Most loyalty program participants don’t know how many points/miles they have.
NEW YORK – Nearly half (46%) of U.S. adults who participate in airline and hotel rewards programs have let their points or miles expire at some point, according to a new Bankrate.com report . Among those who collect credit card rewards, 29% have allowed those to expire.
Millennials were the most likely generation to lose rewards to expiration policies; 57% have lost hotel points, 50% have forfeited airline miles and 44% been deprived of credit card rewards for this reason. For older adults, the totals are just 41%, 46% and 22%, respectively.
Most loyalty program participants don’t know how many points/miles they have collected. Just 25% were able to list how many hotel points they have, 29% knew their frequent flyer mile total and 33% reported their credit card rewards balance.
There’s also a lack of awareness regarding how these rewards are valued: More than half of U.S. adults (53%) admit they have no idea how much 10,000 rewards points/miles are worth. The correct answer is generally in the $100 to $199 range – roughly 1 to 2 cents apiece – but just 18% of Americans know that. Some 16% overestimated the value and 14% underestimated it. This includes 8% who think those points are worth $1,000 or more!
Two-thirds of Americans (66%) have credit card points, 57% possess hotel rewards and 56% collect frequent flyer miles. Among those who reported their balances, the averages were 34,065 airline miles, 22,893 hotel points and 15,941 credit card points. Even at the low end of the valuation range (1 cent per point/mile), that means the average frequent flyer account balance is worth about $341, the average hotel points hoard equals approximately $229 and their average credit card rewards stash is $159 or so.
“A lot of people are sitting on airline, hotel and credit card rewards that are worth a significant amount of money,” said Bankrate.com credit card analyst Ted Rossman. “That’s why it’s so important to take advantage of them before they expire. If you need more time to save up for your desired redemption and your rewards are about to expire, reset the clock by demonstrating new account activity. This can involve a small purchase or redeeming a minimal number of points or miles.”
In general, younger adults are more likely to join rewards programs, but older folks have higher balances. Participation and perks both increase with income.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
