India’s Credit Card Reward Points Are Fueling a Travel Boom in 2025! Flights Overtake Cashback—Find Out Which Airlines and Hotels Are Raking In the Benefits!

Published on December 25, 2025

Air India, Emirates, and Singapore Airlines are soaring to new heights in 2025 as Indian travelers increasingly redeem their credit card reward points for flights instead of cashback. With a dramatic shift in travel behavior, more travelers are opting for premium experiences, fueling growth in both the airline and hospitality sectors, and transforming the way people explore the world.

India’s Credit Card Reward Points Are Fueling a Travel Boom in 2025! Flights Overtake Cashback—Find Out Which Airlines and Hotels Are Raking In the Benefits!

The travel industry is undergoing a significant shift in India in 2025. Thanks to the rise in credit card reward points, more and more Indian travelers are opting for air travel over cashback redemptions. This shift has caused a surge in demand for flights and airline mile transfers, benefiting not only airlines but also the hospitality sector. For the first time, air travel redemptions have outpaced cashback rewards. With nearly a third of all credit card reward points being redeemed for flights, this trend is transforming the way people travel.

The effect of this growing trend extends beyond the credit card industry and into the tourism, airline, and hospitality sectors. As Indian travelers begin to maximize the value of their reward points, they are increasingly booking premium flight experiences, including business-class seats and international long-haul flights. Hotels are also reaping the benefits, with many travelers choosing to spend their points on luxury stays.

In this article, we explore how these changes are impacting the travel industry, providing tips for tourists looking to make the most of their credit card rewards, and examining the airlines and hotels that are benefiting the most from this shift.

Flight Redemptions Have Overtaken Cashback—How This Trend is Shaping the Future of Travel

In 2025, nearly 32% of all credit card reward points redeemed by Indian users were directed toward flight bookings or airline miles transfers. This marks a dramatic shift away from cashback, which had been the dominant redemption category for years. As the cost of travel continues to rise, Indian consumers are becoming more savvy about how to get the best value for their money. They are now recognizing that using reward points for travel-related expenses offers a higher return on investment compared to simple cashback.

This change is a result of growing awareness and a desire to get more out of every transaction. Airlines, in particular, are seeing a significant increase in redemptions, with business-class flights and luxury hotel stays being particularly popular. As airlines respond to this demand, they are offering better loyalty programs and more attractive point transfer options, further encouraging travelers to use their points for flight bookings.

As a result, airlines are seeing increased ticket sales and higher demand for premium experiences. Major airlines such as Air India, Emirates, and Singapore Airlines have seen a notable uptick in bookings from credit card points redemptions. This surge in demand for flight tickets is expected to continue throughout 2025, with more travelers opting for long-haul flights, especially to international destinations.

Find Out Which Airlines and Hotels Are Raking In the Benefits!

With the rise in flight redemptions, several airlines and hotel chains are emerging as clear winners. As Indian travelers are increasingly using their points for air travel, airlines that offer robust reward programs, attractive point transfer opportunities, and premium flight experiences are seeing substantial growth.

Airlines Leading the Charge

Air India has long been a leader in domestic and international flights, and in 2025, it continues to reap the rewards of increased credit card point redemptions. Indian travelers are increasingly booking flights on Air India for both domestic and international routes, taking advantage of reward programs that allow them to convert points into flight tickets. This shift in consumer behavior has bolstered Air India’s position as a top choice for those looking to redeem their points for air travel.

Emirates, known for its luxurious flight experiences and vast network of international routes, is also a big beneficiary of the rise in flight redemptions. Indian travelers frequently use their credit card points to book Emirates flights, especially for long-haul trips to destinations in Europe, the Middle East, and North America. The airline’s generous frequent flyer program, Skywards, has been instrumental in attracting travelers who want to make the most of their reward points.

Singapore Airlines, with its excellent reputation for service and premium experiences, is another key player benefiting from the trend. Offering one of the best loyalty programs in the industry, Singapore Airlines has seen a rise in bookings from Indian travelers looking to redeem their points for flights to Southeast Asia, Australia, and beyond.

Hotels Reaping the Benefits

In addition to airlines, the hospitality industry is also seeing a significant boost. With more travelers redeeming points for flights, hotels are benefiting from an increase in bookings, especially at luxury hotels and resorts. Major hotel chains such as Marriott, Hilton, and Oberoi have reported a rise in bookings from travelers who use credit card points for both flight and accommodation packages.

