According to recent survey data, there has been a decisive shift in traveler preferences, with credit card loyalty programs now surpassing hotels and airlines as the preferred source of travel rewards. This marks a major change in how travel and hospitality companies are competing for customer loyalty.
More travelers are now citing credit card and bank loyalty schemes as the most appealing, rather than choosing rewards offered by traditional travel companies, as confirmed by new research.
Survey Data Highlights Industry Transformation
Results from Skift Research’s Global Travel Insights survey reveal notable changes in loyalty program rankings. When respondents were asked which loyalty program they found the most rewarding, 32% selected credit cards or banks over hotels (26%) and airlines (20%). In contrast, only 8% regarded online travel agency rewards as most valuable, while just 5% favored loyalty programs from retail or lifestyle brands.
This data points to a new landscape, with credit cards and banks now leading the loyalty space. The rise of these programs means established hospitality and aviation companies face a formidable opponent—one that not only holds their customers’ trust but also connects travel benefits to everyday purchases.
Impact on Competition Among Travel Brands
Historically, hotels, airlines, and online travel agencies have invested heavily in their rewards programs to retain travelers. The fact that credit card and bank loyalty programs have overtaken them broadens and intensifies industry competition.
The increasing dominance of credit card rewards programs is likely attributed to their diverse benefits, flexible redemption opportunities, and close integration with daily financial activities, which resonates with value-focused travelers. Such developments are urging traditional travel brands to reconsider their strategies, whether by enhancing their own loyalty structures or teaming up with financial services to stay relevant.
These findings may encourage airlines, hotels, and online booking platforms to evolve their loyalty offerings or strengthen partnerships with banks and credit card issuers. Since just 8% of participants identified online travel agencies as providing the most valuable rewards, these platforms may struggle to foster lasting loyalty using incentives alone.
Evolving Trends in Loyalty and Rewards
With loyalty competition becoming more dynamic, the research emphasizes how travel businesses must pivot to new approaches. As banks and credit card companies claim a larger share of the rewards market, distinctions between the financial and travel sectors are fading. These trends will likely require innovation and new forms of collaboration within the travel industry to keep customers engaged.
At present, a plurality of travelers considers credit card and bank rewards programs their favorite, a development that is poised to influence both strategic decisions across travel brands and what travelers expect in future years.