Affinity Reward Card - Market Research, Industry Trends, Market Share, Consumer Insights
Published: 07/19/2019 Pages: 168 Full Study Price: US$ 4,275
Packaged Facts estimates that, in 2018, co-branded credit cards generated $990 billion in purchase value, up an average of 7.9% from 2016. The share of general-purpose credit card and charge card purchase value attributable to co-branded credit cards declined from 27.8% in 2016 to 26.9% in 2018, and non-cobranded credit card purchase value grew at a faster annual rate (10.3%). Retailer co-branded credit card purchase value grew at the fastest annual rate (8.5%), but travel and entertainment brands commanded 55% of spending, 70% of which was attributable to airline-branded credit cards.
This report covers the U.S. market for co-branded/affinity credit cards, with an emphasis on co-branded credit card program features and benefits analysis, partner and issuer co-branded card strategies and competitive trends, co-branded growth trends among issuers and networks, and related trend and opportunity spotting.
- Some 26 airline brands have U.S. co-branded credit card programs.
- As of June 2019, 19 hotel brands offer or are expected to offer co-branded credit card programs in partnership with nine issuers.
- At the brand level, Packaged Facts counts 111 co-branded credit card issuing partnerships, led by the club, department, and discount store brand category (15) and followed by ecommerce and automobile brand categories (13 apiece).
Table Of Contents
- Executive Summary
- Report Scope
- Report Summary
- Co-Branded Credit Card Market Size
- Airline Co-Branded Card and Loyalty Programs
- Hotel Co-Branded Card and Loyalty Programs
- Retailer Co-Branded Card Programs
- Co-Branded and Affinity Credit Card Usage Trends
- Co-Branded Credit Card Application Influencers and Rewards Preferences
- Co-Brand and Affinity Credit Card Issuers
- Market Size and Forecast
- Co-Branded Credit Card Market Size
- Table General-Purpose Credit Card Purchase Value: Co-Branded vs. Non-Co-Branded Cards, 2016-2018
- Table U.S. Airline, Hotel, and Retailer Co-Branded Credit Card Purchase Value, by Segment, 2016-2018
- Top 10 Co-Branded Credit Card Programs
- Table Top 10 U.S. Co-Branded Credit Card Programs, by Purchase Value, 2016-2018
- Co-Branded Credit Card Market Share, by Top Issuers and Card Networks
- Table U.S. Co-Branded Credit Card Purchase Value, by Card Network and Top Issuers, 2018
- Number of Co-Branded Credit Card Programs
- Table Number of U.S. Co-Branded Credit Card Programs, by Network, Segment, and Type, 2019
- Table Number of U.S. Co-Branded Credit Card Programs (by Network, Segment, and Type), by Issuer, 2019
- Co-Branded Credit Card Market Size
- Airline Co-Branded Card and Loyalty Programs
- Airline Co-Branded Credit Card Programs and Partners
- By the Numbers
- Table Airline Brands: U.S. Co-Branded Credit Card Programs, by Issuer, Network, and Card Type, 2019
- Portfolio Wins and Losses
- By the Numbers
- Consumer Analysis: Frequent Flyers & Airline Co-Branded Card Users
- Frequent Airline Travelers
- Table Frequent Airline Travel: Percentage Usage, Business vs. Personal, 2011-2019
- Frequent Flyer Program Usage Generally Tracks Airline Use over Time
- Table Airline Users, Frequent Flyer Program Members, and Membership-to-Flyer Ratio, by Airline, 2011-2019
- Frequent Flyer Programs Do What They Set Out To Do
- Table Frequent Flyer Program Membership (by Program) by Last Airline Flown Domestically, 2019
- Delta Holds Loyalty Program Enrollment Crown
- Table Frequent Flyer Program Members and Sole Program Users, by Airline, 2019
- Southwest Holds Loyalty Program Engagement Crown
- Table Frequent Flyer Program Redeemers, by Frequent Flyer Program, 2019
- Business & Leisure Travelers: Opportunity across Flying Frequency Spectrum
