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Study Reveals 62% of Travelers Utilize Co-Branded Cards for Rewards: The Evolution of Travel Loyalty Programs

Study Reveals 62% of Travelers Utilize Co-Branded Cards for Rewards: The Evolution of Travel Loyalty Programs Study Reveals 62% of Travelers Utilize Co-Branded Cards for Rewards: The Evolution of Travel Loyalty Programs
Indian consumers are leveraging travel loyalty programmes and credit card rewards as a regular savings mechanism, as banks and hotel chains strengthen collaborations to capture spending across dining, shopping, and travel.

A recent report from Marriott Bonvoy highlights that India ranks among the most active hotel loyalty markets in Asia Pacific, with 77% of travellers engaged in hotel loyalty programmes, significantly surpassing the regional average of 66%.

The results indicate a shift in travel rewards, evolving from occasional vacation bonuses to a more comprehensive personal finance strategy linked to daily spending behaviours.
In the Asia Pacific region, excluding China (APEC), 62% of travellers reported earning loyalty points via co-branded payment methods, with co-branded credit card expenditures being one of the primary ways consumers gather hotel loyalty points.

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The report revealed that consumers prioritise “everyday earn” — rewards accrued through regular spending — over aspirational perks alone.

Approximately 22% of participants identified earning from routine spending as the most vital aspect of a loyalty programme, ahead of exclusive experiences or tailored offers.

This trend is propelling the rapid growth of travel-related credit cards and loyalty ecosystems in India,

where banks and hospitality brands compete to embed rewards in categories like food delivery, dining, retail transactions, and fuel expenditures.

The report indicated that nearly half of the travellers in the region desire more opportunities to earn and redeem loyalty points, while 43% expressed a need for enhanced rewards linked to everyday spending.

Experts suggest this shift mirrors a transformation in consumer habits, with users seeking immediate and concrete financial benefits from loyalty programmes instead of merely saving points for luxury travel.

This is also reflected in how points are redeemed.

Simultaneously, Indian consumers are exhibiting an increasing interest in premium and experience-driven rewards. The report identified India as one of the markets where travellers are more drawn to exclusive access benefits and aspirational experiences compared to the broader region.

The findings imply that loyalty programmes fulfill dual roles for consumers — functioning as lifestyle platforms and a means to lessen out-of-pocket expenditures on travel, dining, and entertainment.

The survey included over 1,700 mid- to high-income travellers aged 20 to 65 across Australia, India, Indonesia, Japan, Singapore, South Korea, Thailand, and Vietnam.

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