The Clark Howard Podcast: Airfare Update & Credit Card Points Devalued (06.30.25)
Release Date: June 30, 2025
Airfare and Hotel Rate Downturn
Clark Howard opens the episode by sharing optimistic news about current travel costs. [01:03] He notes that airfares and hotel rates have decreased due to a softer travel market. Fewer foreign travelers are visiting the U.S., leading airlines to reduce prices in response to decreased demand. Clark emphasizes personal experience, mentioning a $550 round-trip flight to Iceland during peak summer and European fares dropping below $1,000, a significant decrease from previous summers.
Notable Quote:
"Airfares are down. Not good if you're an airline stockholder, but they're down." [01:03]
Delta's Experimental Pricing Strategy
Clark discusses an intriguing development in airline pricing. [03:25] Delta Airlines is reportedly testing a strategy where single travelers are charged up to 70% higher fares than those booking for multiple people. This move is based on the assumption that solo travelers are often traveling for business and are less price-sensitive.
To navigate this potential price hike, Clark advises a clever workaround:
- Book a higher fare for multiple passengers.
- Cancel the extra passengers within 24 hours to avoid penalties, leveraging the federal law that permits ticket cancellations within this window.
Notable Quote:
"Delta is experimenting with something that's mind-blowing... they're charging fares up to 70% higher versus two or more people traveling together." [05:15]
Encouraging Airline Shopping Over Loyalty
Clark stresses the importance of shopping around for the best airfare instead of remaining loyal to a single airline. He suggests using tools like Google Flights and Hopper to compare prices across different carriers, potentially saving significant amounts. Clark shares his personal shift from airline loyalty to a more flexible approach, highlighting the financial benefits.
Notable Quote:
"I am not loyal to an airline anymore... the more you stay loyal to one brand, the more you're gonna pay." [06:15]
Credit Card Points Devaluation
Transitioning to credit card rewards, Clark expresses concern over the devaluation of points and miles. Airlines and credit card companies are increasingly altering their rewards programs, reducing the value of accumulated points. He warns listeners to actively use their points to avoid potential losses in value.
However, Clark highlights that certain credit cards from Chase, Capital One, and American Express have robust systems for transferring points to airline partners, which have remained stable. He recommends these as reliable options for maximizing rewards.
Notable Quote:
"It's crazy when you look at Marriott and Hilton... the number of points required for a free stay keeps going up." [17:24]
Listener Questions and Answers
1. Booking Business Class to New Zealand
Caller: Philip from North Carolina asks about booking business class for a tour to New Zealand and inquires about the reliability of Fiji Airways.
Clark's Advice: Clark advises researching the specific aircraft used by Fiji Airways to ensure true business class amenities. He recommends using SeatGuru to check seating configurations and suggests signing up for Fair Alerts from Air New Zealand for potential deals via stopovers in Australia.
Notable Quote:
"Look at seatguru.com and you'll be able to decode... whether you're actually in a real business class or a pretend business class." [08:03]
2. Choosing Going.com Subscription Level
Caller: Dennis from North Carolina seeks clarity on which Going.com subscription tier to choose.
Clark's Advice: For frequent travelers (e.g., 30 weeks a year), Clark endorses the Elite subscription ($199/year) due to the access to the best deals. He shares a personal success story of redeeming points for a premium price to South America, emphasizing the value for avid travelers.
Notable Quote:
"I spend the money for Elite because I travel... it's worth the $200 a year if you travel quite regularly." [10:09]
3. Roth vs. Traditional 401k for High-Income California Resident
Caller: Logan in California questions whether to continue contributing to a Roth 401k given high federal and state tax rates.
Clark's Advice: Clark recommends continuing with a Roth 401k, highlighting that federal tax rates are likely to increase in the future. Despite California’s high taxes, the long-term benefits of tax-free withdrawals in retirement outweigh the current tax implications.
Notable Quote:
"Do the Roth 401k as much as it hurts... the Roth 401k would be the superior choice." [12:20]
4. Repairing a High-Mileage Toyota RAV4
Caller: Edward from Virginia debates whether to repair his 2011 Toyota RAV4 or invest in a new vehicle.
Clark's Advice: Clark supports repairing the RAV4, noting its strong resale value. He argues that the $1,000 repair is justified compared to monthly payments on a new vehicle, suggesting that extending the life of a reliable car is financially sensible.
Notable Quote:
"I think it's worth the gamble because a monthly payment on a vehicle is often around $700 a month... it's not unusual for payment to be over a grand now on a vehicle." [22:39]
5. Selling Unwanted Gift Cards
Caller: Brian in Wisconsin asks for legitimate platforms to sell unwanted restaurant gift cards.
Clark's Advice: Clark recommends selling gift cards for about 70 cents on the dollar on reputable sites like CardCash. He warns against sketchy exchanges and emphasizes checking reviews to ensure secure transactions.
Notable Quote:
"If you are a buyer, you're paying a spread... be very careful where you would attempt to buy a card, where you'd attempt to sell a card." [24:14]
6. Kindle Unlimited and Book Subscriptions
Caller: Angie in Texas inquires about the value of Kindle Unlimited and other book subscription services.
Clark's Advice: For avid readers who consume a book a week or more, Clark finds subscriptions like Kindle Unlimited worth the investment. He suggests taking advantage of free trials to assess usage and recommends exploring free ebook resources on Clark.com.
Notable Quote:
"If you are a voracious reader... it's worth it for you to pay $150 bucks a year because... if you're reading like a book a week, it absolutely makes sense." [26:22]
Final Thoughts
Clark concludes by reiterating the importance of being proactive with financial decisions, whether it's booking travel or managing rewards points. He encourages listeners to remain optimistic and recognize that many businesses strive to serve customers effectively, despite industry challenges.
Notable Quote:
"Don't be a cynic. You want to be skeptical? Be skeptical, but no room for cynicism." [27:09]
Key Takeaways
- Travel Savings: Take advantage of current lower airfare and hotel rates by booking early and being flexible with travel plans.
- Airline Strategies: Be aware of airlines experimenting with pricing models, and use strategic booking tactics to save money.
- Rewards Points: Actively manage and redeem credit card points to avoid devaluation, utilizing cards that offer flexible transfer options.
- Financial Decisions: Evaluate the cost-benefit of repairs versus new purchases, investment choices like Roth vs. Traditional 401k, and the value of subscription services based on personal usage.
For more detailed advice and resources, visit Clark.com.