Whalesbook
Everyday Rewards Drive Loyalty
Indian consumers are changing how they use travel loyalty programs. Instead of just aiming for dream vacations, they now focus on earning rewards through their everyday spending. A significant 62% of travelers use co-branded credit cards and payment methods specifically to gather loyalty points on daily purchases like dining and shopping. This approach turns loyalty programs into tools for immediate financial benefit, showing a strong consumer desire for consistent, tangible rewards over exclusive experiences.
Growing Loyalty Ecosystems
This shift in consumer behavior is fueling the growth of travel-related credit cards and loyalty programs in India. Banks and hotel companies are creating more partnerships to offer reward-earning opportunities across various spending areas, from food delivery to retail. Almost half of travelers surveyed want more ways to earn and use points, with a clear preference for rewards linked to their daily spending habits. The Marriott Bonvoy report also notes that 77% of travelers in India participate in hotel loyalty programs, which is considerably higher than the average in the Asia Pacific region.
Balancing Daily Needs and Aspirations
While earning rewards on daily spending is a priority, how travelers use these points shows a mix of immediate and aspirational goals. Around 77% of travelers use their loyalty points for smaller, more accessible rewards, while 61% redeem them for larger benefits. India also shows a growing interest in premium and experience-based rewards. This indicates that loyalty programs serve a dual purpose: helping consumers save on daily expenses and enabling them to enjoy lifestyle enhancements. Co-branded credit cards are capturing a larger portion of new card issuances in India, driven by increased digital spending.
Regional Trends and Market Competition
Across the Asia Pacific excluding China (APEC) region, hotel loyalty programs are the most popular, engaging 66% of travelers. Food and dining experiences are a key factor in driving travel loyalty in the region, with 63% of APEC travelers prioritizing culinary activities. In India, the expansion of co-branded credit cards is a major trend, with projections suggesting they will soon account for over 25% of the market by volume. Major banks such as Axis Bank, HDFC Bank, and SBI are partnering with airlines to tap into this growing market. This competitive landscape requires continuous innovation in loyalty offerings to keep customers engaged.