Why are Indian Travelers Choosing Flight Bookings for Credit Card Rewards?

A new report confirms a major shift in how Indian consumers use their credit card reward points. For the first time, flight bookings and airline mile transfers are the most preferred redemption option. This trend overtakes traditional cashback redemptions, signaling a change in consumer behavior.

Data from the SaveSage platform shows nearly one-third (32%) of all points redeemed went toward air travel. This highlights a growing awareness of maximizing reward value among travelers. The total value of travel rewards redeemed by users reached approximately ₹850 crore in 2025.

The Surge in Reward Efficiency

The shift is driven by the superior value offered by travel redemptions. The overall reward efficiency for users improved sharply to 7% in 2025. This is a significant increase from just 2.2% recorded in the previous year, 2024.

Travel emerged as the highest-yield category for spending. Users earned an average return of 15.6% for every ₹100 spent on travel bookings. Consumers are now treating points and miles as a strategic financial tool. This helps offset the rising costs of India air travel.

Key Consumer and Market Trends

The report analyzed anonymized data from over 110,000 users and 500,000 credit cards.

• Savvy Consumers: Users aged 30-35 were the most financially savvy cohort. They achieved an average reward optimization rate of 11%.
• Premium Travel: Strong growth was noted in redemptions for business-class seats and long-haul flights. This suggests a move toward higher-value, premium experiences.
• Geographic Spread: While major metros like Pune and Bengaluru showed high efficiency, Tier-2 cities recorded the fastest improvement. This indicates that rewards awareness is spreading beyond major urban centers.

Impact on Commercial Aviation

This trend presents a major opportunity for airlines and consumer loyalty programs.

Airlines like IndiGo and Emirates can see increased engagement in their frequent flyer programs. The demand for airline mile transfers directly boosts the perceived value of these programs. This can lead to greater customer retention and higher-margin ticket sales.

Airports and associated services, such as lounge access, also benefit from the credit card spending boom. Many premium travel cards offer benefits like complimentary lounge visits. This makes the overall flight experience more attractive to high-spending cardholders.

This shift in consumer preference is a critical piece of commercial aviation news for industry stakeholders. It confirms that loyalty points are now central to travel planning. The Reserve Bank of India (RBI) data also shows monthly credit card spending grew 19.6% year-on-year in October 2025. This growth provides a strong foundation for future flight news related to reward-driven travel. The data suggests that loyalty programs will play an even bigger role in making travel more affordable in the years ahead.