Travel: Barclays Report Shows Travelers Rely on Rewards
- InsightTrendsWorld
- May 6
- 8 min read
Why is the topic trending?
Increased Reliance on Travel Rewards: The Barclays 2025 Travel Rewards and Loyalty Report indicates a growing dependence among travelers on loyalty programs and co-branded credit cards to maximize value.
"Set-Jetting" as a Travel Driver: The report highlights the significant influence of TV shows and movies on travel destination choices, a trend known as "set-jetting."
Generational Differences in Reward Usage: The study reveals how different generations utilize travel rewards programs, with Millennials leading in strategic usage.
Gender Preferences in Rewards: The report identifies distinct preferences between men and women regarding the types of travel rewards they value most.
Parents as Reward-Savvy Travelers: Parents are shown to be particularly engaged with and knowledgeable about travel rewards programs, with a growing interest in cruise line loyalty.
Overview:
The article discusses the findings of the third annual Barclays 2025 Travel Rewards and Loyalty Report, which surveyed 1,000 US travelers to understand their engagement with travel rewards programs and loyalty. The report reveals a significant reliance on these programs, with nearly 80% of travelers depending on them. A notable trend is "set-jetting," where over two-thirds of travelers have chosen or want to choose destinations based on TV shows or movies. Millennials are identified as the most strategic users of travel rewards, while gender differences exist in reward preferences. Parents are highlighted as particularly rewards-savvy, showing increasing interest in cruise line loyalty programs. The report underscores the importance of personalized travel rewards programs to meet the evolving needs and preferences of today's travelers.
Detailed Findings:
Rewards are Essential: 79% of travelers depend on loyalty programs, up from previous years, and 82% believe they would have to travel differently or not at all without these rewards.
Set-Jetting Soars: Over two-thirds of travelers (40% have, 30% want to) have picked destinations due to favorite TV shows or movies.
Millennials Lead: 72% of Millennials use rewards to stretch their budget, and 94% strategically try to earn more points, higher than other generations.
Gender Divide: Men prefer exclusivity-based rewards (upgrades), while women prefer comfort and convenience rewards (free checked bags).
Parents Prioritize Value and Cruising: Parents are the most rewards-savvy, with one in five already in a cruise line loyalty program.
Set-Jetting Skews Young: 81% of Gen Z and Millennials were influenced by TV/movie locations, compared to 71% of Gen X and 40% of Baby Boomers.
Strong Loyalty Enrollment Across Generations: Gen X and Millennials lead at 85%, followed by Boomers (80%) and Gen Z (75%).
Shared Preferences Among Genders: Both men and women value earning rewards and lowering costs, with similar enrollment levels (87% vs. 85%) and preference for airline and hotel programs.
Parents are Passionate: Half of parents strongly agree that not using credit card rewards for travel is wasting money, with earning rewards (67%) and lowering costs (63%) being their top benefits of loyalty programs.
Key Takeaway:
Travelers increasingly rely on rewards and loyalty programs to afford and enhance their travel experiences, with "set-jetting" gaining popularity, and significant differences observed in how different generations, genders, and family groups engage with these programs.
Main Trend:
Growing Reliance on and Strategic Utilization of Travel Rewards and Loyalty Programs
Description of the Trend (please name it):
The Loyalty-Driven Traveler
What is consumer motivation:
Maximizing the value of their travel spending.
Achieving travel aspirations that might otherwise be unaffordable.
Accessing exclusive benefits and perks.
Enjoying a more comfortable and convenient travel experience.
Inspired by media and popular culture to visit specific locations.
What is driving trend:
Rising costs of travel.
Increased awareness and availability of travel rewards programs.
Effective marketing and promotion by travel providers and credit card companies.
The influence of social media and popular culture on travel desires.
What is motivation beyond the trend:
Desire to travel and experience new places.
Need for leisure and relaxation.
Social and cultural influences on travel destinations.
