Scene+, TD Rewards, and MBNA are top choices with options to redeem points in their in-house programs or for credit toward any travel charges.
- When evaluating flexibility, ease of use, and potential returns, American Express Membership Rewards points are the most valuable in Canada.
The Value of a Point
To determine which points offer the most value, we first need to understand what a point is actually worth. For a more in-depth discussion, check out this post. To simplify, we will focus on Target Redemption Value (TRV) and measure value in cents per point (CPP). To ensure a fair comparison, we will also consider the dollar value earned per dollar spent.
For fixed-value points, most programs offer a straightforward 1 CPP/ dollar spent, essentially a 1% cashback equivalent. CIBC Aventura stands out with a promotional 1.25 CPP redemption against travel. Conversely, BMO Airmiles and BMO Rewards points offer lower returns, at 0.87 and 0.67 CPP/dollar spent, respectively, in general spending.
For variable-value points, redemptions typically offer a TRV of approximately 2 CPP, translating to a potential 2% return on spending when redeemed optimally. However, when redeemed strategically for business or first class flights, variable-value points can reach 5-10 CPP in value. Cathay Pacific Asia Miles are a slight exception, with a base TRV of 1.67 CPP. Additionally, while World of Hyatt points offer strong value for hotel redemptions at 1.8 CPP, their earning and redemption options in Canada are limited compared to other programs. For a list of TRVs, click here.
In summary, while CIBC Aventura excels in the fixed-value category, variable-value points offer a higher baseline return of around 2 CPP and can unlock significantly greater value when redeemed for premium travel like business or first-class flights.
Flexibility
Beyond pure point value, flexibility is a critical consideration. While accumulating points is exciting, their true power lies in adaptability. Points locked into a single program risk devaluation – when a company raises redemption costs or reduces point value – and can severely limit travel options. This is where programs with diverse transfer partners excel.
In Canada, two of the top financial institution programs offering this flexibility are American Express Membership Rewards and RBC Avion. While both allow for fixed-value redemptions, their ability to transfer points to partner programs unlocks greater value. American Express reigns supreme in this regard, offering transfers to over eight travel partners, including both Aeroplan and Avios at a 1:1 ratio. RBC Avion provides a unique blend of fixed travel options and transfers to airlines like American Airlines, British Airways, and Cathay Pacific.
For those focused on airline-specific programs, Air Canada Aeroplan and British Airways Avios offer distinct advantages. Aeroplan, a favorite for Canadian travel, provides extensive destinations through the Star Alliance network, featuring partners like ANA, EVA Air, Lufthansa, Singapore Airlines, Turkish Airlines, and United Airlines.
British Airways Avios leverages the OneWorld Alliance, with partners such as Alaska Airlines, American Airlines, Cathay Pacific, Japan Airlines, Qantas Airways, and Qatar Airways.
While both Aeroplan and Avios unlock global travel, Aeroplan’s accessibility within Canada makes it a preferred choice for many. However, for those seeking maximum flexibility, American Express Membership Rewards offers the ability to transfer to either Aeroplan or Avios, thus keeping options open.
Ultimately, the “best” program depends on your travel goals, but Amex’s versatility and Aeroplan’s strength for Canadian travel make them strong contenders in the flexibility category.
Simplicity
Another crucial factor for any points program is the ease of earning and redemption. Complexity can quickly discourage even the most enthusiastic points collectors.
Fixed-value programs typically excel in simplicity, offering straightforward redemption processes akin to cashback. Scene+ points stand out in this category, providing a seamless experience through their Scene+ Travel portal and the convenient “apply points to travel” option, both offering a consistent 1 CPP value. TD Rewards and MBNA Rewards are strong contenders as well. While TD Rewards offers a 0.5 CPP redemption through its portal, its higher earning rate of 2 points per dollar spent compensates for the difference. MBNA Rewards maintains a steady 1 CPP redemption rate when using its travel portal. Additionally, both programs also offer the flexibility of redeeming points as statement credits against any travel purchase, though at a slightly reduced rate.
Variable-value programs, while generally straightforward for earning, especially with bonus categories on affiliated credit cards, pose more challenges for redemption. Navigating program portals and employing strategic search skills are often required to maximize value. Unlike fixed-value programs, which allow for booking any available flight, variable-value points are subject to partner availability, limiting immediate booking flexibility. However, the potential for higher returns at the TRV makes the added effort worthwhile.
For those prioritizing ease of use, fixed-value programs like Scene+, TD Rewards, and MBNA Rewards are ideal, providing a simple, cashback-like experience. Notably, Amex and RBC also offer fixed-value travel redemptions at 1 CPP, providing some simplicity alongside their variable-value options.
Conclusion
Finding the best points program in Canada hinges on balancing value, flexibility, and ease of use. Fixed-value programs offer simplicity and reliability, akin to cashback, while variable-value points present higher potential, particularly for premium travel, albeit with increased effort. For maximum flexibility, American Express leads with its extensive transfer partners, while Aeroplan excels for Canadian travel. Ultimately, your optimal choice aligns with your personal travel goals and comfort level with program complexity.
If I were to choose a single program that best navigates this balance, American Express Membership Rewards would be my top pick. It seamlessly blends the straightforward earning structure found in fixed-value programs with the potential for exceptional redemptions through its unparalleled flexibility. This versatility, coupled with access to both Aeroplan and Avios, makes Amex a comprehensive and powerful tool for Canadian travelers seeking to maximize their rewards.
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