Flight Redemptions Surpass Cashback as Indians Maximize Credit Card Travel Rewards in 2025

Rising Trend: Flight Redemptions Lead Credit Card Rewards

In 2025, Indian credit card users are increasingly favouring flight-related redemptions over cashback options, with nearly one-third of reward points now being spent on flights or airline miles transfers. This shift highlights a growing savvy among travellers seeking to extract more value from their loyalty programmes amid rising airfares.

Significant Numbers Showcase Changing Consumer Habits

Data from a broad sample of over 110,000 users and 500,000 credit cards reveals approximately ₹850 crore worth of reward points were redeemed for air travel this year. This is a clear move away from straightforward cashback offerings, as consumers look to leverage premium cabin flights and long-haul routes to boost their travel experiences.

Why the Shift Towards Travel Rewards?

The surge towards using rewards for flights correlates with a 15.6% average return on travel spending, making it the highest-yield category among all segments. This compares to a general improvement in reward efficiency of 7% this year, more than triple the 2.2% efficiency rated last year.

Demographics and Geography of Reward Optimisation

Consumers aged 30 to 35 demonstrate the highest financial acuity, achieving an average rewards optimisation rate of 11%. Geography-wise, metropolitan hubs like Pune, Bengaluru, and Gurugram lead in efficiency, while tier-2 cities such as Ranchi, Jaipur, and Hyderabad show the fastest gains, indicating that savvy use of travel rewards is spreading beyond just the big cities.

Spending Growth and Aspirational Travel

Credit card spending in India is on the upswing, with the Reserve Bank of India noting a 19.6% year-on-year growth to ₹2.14 lakh crore as of October 2025. Expecting travel redemptions to keep pace, users traditionally surge their reward spending at year-end, with November and December alone accounting for over 33% of all travel rewards redeemed.

In addition to economy-class trips, there’s a notable rise in premium travel redemptions — business-class flights, long-haul routes, and luxury hotel stays are increasingly funded through loyalty rewards. This trend points to users strategically upgrading their journeys rather than just offsetting basic costs.

Underused Perks and Loyalty Program Potential

Despite the popularity of flight redemptions, some premium card benefits remain largely untapped. Complimentary airport spa services see a mere 0.3% user engagement among eligible cardholders, and those with unlimited lounge access average only one visit every four weeks. There’s an opportunity here to expand user education and simplify access to these perks.

对出租车和接送服务的影响

As air travel rewards gain traction, demand for seamless transfers to and from airports is likely to rise. Platforms such as LocalsRide.com offer travellers the transparency to choose vehicles by make, model, and driver ratings beforehand. This level of choice aligns perfectly with a clientele aiming for premium and upgraded trips that loyalty point redemptions now afford.

Understanding this credit card redemption trend allows taxi and transfer services to anticipate higher volumes, particularly in Tier-2 cities where travel reward awareness is increasing fast. Offering tailored transfer options that complement flight upgrades can raise service appeal among affluent travellers.

Summary of Key Points

• Flight redemptions now claim 32% of all credit card reward redemptions in India for 2025.
• This shift reflects travellers’ desire to offset higher airfares and maximize loyalty program value.
• Average reward efficiency has more than tripled from 2.2% in 2024 to 7% in 2025.
• Higher-income, tech-savvy younger adults and expanding Tier-2 cities lead this trend.
• Despite flight redemption popularity, many premium credit card benefits remain underused.

Personal Experience Matters More Than Reviews

While data and reviews paint a compelling picture of how travel reward redemptions are evolving, nothing compares to testing the waters oneself. On LocalsRide, users can hire cars with professional drivers from verified providers at competitive prices. This gives the flexibility to explore cities, airports, and destinations with confidence, avoiding unexpected costs or service shortcomings.

LocalsRide.com offers convenience through an extensive fleet, affordability through clear pricing, and a wide range of transfer options suited to flights — from private sedans to luxury limousines. Such transparency and choice empower travellers to book with peace of mind, matching the growing sophistication of travel reward redeemers. Get the best offers LocalsRide.com.

Looking Ahead: Impact on Travel and Tourism

This trend toward flight reward redemptions may not drastically reshape global tourism, but it certainly signals a maturing Indian outbound travel market ready to invest more strategically in their journeys. As loyalty ecosystems develop, expect growing opportunities for personalized, premium transfers linked to flights. Staying tuned to such developments ensures services like LocalsRide stay at the forefront, offering travellers worldwide convenient and exact solutions for their transfer needs.

结论

In summary, the rise of flight redemptions over cashback as India’s preferred credit card reward use reflects a significant shift toward travel-focused spending. With efficiency improvements and expanding awareness spreading from major cities to smaller locales, Indian travellers are optimizing loyalty benefits for enhanced flight experiences and upgrades. This evolving landscape directly influences the demand and expectations for taxi and transfer services, which must adapt to cater to increasingly premium travel preferences.

LocalsRide.com offers a globally accessible platform where travellers can easily book personalized transfers with detailed vehicle and driver profiles, ensuring the best match for every journey. By combining transparency, competitive fares, and a broad choice of vehicles, LocalsRide supports this travel trend, making taxi and chauffeur services an integral part of enhanced travel experiences linked to flight reward optimizations.