New Study: Americans Lean Into Credit Card Rewards to Offset Rising Costs – Including Travel

Rhea-AI Summary

A recent Wells Fargo study highlights that 92% of Americans are concerned about rising inflation, with nearly half of credit card rewards users (49%) relying on rewards to offset everyday costs. The survey indicates that 71% of Americans possess rewards cards, and 65% are increasingly focused on these benefits. Many respondents reported using rewards primarily for groceries (62%), gas (51%), and dining (43%). Despite this, 38% of rewards cardholders have not utilized their rewards this year, suggesting a gap in understanding their card benefits.

Positive

• 92% of Americans are concerned about inflation, leading to increased interest in credit card rewards.
• 71% of Americans own a credit card offering rewards, indicating strong market demand.
• 65% of rewards cardholders are more focused on rewards now than before, suggesting potential for increased usage.
• Wells Fargo is expanding its rewards offerings, exemplified by the launch of the new Autograph Card.

Negative

• 38% of rewards cardholders have not redeemed rewards this year, indicating missed opportunities.
• 53% of rewards cardholders do not focus on high-value categories, which may affect their benefit realization.
• High gas prices are impacting travel plans, with 32% canceling trips due to costs.

SAN FRANCISCO--(BUSINESS WIRE)-- Amid concerns about rising inflation, many Americans find credit card rewards useful in helping to ease inflation woes, a Wells Fargo study reveals. With 92% of Americans concerned about rising inflation (59% very concerned, 33% somewhat concerned), nearly half of rewards cardholders (49%) are leaning on their credit card rewards to help offset some of the costs of everyday purchases.

Americans are leaning into their credit card rewards to help offset rising costs (Graphic: Wells Fargo)

Almost three quarters (71%) of Americans have a credit card that offers rewards, and 45% of rewards cardholders say their credit card usage increased during the pandemic. What’s more, two-thirds of rewards cardholders (65%) say they care about credit card rewards now more than ever.

“The survey data underscores the significance of rising inflation and supply chain issues, and how American consumers have been affected in so many ways—not only their summer vacation plans but also with everyday purchases,” said Krista Phillips, EVP, head of Branded Cards and Marketing for Wells Fargo Credit Cards.

The national online survey of 2,008 adults was conducted by Ipsos on behalf of Wells Fargo June 27-28, 2022.

Love-hate relationship with travel

The study revealed that Americans are planning vacations, although over half (57%) report a “love-hate” relationship with travel these days. For many (44%) the urge to travel has returned with a vengeance, with a third (34%) reporting that they are planning to “go big” on their next trip.

Americans are mostly vacationing by car. Two-thirds (66%) say they prefer good old-fashioned road trips over flying with about a third (31%) planning an automobile trip in the next six months, compared to 22% who are planning to fly. Two-thirds (64%) of respondents said they are cutting back on air travel because it is too expensive while some (45%) are cutting back on air travel because of COVID concerns. A quarter (24%) of rewards cardholders used travel rewards to subsidize a vacation this year.

“Our customers tend to focus on rewards as a top credit card preference, and that’s one reason we’re expanding our consumer portfolio to include more competitive rewards offerings – like the new Autograph Card,” Phillips said. “It starts with listening to our customers to develop products that align with their lifestyles, and right now many are looking for ways to make the most of their everyday purchases. There is a big opportunity for savvy cardholders to earn rewards on purchases they are already making by using a card like Autograph, which offers unlimited 3X rewards points on top spending categories including at gas stations – a great incentive amid the current gas prices.”

58% of Americans planned a vacation in the past six months and 63% are planning a vacation in the next six months

		Planned a vacation in the past six months		Planning a vacation in the next six months
Automobile vacation (Road trip)		31%		31%
Airline vacation		22%		22%
Staycation (Vacation close to home)		20%		21%
International vacation		9%		11%
Boat/Cruise vacation		9%		10%
None of the above		42%		37%

Still, for many, high gas prices and inflation are cramping travel plans. A third (32%) said that high gas prices have forced them to cancel a road trip this summer. Another third (37%) are not planning any vacations at all in the next six months and 21% are planning a “staycation” – a vacation close to home.

Credit Card Rewards Redemption

Even though people report using their credit card rewards to offset the cost of everyday purchases, the study found that many do not take full advantage of their card benefits.

• Only half (53%) of rewards cardholders say they focus on high-value categories when they use their credit card.
• Thirty-eight percent of rewards cardholders have not cashed in their credit card rewards or offers this year.
• Thirteen percent of rewards cardholders say they don’t really understand how their credit card rewards program works.

“It’s important for consumers to fully understand all of the benefits their rewards card offers in order to make the most of their purchases and to help defray some of the cost of rising inflation,” added Phillips.

After groceries, the top things rewards cardholders use their credit card for is gas, restaurants, and travel/transit.

Rewards card owner (n = 1,273)		Top Three Choices
Groceries		62%
Gas		51%
Restaurants and eating out		43%
Travel and transit		30%
Emergencies		27%
Entertainment		23%
Home improvement		23%
Health, fitness, and beauty purchases		16%
Phone service		12%
Streaming services		12%

About the study

These are the findings of an Ipsos poll conducted between June 27-28, 2022. For this survey, a sample of 2,008 adults age 18+ from the continental U.S., Alaska, and Hawaii was interviewed online in English. The sample included 1,273 adults who have a rewards credit card. The poll has a credibility interval of plus or minus 2.4 percentage points for all respondents.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets, proudly serves one in three U.S. households and more than 10% of small businesses in the U.S., and is a leading middle market banking provider in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 41 on Fortune’s 2022 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy.

News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com | Twitter: @WellsFargo

News Release Category: WF-ERS

View source version on businesswire.com: https://www.businesswire.com/news/home/20220802005244/en/

Sarah DuBois, 612-401-5869

Sarah.dubois@wellsfargo.com

Helen Bow, 832-962-1452

helen.k.bow@wellsfargo.com

Source: Wells Fargo & Company

FAQ

What did the Wells Fargo study find regarding credit card rewards in relation to inflation?

The Wells Fargo study found that 92% of Americans are concerned about inflation, with 49% using credit card rewards to offset everyday costs.

How many Americans own rewards credit cards according to Wells Fargo?

According to Wells Fargo, 71% of Americans have a credit card that offers rewards.

What percentage of rewards cardholders plan to travel and how has inflation affected this?

The study revealed that while many Americans plan vacations, high gas prices and inflation have caused 32% to cancel trips.

What consumer behavior was noted in the Wells Fargo study regarding card usage during the pandemic?

The study noted that 45% of rewards cardholders increased their credit card usage during the pandemic.