Hotels.com launches a credit card in the United States – here’s how it works

Hotels.com has recently launched a credit card in the United States. I should say upfront that I don’t have any news about a similar card being launched in the UK in the short term.

However, I thought it was worth covering because it uses an interesting rewards model.

Hotels.com Rewards is a very good loyalty which, for many people, works better than traditional hotel loyalty schemes.

Put simply, for every 10 nights you stay, you receive a free night worth the average ex-VAT price of those 10 nights.

This idea has a lot going for it. Hotels.com features 50x more hotels than even the largest global chain. You can earn rewards without ever having to compromise on location, price or hotel quality to stay at a particular brand.

Redeeming is also easier. Your free night credit can be topped up to pay for a more expensive room, allowing you to book suites or executive rooms if you with.

The only downside is that Hotels.com bookings do not earn points or elite night credit with the chain where you stay. Your elite benefits are also blocked, so a Marriott Platinum Elite won’t get free breakfast or upgrades on Hotels.com bookings at Marriott properties.

It’s a trade off, but one that many are happy to make. You can learn more about Hotels.com Rewards here.

How does the Hotels.com Rewards credit card reward you?

Since Hotels.com Rewards is not points based, the credit card cannot give you points for every $1 you spend.

Instead, it has gone down a different route.

You receive 1 ‘stamp’ in Hotels.com Rewards for every $500 you spend on their credit card.

Each ‘stamp’ is the equivalent of a $110 hotel room.

Since you each ‘stamp’ is worth 10% of the value of the room, you are effectively earning $11 in Hotels.com Rewards credit for every $500 you spend on their credit card. This is a return of 2.2%.

What other card benefits do you get?

The card comes with other goodies on top:

a free night voucher worth $125 when you spend $1,000 within three months

Hotels.com Rewards Silver membership for your first 12 months of card membership (provides extra benefits at some hotels)

Would a similar card work in the UK?

There is, of course, no way that you would ever see a credit card which was so generous in the UK.

Interchange fees are capped at 0.3% here. In the US, retailers can expect to pay around 2% for accepting a Visa or Mastercard, with more for American Express, and that is before terminal fees etc.

That said …. a card which offered you a free night ‘stamp’ worth £50 for every £1,000 you spent would work.

Hotels.com could probably break even on this basis, assuming they fully shared in the P&L of the card with the issuer. This is the model that Virgin Atlantic is using with Virgin Money.

Hotels.com would get extra upside from upselling redemption rooms (I doubt many people would be redeeming their 10 x £50 stamps for a £50 room) and driving additional cash bookings as cardholders tried to push up the average value of their free night.

Let’s see if anything emerges in 2021.

PS. If you are not a regular Head for Points visitor, why not sign up for our FREE weekly or daily newsletters? They are full of the latest Avios, airline, hotel and credit card points news and will help you travel better. To join our 65,000 free subscribers, click the button below or visit this page of the site to find out more. Thank you.

Want to earn more points from credit cards? – April 2025 update

If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.

In 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios Mastercard

Get 5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on the ‘free for a year’ American Express Preferred Rewards Gold card is increased from 20,000 Membership Rewards points to 30,000 points. Points convert 1:1 into Avios (30,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on American Express Platinum is increased from 50,000 Membership Rewards points to a huge 80,000 points. Points convert 1:1 into Avios (80,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

American Express Preferred Rewards Gold

Your best beginner’s card – 30,000 points, FREE for a year & four airport lounge passes Read our full review

British Airways American Express Premium Plus

30,000 Avios and the famous annual 2-4-1 voucher Read our full review

The Platinum Card from American Express

80,000 bonus points and great travel benefits – for a large fee Read our full review

Virgin Atlantic Reward+ Mastercard

18,000 bonus points and 1.5 points for every £1 you spend Read our full review

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers:

American Express Business Platinum

50,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and FREE for a year Read our full review

Capital on Tap Pro Visa

10,500 points (=10,500 Avios) plus good benefits Read our full review

Capital on Tap Visa

NO annual fee, NO FX fees and points worth 1 Avios per £1 Read our full review

British Airways American Express Accelerating Business

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review