Travel Rewards Work for Americans

The Department of Transportation (DOT) is focusing its efforts on micromanaging airline rewards programs, a move that is short-sighted and out of touch with the real challenges facing the travel industry. This regulatory overreach threatens to undermine a system that millions of Americans enjoy and rely on for affordable travel experiences.

Americans Love Their Travel Rewards—and the Data Proves It:

• 80% of Americans value their credit card rewards.
• 81% agree that earning rewards points is very important to their travel plans.
• More than a third of travelers in loyalty programs (37%) consider travel rewards points an essential part of their budget.
• Nearly 3 in 4 cardholders (72%) get more out of their credit card rewards programs than they put into them.
• Most travelers in loyalty programs (76%) can’t imagine taking the caliber of trips they do without the benefits of these programs.
• Without rewards, most people (77%) agree they would travel differently. This might mean opting for different providers, settling for cheaper accommodations, choosing less convenient travel methods, or even shortening trips. A fewer number of consumers (4%) would not be able to travel at all.

The Value of Travel Rewards is Growing

• In 2022, consumer rewards programs grew by 50% compared to 2019, totaling $40 billion in value, according to government data.
• The value of rewards earned grew from 1.4 cents per dollar spent in 2019 to 1.6 cents in 2022.

The government's own data shows that this probe is unnecessary. Intervening now could devalue these rewards, limit travel opportunities and hurt the travel industry’s recovery.

The Consequences for Travelers, the Travel Industry and the Economy

• Reduced access to airline rewards, especially for low- to middle-income travelers who depend on these programs to fund vacations and visit loved ones.
• Devaluation of earned rewards, making future points less valuable.
• A potential 10% reduction in rewards-related travel could result in 1.5 million fewer trips annually and $4.3 billion in lost economic activity.

Our view: Instead of regulating rewards, DOT should address real challenges: addressing the air traffic controller shortage, modernizing air traffic control systems and improving our outdated airport infrastructure. Let’s focus on solutions that actually benefit travelers.