The airline and hotel co-brand space is large, growing, and highly competitive
Travel spend growth is slowing, but co-brands are holding steady
General travel cards are co-brands' biggest threat, especially among younger consumers
What should co-brands do to compete with general travel cards?
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About This Report
Airline and hotel co-brand credit cards are contending with shifting travel spending trends and rising competition from general travel cards. Tapping into Gen Z’s love of experiences and exclusivity can help them stand out in a crowded field.
The airline and hotel co-brand space is large, growing, and highly competitive
Travel spend growth is slowing, but co-brands are holding steady
General travel cards are co-brands' biggest threat, especially among younger consumers
What should co-brands do to compete with general travel cards?
Sources
Media Gallery
In 2025, airline and hotel co-brand credit cards are coming off a weaker year of travel and facing tougher competition from general travel cards. Issuers need to work with brands to develop programs that offer broader rewards without diluting their partners’ brand value.
Key Question: How should airline and hotel co-brands adapt to changing market dynamics to win customers in 2025?
Key Stat: Airline and hotel co-brand cards can be lucrative for issuers. In 2023, Delta SkyMiles cards alone made up 10% of worldwide network volume for American Express.
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Table of Contents
Executive Summary
The airline and hotel co-brand space is large, growing, and highly competitive
Travel spend growth is slowing, but co-brands are holding steady
General travel cards are co-brands' biggest threat, especially among younger consumers
What should co-brands do to compete with general travel cards?
Delta and Other Co-Branded Cards Make Up a Growing Share of Amex's Network Volume (billions in American Express network volume worldwide, by card type, 2021-2023)
Hotel and Airline Cards Attract More Spend Than the Average Co-Branded Credit Card (dollars in average monthly credit card spending by US credit card holders, by card type, March 2024)
Loyalty Rewards Are a Big Revenue Generator for Airlines (millions in loyalty reward revenues worldwide of select airlines and % of total operating revenues, Q3 2024)
Delta and Other Co-Branded Cards Make Up a Growing Share of Amex's Network Volume (billions in American Express network volume worldwide, by card type, 2021-2023)
Hotel and Airline Cards Attract More Spend Than the Average Co-Branded Credit Card (dollars in average monthly credit card spending by US credit card holders, by card type, March 2024)
Loyalty Rewards Are a Big Revenue Generator for Airlines (millions in loyalty reward revenues worldwide of select airlines and % of total operating revenues, Q3 2024)
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