Barclays US Consumer Bank has officially published the results from a new report, which reveals that travelers are increasingly turning to rewards and loyalty programs to unlock more value.
Going by the available details, conducted by Wakefield Research, this particular survey took into account the opinion of more than 1,000 US travelers, eventually revealing that travelers are leveraging loyalty programs and co-branded credit cards to maximize value. These travellers are also increasingly drawing inspiration from their favorite shows and films, all while exhibiting travel preferences based on their generation, gender, and family status.
Talk about the published results on a slightly deeper level, we begin from the increased importance of rewards, as 79% of travelers were found to depend heavily on loyalty programs, up from 2024 and 2023. In fact, 82% of travelers acknowledge they would have to travel differently, or not at all, without travel rewards.
Next up, we must dig into the exploding demand of set-jetting. More than two-thirds of travelers would go on to pick, or at least expressed the desire, a travel destination because of their favorite TV show or movie. Out of the total lot, 40% reported having already done so, whereas 30% said they would be extremely inclined to do it at some point in future.
Another detail worth a mention is rooted in fact that millennials were found to be using rewards-focused methods the most to stretch their travel budgets (72%). Not just that, they also emerged as more likely to use various different techniques to earn more points (94%), as compared to other generations.
Beyond the generational aspect, Barclays’ report also delivered some gender-based data. Here, men were reported to be in favor of exclusivity-based rewards (e.g., upgrades), while women said they prefer comfort and convenience-focused rewards (e.g., free checked bags).
The stated lowdown further revealed that parents are the most rewards-savvy demographic and have a growing interest in cruise lines. To give you some context, one in every five surveyed parents were already enrolled in a cruise line loyalty program. On top of it, nearly half of surveyed parents most strongly agree that consumers who don’t plan their credit card usage to earn rewards are throwing money away.
In case that wasn’t enough, they also largely agree that earning rewards (67%) and lowering costs (63%) are the absolute top benefits of loyalty programs.
“With a proven formula for building and growing rewards-based credit card programs, Barclays is deeply committed to understanding the evolving needs and preferences of today’s travelers,” said Doug Villone, Head of US Cards and Partnerships at Barclays US Consumer Bank. “Our Travel Rewards and Loyalty Report underscores the importance of travel rewards personalization as consumers differ in how they engage with these programs. ”
We touched upon how streaming services and binge-watching are fueling the “set-jetting” trend, but what we haven’t touched upon yet is that Gen Z and Millennials were more influenced to select destinations based on TV and movie locations (81%) than Gen X (71%) and Baby Boomers (40%).
Expanding upon the prospect of a loyalty program, Gen X and Millennials lead the way at 85% in this regard, followed by Boomers at 80% and Gen Z at 75%, thus suggesting continued growth in enrollment as younger generations gain experience and financial acumen.
Now, even though men and women were deemed to prioritize different rewards, both the groups said they value earning rewards and lowering costs, leading to similar engagement levels (87% vs. 85% enrollment) and a shared preference for airline and hotel programs.
“By tailoring loyalty programs to specific audiences, we can ensure we deliver value that truly resonates with each customer’s unique journey and empowers them to pursue their travel aspirations with confidence and ease, through the brands they know and love. We will continue to collaborate with our partners to ensure our rewards programs remain relevant and deliver exceptional value to card members,” said Villone.
