Barclays Finds Comfort is the New Currency in Travel Rewards Strategy

A new survey from Barclays shines a light on how travel priorities are shifting for many people. Namely, data from the survey suggests that travelers are seeking to have more carefree and comfortable experiences while reaching their destinations.

We caught up with Doug Villone, Head of U.S. Cards and Partnerships at Barclays, to learn more about the survey’s results and what they may mean for credit card rewards programs.

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Villone told us that 70% to 80% of the people who participated in the survey commented on how the travel experience has grown extremely difficult, and that’s leading them to seek out ways to have more control over the process.

“That could be in the form of expedited security, having [access to] a lounge, getting on the plane first, ensuring that you have a place for your bag, or being able to seat the family together,” Villone explained. “These are things that dramatically increase the experience and [that’s] where consumers are really telling us that they want to have better control.”

In the past, certain credit card companies centered their rewards programs on a cardholder’s ability to earn miles or points they could redeem for discounts on flights or hotels. Villone said that free airline tickets and hotel stays still matter to consumers. But rewards programs shouldn’t stop there.

“Many of the consumers who travel the most tend to fall into a more mass affluent segment,” Villone told us. “So getting a free ticket may be less important than actually having the experience they want to have with their loved ones.”

Credit card issuers that provide solutions to common travel headaches are in a position to reap long-term benefits in the form of customer loyalty.

The Barclays survey shows that people are more likely to opt for upgrades — including those that allow them to take advantage of priority boarding or adjust hotel check-in and check-out times — when they can use their miles or points to access them. 

Cardholders are likely to appreciate programs that offer them the flexibility to use their miles or points for a range of travel services.

“Now I can use miles to upgrade my seat, to pay for extra bags, or potentially buy a lounge pass,” Villone told us. “So these are the things that are giving the currency more utility but are also tapping into what the consumer is saying is important to them.”

Credit card issuers should regularly evaluate the rewards programs they offer to ensure they are meeting cardholder needs.

Now may be the perfect time for credit card issuers in the U.S. to reassess their rewards programs as many people in the country are in the midst of making plans for their summer vacations. The new survey from Barclays is one tool an issuer can turn to when evaluating the benefits it offers.

Villone told us the data is informing how his company — which is currently refreshing many of its products alongside its partners — approaches product design.

“We need to make sure that these products continue to be as relevant as ever,” he told us. “And I think what we’ve also seen is that the need to refresh products and add or adjust benefits to stay relevant has accelerated.”