- Table Frequent Flyer Program Membership, Co-Branded Airline Credit Card Use, and Program Membership/Airline Card Use, by Number and Type of Domestic Flights, 2019
- Demographics
- Table Frequent Flyer Program Members (by Program), Co-Branded Airline Credit Card Users, And Program Membership/Airline Card Users, by Age, 2019 (% and index)
- Table Frequent Flyer Program Members (by Program), Co-Branded Airline Credit Card Users, and Program Membership/Airline Card Users, by HH Income, 2019 (percent and index)
- Frequent Airline Travelers
- Sizing up the Big Three
- American, Delta, and United
- Operating Revenue and Passenger Miles
- Table American Airlines, Delta Air Lines and United Airlines: Revenue and Loyalty Metrics, 2016-2018
- Loyalty Program Revenue Passenger Miles and Award Redemptions
- Table American Airlines, Delta Air Lines and United Airlines: Revenue and Loyalty Metrics, 2016-2018
- Deferred Loyalty Program Liability: Parsing the Billions in Revenue
- Table Deferred Loyalty Program Liability: American Airlines, Delta Air Lines and United Airlines, 2016-2018 ($bil)
- In Focus: Delta Air Lines
- Leader in Customer-Focused Metrics
- Co-branded Credit Card Program Is a Cash Cow
- Table Delta SkyMiles Loyalty Program: Revenue from Mileage Credits Sold: All Revenue vs. American Express Revenue, 2017-2023 ($bil)
- Table Delta SkyMiles Loyalty Program: Revenue from Mileage Credits Sold to American Express, 2014-2023 ($bil)
- $100 Billion in Purchase Value?
- Table American Express Delta SkyMiles Co-Branded Credit Card Program: Purchase Value and Loans Outstanding, 2014-2019 ($bil)
- Part of a Multi-Billion-Dollar Loyalty Program
- Table Delta SkyMiles Loyalty Program Deferred Revenue, Earning, and Redemption, 2016-2018 ($bil)
- Table Delta SkyMiles Loyalty Program Revenue: Travel and Marketing Contributions, 2016-2018 ($bil)
- Table Delta SkyMiles Loyalty Program: Key Usage Metrics, 2015-2018
- In Focus: American Airlines
- Advantage Underpinned by Co-Branded Program
- The Fruits of Renegotiation
- Table American Airlines AAdvantage Loyalty Program Revenue: Marketing vs. Travel, 2016-2018 ($bil)
- Purchase Value Crosses $90 billion
- Table American Airlines AAdvantage Co-Branded Credit Card Program Purchase Value, 2016-2018 ($bil)
- Advantage: The Revenue Story
- Table American Airlines AAdvantage Loyalty Program Deferred Revenue, Earning, and Redemption, 2016-2018 ($bil)
- Table American Airlines AAdvantage Loyalty Program Revenue: Travel and Marketing Contributions, 2016-2018 ($bil)
- Advantage: The Miles Usage Story
- Table American Airlines AAdvantage Loyalty Program: Key Usage Metrics, 2015-2018
- Advantage: The Card Story
- In Focus: United Airlines
- Metrics
- Gunning for More Partner Revenue
- Table United Airlines MileagePlus Loyalty Program Revenue: Marketing vs. Travel, 2016-2018 ($bil)
- MileagePlus Card Acquisitions Pick Up Steam; Purchase Value Lags
- Table American Airlines AAdvantage Co-Branded Credit Card Program Purchase Value, 2016-2018 ($bil)
- MileagePlus: The Revenue Story
- Table United MileagePlus Loyalty Program Deferred Revenue, Earning, and Redemption, 2016-2018s ($bil)
- Table United MileagePlus Loyalty Program Revenue: Travel and Marketing Contributions, 2016-2018 ($bil)
- MileagePlus: The Miles Usage Story
- Table United Airlines MileagePlus Loyalty Program: Key Usage Metrics, 2015-2018
- MileagePlus: The Card Story
- Airline Co-Branded Credit Card Programs and Partners
- Hotel Co-Branded Card and Loyalty Programs
- Co-Branded Hotel Credit Card Programs
- Table Hotel Brands: U.S. Co-Branded Credit Card Programs, by Issuer, Network, and Card Type, 2019
- Consumer Analysis: Hotel Loyalty Program & Co-Branded Card Users
- Hotel Credit Card Users
- Table Hotel Users, by Domestic Personal and Business Nights Stayed, 2019
