When it comes to budgeting, there are many ways to ensure that the money you have today is set aside for the needs you will have later. In some cases, the rewards associated with a credit card serve the same purpose. By paying the annual fee of a travel credit card with some of your vacation budget now, you may be able to exponentially increase the value of your vacation budget later. For me, this is the only reason to keep cards like the Chase World of Hyatt card around.

The World of Hyatt Card by Chase

Screenshot from Chase.com

The World of Hyatt card charges a $95 annual fee, but offers a free night at any Category 1-4 Hyatt hotel or resort every year after your cardmember anniversary. To make up for the fee that first year, Hyatt will give you 60,000 Bonus Points after meeting spending requirements which they advertise is good enough for 2 Free Nights in Maui at their Category 6 property.

How to Enhance Your Vacation Budget

By paying the $95 annual fee from your vacation budget now, you will have eliminated the cost of one night’s lodging from an upcoming trip. While 2020 halted our travel plans, we find ourselves oozing with optimism in 2021. Later this Fall, we have plans to be in Boston and will require accommodations for two nights. Fortunately, Hyatt extended the expiration date on our previous year’s free night credit in recognition of the pandemic, giving us two free night credits to redeem!

The Hyatt Regency Cambridge / Boston

Situated along the scenic Charles River and overlooking the Boston skyline, the recently renovated Hyatt Regency Boston / Cambridge is a welcoming hotel conveniently located near just steps from Cambridge’s Kendall Square the city and steps from some of the most prestigious universities of such as MIT, Boston University and Harvard. Caption and Photo Source: Hyatt.com

We decided to book our room at the Hyatt Regency Cambridge / Boston. Using the free night awards associated with two years’ worth of annual fees ($95 x 2 = $190), we were able to make our reservation for two nights at no additional charge. The same reservation would have normally cost $758.92.

A Savings of 75%

By booking with our free night awards, we saved 75% on our lodging costs for this trip! By keeping this card in our inventory, we know that we can significantly reduce our lodging costs on one short trip each year. Other cards offer perks like Alaska Airline’s companion fare that allow you to add a second ticket to your flight itinerary for just $128. While some cards are daily drivers, in the form of high returns on every day spending, others such as the World of Hyatt card should be balanced against your annual travel spend to ensure your dollars go further each year.