Why travel rewards and a well-built travel loyalty portal are critical to attracting and retaining premium cardholders

In today’s competitive credit card landscape, rewards have become the primary lever for credit card acquisition and retention. 69% of credit cardholders named rewards as the top reason for choosing their current primary card, and 59% carry two or more cards. For credit issuers, this means most wallets contain competing options, and the program that delivers the most relevant value is the one that earns the spend.

Not all cardholders represent the same opportunity for issuers, and preferences and expectations differ the most at the top of the portfolio. Premium cardholders, those holding a card with a high annual fee and high-value benefits, are higher spenders, more traveled, and hold firmer expectations about what a program should deliver. This is the segment where program quality and experience have the most direct impact on retention and revenue.

Premium cardholders have already oriented their card selection and reward preferences around travel, and the data shows their current programs are underperforming expectations. 67% of premium cardholders report frustrations with their current credit card and rewards program, and 32% have switched cards for better rewards.

This new research from HTS explores the current premium cardholder landscape and highlights where issuers have the greatest opportunities to better meet and exceed evolving cardholder expectations. 

High-value cardholders have already oriented toward travel 

78% of premium cardholders traveled at least once in the last 12 months, and 12% took five or more trips. These cardholders are not occasional travelers booking one leisure trip a year; they are consistent, high-frequency customers for whom travel is a regular part of life and spending. 

30% of premium cardholders named travel benefits as a primary reason for choosing their current card, more than twice the rate of the general cardholder population. For this group, benefits, travel insurance, and lounge access carry nearly as much weight as points accumulation when selecting a new card. 

The reward type preferences confirm the same orientation. 36% of premium cardholders value points and miles as their primary reward type, compared to 24% of mass market cardholders. 16% value premium perks including lounge access and concierge services, compared to 3% of mass market. This is a segment of high-value cardholders choosing products that align to their lifestyle and priorities. 

Demand for travel rewards is growing, even among this already high-interest group. 39% of premium cardholders are more interested in travel rewards than two years ago, 14 points above the mass market cardholder figure.  For credit issuers, the key question is whether their program is offering the right program and travel offering to retain cardholders long-term. 

Takeaway: Premium cardholders have already selected travel-oriented products and have firm preferences on how they are rewarded. Credit issuers who focus on developing a strong travel rewards offering are best positioned to capture and retain demand from this high-value segment. 

Where today’s programs fall short, and what it costs 

67% of premium cardholders report at least one frustration with their current rewards program, compared to 44% of mass market cardholders. High fees (28%), low rewards value (21%) and limited redemption options (12%) are among the top complaints. The pattern across all three complaints is consistent: premium cardholders are paying above-average annual fees and finding the return falls short of what they expected. 

For a cardholder who chose their card specifically for travel benefits and premium perks, those gaps risk cardholders choosing to look elsewhere for a primary card. 32% of premium cardholders say they have switched cards for higher rewards and 18% have switched for better perks and benefits. Even short of switching, spending behavior is conditional among this group with multiple cards in their wallet: 43% of premium card holders say offers influence which card they direct their spending toward and which cards they renew. A card that falls short on any dimension is already losing spend even before a customer churns.

TOP SWITCHING REASONS 

Premium cardholders vs mass market cardholders. % citing each as a reason for switching.

Takeaway: Premium cardholders set a high bar and are willing to move when it is not met. Falling short on travel rewards, program benefits, or relevant offers creates measurable switching risk and spend redirection in the segment that matters most. 

Closing the gap 

Premium card holders have made their preferences clear. They want a card that rewards how they travel, protects them when plans change, and delivers relevant offers without friction. Three capabilities address this directly. 

1. Excellent travel rewards: HTS's travel platform gives banks a direct path to connecting card points to travel bookings, without building inventory, pricing, and redemption infrastructure from scratch. For issuers, premium cardholders are already in the portfolio; the opportunity is giving them a reason to stay and concentrate their spend. For banks outside of North America, where loyalty and rewards are mature, building a travel-oriented program now establishes a durable position before the market catches up. 

2. Fintech products that address growing demand for travel protection: A rewards program that covers travel spending but leaves cardholders exposed when plans change is an incomplete product. 87% of high-income travelers report concern about flight disruptions when booking, and 60% say they would be more likely to book with a brand offering products like disruption assistance. 59% would add a cancel for any reason option at flight booking; 57% at hotel booking. HTS fintech products, including Cancel for Any Reason and Disruption Assistance, give banks a way to embed more flexibility directly into the card experience. For a premium cardholder paying an annual fee specifically for travel benefits, this is the difference between a card that rewards travel spending and one that actively supports the travel experience. 

3. Relevant, automatically delivered offers: 43% of premium cardholders say delivering higher savings and value to customers through offers and discounts would make them more likely to use their card. 31% of premium cardholders want automatic offer application at checkout, with no activation required, and 30% want more relevant offers matched to their actual spending. 

HTS's AI-powered offer matching and card-linked offer capabilities give banks the tools to close this gap, delivering offers that are relevant, timely, and applied without friction. 

HTS partners with banks and credit card issuers to embed travel booking, points redemption, fintech flexibility products, and AI-powered offer matching into existing card programs.

Methodology: Primary data is from a survey conducted in April 2026 in partnership with Opinium among 1,000 adults in the United States (n=500) and Canada (n=500) who hold at least one credit card. Premium cardholders are respondents who use a premium card as their primary (most used) credit card. Fintech data is from a separate survey conducted in March 2026 in partnership with Opinium among 1,030 American travelers; high-income segment defined as $150k+ household income. Percentages are rounded to the nearest whole number.