Marriott Hotels, with its vast network of properties worldwide, has seen a noticeable increase in redemptions. Indian travelers are increasingly using their points to book stays at Marriott’s luxury hotels, particularly in destinations like Bali, Dubai, and Paris. Similarly, Hilton’s loyalty program has also attracted a growing number of Indian travelers, with many choosing to use their points for stays in high-end hotels across Europe, the Middle East, and Asia.

In India, luxury hotels like The Oberoi, Taj Hotels, and ITC Hotels are seeing a significant uptick in bookings as travelers are using their points to enjoy premium accommodations. These hotels have adapted by offering exclusive packages for credit card reward point holders, ensuring that travelers have a seamless and luxurious experience when redeeming their points.

How Indian Travelers Are Using Their Credit Card Points for Air Travel

The growing trend of using credit card reward points for air travel is not just limited to major international airlines. Domestic airlines, such as IndiGo and Vistara, are also benefiting from this shift. These airlines are now offering better loyalty programs and rewarding travelers with more ways to redeem their points for flights, seat upgrades, and even meals and services on board.

For Indian travelers, the ability to use points for domestic and international flights provides a level of flexibility and convenience that was previously unavailable. As flight redemptions increase, travelers are becoming more focused on maximizing their points’ value by opting for international trips instead of spending on everyday purchases.

Many credit card companies, such as HDFC Bank, ICICI Bank, and Axis Bank, have strengthened their partnerships with airlines and hotel chains, allowing customers to redeem their reward points for flights and stays more efficiently. These partnerships have created a seamless experience for travelers, who can now easily convert their credit card points into airline miles or hotel stays with just a few clicks.

Travel Tips for Tourists Using Credit Card Points

If you’re a tourist looking to make the most of your credit card reward points in 2025, there are several tips to keep in mind. First, make sure to use your points strategically. If you’re planning to travel internationally, using your points for flights or airline miles transfers can save you hundreds or even thousands of rupees. Look for airlines and hotel chains that offer attractive redemption options, and always compare the value of flight bookings versus cashback rewards.

Next, take advantage of the increased value of business-class and premium cabin seats. With more travelers opting for long-haul flights and premium experiences, using your points to upgrade to business class can provide exceptional value. Many airlines offer a higher reward value for premium seats, allowing you to enjoy a luxurious travel experience at a fraction of the cost.

Additionally, keep an eye on seasonal promotions and offers. Airlines and hotels often run special redemption promotions during peak travel seasons, such as summer holidays and the end-of-year festive period. Taking advantage of these offers can help you stretch your points further, making your travel experiences more affordable.

Flight Details: What to Expect from Major Airlines in 2025

As Indian travelers continue to redeem their credit card points for flights, there are several key trends to watch for in 2025:

• Air India: With its expansive network of domestic and international flights, Air India continues to offer a wide range of options for travelers. Expect to see more affordable international routes to destinations like the United States, Europe, and the Middle East.
• Emirates: Known for its luxurious flight services, Emirates continues to be a top choice for travelers using reward points. The airline offers a variety of premium experiences, from first-class suites to spacious business-class cabins, making it an ideal choice for those looking to redeem points for a higher-value experience.
• Singapore Airlines: With its renowned service and extensive international routes, Singapore Airlines remains a favorite for travelers seeking a seamless travel experience. Look for special offers and promotions to make your points go further.
• IndiGo and Vistara: These domestic carriers have ramped up their loyalty programs, offering more options for Indian travelers looking to redeem points for both domestic and international flights. Expect to see competitive pricing and special offers for credit card reward users.

The Future of Travel: What This Trend Means for Tourists

As the trend of using credit card reward points for air travel continues to grow in 2025, it’s clear that both airlines and the hospitality industry will continue to benefit. For tourists, this shift presents an exciting opportunity to explore more destinations without breaking the bank. With increased competition among airlines and hotels, travelers can expect even more attractive redemption options and better value for their points in the future.

Air India, Emirates, and Singapore Airlines are cashing in as Indian travelers swap cashback for flight redemptions in 2025! Discover how this game-changing trend is reshaping the travel landscape and boosting luxury experiences like never before!

In conclusion, the rise of flight redemptions over cashback in India is reshaping the travel landscape. Airlines like Air India, Emirates, and Singapore Airlines are capitalizing on this trend, while hotels like Marriott and Oberoi are seeing increased bookings as travelers use their points for luxury stays. For tourists, the key to maximizing reward points is to plan ahead, choose the right loyalty programs, and make the most of seasonal promotions. Whether you’re flying domestically or internationally, 2025 is shaping up to be a year of exciting travel opportunities driven by credit card reward points.