Travel can be complicated for many reasons. From delays and cancellations to trying to get through airport security while your toddler has other plans, you just never know what it will bring. Having the right travel rewards credit card can make a world of difference.
If you are in the market for a new travel rewards credit card, here are some of the trends we can expect as 2023 rolls in.
Emphasis on Travel Protections
Unless you’ve been living under a rock (and we wouldn’t blame you) you’ve heard just how insane travel has been over the past couple of years. On the one end, travel was completely shut down and the future was unknown and looked bleak.
And then, seemingly overnight, travel did a 180 and absolute pandemonium emerged. Due to several reasons, airlines were overwhelmed and couldn’t keep up with the demand. At one point, hundreds and even thousands of flights were being canceled every day.
Strong travel protections have been a selling point of rewards credit cards for several years now. And nowadays, having one of these cards is essential for any semi-frequent traveler. With one of these cards in hand, you can rest assured that your canceled flight will be covered or that you won’t be left clothing-less if your luggage is lost. Always make sure to check the terms and conditions of your credit card.
As 2023 rolls around, travel rewards credit cards will continue to emphasize travel protections and develop and evolve coverages to meet the needs of cardholders.
More Transferable Points Options
For years, transferable rewards have been the champion of the points and miles world. The versatility these points offer leave them unrivaled in flexibility and can make life a whole lot easier for the award traveler by offering advantages including:
- Increased award availability: Rather than being stuck trying to find availability with a single airline, you can choose from several options.
- Access to sweet spot awards: For the same reason above, instead of taking what you can with a single program, you can shop around and choose the best deal.
- Protection against devaluation: Devaluations can ruin anyone’s day, but the silver lining when you hold flexible points is that you can move on to the next best deal.
For whatever reason, many banks have been slow to implement transfer partners into their portfolio of point redemptions. With the success of Capital One’s introduction of its own transfer partners, 2023 could be the year that more banks follow in its footsteps and hop on the travel partner bandwagon. Barclays, for example, is jumping the gun a bit early. In Nov. 2022, it introduced a simple but promising array of transfer partners for holders of the Arrival Plus card.
Let’s see which bank follows next—we’re looking at you, U.S. Bank, Bank of America and Wells Fargo.
Nowadays, you have choices (and a lot of them) when it comes to travel rewards cards. An appealing card offers more than just a solid welcome offer and earning rate: it makes your travel life easier by protecting you and giving you options. As the page flips to chapter 2023, travel credit card trends will continue to develop these perks and make them better than before.
More From Advisor
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.