Credit card rewards match loyalty programs

Credit card rewards match loyalty programs

14-01-2026

A new study by Skift Research has revealed a profound shift in how consumers value travel-related loyalty schemes. Today, credit card rewards programs are increasingly perceived as just as valuable—and in some cases even more so—than traditional airline and hotel loyalty programs, a change with strategic implications for card issuers, travel brands, and global consumers.

The analysis, based on surveys of travelers across four key markets, shows that a significant share of respondents prefer to accumulate rewards through credit cards rather than through direct loyalty to airlines or hotel chains. In the United States, for example, roughly one-third of those surveyed believe the benefits offered by credit cards are superior to those provided by traditional travel loyalty programs, compared with just over two-fifths who place greater value on airline and hotel programs. This shift in perception marks a turning point in loyalty dynamics within the tourism industry.

Among the reasons explaining this evolution is the greater flexibility and breadth of benefits that credit cards can offer. Unlike frequent-flyer points or hotel loyalty schemes—which are often limited to flights or stays—many cards allow users to earn points from a wider range of everyday spending, such as dining, groceries, online purchases, or financial services, and redeem them not only for travel but also for experiences, statement credits, or a variety of products.

In addition, credit card rewards frequently provide more versatile redemption options, increasing their appeal. Consumers can convert points into hotel nights, car rentals, cruise trips, or even exclusive experiences—options that historically have been dominated by traditional loyalty programs. This more comprehensive approach aligns with the expectations of travelers seeking tangible, flexible benefits in their daily lives, not only during their trips.

Card issuers have responded to this demand by continuously enhancing their value propositions, raising bonus rates for spending, expanding points-earning categories, and building partnerships with other travel-sector brands. For instance, some popular cards enable users to earn points that can be transferred to airline mileage programs or partner hotel chains, combining the advantages of both worlds. This type of integration is consolidating the position of credit cards as a leading loyalty tool for frequent and occasional travelers alike.

Experts attribute this phenomenon to several converging trends in consumption and travel behavior. The digitalization of financial services has made it easier for users to compare, understand, and maximize the value of their rewards, while consumer expectations have evolved toward a preference for personalized experiences and rewards that extend beyond the traditional boundaries of loyalty programs. In a context where dynamic pricing and fluctuating availability of airline and hotel awards can frustrate users, credit cards offer a solid, reliable alternative for building value.

Growing competition in this space is also affecting airline and hotel loyalty programs themselves. Under pressure from credit cards, many traditional travel brands are reviewing their reward structures, simplifying how points are earned, and expanding benefits beyond flights and stays by incorporating lifestyle experiences, access to events, or exclusive services at the destination. These adjustments reflect an industry adapting to new consumer preferences.

Looking ahead, sector analysts predict that the convergence between credit cards and loyalty programs will continue to intensify. Card issuers and traditional loyalty operators are likely to pursue closer collaborations, with greater integration of points systems and technology-enabled benefits. Increased personalization is also expected, allowing users to design their own reward pathways based on spending habits and travel preferences.

The competition between credit card rewards and airline and hotel loyalty programs represents a structural shift in the tourism industry. Consumers benefit from greater variety and flexibility in rewards, while companies are compelled to innovate to attract and retain the loyalty of modern travelers. This development underscores the importance for both card issuers and travel brands to rethink their loyalty strategies in order to remain competitive in an increasingly dynamic market.

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