A New Barclays Report Reveals How Much Travelers Rely on Rewards Programs

The summer travel season is right around the bend, and a new report from Barclays shows that 79% of travelers depend on loyalty programs when it comes to making the most of their vacation budget — an increase from survey results in 2023 and 2024.

We caught up with Doug Villone, Head of US Cards and Partnerships at Barclays US Consumer Bank, to learn more about the study and how personalization can play a key part in a successful credit card program.

Villone told us that Barclays uses research to inform the development of every rewards product the company creates. The company then tests features and benefits in advance of making any final decision on what to include on the product. 

Barclays also uses data from research to attain a general idea of the preferences of various demographic groups and gauge where the industry as a whole is heading. 

Villone told us that rewards are valuable because some travelers wouldn’t be able to take the trips they want to without them. The Barclays report also includes information about how different generations manage travel rewards and loyalty programs.

“The part that I thought was probably the most interesting is just how the millennials are really leading the way,” Villone told us. “I have college-aged children now who are getting into credit cards, and they’re very savvy. They understand programs  better than I did when I was their age.”

The report, which is in its third year and surveyed 1,000 U.S. travelers, found that millennials are 94% more likely to strategically use techniques to earn more points. For example, nearly half of millennials surveyed wait to make purchases until there is a bonus offer.

Parents of all ages also have a strong grasp on how credit card rewards can help them manage travel expenses, according to the study. Half of the parents surveyed for the report strongly agree that “consumers who don’t plan their credit card usage to earn rewards are throwing money away.”

Planning a summer vacation that requires extensive travel can be a lot of work. For some globetrotters, simply deciding the destination for an upcoming trip can be a taxing experience.

The Barclays report reveals that 40% of surveyed travelers said they have selected a vacation destination because of its inclusion in a TV show or movie they enjoy. And 30% of sightseers who haven’t employed that strategy yet indicate that they would like to.

“It definitely does seem like the way travel is featured on social media and different movies and television influence where everybody wants to go,” Villone told us. “Because we spend so much time following influencers and social media, it does create a bit of a bandwagon effect. And we do see that impact travel maybe a little more so than we traditionally have.”

Travelers are getting vacation ideas from locations featured in movies and TV programs.

Credit card issuers can survey customers to learn which travel rewards features resonate with them the most. But rewards programs need to work financially for issuer and cardholder budgets to be sustainable over time. Villone told us companies need to ensure there will be demand for a new product, and that the product is going to drive profitability.

Loyalty programs for credit cards have evolved in recent years. Villone said that, for a long time, card loyalty programs were about earning points cardholders could redeem for credits and discounts. But now issuers are creating benefits that are more distinct, including offering access to unique events.

“I think the trend has been seeing more premium products coming into the market that have really unique benefits,” Villone told us. “And I think that speaks to the fact that people want access. They want experiences. They want exclusivity, and they want more of those rewards than they were already getting.”

Businesses can use analytics to determine whether a new product is performing as expected after its introduction into the marketplace. Analytics also create more opportunities for companies to personalize offerings.

Personalized messaging and promotions can cause a customer to feel more valued, and businesses reap the benefits of personalization as well. A recent Boston Consulting Group study reported that “personalized offers consistently generate three times higher ROI than mass promotions do.”

Barclays uses analytics to create personalized offers that appeal to different groups of consumers. Villone told us the company examines how a customer is using their credit card — or not using it — to send them targeted offers.

For example, the company may encourage a cardholder who hasn’t been using their card to make gas station purchases to do so by offering them enhanced rewards on gas station spend for a specified time.

“Because we have so much analytics — and we have great digital channels and the ability to push and customize offers at the customer level — it allows us to do a lot of those things,” Villone told us.” And our partners can as well. There’s a lot of work we can do in harmony with our partners to drive value and stimulate engagement.”

Barclays leverages relationships with its partners to further help customers reach their financial goals. Villone told us the company has a program in partnership with AARP that offers savings products to all of the organization’s members, not just the ones who own a Barclays credit card.

Businesses such as Barclays can also boost value for their customers by offering a diverse menu of products to help them solve a multitude of problems. 

“For us, it’s about making sure we’re giving consumers the products that they need and value every day,” Villone told us. “It’s also about making sure we’re growing wallet and deepening relationships.”