Description of consumers article is referring to:
Age: Spans across generations, with specific insights into Millennials, Gen Z, Gen X, and Baby Boomers.
Gender: Highlights differences in preferences between men and women.
Income: Implies travelers who are using credit cards and loyalty programs, suggesting a range of income levels with access to financial products.
Lifestyle: Individuals who travel by air and are likely to do so again, indicating a segment that values travel.
Conclusions:
Travel rewards and loyalty programs have become essential for many travelers, influencing their choices and enabling them to travel more or in a more comfortable manner. "Set-jetting" is an emerging factor in destination selection, and different demographics have distinct approaches to and preferences within these programs.
Implications for brands:
Travel Providers (Airlines, Hotels, Cruise Lines): Need to offer robust and personalized loyalty programs that cater to different traveler needs and preferences.
Credit Card Companies: Co-branded travel cards with valuable rewards and benefits are increasingly important.
Tourism Boards and Destinations: Should consider the impact of popular culture on travel interest and potentially target "set-jetters."
Implication for society:
Demonstrates the evolving relationship between consumers, travel, and financial tools designed to enhance experiences.
Implications for consumers:
Opportunity to make travel more affordable and rewarding.
Need to strategically engage with loyalty programs to maximize benefits.
Potential influence on travel destinations based on media consumption.
Implication for future:
The reliance on and sophistication of travel rewards program usage is likely to continue to grow, with further personalization and innovation in offerings.
Consumer Trend (name, detailed description):
The Strategic Travel Rewards User: This trend describes travelers who actively engage with and strategically utilize travel rewards programs and co-branded credit cards to maximize the value and affordability of their travel experiences, often tailoring their choices to earn more points and access specific benefits.
Consumer Sub Trend (name, detailed description):
The Culturally Inspired Traveler ("Set-Jetter"): A sub-trend highlighting travelers who choose their destinations based on the locations featured in their favorite TV shows and movies, indicating the significant influence of popular culture on travel decisions.
Big Social Trend (name, detailed description):
The Gamification of Loyalty and Rewards: Consumers are increasingly drawn to programs that offer a sense of achievement and progression through earning and redeeming rewards, making loyalty programs more engaging.
Worldwide Social Trend (name, detailed description):
The Global Desire for Value and Experiences in Travel: Travelers worldwide are seeking ways to make their travel budgets go further while still enjoying enriching and memorable experiences.
Social Drive (name, detailed description):
The Pursuit of Affordable and Aspirational Travel: Consumers are motivated to find ways to travel more often and to more desirable destinations by leveraging tools like rewards programs.
Learnings for brands to use in 2025: (bullets, detailed description)
Travelers highly value loyalty programs and rely on them significantly.
Personalization of rewards is crucial to cater to diverse preferences.
Popular culture, especially TV and movies, has a strong influence on destination choices for younger travelers.
Parents are a key demographic that is highly engaged with travel rewards.
Strategies to earn more points are particularly valued by Millennials.
Strategy Recommendations for brands to follow in 2025: (bullets, detail description)
Develop more personalized and flexible travel rewards programs.
Consider partnerships with entertainment companies to tap into the "set-jetting" trend.
Tailor reward offerings to the specific preferences of different generations and genders.
Offer family-friendly rewards and benefits that appeal to parents.
Educate consumers on strategic ways to earn and redeem rewards to maximize their value.
Final sentence (key concept) describing main trend from article (which is a summary of all trends specified):
In 2025, "The Loyalty-Driven Traveler" trend is evident as nearly 80% of travelers depend on rewards programs, with Millennials leading in strategic usage and "set-jetting" emerging as a significant factor in destination selection.
What brands & companies should do in 2025 to benefit from trend and how to do it:
In 2025, travel providers and credit card companies should capitalize on "The Loyalty-Driven Traveler" trend by focusing on creating highly personalized and valuable rewards programs that cater to the specific needs and preferences of different demographic groups. They should also explore partnerships within the entertainment industry to attract "set-jetters" and provide educational resources to help travelers strategically maximize the benefits of their loyalty programs, ultimately fostering stronger customer loyalty and driving travel bookings.
