Dive Brief:
- The recently released Barclays US Consumer Bank 2023 Travel Rewards and Loyalty Report highlights the value consumers place on travel rewards programs and co-branded credit cards, with 76% of travelers who are enrolled in a loyalty program saying that they “couldn’t imagine taking the kinds of trips they want without the benefits of that program.”
- Nearly three in four travelers are currently enrolled in a travel loyalty program. Airlines, hotel chains and online booking sites are the most popular kinds.
- The report concluded that offering a loyalty or rewards program with dependability and flexibility is a way to keep travel viable in the face of inflation and economic uncertainty, as more travelers employ strategic use of their credit cards to finance their travel plans.
Dive Insight:
As travel costs continue to rise — including increased pricing for flights, lodging, ground transportation and dining — more travelers are looking to make the most out of their experience by taking advantage of loyalty and rewards programs.
Barclays partnered with independent market research company Wakefield Research to survey 1,000 U.S. adult travelers from May 19 to 27 about consumer behaviors and sentiments surrounding loyalty programs and rewards. Of the participants, 740 are currently enrolled in some type of loyalty program.
Of those planning to take personal trips, 81% plan to travel with family, including their significant other (51%), other family members (44%) and children (31%). According to the report, the top place that travelers expect to stay is a hotel (75%), with about a third expecting to stay at a home share or rental (34%) or a resort (33%).
As for redeeming travel rewards, 44% of participants reported using them to book hotels, and 40% use them to receive hotel upgrades.
The report also found that during times of economic uncertainty, travelers look to loyalty programs as a way to save money with discounts on airlines or hotel costs such as a complimentary room, for example. Plus, they value the perks that come with a loyalty program, including easy transport to and from airports and hotels and flexible booking.
Generationally, millennials are the most likely to be currently enrolled in a travel-related loyalty program (82%) compared to Gen Z (68%), Gen X (75%) and baby boomers (66%). Sixty-two percent of millennials surveyed said that the top benefit of enrolling in a travel-related loyalty program was the improved travel experience, with perks such as upgrades and lounge access.
More specifically, the perks that most impacted a traveler’s decision to apply for a co-branded credit card with rewards were late checkout, free checked bags and free breakfast.
