Among the many travel perks that can save you money or allow you to enjoy free upgrades, loyalty program membership stands out as important. Barclays U.S. Consumer Bank's second annual Travel Rewards and Loyalty Report takes a closer look at the loyalty programs and perks travelers use most frequently, shedding light on their importance in the travel industry.
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Loyalty program membership is important
Of 1,000 U.S. travelers surveyed by Wakefield Research, 77% said they currently belong to some kind of travel loyalty program. These respondents said they have flown at least once in the past 12 months and plan to travel again in the next 12 months. Additionally, 89% of respondents said they have been loyalty members at some point.
The program types are:
- Airlines
- Car Rental
- Cruise Lines
- Hotel
- Online booking site
Roughly 51% join to earn airline rewards, 43% join to earn hotel rewards, and 30% join for booking sites. Cruises and car rentals have the smallest programs because travel opportunities tend to be fewer.
Of travelers currently enrolled in a loyalty program, 76% say they couldn't imagine traveling the way they do without the rewards. Not getting rewards could mean having to change travel providers, choose more affordable accommodations, shorten trips or book less convenient travel options.
Millennials are the most likely to sign up for a loyalty program, with an 83% enrollment rate, higher than the 75% average for Gen X, Gen Z, and Baby Boomers. Additionally, Millennials are more likely to travel this year.
Most Valuable Travel Loyalty Rewards
Travel loyalty programs are so robust and provide enough value for most members that 77% of respondents expect to travel more in 2024 than in 2023. Specifically, 79% will travel for leisure and 21% will be business-related.
With that in mind, here are the most sought-after benefits (ranked in order of most demand):
- Ability to earn and redeem rewards (70%)
- Reduced costs, reduced fees, guaranteed low interest rates (58%)
- Elite status or benefits, free checked bags, priority boarding, etc. (55%)
- Improving the travel experience through upgrades and lounge access (51%)
- Access to experiences like concerts and events (29%)
Travel points are the most valuable perk earned by being a loyalty program member or using certain credit card rewards programs. While there are multiple redemption options for points, 65% of respondents plan to use them for flights and 54% for hotels.
Most Valuable Travel Points
Not surprisingly, airline miles are considered the most valuable travel points, with 89% of travelers saying points are essential to their preferred travel style.
To the extent that Travel Benefits support Award Travel, you will:
- Air miles (69%)
- Hotel points (60%)
- Car rental (37%)
- Cruise lines (26%)
Airline and hotel points are typically the most valuable and easiest to earn and redeem, thanks to the wide variety of travel options available for domestic and international travel.
While the majority of respondents (72%) will use their travel rewards for travel within the U.S. this year, international travel is also on the rise, with the most popular international destinations being Europe (29%), the Caribbean (23%), and Canada or Mexico (22%).
The best deals on travel
While travel points are the most valuable perk, there are several non-points travel perks that make membership worthwhile.
Here are the three most popular discounts and upgrades available to elite members and travel credit card customers.
- Hotel deals (71%)
- Flight upgrades (70%)
- Priority boarding (60%)
Additionally, frequent travelers who fly five or more times a year feel they get the most value from travel rewards.
Business travel is the most rewarding job
These various benefits mean that the majority of survey respondents get more value out of their rewards program than they put in. Success rates vary by type of travel and generation.
- 84% of business travelers (vs. 67% of leisure travelers)
- 79% of millennials
- 72% of travel credit card holders
Business travel is far less common than leisure travel, but for those who can book business trips, the benefits of loyalty memberships and travel points are great.
Final thoughts
Each travel loyalty program offers different rewards, points redemption options and destination choices. Finding the right program for you can lead to more frequent, more enjoyable travel experiences. Read the full study to learn more.
