Do consultants rack up a lot of credit card points?

Hey there. Not in the industry but hoping to hear about your experiences. Given the travelling, possible meal stipends, etc., do consultants rack up a sizeable amount of points expensing things on their personal credit cards? If so, do you also find yourself having time to take advantage of said points via personal travel or other redemptions? Would one consider this a minor factor to think about in joining the industry? Thanks!

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During a traditional project you'd travel every week M-Th, which usually means 2x flights, 3x nights in hotels, 4x days of meals, and Uber/cabs paid for. In terms of how this translates to financial impact:

  • When you fly or stay in hotels you get loyalty points and status. This is a great benefit because you can get free/cheaper flights/hotels on personal travel and/or free upgrades
  • When it comes to credit card points in particular, it depends on the firm. At some firms you use your personal CC and reimburse, at others you use a company card (sometimes you have the option to get points for these, sometimes not). Let's say we spend an average of $100/day on food/cabs, $300/night on hotel, and $700 round trip on flights (plug #s not benchmarks) -- that'd add up to $2300 in a week of travel. Let's say we got 2% back on that -- that's $46/week. If we did that 40 times a year that's $1840, which isn't nothing
  • In addition to the points themselves, you have the additional benefit of avoiding spending your own money on food and travel to/from the office. Let's say you're working long hours and didn't meal prep / don't want to walk somewhere to get food, so you decide to purchase a $40 Doordash order for dinner. At home you'd pay $40 of your own post-tax money, so every meal you get to expense is sort of equivalent to a $60 pre-tax raise (if you assumed 33% tax rate). If you're in a tiny apartment somewhere like NYC it's not uncommon to get takeout or delivery for both lunch and dinner, which can add up to a tremendous annual cost -- avoiding this is probably the biggest benefit to travel (note - can also be avoided through more responsible choices for dinner)
  • Also worth noting that at most firms you can choose to go somewhere else for the weekend instead of back home ("alt travel / alternative travel" or similar policy names). This means you can fly to see your buddies for free

All-in, the financial benefits of travel are significant, especially at the more junior levels. However the frequency of travel is not as consistent as it used to be (there's a million threads asking if travel is back to normal, please look for them before asking here)

In terms of having time to enjoy those benefits, there's a lot of existing posts on WLB in consulting. If you want to know how many hours consultants work in a week find the r/consulting survey. But on a high level I'd say you should have protected weekends and a decent number of vacation weeks in a year (unlike banking you usually end up using them in consulting), so plenty of time to blow through your money on fun stuff

 

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