However, a new study questions whether consumers are really satisfied with their co-branded travel rewards cards—or whether they are even signing up for them. The study, part of the annual Transport & Logistics Journal, found that perks like discounts on in-flight meals and room service might not be enough to keep customers coming back.
These types of rewards are “becoming common,” said the study’s authors. “Rewards need to be highly personalized with perceived exclusivity. Think flight simulator tours, suite upgrades or private dinners with renowned chefs.”
Co-branded cards are popular with consumers, but they like to switch it up
The study said that 80% of cardholders think co-branded cards are the most valuable type of credit cards, as compared to bank-issued cards. However, people are fickle. Forty percent of them switch out their primary credit card every two years, or even more frequently. So the trick for co-branded airline and hotel credit cards is to get folks to stick with them for more than two years—and hopefully even longer than that.
The reason cited for switching cards is usually better rewards. More attractive rewards were a more tempting reason to switch than a lower interest rate. One thing people like is personalized rewards. This is especially seen among younger people. Millennials, or folks ages 18-34, were the most likely to choose a credit card based on individualized card design.
Young people less swayed by co-branded cards
Millennials were less likely to carry a co-branded rewards card than other demographics. Only one-third of them reported having a co-branded travel credit card, while 50% of people their parents’ age had one.
Features popular with Millennials include digital and tech capabilities like digital wallet integration and apps that allow them to make payments, redeem rewards, and check their statements. Millennials are twice as likely as other age groups to use mobile wallet apps.
They also like to travel. The survey reported that Millennials spend a bigger portion of their income on flights and hotels than any other demographic.
This study was conducted from December 2015-January 2016 and included responses from 1300 cardholders across the country.
Read Also Related News
American Express cardholders going through New York’s JFK airport are in for a treat in 2019. The credit card giant has announced that they will open the largest-yet location of their Centurion Lounge series of luxury airport lounges at...
If you’re familiar with travel rewards credit cards, you probably already know that Chase Sapphire is one of the most popular ones out there. Their Ultimate Rewards program offers cardholders a one-to-one value when transferring points...
If you’re planning a trip in the near future, you might want to look for a flight on Southwest Airlines and try to book a reservation at a Marriott Courtyard hotel. The two companies just earned high ratings for customer service from...
At my local bank there was an advertisement that if one enrolls in Alaska airline credit card and spends $1000 in the first 3 months then a travel companion could fly free. Is this still in effect? Does it apply to international trips and 1st class? Does the flight need to be Alaska airlines/ Virgin airlines?
Currently, the Alaska Airlines credit card has the following offer: “Annual companion fare from $121 ($99, plus taxes and fees from $22) after you make $1,000 or more in purchases within the first 90 days of your account opening”. This benefit will qualify for a round-trip coach Companion Fare on Alaska...
I once had the US Airways credit card, then the airlines merged with American Airlines and my card transitioned into the AAdvantage MasterCard with a higher annual fee and without companion pass. I use the card one year and then closed it because I don’t fly with American Airline often. Now I am looking for a credit card without an annual fee. What are my options?
You may like one of the regular travel rewards credit cards offered by major banks. Travel rewards credit cards allow earning miles on all purchases. The cards also have one-time sign up bonuses which may be enough for a domestic flight. There are credit offers without annual fees, the other offers come with rather low...
I had the US Airways MasterCard back in 2013 but had to close it because I got divorced and had some troubles with keeping up with my credit cards fees. I’m back on track now and would like to apply for this card again but can’t seem to find it anywhere. Can you help?
The US Airways Premier World MasterCard is no longer offered. US Airways removed their credit card after merging with American Airlines. Today you can apply for one of the AAdvantage credit cards offered by Citi or for a regular travel rewards credit card. Both types of credit cards will allow you to earn miles and redeem...
Have Jetblue discontinued their free checked bag offer? I have the Jetblue MasterCard and don't have this benefit.
JetBlue still has the one free checked bag perk but not everyone can get it. First of all, the members of TrueBlue program will be able to get their first checked bag free if they've reached Blue Plus level or Blue Flex level, provided the checked bag is under 50 pounds (22.68 kg). Then, cardholders of the JetBlue Plus...