The Mileage Company
The UK experts in designing, developing and managing reward & loyalty schemes
Press releases
Most credit card holders are missing out on rewards
March 2010 - Consumers are not doing enough to make their credit cards work hard for them and are losing out on openly available freebies and perks, according to new research* by Airmiles, the UK's leading travel reward scheme, which reveals that 70% of Brits admit to missing opportunities to collect rewards.
The study showed that of the 30 million credit card holders in the UK** over half (55%) have credit cards that don't deliver any rewards on their spending. What's more, 58% of consumers who do have a reward credit card fail to maximize its value by doing all of their spending on that card. The research reveals that the average consumer spends £1,700 a year on credit cards that do not yield rewards. For this amount consumers could collect 750 Airmiles, enough for a free Eurostar trip, return flight to Amsterdam or a day out at Alton Towers***.
Personal finance expert Jasmine Birtles says: "Using the right credit card to pay for life's essentials is a great way of managing your money and picking up freebies along the way. I have an Airmiles Duo credit card myself which I purposely use any time I have to spend, in order to build up the free miles. I'm amazed that many other people aren't using credit cards that reward them for spending. It seems crazy to me that over half of the UK's credit card holders are willing to give away their custom for free. With a new season approaching, it's time for consumers to spring clean their wallets, ditching the credit cards that don't pay dividends."
Airmiles still remains the UK's most popular loyalty scheme, enabling holders to save rewards on the purchase of everyday essentials at over 200 online, supermarket and high street partners. The Lloyds TSB Airmiles Duo credit card also offers a market leading reward value where holders can receive a cash back equivalent of up to 6.57% of the money spent - outperforming nearly all credit cards in its league for the same level of spend. Also, unlike other loyalty cards, The Lloyds TSB Airmiles Duo customers can claim their valuable rewards easily and conveniently, with all free flights inclusive of airline taxes, fees and surcharges.
The research also revealed that of the consumers who do collect rewards through their spending, 62% prefer to redeem them for one large reward, rather than smaller incremental ones - indicating that optimum benefits are best achieved by sticking to one reward credit card that allows you to accrue significant benefits quickly.
Adrian Bryant of Lloyds TSB says: "As consumers we often sign up to various reward schemes in the belief that there will be enriched benefits and substantial perks, when in reality we're spreading our spending too thinly. Instead we should be opting for one reward credit card that gives back much more for what you spend, as well as multiple ways to bump up the return and reap significant rewards quickly through purchasing life's daily essentials."
Andrea Burchett of Airmiles says: "Airmiles has been rewarding members for everyday spending for over 20 years and with over 200 collection partners, members are rewarded with miles for their grocery shopping, utility bills, online shipping and everyday credit card purchases. It's really easy and quick to clock up enough miles for a free holiday or special day out in the UK or abroad."
-- Ends --
Notes to Editors:
* OnePoll surveyed 2,000 consumers in March 2010.
** 30 million credit card holders in the UK - source: UK Card Association
*** Based on £1,700 spent a follows:
65% Tesco (double points offer)
20% Shell
10% Online
5% Non Airmiles partner spend
About Airmiles www.airmiles.co.uk
The UK's longest running and most rewarding scheme of its kind, Airmiles members collect Airmiles for travel and leisure rewards.
Collect Airmiles with the Lloyds TSB Airmiles Duo Credit Card account, shopping at Tesco, filling up with fuel at Shell Service Stations and shop online with over 200 popular online brands when accessed via airmiles.co.uk eStore - including johnlewis.com, debenhams.com, Apple store, eBay.co.uk, Comet, Currys, Boden, hmv.com and Waterstone's.
Millions of members collect Airmiles on their everyday spending and use them for completely free flights that include all airline taxes, fees and surcharges, Eurostar journeys, hotel accommodation, tour operator holidays, car hire, travel insurance and special days out including Alton Towers, Legoland and English Heritage Annual Passes.
All bookings are subject to availability.
For more information on Airmiles and the Lloyds TSB Airmiles Duo credit card, visit www.airmiles.co.uk
For more information please contact:
Andrea San Pedro
Tel: +44 (0) 20 7908 6431
Email: asanpedro at lexispr dot com
Or
John Crozier
Tel: +44 (0) 20 7908 6409
Email: jcrozier at lexispr dot com
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August 2009
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