You can use the miles either to buy seats somewhere, or lets say your going to Hawaii, buy your tickets then upgrade to business or first.
Also for traveling checkout
http://www.hotwire.com/
I've used them for hotels and car rentals, and have done IMHO quite well.
There's also
Make sure you compare these three with Hotwire. Sometimes, not often, you can do just as well or better than Hotwire.
When getting airline tickets, sometimes going directly through the airline website will will save you $. At least it might save you the $5 booking fee Travelocity, etc. charge. You might also get freq. flier miles. Sometimes they also have better seat selections
Travelocity has a fare watcher alert, that you can have E-mails when specific destinations drop in price.
And when using your credit card ALWAYS pay it off when the bill comes!!!!!!!!!!