Travel Rewards: Is Miles Really King? Meet Cashback—The Underdog Worth Rooting For

If you think TikTok is just catchy choreographies and amusing skits, perhaps you haven’t stumbled onto the useful side yet. From travel hacks like washing clothes for free while on the road to snagging flight upgrades without breaking the bank, TikTok is loaded with tips to help you spend your cash on experiences instead of unnecessary expenses. But are these hacks really game-changers, or just TikTok hype?

Take, for example, the buzz around cashback travel hacks. It’s a refreshing change of pace from the usual miles game, where everyone’s trying to earn that elusive free business class seat. Don’t get us wrong—who wouldn’t love a first-class upgrade for the cost of an economy ticket? Miles have always been the shiny crown jewel of travel rewards, but could cashback be the scrappy underdog that deserves more of our love? 

In this article, we’ll dive into why travellers chase those coveted miles and make a case for why cashback might just be the hero we’ve all been sleeping on.

 

Travel Rewards: Is Miles Really King? Meet Cashback—The Underdog Worth Rooting For

1. Why people love miles
2. The underdog enters: cashback
3. Comparing miles vs. cashback
4. Why cashback should be part of your travel rewards strategy
5. Pair ShopBack with the right credit card
6. Save more with minimal effort

 

1. Why people love miles

If you’re one of the miles chasers, you’re probably after exclusive lounge access, priority boarding, and maybe even a free flight if you’ve racked up enough miles. 

And who can blame you? The perks are pretty sweet. Maybe you’ve even signed up for every credit card promotion that promises a boatload of welcome miles—because hey, they do add up.

But here’s the catch: redeeming those miles isn’t always as easy as it sounds. Many airlines have those pesky blackout dates which means you can’t always book when you want. And let’s not forget that sometimes you have to lock in that award flight way in advance, even when your schedule is still in flux. 

Plus, with most miles credit card programs, you often need a minimum number of points before converting them into miles, and there’s usually a conversion fee—so while it might be cheaper, it’s definitely not “free-free.”

 

2. The underdog enters: cashback

Here’s where cashback can come in clutch. Plenty of banks offer credit cards that give you cashback when you make purchases in a foreign currency—and often, the cashback rate is even better when you’re spending overseas. 

On top of that, cashback platforms, such as Shopback, have made it even easier to earn cash rewards on top of card benefits. These platforms partner with retailers, airlines, and booking sites to give you a percentage back on your travel bookings, hotel stays, or even car rentals.

 

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Picture this: your usual cashback card gives you 0.5% cashback when you buy groceries in Singapore. That’s nice, but imagine earning 3% cashback on foreign purchases while travelling, and then layering an extra 5% cashback from a platform when booking your hotel. The savings stack up quickly, putting even more cash back into your pocket just for booking smartly.

And that’s the beauty of it—there’s no need to jump through hoops like converting points to miles or keeping tabs on blackout dates. Cashback is straightforward. You just spend like you usually do, and watch the rewards roll in. 

 

3. Comparing miles vs. cashback 

	Cashback	Miles
Ease of use	WYSIWYG—you don’t even have to do anything but spend with your card and cashback gets credited to your account	Have to understand each card’s points system or conversion method, restrictions when it comes to usage
Flexibility	Can use cashback on anything you like—meals, hotel, shopping	Restricted to following the rules to redeem flights both with the credit card or bank and also the airline
Instant gratification	Straightforward reward that gets applied directly to your account. Use it whenever you want	Need to accumulate points for months or even years before you can redeem them for a flight
Value	Cashback may be small but can supplement your travel budget and be used to subsidise hotel stays, meals or other travel expenses	Great when you can redeem for a business class flight or cheap flight as it costs less than what you’d actually pay for

 

4. Why cashback should be part of your travel rewards strategy

Both miles and cashback have their benefits. We’re not saying it’s an either or type of situation, but more like, the more the merrier! Savvy travellers know how to diversify their rewards strategy—earning miles for flights while using a cashback card for everything else. The magic word here is stacking. 

One way to maximise your cashback on travel spending is through ShopBack, a shopping, rewards, and payments platform. By partnering with a variety of travel providers—like booking platforms (Agoda, Trip, Skyscanner, Expedia), tour companies (KKday, Klook), hotels (Accor, IHG), travel service providers (Airalo), and airlines (Etihad, Qatar)—ShopBack offers cashback on bookings made through their platform. So, before you even take your trip, you’re already racking up cashback when making reservations. 

Let’s say you’re using ShopBack to book a round-trip flight to Bali for $500 on a flight website and a 3-night hotel stay for $600 on Booking.com. With ShopBack’s Trip-tastic campaign offering 9% cashback on flights and 13% on hotels, here’s how the cashback breaks down:

• Flight cashback: 9% of $500 = $45
• Hotel cashback: 13% of $600 = $78

In total, that’s $123 in cashback, simply by booking through ShopBack. It’s a simple yet effective way to get more out of your travel expenses. By stacking cashback and miles, you’ll ensure that every dollar spent is working hard for you.

Tip: Check the Fine Print! When calculating your cashback, always check the terms and conditions. Cashback percentages often apply only to the amount net of taxes and fees, which can trim your final earnings. Knowing this upfront ensures you won’t be caught off guard and helps you plan your travel rewards strategy more effectively.

 

How to use ShopBack for travel purchases

Step 1: Visit the ShopBack website or download the app from the App Store or Google Play.

Step 2: Link your credit card of choice to your ShopBack account

Step 3: Search for the travel platform or merchant you want on the ShopBack search bar

Step 4: Click on the merchant you want 

Step 5: Click the Shop Now button. This will take you to the merchant’s website.

Step 5: Complete your booking on the merchant’s website. Do not click back or reload the site on another browser to ensure your booking gets tracked on ShopBack. 

Step 6: Travel and have fun! After you make your booking, ShopBack will track your cashback within 3-5 working days. Once your trip is completed, the cashback will be confirmed and ready for withdrawal to your bank.

Tip: Never Miss Cashback Again! If you love exploring travel deals online, grab the ShopBack button Chrome extension! It’ll alert you when a store qualifies for cashback, so you can snag every possible saving.

 

5. Pair ShopBack with the right credit card

To maximise your cashback, you need the right credit card with the highest cashback rates. 

One of the cards that gives the highest cashback is the UOB EVOL credit card, which gives 10% cashback on online, mobile contactless spend and overseas in-store FX spend. 

Another is the OCBC Frank Card, which gives 8% cashback on online/ contactless mobile transactions in SGD or the DBS Vantage Visa Infinite Card, which gives 2.2% cashback for every S$1 overseas spend. 

 

6. Save more with minimal effort

When it comes to the debate of cashback versus miles, many believe they must choose a side—but who decided that? Why not embrace both team cashback and team miles to become the true winner?

With options like ShopBack, you can easily stack cashback on your travel bookings—whether for flights, hotels, or car rentals. Keep an eye out for promotions like Trip-tastic—occuring every 21st-23rd of the month—and Travel Thursdays, where you might snag extra cashback bonuses of up to 15%.

The beauty of this approach is that you don’t have to overhaul your entire strategy. Just weave in a bit of cashback into your existing plans and watch the savings grow. It’s a relaxed way to keep your travel budget in check while enjoying the perks of both miles and cashback. Happy travels!

✨ Just for MoneySmart readers ✨ Click here to get an $8 sign-up bonus from ShopBack.