A new survey conducted by CreditCards.org finds that most consumers are missing out on $16 billion in discounted flights and hotels, cash back, and other free travel perks associated with travel rewards cards. Only 17% of survey respondents reported they actively use one or more travel rewards cards; 71% said they do not own a travel rewards card, while 8% are considering applying for one. Four percent of respondents admitted they own a travel rewards card but do not use it.
SEE FULL RESULTS HERE>
“Responsible credit users who pay off their balances each month are perfect candidates for rewards credit cards, including travel rewards cards. Yet a large portion are essentially saying ‘no’ to free money, especially during the height of the summer travel season,” said Tori Jacobson, a CreditCards.org representative. “Our goal is to clear up the confusion surrounding the credit card industry and educate consumers about how various rewards cards work so they can use these products to their advantage, saving them money.”
>Cardholders are more loyal to airlines than hotels, with 30% of respondents owning a branded airline card and 13% of respondents owning a branded hotel card.
>Overall, cardholders prefer general rewards cards over branded cards; 37% of respondents own a general travel rewards card.
>The most popular reason for owning a travel rewards card was to get discounted flights and hotels (40%).
>Cash back was a more popular benefit of travel rewards cards (27%) than freebies (12%), low interest rates (11%), and exclusive perks (9%).
>Seventeen percent of respondents have never redeemed their travel rewards.
> 10% don’t understand how travel rewards cards work
For more information about this survey and to see full results, please visit http://www.creditcards.org/