When a shockingly cheap fare appears online, it usually falls into one of two categories: an error fare, where the airline published a price by mistake, or a points booking, where you redeem miles at a great rate. Both can save you a lot of money, but they work very differently — and understanding the difference helps you decide which one to chase.

An error fare happens when a pricing mistake — a currency conversion error, a missing digit, a faulty fuel surcharge — produces a fare far below normal. These fares are real tickets at the moment of booking, but airlines are generally not obligated to honour obvious mistakes, and some will cancel and refund them. The golden rule of error fares: book first, then wait before making non-refundable plans like hotels.

Error fares disappear fast, often within hours. The practical way to catch them is to follow fare-alert services and deal communities that flag them quickly, and to be ready to book immediately when one matches a trip you could actually take. Flexibility is essential — the best error fares are often for dates and destinations you did not plan, so they reward travellers who can say yes quickly.

A points booking uses miles or points to pay for a flight, either at the airline's award price or through a partner program. Unlike error fares, points bookings are fully legitimate and honoured once ticketed — the airline agreed to the price. The challenge is availability: award seats are limited, especially on popular routes, and the best prices require flexibility and advance planning.

Error fares cost cash but very little of it, and they carry cancellation risk. Points bookings cost points — which you earned through spending — and are reliable once booked, but require a points balance and award availability. On a pure cash-outlay basis, a good error fare usually wins. On reliability and planning, points bookings win easily. The two are not really competitors; smart travellers watch for both.

Occasionally, yes. Some travellers book an error fare for one direction and a points booking for the return, or use points for a hotel while flying on an error fare. Mixing strategies is often the cheapest way to build a whole trip: the error fare handles the flight, the points handle the stay, and the total cash cost drops dramatically.

If you are flexible, spontaneous, and love a deal, error fares are thrilling — just never book non-refundable hotels until the airline confirms the ticket will stand. If you prefer certainty and plan trips in advance, points bookings are the steadier path, and building a points balance is a skill that pays off on every trip. The best approach is to do both: keep a points balance growing in the background, and keep an eye out for the error fare that turns a dream trip into an impulse buy.

If an airline cancels an error fare, you are generally entitled to a refund of what you paid, but not to compensation for other plans you made around it — which is why experienced error-fare hunters never book non-refundable hotels or activities until the ticket is confirmed as honoured. Book flexible or refundable accommodation first, and wait for the airline's confirmation before committing further. Some travellers also avoid calling the airline to ask about the fare, since drawing attention to an obvious mistake can prompt a cancellation. If a fare is cancelled, accept the refund gracefully and move on — error fares are a bonus, not a right, and the next one is usually only a matter of time for those who keep watching.