Travel rewards points redemptions in the U.S. are up sharply this year as several brands focus on rewarding and retaining their elite customers. Hotel loyalty program redemptions in particular have shown bold increases as these programs add millions of new members per year.
Allegiant Air knows less about its most loyal customers than it would like. Its new co-branded credit card could help change that. But will anyone apply for it?
Despite the radical changes to airline loyalty programs, the branded credit card remains one of the industry's most profitable and productive marketing programs.
American Express pushed its travel business off the official books to a great extent with its joint venture for American Express Global Business Travel but Amex's credit card business is still very much tied to airline relationships.
Credit cards are now more secure in the U.S. with chips required for all new cards and European cards have had these chips for the past decade, which helps explain why generally less secure debit cards aren't brought on trips as much anymore.
The local and experiential trend in travel -- you know, the kind of trips that millennials are said to be in love with -- has gotten to the point that MasterCard and others are curating and offering these escapes for their customers. It is a natural fit as travelers knock off cities on their bucket lists, using their credit and debit cards.