Final Note:
Core Trend: Growing Reliance on and Strategic Utilization of Travel Rewards and Loyalty Programs: Travelers are increasingly dependent on and savvy in using travel rewards.
Core Strategy: Personalize reward programs, consider entertainment partnerships, and educate consumers on maximizing rewards.
Core Industry Trend: The travel industry is increasingly leveraging loyalty programs as a key differentiator and driver of customer behavior.
Core Consumer Motivation: Maximizing travel value, affording more travel, and accessing exclusive benefits.
Final Conclusion: The Barclays report underscores the critical role of travel rewards and loyalty programs in the modern travel landscape, highlighting the need for brands to innovate and personalize their offerings to meet the evolving expectations of travelers.
Core Trend Detailed (Growing Reliance on and Strategic Utilization of Travel Rewards and Loyalty Programs):
Description: This core trend highlights the increasing dependence of travelers on travel rewards and loyalty programs offered by airlines, hotels, credit card companies, and other travel-related services. Beyond simply enrolling in these programs, travelers are becoming more sophisticated in how they utilize them, strategically planning their spending and travel choices to maximize the points, miles, perks, and discounts they can earn and redeem. This reflects a shift towards a more value-conscious approach to travel, where rewards programs are not just a bonus but an essential tool for making travel more affordable and accessible.
Key Characteristics of the Trend (summary):
High Enrollment Rates: A significant majority of travelers are members of at least one loyalty program.
Strategic Planning for Rewards: Travelers actively seek out ways to earn more points or miles through spending habits and travel choices.
Dependence on Rewards for Travel Affordability: Many travelers feel they would have to travel differently or not at all without their accumulated rewards.
Seeking Exclusive Benefits: Travelers value perks like upgrades, free checked bags, and priority services offered through loyalty programs.
Awareness of Program Value: Travelers, particularly parents, are highly aware of the potential savings and benefits of using travel rewards strategically.
Market and Cultural Signals Supporting the Trend (summary):
The Barclays report indicating that 79% of travelers depend on loyalty programs, a figure that has increased over the past few years.
The finding that 82% of travelers acknowledge they would have to alter their travel plans or forgo travel entirely without rewards.
The report highlighting that Millennials are particularly strategic in their use of rewards programs, with 94% actively seeking ways to earn more points.
The observation that parents are the most rewards-savvy demographic, strongly agreeing that not using credit card rewards for travel is wasteful.
How the Trend Is Changing Consumer Behavior (summary):
Influencing Spending Habits: Travelers may choose specific airlines, hotels, or credit cards based on their rewards programs.
Driving Loyalty to Specific Brands: Travelers are more likely to remain loyal to brands where they have accumulated rewards or status.
Enabling More Frequent Travel: Rewards make travel more affordable, potentially leading to more trips.
Upgrading Travel Experiences: Accumulated points and miles can be used for upgrades to higher classes of service or better accommodations.
Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, summary):
For Brands and CPGs: Travel-related businesses need to offer compelling and valuable loyalty programs to attract and retain customers. Co-branded credit card partnerships are crucial.
For Retailers: Retailers can benefit from partnering with travel rewards programs to offer points or miles on purchases, driving customer traffic and spending.
For Consumers: Have the opportunity to make travel more affordable and enhance their travel experiences through strategic engagement with rewards programs. Requires understanding the intricacies of different programs.
Strategic Forecast: The reliance on and strategic use of travel rewards is expected to continue to grow. As the cost of travel increases, consumers will likely become even more adept at leveraging these programs to maximize their travel budgets and unlock additional benefits. Brands will need to continuously innovate and personalize their loyalty offerings to remain competitive.
Final Thought: The increasing reliance on and strategic utilization of travel rewards programs signifies a savvy and value-driven approach to travel among consumers, making these programs an indispensable tool for both travelers and the businesses that serve them.
Comments