Banks Gain Ground in Loyalty Battle Against U.S. Airlines

Banks and airlines are locked in a growing competition for consumer loyalty — and financial institutions currently appear to have the upper hand. According to a new IdeaWorksCompany report, Kong vs. Godzilla: U.S. Banks and Airlines Clash Over Traveler Loyalty, major U.S. card-issuing banks now exert greater influence over travel spending than airlines, largely due to their scale, customer data and credit card reach.

The report highlights that Capital One/Discover holds the largest share of global credit card accounts at 34%, followed by Chase at 30.7%, Citigroup at 14.7% and American Express at 14.2%. By contrast, the largest U.S. airlines — American, Delta, Southwest and United — each represent less than 2% of total card accounts.

Banks are also increasingly positioning their travel platforms to function like online travel agencies, offering flights across multiple airlines, hotel options and bundled perks. However, airlines maintain a distinct advantage: they are the direct providers of travel and have decades of experience operating loyalty programs with flexible reward structures.

Both sides are expanding benefits to win travelers. Airlines are introducing more redemption options and experience-based rewards, such as Alaska Airlines’ partnership with Way and JetBlue’s launch of TrueBlue Travel. Banks, meanwhile, are investing heavily in airport lounge networks, though airlines still dominate in lounge scale. Delta operates 54 Sky Clubs, United runs 49 United Clubs and American has 41 Admirals Clubs — compared to 17 Amex Centurion lounges, nine Chase Sapphire lounges and seven Capital One lounges.

The report concludes that banks currently hold the competitive edge, especially following Capital One’s acquisition of Discover, which further expands its loyalty footprint. As Jay Sorensen of IdeaWorksCompany notes: “Airlines invented loyalty programs, but banks have amplified them into multi-billion-dollar businesses.”

Tags: phocuswire

Banks Gain Ground in Loyalty Battle Against U.S. Airlines

Related Posts