Earn the Miles or Get the Cash Discount

Exactly. Since you are in the Midwest and probably don't get as many great-airfare opportunities as people in NYC and Boston, your miles may be worth toward the high end of that range. But you still have to figure out a way to use them. And cash is always spendable.

If you're just earning miles, I'd say go for the cash discount.

If you're earning points for cash-back, then you'd have to compare if the 2.5% discount you get compensates for what you would earn in points. For example, if you had a $1000 tour, then would be equal to $10 cash back on most credit cards, but a $25 discount from Rick.

Also think about if the miles get you over some threshold. For instance, does it get you to a level that gets you a free ticket or upgrade? Some cards offer 3% back on travel. I think the new Costco car does.

I am in the same dilemma. LOL Still have till mid April to decide.

When I use cash, generally for hotels, it is a saving of 5 to 10%. On your illustration that is $50 to $100.

I just called in my tour payment a few minutes ago for Barcelona and Spain. I wanted points!! Not much savings on writing a check for this trip.

For a big payment like an upcoming tour I try to time it so that I apply for a credit card that offers a large points/miles bonus but requires a certain amount of spending within 90 days, e.g. Chase Sapphire, United, British Air, Southwest, Delta, American, Alaska Air - all these credit cards offer nice bonus miles for new cards but they have a spending requirement on their card before you receive the bonus miles.

As a general rule I go for the cash over the miles or points.

The reality is that miles/points can be devalued at any time. The airline/hotel simply decides to charge more points for a flight or a room. Presto! Your miles are worth less today than they were yesterday. My rewards cards give me cash and I put it into a special travel account. I use money from that account to pay for extras like spending an extra day in a city.

My exception is if I am getting a big bonus in terms of the number of miles. For, example, the credit card is giving 5x miles for travel expenses this month. That MAY be worth it, if you will use the miles sooner than later.

It depends on the points/miles you earn based on dollars spent. And, if you can redeem for cash or if there are other restrictions on what you can use points for. For Rick's 2.5% discount if paying by check, you'd need to earn more than 2.5 points for every dollar spent to make it worth using the points. You also must pay the card in full each month. If you accrue interest, you'll negate any benefit from earning points. I suggest paying the deposit by card to earn a few points and pay the rest by check, unless you earn more than 2.5 points per dollar spent.

Accumulating airline miles(points) to later convert for trips is a game I tend to avoid now. First, the miles have been devalued over time and second, it's too often challenging to actually secure seats in acceptable itineraries. Finally, my more recent experiences when flying on miles, is very negative. Go for the discount!

We chose the 3% rebate from Costco's Visa card vs. Rick's 2.5% discount. We'll take any and all pennies we can to use towards more travel!

I pay in cash and get the 2.5% discount. I am sure there are cards that give cash back or other "perks" greater than RS, but the difference is usually immaterial, especially when adjusted for the annual fee.

For instance, I have a hotel credit card, which gives me 1 point for each dollar purchased. Using $4,000 as an example; I get either 4,000 points (about 8-18 percent of a hotel stay); or $100. To me, the cash is the better value. More power to those who have a cash back card with rewards greater than 2.5% :-)

It's a tricky thing so choose wisely.

I usually go for the RS discount and pay cash (check). That way I don't have a huge cc bill to worry about paying later.

My credit card gives 3% cash back for travel, and it has certain travel cancellation benefits. So, that is a no-brainer for me.
I do not go for points/miles as they airline/hotel/bank can devalue them at will.

Cash or its equivalent makes a lot more sense to me.