Credit card reward redemption patterns in India witnessed a major shift in 2025, with flight bookings and airline mile transfers overtaking cashback for the first time, according to a report by AI-driven credit card optimisation platform SaveSage. The study showed that 32% of all reward points redeemed by SaveSage users were directed toward flights or airline mile transfers, reflecting heightened awareness of high-value redemption options amid rising travel costs. In total, users redeemed Rs 850 crore worth of reward points for travel in 2025, underscoring the growing significance of reward-driven travel spending.
Younger Users and Key Cities Lead India’s Travel Reward Boom
Based on anonymised data from over 110,000 users handling more than 500,000 credit cards, the report highlights a wider transition towards premium travel experiences. Business-class seats, long-haul international flights and luxury hotel stays saw notable growth as consumers increasingly prioritised value maximisation over flat cashback. SaveSage’s data also revealed that users earned an average reward value of 15.6% for every Rs 100 spent on travel bookings—making it the highest-value category of all spending types.
The overall reward efficiency across users rose significantly to 7% in 2025, up from 2.2% in 2024. Among demographic groups, users aged 30–35 emerged as the most financially savvy, recording an average optimisation rate of 11%. On the geographical front, Pune, Bengaluru and Gurugram led the country in reward efficiency, while Tier-2 cities such as Ranchi, Jaipur and Hyderabad showed the fastest improvement, indicating the growing penetration of smart reward utilisation beyond major urban centres.
Peak Travel Redemptions Contrast with Low Use of Elite Card Perks
This shift in consumer behaviour also coincided with rising credit card activity nationwide. Reserve Bank of India data indicates monthly credit card spending surged 19.6% year-on-year to Rs 2.14 lakh crore in October 2025. Within the SaveSage user base, travel redemptions peaked in November and December, making up over one-third of annual travel-related redemptions as users approached their yearly limits. Despite stronger travel aspirations, the report noted that premium card perks remain under-utilised, with only 0.3% of eligible users availing airport spa services and users with unlimited lounge access averaging just one visit every four weeks.
Summary:
India’s credit card users shifted toward high-value travel redemptions in 2025, with flights and airline miles overtaking cashback. SaveSage data shows Rs 850 crore redeemed for travel, rising reward efficiency, and strong adoption in major and Tier-2 cities. Despite booming spending, premium perks like spa and lounge access remain under-used.
