Rising travel costs drive Indians to maximise credit card rewards through flight redemptions: Report
New Delhi, December 18
Flight redemptions have emerged as the most preferred use of credit card reward points in India in 2025, overtaking cashback, according to a report by AI-driven credit card and loyalty optimisation platform SaveSage.
The report said nearly one-third of all reward points redeemed by its users were used for flights or airline mile transfers, accounting for a 32 per cent share of total redemptions. The shift reflects growing consumer awareness around maximising reward value amid rising travel costs.
The company said users redeemed travel rewards worth Rs 850 crore in 2025. Business-class seats, long-haul flights, and luxury hotel stays witnessed strong growth as consumers opted for higher-value redemptions.
Based on an analysis of anonymised data from over 110,000 users and more than 5 lakh credit cards, the report noted that travel delivered the highest rewards efficiency, with users earning an average return of 15.6 per cent for every Rs 100 spent on travel bookings. Overall reward efficiency rose to 7 per cent in 2025 from 2.2 per cent in 2024.
Users aged 30-35 emerged as the most financially savvy cohort, achieving an average optimisation rate of 11 per cent. Pune, Bengaluru, and Gurugram were identified as the most efficient markets, while Tier-2 cities such as Ranchi, Jaipur, and Hyderabad recorded the fastest improvement in reward optimisation.
Commenting on the trend, Ashish Lath, Founder and CEO of SaveSage, said that Indian consumers are increasingly treating reward points and miles as a strategic financial tool rather than opting for flat cashback.
"The way Indians view reward points is changing. Travel redemptions unlock substantially higher value than cashback, and users are now treating points and miles as a strategic financial tool. As loyalty ecosystems mature, rewards will play an even bigger role in making travel more affordable in the years ahead," he noted.
The report also noted a seasonal spike in redemptions, with over 33 per cent of travel redemptions occurring in November and December, coinciding with annual card and loyalty redemption limits. RBI data shows credit card monthly spends grew 19.6 per cent year-on-year to Rs 2.14 lakh crore in October 2025.
The report added that several premium card-linked travel benefits remain under-utilised, including complimentary airport spa services and lounge access.
— ANI
Reader Comments
As someone from Bengaluru, I'm not surprised we're a top market. The tech crowd here is always looking for hacks. I just booked a business class ticket to Singapore using points I'd been saving. The value is insane compared to a small cashback.
Good to see Tier-2 cities like Jaipur and Hyderabad catching up fast. Financial literacy is spreading beyond metros. But the report is right about under-utilised benefits – I always forget about the spa access! 😅
While optimising points is great, this trend also worries me a bit. The 19.6% YoY growth in credit card spends is huge. People might be spending more just to chase rewards, leading to debt. We need to be careful and spend within our means.
The seasonal spike makes perfect sense. Everyone is trying to use up points before the year ends and limits reset. I just transferred all my points to airline miles in November for a summer holiday. It's become a yearly financial ritual!
Finally, people are realizing the value! My parents always asked why I didn't just take the cashback. Now I can show them this report – a 15.6% return on travel spend is no joke. This is how you make your money work for you. ðŸ‘
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