Credit Card News: Travel&Rewards

Selected cards: 0
Compare
Advertising Disclosure
Co-Branded Credit Card Study Targets Travel Perks
25 Jun
When it comes to travel rewards credit cards, it’s widely held that co-branded cards are the best deal. After all, if you get a credit card affiliated with your preferred airline, you can get a slew of other great perks, like priority boarding, free bag check, discounts on in-flight purchases, and extra frequent flyer miles when you book flights with partner airlines.

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

looking for a Credit CARD:
Credit One Bank®: Credit One Bank® Platinum Credit Card with Rewards
Apply Online
Receive 1% cash back on eligible purchases, terms apply
Mid America Bank & Trust Company: Milestone® MasterCard® with Free Choice of Card Image
Apply Online
Applying is quick and easy with our fast decision process
Horizon Card Services: Horizon Gold Credit Card
Apply Online
Guaranteed $500 Unsecured Credit Limit
Credit One Bank®: Credit One Bank® Platinum Visa®
Apply Online
See if you Pre-Qualify without harming your credit score
Want to Read News From Other Categories?
Your Money
Card Issuers
Travel
Security
Shopping
Technology
  • 20 Jun

    Discover cardholders will be able to contact customer service more easily with the advent of in-app messaging, which allows customers to communicate with Discover customer service agents without having to stop and restart their interactions when they are logged into or...

Customer Questions

  • About Us
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • 0 Selected Cards Compare