Airline and Hotel Co-Brand Credit Cards

How Issuers Can Stand Out in a Crowded Field

Report by Tyler Van Dyke  | Jan 16, 2025
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Executive Summary
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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?
Sources
Media Gallery
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.
Topics
Financial Services
Payments
Travel
United States
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?
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?

Select US Airline and Hotel Co-Brand Credit Cards
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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

  1. Executive Summary
  2. The airline and hotel co-brand space is large, growing, and highly competitive
  3. Travel spend growth is slowing, but co-brands are holding steady
  1. General travel cards are co-brands' biggest threat, especially among younger consumers
  2. What should co-brands do to compete with general travel cards?
  3. Sources
  1. Media Gallery

Charts in This Report

Select US Airline and Hotel Co-Brand Credit CardsDelta 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)
Demand for Leisure Air Travel Ticks Up Ahead of Holiday Season

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authors

Tyler Van Dyke

Contributors

Grace Broadbent
Suzy Davidkhanian
VP, Content
Chris Keating
Director, Research
David Morris
Principal Analyst
Sakina Thanawala
Copy Editor
Matt Torpey
Senior Chart Editor
Emman Velasco
Chart Editor
Julia Woolever