- Hotel Credit Card Users, Hotel Loyalty Program Membership and Redemption
- Table Hotel Credit Card Users and Hotel Loyalty Program Members and Redeemers, 2019
- Table Hotel Credit Card Users and Hotel Loyalty Program Members and Redeemers, by Domestic Personal and Business Nights Stayed, 2019
- Table Domestic Personal and Business Nights Stayed, by Hotel Credit Card Users and Hotel Loyalty Program Members and Redeemers, 2019
- Table Hotel Credit Card, Hotel Loyalty Program Membership and Redemption: Cross Usage, 2019
- Demographics
- Table Hotel Loyalty Program Membership, by Brand and Demographic, 2019
- Hotel Credit Card Users
- In Focus: Marriott
- Hotel Superpower
- The Marriott Bonvoy Revenue Story
- Table Marriott Bonvoy Loyalty Program Deferred Revenue, 2016-2018 ($mil)
- Table Marriott Bonvoy Loyalty Program Deferred Revenue, Earning, and Redemption, 2018 ($mil)
- Marriott Bonvoy Credit Card Program: The Metrics
- Table Marriott Bonvoy Co-Branded Credit Card Program: Purchase Value and Loans Outstanding, 2016-2018 ($bil)
- Marriott Bonvoy: Nuts and Bolts
- Merger and Starwood Integration
- Marriott Bonvoy: The Cards
- Co-Branded Hotel Credit Card Programs
- Retailer Co-Branded Card Programs
- Retailer Co-Branded Credit Card Brand Partnerships
- Table U.S. Retailer Co-Branded Credit Card Programs, by Segment, 2019
- Club Stores: Sizing Up the Big Three
- Net Sales Trends
- Table Costco, Sam's Club, and BJ's Wholesale Club: U.S. Net Sales, Comparable Sales Change, and Units, 2016-2018
- Demographic Analysis
- Table BJ's Wholesale Club, Costco and Sam's Club: Usage, by Gender, Age, HH Income, and Business Ownership Segments, 2019 (percent and index)
- Omni-Channel Purchasing Trends
- Table BJ's Wholesale Club, Costco and Sam's Club: In-Store vs. Online Purchasers, 2015-2019
- Net Sales Trends
- In Focus: The Costco Credit Card Program
- AnyWhere Visa Is Largest Co-Branded Program
- What Exclusivity Buys
- Table Costco Co-Branded Credit Card Programs: In-Store Purchase Value, Out-of-Store Purchase Value, and Loan Receivables, 2015-2018
- Hard Benefits That Resonate with Affluent Costco Shoppers
- Going for the Loyalty Trifecta
- In Focus: The Sam's Club Credit Card Program
- Options Include Sam's Club Mastercard
- Sam's Club Mastercard: Purchaser Value and Loans
- Table Sam's Club Proprietary Credit Card Programs: In-Store Purchase Value, Out-of-Store Purchase Value, Loan Receivables, and Co-Branded Share, 2016-2018
- Sam's Club Mastercard: Distinguishing Features and Loyalty Proposition
- In Focus: The BJ's Wholesale Club Credit Card Program
- Successful Partnering with Alliance Data Systems and Visa
- Table BJ's Wholesale Club Co-Branded Credit Card Programs: In-Store Purchase Value, Out-of-Store Purchase Value, and Loan Receivables, 2016-2018
- Building the Customer Base and Fostering Loyalty
- BJ's Perks Plus Visa: Distinguishing Features and Loyalty Proposition
- Successful Partnering with Alliance Data Systems and Visa
- Retailer Co-Branded Credit Card Brand Partnerships
- Co-Branded and Affinity Credit Card Usage Trends
- General-Purpose Credit Card Usage Trends, by Card Type
- Table Percent of Adults Who Have/Use General-Purpose Credit Cards, by Card Network, 2015-2019
- General-Purpose Credit Card Usage in Past 30 days
- Table General-Purpose Credit Card Usage in Last 30 Days, by Card Network, 2015-2019
- General-Purpose Credit Card Active Usage Rates
- Table General-Purpose Credit Card Usage vs. Active Usage, 2019
- General-Purpose Credit Card User Demographics, by Card Network
- Table General-Purpose Credit Card Usage in the Last 30 Days, by Card Network and Demographic, 2019
- Cards in Wallet: Co-Branded/Affinity vs. Not Co-Branded/Affinity
- Usage Rates
- Table General-Purpose Credit Cards Users: Co-Brand/Affinity Credit Card Users and Non-Users, 2019 (percent who use)
