In 2025, credit card users are increasingly moving away from simple cashback and using their points for travel-related redemptions — especially flights and airline miles.
Here’s what’s actually changing in the world of credit card rewards:
Flight Redemptions Now Lead the Way
A recent credit card rewards report shows that flight redemptions have overtaken cashback as the most popular way to use credit card points in India this year. Nearly 32% of reward point redemptions were used for flights or airline mile transfers, up from lower in previous years — reflecting a major shift toward travel-focused rewards.
That means:
- People value airline miles and flight bookings more than straight-up cashback
- Frequent flyers and travel planners are getting higher value per point by using rewards for flights
- Travel continues to recover, and credit card programs are responding by pushing travel perks.
Why Travel Redemptions Are Winning
Here’s why this trend is gaining steam in 2025:
Higher Per-Rupee Value
Travel redemptions — especially flights and airline miles — often deliver better rewards value than cashback, which is typically a flat percent back on spends.
Rising Travel Demand
More people are flying (domestic + international), taking advantage of border openings and flexible travel plans — so travel points are hot.
Reward Optimization
Savvy users are learning to maximize their points by transferring to airline/hotel programs or using them for flights, getting more bang for the same points.
Tech & Travel Offers
Mobile wallets, travel portals and airline partners are making it easier to redeem for flight tickets and travel upgrades directly through apps and online.