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[quote=Anonymous]Everyone mentioning points always neglect that there's always taxes and fees you still have to pay, especially for flights. 12,000 points plus $400 in tax and fees is typical for a cheap points ticket on economy to London using British Airways and Virgin as examples. Using one cent to the point, it's marginally cheaper than booking with cash. So the 50,000 points plus $200 in taxes and fees if flying to Paris or Amsterdam on KLM also isn't as great of a deal either (all assuming you use cash back as the alternative use for points).

But points can get you good deals on hotels.

OP, I have always traveled even when a broke grad student. I make a good income now but I still travel frugally. It's easy to travel cheaply in Europe while still having a good trip. The cost of living is so high in the US that a two week in Europe is partially offset by savings on consumption in the US during those two weeks. Most people traveling internationally are paying for it out of income, not family money or whatever. It’s a blend of salary and budgets. To be in the top 10% of wage earners in the US you need a salary of around $165k, and anyone making $100k+ can make an international trip happen, so assume at least 20% of Americans can afford to travel overseas. That is a lot of people.

Last but not least, flights have never been as cheap as they are now. I can buy round trip tickets to Europe slightly off season for $550 if booking far enough in advance. That is what we were paying for tickets to London 30 years ago![/quote]

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