Tuesday, December 3, 2024

Barclays report shows inflation impacts on travel reward program preferences

The Barclays US Consumer Bank has released its 2023 Travel Rewards and Loyalty Report, which examines how economic conditions and market trends have affected consumer attitudes and behaviors related to travel, loyalty, and rewards programs. The report is based on a survey conducted by Wakefield Research involving 1,000 US adult travelers between May 19 and May 27, 2023.

The findings indicate that over the next year, nearly one in five respondents (16%) plan to travel mainly for business purposes, while 67% intend to travel primarily for personal reasons. Inflation has been identified as the main factor causing people to delay travel plans. Increased costs in flights, lodging, transportation, and dining are key contributors.

According to the report, earning rewards is more important than finding low-cost options for nearly half of those enrolled in loyalty programs (44%). Doug Villone, Head of US Cards and Partnerships at Barclays US Consumer Bank stated: “This new research indicates that three out of four people currently enrolled in a travel loyalty program couldn’t imagine taking the trips they want without its benefits.”

Many travelers use credit cards strategically to maximize benefits. Villone noted: “As a partner-first organization we create highly customized co-branded credit card programs for some of the country’s most successful travel and retail brands.”

The report highlights that Millennials prioritize earning rewards over obtaining the lowest prices. During economic uncertainty, this generation focuses on cost-cutting through miles and points programs.

Travelers value savings and flexibility during uncertain times. Lower fees (52%), flexible redemption options (47%), and opportunities to earn more miles or points (46%) are significant priorities.

The full 2023 Barclays Travel Rewards and Loyalty Report is available online.

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