Travelers turn to rewards credit cards to maximize spend
To help offset some of their travel costs, Americans are either cashing in on travel rewards earned on their credit cards (29%) or using up their points and miles balances from loyalty programs (11%). About 1 in 5 are using a combination of both.
“I would 100% recommend using a travel rewards card, as well as points and miles, to fund your holiday travel,” says Mendel. “Doing this can save you tons of money on your trip, from flights and hotels to rental cars, cruises and even travel insurance.”
As for future earnings, 24% of respondents overall (and 31% of Gen Z) said they opened a new travel credit card specifically to earn points and miles on this year’s upcoming holiday travel. Another 20% of travelers will earn them by using a travel card they already have in their wallet for their trip, while 9% won’t use a travel-specific card, but will earn miles through a frequent flyer program.
Unfortunately, 47% of travelers are missing out on travel rewards by not paying for their trips with a travel credit card or using a frequent flyer number. Baby boomers (76%) and women (56%) are the groups most likely to leave potential rewards on the table.
“It’s never too late to sign up for a travel rewards program or open a rewards credit card,” says Mendel. “The best part about joining a frequent flyer program and using a rewards card is that you earn points on the money you would be spending anyway, and in time, you’ll be able to use those points for a completely or mostly free trip.”
Travel insurance a key benefit for some credit cardholders
Fewer travelers (29%) purchased travel insurance for their December holiday trips this year, down from 50% in 2020. More younger travelers are insuring their trips than older ones: 35% each of Gen Zers and Millennials versus just 16% of Gen Xers and 11% of Boomers.
A good portion of travelers — 22% — said they get travel insurance through their credit cards (a key benefit of some cards) and therefore didn’t need to purchase an extra policy. Still, 29% of respondents said they didn’t purchase a policy despite being unsure if their credit card offers it.
“I would always recommend making sure you have some type of travel insurance to cover your trip, especially while the pandemic is still largely in effect,” says Mendel. Just be sure to read the fine print if you’re relying on your card’s coverage and make sure to purchase your entire trip using that card.
