Flight Redemptions Overtake Cashback as Leading Choice for Credit Card Rewards in India in 2025

The Rise of Flight Redemptions Among Indian Credit Card Users

In 2025, a significant shift is noticeable among Indian consumers in their credit card reward redemption preferences. A noteworthy 32% of all redeemed credit card points have been directed towards flights or airline miles transfers, surpassing cashback, which traditionally dominated the reward landscape. This change indicates a growing trend to maximise value from loyalty programmes, particularly in the realm of travel.

Why Are Flights Winning Over Cashback?

The increased popularity of flight redemptions is driven by the rising cost of air travel. With soaring airfares, travellers see redeeming points for flights as a sharper tool to stretch their travel budgets. This strategic use of reward points unlocks more tangible benefits, such as premium cabin upgrades and long-haul travel options, which offer better value than flat cashback returns.

The data shows Indian users redeemed an estimated ₹850 crore worth of rewards on travel-related expenses, marking a clear departure from simple cashback options toward more lucrative travel uses. On average, users achieved a reward value of 15.6% for every ₹100 spent on travel bookings in 2025—highlighting travel as the highest-yield sector among various spending categories.

Demographic and Regional Insights into Reward Usage

The age group between 30 and 35 years stands out as the most adept at optimising their credit card rewards, with an average redemption efficiency of 11%. Urban centres like Pune, Bengaluru, and Gurugram are among the top performers in maximising reward benefits. However, emerging tier-2 cities such as Ranchi, Jaipur, and Hyderabad are swiftly catching up, showcasing how awareness of reward optimisation is spreading beyond major metro areas.

Impact of Rising Travel Costs and Consumer Behaviour

Overall credit card spending in India also reflects robust growth, with the Reserve Bank of India reporting a nearly 20% year-on-year increase to ₹2.14 lakh crore in October 2025. Notably, redemption activities intensified during November and December, with over one-third of travel redemptions happening as users hastened to use points before annual limits or expiry dates.

Aspirational Travel: Beyond Just Economy Class

While economy class remains the foundation for most flight redemptions, there is a distinct surge in users leveraging rewards for business-class travel, long-haul journeys, and luxury hotel stays. This trend points toward a growing desire to upgrade travel experiences rather than merely offset costs.

Despite the enthusiasm for flight redemptions, many cardholders are not fully utilising other premium, card-linked benefits—for instance, less than 1% of eligible users used complimentary airport spa services, and lounge access holders made only sporadic visits. This highlights an opportunity for credit card and loyalty programmes to educate users and improve the accessibility and appeal of ancillary travel perks.

Table: Breakdown of Credit Card Reward Redemptions in India 2025

Что это значит для путешествий и трансферов

The evident shift towards travel-related reward redemption signals a trend that could shape ancillary services like taxis and transfers. As more travellers choose flights via reward points or miles, the demand for reliable and convenient airport transfers is set to grow. Platforms like GetTransfer.com become invaluable, offering the possibility to select vehicles tailored to traveller preferences—from private sedans to multi-seater limousines—ensuring a seamless journey from doorstep to airport.

GetTransfer.com stands out by providing transparency on driver ratings, vehicle types, and prices well before booking, allowing users to plan exactly according to their needs. Such clarity and flexibility are precisely what savvy reward redempters seek when complementing their flight bookings with convenient ground transportation.

The Road Ahead for Reward Points and Travel

This evolving consumer behaviour highlights a maturing loyalty market where travel is not just about reaching a destination but enhancing the entire journey. As airlines face high airfare levels and international travel demand picks up, the preference for flight redemptions over cashback is likely to continue its lead.

For credit card issuers and loyalty programme providers, this presents a golden opportunity to streamline redemption processes, better market premium benefits, and offer personalised options that meet the needs of increasingly value-conscious and travel-oriented users.

Основные выводы

• Flight redemptions make up nearly one-third of all credit card reward point use in India for 2025.
• Travel bookings offer the highest reward value compared to other spending categories.
• Young adults aged 30-35 and emerging cities are leading in reward optimisation.
• A growing interest in premium travel upgrades is evident among users.
• Many extra cardholder benefits remain largely underused, signalling room for improvement.

Summary: Empowering Travelers Through Smart Reward Choices and Seamless Transfers

In a nutshell, Indian credit cardholders are demonstrating a clear preference for redeeming rewards on flights over cashback, driven by a quest to add more value to their travel spending. This evolution in reward redemption not only reflects growing travel aspirations but also influences the wider travel ecosystem, including taxi and transfer services.

GetTransfer.com enhances this travel experience by offering users a global platform to book exact transfers with transparent pricing, wide vehicle options, and honest driver ratings, all designed to remove the guesswork and deliver comfort from airport pickup to final destination.

Despite the wealth of reviews and feedback available, nothing beats firsthand experience. On GetTransfer.com, travellers can hire verified cars with drivers at reasonable fares, empowering them to make informed choices without surprises. The platform’s convenience, affordability, and broad selection of vehicles and services align perfectly with the modern traveller’s demands for reliability and transparency in every leg of the journey. Book your Ride GetTransfer.com.

Looking forward, while this trend may not dramatically alter the global tourism map immediately, it signals India’s shifting consumer mindset towards smarter travel spending. GetTransfer remains committed to staying on top of such developments, helping travellers navigate changes effortlessly. Start planning your next adventure and secure your worldwide transfer with GetTransfer.