Why Consumers Value Travel Rewards
Consumers place a high value on travel, and travel rewards have seen a sharp uptick in interest among consumers coming out of COVID. A simple Google search for “value of travel rewards” yields over 160,000,000 results. Aside from groceries, the top things rewards cardholders use their credit card for are gas, restaurants, and travel/transit.
Travel is poised to become even more significant than in recent years. Spending in the Travel & Tourism market is projected to reach $854.80 in 2023. The US Travel Foundation is forecasting an increase in travel spending in 2023 compared to 2019-2022. Travelers are once again seeing full flights and big crowds at popular travel destinations. As a financial services marketer, you can expect travel to be a more desired category to include – and optimize – as part of your rewards program.
In addition to increased travel, consumer spending is also up. With increased credit card spending and stacked rewards wallets, travel-related rewards have become increasingly popular as a means for financial institutions to incentivize customers and increase loyalty.
Some top benefits of financial institutions offering travel-related rewards include:
Travel rewards enable customers to travel more frequently
Travel rewards allow customers to visit destinations they may not have been able to afford otherwise
To maximize travel rewards benefits, financial institutions should focus on creating travel rewards programs tailored to their customers’ needs. Travel rewards are an excellent way for financial institutions to set themselves apart from their competitors by offering unique services and benefits that other companies cannot match. Many travel rewards programs include exclusive member offers, such as airport lounge access or priority flight boarding; features that provide incentive and increased value to their customers.
Travel rewards offer tremendous potential for incentivizing customers and increasing loyalty. By offering flexible redemption options and exclusive benefits, financial institutions can attract new customers while appealing even further to existing ones, leading to greater satisfaction and driving longer-term loyalty.