Part 4: Lima & Cusco — How I Used Capital One Miles for a Luxury Peru Vacation
Ever dreamed of visiting Peru without breaking the bank? In Part 4 of my “Vacation for Free” series, I show you how to fly from Chicago to Lima and Cusco, stay in 5-star hotels, and even booked a domestic flight—all using Capital One Miles. From rooftop views in Miraflores to colonial charm in the Andes, this entire 8-day trip cost me $0 out of pocket. Here's exactly how I made it happen.
If you’ve been following along with my “Vacation for Free” blog series, you’ve seen how I’ve turned points into a Caribbean weekend escape, a 7-night Jamaican retreat, and even a safari-worthy adventure to Kenya—all with minimal out-of-pocket cost. Now, in Part 4, I’m heading to South America, using Capital One Miles to cover a full week in Peru—flights, hotels, and even a domestic transfer.
I used the week of April 19-26, 2025 and I booked travel from Chicago. From Chicago to the vibrant streets of Lima, and on to Cusco, the breathtaking mountain city that serves as the gateway to Machu Picchu, this trip was designed for culture, food, and altitude—all paid for with points.
Flights – Chicago to Lima and Cusco, All on Points
I transferred 50,000 Capital One Miles to Avianca LifeMiles, a Star Alliance partner, to book a round-trip economy flight from Chicago (ORD) to Lima (LIM). Routing through United or Copa Airlines hubs, these flights typically cost over $800—but I paid zero out of pocket by using Capital One’s Purchase Eraser to cover the $90 in taxes.
Then I booked a short one-way flight from Lima to Cusco on LATAM Airlines for about $75. Once again, I simply used Purchase Eraser to redeem 7,500 miles and cover the charge.
How Capital One’s Purchase Eraser Works
Capital One’s Purchase Eraser is what makes this strategy so powerful. Here’s how it works:
Book travel your way – flights, hotels, trains, Airbnb, tours—whatever qualifies as a travel expense.
Pay with your Capital One card.
Go into your account (website or app), find the travel charge, and select “Redeem with Miles.”
Capital One erases the charge at a rate of 1 cent per mile (e.g., 10,000 miles = $100).
There are no blackout dates, no need to book through a travel portal, and you can mix and match transfer partners with eraser-eligible purchases. It’s ideal for travelers who want flexibility and control.
3 Nights in Lima – Pullman Lima Miraflores
Lima’s Miraflores neighborhood is known for its coastal cliffs, vibrant dining scene, and walkable beauty. I booked a 3-night stay at the Pullman Lima Miraflores, a sleek 5-star Accor property with an infinity pool, rooftop terrace, and ocean views. At $200 per night, the $600 total was easily erased using 60,000 Capital One Miles.
4 Nights in Cusco – Aranwa Cusco Boutique Hotel
After Lima, I headed to Cusco, the historic Incan capital nestled in the Andes. I stayed at the Aranwa Cusco Boutique Hotel, a 5-star property set in a restored 16th-century mansion. Just minutes from the Plaza de Armas, this hotel blends colonial charm with modern comfort—and sets the perfect tone before a trip to Machu Picchu.
Total cost for 4 nights: $900, fully erased with 90,000 Capital One Miles.
Full Trip Breakdown
In total, I used 207,500 Capital One Miles to cover all major expenses for this 8-day, 7-night trip. That includes 50,000 miles transferred to Avianca for round-trip flights from Chicago to Lima (worth around $800), and another 7,500 miles to erase the $75 domestic flight to Cusco. For lodging, I spent 60,000 miles to erase a $600 stay at the Pullman Lima Miraflores, followed by 90,000 miles to cover a $900 stay at the Aranwa Cusco Boutique Hotel. All travel and hotel expenses were fully paid with points, bringing the total cash spent to exactly $0.
If you're working with a 200,000-point limit, you can easily make this trip fit by trimming a night from either hotel, or using around $75 in cash to offset the small overage.
Final Thoughts
With just one flexible rewards program, I flew from Chicago to Peru, stayed in two incredible 5-star hotels, covered a domestic flight to Cusco, and didn’t pay a cent for flights or lodging.
The Capital One Purchase Eraser makes it incredibly easy to book exactly what you want, when you want—and wipe the charge clean with points. Combined with transfer partners like Avianca, you’ve got one of the most powerful tools for affordable luxury travel.
Coming up next in the series: Should I take my miles to Thailand or Portugal? Let the points decide.