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Flights Top Cashback as India's Favorite Credit Card Reward in 2025

Flight bookings have become the most preferred use of credit card reward points in India for 2025, surpassing cashback for the first time. A new report shows 32% of redeemed points were used for flights or airline miles, with users redeeming Rs 850 crore for travel. The data reveals a strategic shift towards premium travel, with users earning an average 15.6% reward value on travel spending. While credit card usage grows rapidly, the report notes that many premium card benefits, like airport spa access, remain significantly underutilized.

Key Points: 2025 Report: Flights Top Credit Card Reward Choice Over Cashback

  • Flights overtake cashback
  • 15.6% avg. reward value on travel
  • Rs 850 crore points redeemed for travel
  • Tier-2 cities show fastest growth
2 min read

Flight bookings emerge as most preferred use of credit card reward points in 2025: Report

A 2025 report reveals flights are now India's top credit card reward redemption, with users earning 15.6% value on travel spend. See key trends.

"Nearly one-third (32%) of all reward points redeemed... were used for flights or airline mile transfers. - SaveSage Report"

New Delhi, December 25

Flight bookings and airline mile transfers have emerged as the most preferred use of credit card reward points in India in 2025, overtaking cashback for the first time, according to a new report by AI-driven credit card optimisation platform SaveSage.

The study found that nearly one-third (32%) of all reward points redeemed by SaveSage users were used for flights or airline mile transfers, reflecting growing awareness of high-value redemptions amid rising travel costs. In total, users redeemed Rs 850 crore worth of credit card reward points for travel during the year.

Based on anonymised data from over 110,000 users managing more than 500,000 credit cards, the report highlights a broader shift towards premium travel experiences. Business-class seats, long-haul international flights and luxury hotel stays saw strong growth as consumers sought to maximise the value of their reward points rather than opt for flat cashback.

SaveSage's analysis shows that users earned an average reward value of 15.6% for every Rs 100 spent on travel bookings, the highest among all spending categories.

Overall reward efficiency improved sharply to 7% in 2025, up from 2.2% in 2024. Users aged 30-35 were the most financially savvy cohort, with an average optimisation rate of 11%.

Geographically, Pune, Bengaluru and Gurugram recorded the highest reward efficiency. At the same time, Tier-2 cities such as Ranchi, Jaipur and Hyderabad showed the fastest improvement, indicating a widening adoption of strategic reward usage beyond major metros.

The report also coincides with strong growth in credit card usage nationwide. Reserve Bank of India data shows monthly credit card spending rose 19.6% year-on-year to Rs 2.14 lakh crore in October 2025.

Within the SaveSage user base, travel redemptions peaked in November and December, accounting for over one-third of annual travel-related redemptions as users approached yearly limits.

Despite rising travel aspirations, the study found that several premium card benefits remain under-utilised. Only 0.3% of eligible users availed complimentary airport spa services, while even users with unlimited lounge access averaged just one visit every four weeks.

- ANI

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Reader Comments

A
Aman W
Interesting to see Tier-2 cities catching up. I'm from Jaipur, and among my friend circle, there's definitely a growing trend of discussing which card gives the best air miles instead of just cashback. The travel bug is real, even outside metros.
R
Robert G
As someone who recently moved to Bangalore for work, this data rings true. My colleagues here are extremely clued in on maximizing credit card benefits, especially for international travel. The 15.6% return on travel spend is a compelling reason to shift spending habits.
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Suresh O
While it's good people are learning, the report also shows we are still leaving benefits on the table. Only 0.3% using spa services? That's a shame. Banks market these premium perks heavily, but we need to be more proactive in actually using them to get our money's worth.
K
Kavya N
Absolutely! Redeeming for business class on long hauls is a game-changer. Used my points to fly to the US in premium economy last year and it made the journey so much better. It feels like a real reward, not just a small discount. The key is to be patient and let points accumulate for a big redemption.
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David E
The jump from 2.2% to 7% average reward efficiency in one year is staggering. It shows how quickly financial literacy around credit instruments is improving in India. Platforms like SaveSage deserve some credit for democratizing this knowledge beyond just finance professionals.

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