Among the plethora of travel perks that can help you save money or enjoy free upgrades, loyalty program membership stands out as a significant perk. Barclays US Consumer Bank’s second annual Travel Rewards and Loyalty Report takes a deep dive into the loyalty programs and benefits that are most frequently used by travelers, shedding light on their importance in the travel landscape.
RALEIGH, NC – NOVEMBER 29: A panoramic view of aircraft flying above photographed on November 29, … [+]
Joining the loyalty program is important
Of the 1,000 U.S. travelers surveyed by Wakefield Research, 77% report currently belonging to some type of travel loyalty program. These interviewees report having traveled by plane at least once in the last 12 months and intend to travel again during the next 12 months. Furthermore, 89% of respondents indicate that they have been loyal members at some point.
Program types include:
- Airlines
- Car rent
- Cruise lines
- Hotels
- Online booking sites
Approximately 51% sign up for airline rewards, 43% for hotel rewards and 30% for booking sites. Cruises and car rentals are the smaller programs, as they tend to offer fewer travel opportunities.
Of travelers currently enrolled in loyalty programs, 76% cannot imagine traveling the level they currently do without the benefits. Not having the rewards could mean having to change travel providers, opt for more affordable accommodations, reduce the length of your trip, or book a less convenient method of travel.
Millennials are most likely to sign up for loyalty programs, with an 83% sign-up rate, versus an average of 75% for Gen X, Gen Z, and Baby Boomers. Additionally, Millennials are more likely to travel this year.
Most Valuable Travel Loyalty Rewards
Because travel loyalty programs are so prolific and offer so much value to most members, 77% of respondents anticipate traveling more in 2024 than in 2023. Specifically, 79% are leisure trips and 21% are business trips.
With that in mind, below are the most sought-after benefits (sorted by greatest demand):
- Ability to earn and redeem rewards (70%)
- Lower costs, reduced fees and low rate guarantees (58%)
- Elite status or benefits, free checked baggage, priority boarding, etc. (55%)
- Enhanced travel experience through upgrades and lounge access (51%)
- Access to experiences such as concerts and events (29%)
Travel points are the most valuable benefit of being a member of a loyalty program or using a specific credit card rewards program. While points have multiple redemption options, respondents plan to use 65% for flights and 54% for hotels.
Most Valuable Travel Points
Unsurprisingly, airline miles are considered the most valuable type of travel points. Eighty-nine percent of travelers report that points are essential to their preferred travel style.
Below is the extent to which travel rewards support award travel:
- Air miles (69%)
- Hotel points (60%)
- Car rental (37%)
- Cruise lines (26%)
Airline and hotel points typically offer the most value. They can also be the easiest to earn or redeem, as there are countless domestic and international travel options.
The majority of respondents (72%) will use their travel rewards for travel within the United States this year, although international travel is increasing. Europe (29%), the Caribbean (23%) and Canada or Mexico (22%) or the most popular foreign destinations.
Most valuable travel deals
Travel points are the most valuable benefit, but several non-points travel rewards are also worth joining.
Here are the three most popular discounts and upgrades available to elite members and travel credit card customers:
- Hotel deals (71%)
- Flight updates (70%)
- Priority boarding (60%)
Additionally, frequent travelers who take at least five or more flights per year find that they gain more value from travel rewards.
Business trips are the most rewarding
These various advantages allow most participants to get more value from their rewards programs than they invest in them. Success rates vary depending on trip type and generation:
- 84% of business travelers (versus 67% of leisure travelers)
- 79% of Millennials
- 72% of travel credit card holders
Although business travel is much less common than leisure travel, loyalty program membership and travel points are more rewarding for those who can book work travel.
Final thoughts
Each travel loyalty program has different perks, points redemption options, and destination options. Finding the right program makes it substantially easier to travel more frequently and with a better experience. To learn more, see the full survey results.
