Co-brand cards: which are most rewarding?

In American Airlines' latest financial update the carrier disclosed that 66% of its total frequent Flier miles were sold to partners, such as the bank issuing its co-branded credit card. That's a whopping 125 billion miles! This demonstrates the power of co-brand and the importance airlines' place on this revenue source. However, at least in North America (because the trend hasn’t totally caught on everywhere), the banks have responded to the lure of travel as an incentive; the banks have established their own travel reward cards.

So, which cards are most rewarding?  Are consumers better off with an airline co-brand card or a bank travel reward offer?  My recent research “Card Carrying Generosity” came up with some intriguing surprises. I’ll be sharing the results of this research as part of my talk at the FFP Spring Event in Washington DC in April. Quantifying value in the loyalty business is never an easy task, but the report indicates banks have gained an advantage. The lesson I will offer during my presentation is this - - airlines be aware, because your competition is wide awake.

I’m also delighted to be able to share that Airline Information has made the Kids First Fund their supported charity for 2013.  The fund works to help abused children in resource-poor areas of the world. Kids First Fund is supported by generous donations from airlines, hotel and car rental companies which provide prizes for our charity auction. If you’d like to know more about the charity, or to make a donation for the charity auction, please click: www.KidsFirstAuction.com

In the meantime, if you want to know more about the "Card Carrying Generosity" report you can visit: www.ideaworkscompany.com.  Click on the recent report link.  I’ll also be at the FFP Spring and the Freddies Award Ceremony if you want to come and know more about this research or the charity.

Guest Editorial by:
Jay Sorensen, President, IdeaWorksCompany
Email: jay@IdeaWorksCompany.com