- Co-Branded/Affinity Credit Card Users Have Card-Friendly Wallets
- Table General-Purpose Credit Cards Users: Co-Brand/Affinity Credit Card Users and Non-Users, 2019
- Visa Co-Branded/Affinity Credit Cards
- Table General-Purpose Credit Cards: Percent Usage and Number of Users, Co-Branded Cards, and Non-Cobranded Cards, by Card Network, 2019
- Excluding Charge Cards, American Express Has Highest Share of Co-Branded
- Table Co-Branded and Non-Co-branded General-Purpose Credit Cards (#), by Card Network, 2019
- Usage Rates
- Types of Co-Branded and Affinity Cards Used
- Table Co-Branded/Affinity Credit Card Users, by Partner Sub-Category, 2019 (percent who use)
- Co-Branded/Affinity Credit Card Demographic Analysis
- Co-Branded/Affinity Card Users
- Co-Branded/Affinity Card Users, by Major Category
- Co-Branded/Affinity Card Users, by Card Network
- Table All Adults, General-Purpose Credit Card Users, and Co-Branded/Affinity Credit Card Users: Population Share by Demographic, 2019
- Table Co-Branded/Affinity Credit Card User Population Share by Demographic and Major Category, 2019
- Table Co-Branded/Affinity Credit Card User Population Share, by Demographic and Card Network, 2019
- General-Purpose Credit Card Usage Trends, by Card Type
- Co-Branded Credit Card Application Influencers and Rewards Preferences
- Co-Branded Credit Card Application Influencers
- Winning Generation Z and Millennial Wallet Share with Financing Options
- Table Co-Branded Credit Card Application Influencers, by Age, 2019
- Table Co-Branded Credit Card Application Influencers, by HH Income, 2019
- Winning Generation Z and Millennial Wallet Share with Financing Options
- Rewards Credit Cards: Usage Trends over Time
- Cash Back, Points, Airline, Hotel and Other
- Table General-Purpose Credit Card Usage: Rewards vs. No Rewards, 2011-2019
- Rewards Credit Card Usage Trends, by Card Network
- Table General-Purpose Rewards Credit Card Usage, by Card Network, 2011-2019
- Rewards Credit Card Usage Trends: Cash Back and Points vs. Airlines and Hotels
- Table General-Purpose Rewards Credit Card Usage, by Reward Type, 2011-2019
- Rewards Credit Card Demographics: Cash Back and Points vs. Airlines and Hotels
- Table General-Purpose Credit Card Usage in the Last 30 Days, by Card Network and Demographic, 2019
- Cash Back, Points, Airline, Hotel and Other
- Co-Branded Credit Card Users: Attitudes Toward Rewards
- Consumer Rankings of Importance
- Table Co-Branded Credit Card Users: Attitudes Toward Rewards, by Age, 2019
- Table Co-Branded Credit Card Users: Attitudes Toward Rewards, by HH Income, 2019
- Consumer Rankings of Importance
- Co-Branded Credit Card Application Influencers
- Co-Brand and Affinity Credit Card Issuers
- Alliance Data Systems
- Co-Branded Cards Accounting for Increasing Share of Business
- An evolving client base
- Competitive strategies
- Private Label and Co-Branded Credit Card Partners
- Client Signings and Related Momentum
- The Co-Branded Card Connection
- Table Alliance Data Systems: U.S. Co-Branded Credit Card Programs, by Brand, Segment, Sub-Segment, and Network, 2019
- Table BJ's Wholesale Club Co-Branded Credit Card Programs: In-Store Purchase Value, Out-of-Store Purchase Value, and Loan Receivables, 2016-2018
- Co-Branded Credit Card Purchase Value Trends
- Table Alliance Data Systems Credit Card Purchase Value: Co-Brand Share, 2016-2018
- American Express
- 50+ Co-Branded Programs Globally
- Co-Branded Credit Card Programs
- Table American Express Co-Branded Credit Card Brands, by Category, Sub-Category, and Type, 2019
- Co-Branded Credit Card Purchase Value Analysis
- Table American Express Co-Branded Credit Cards: Global, U.S., and Non-U.S. Billed Business, 2015-2018
- Co-Branded Credit Card Purchase Value Trends
- Table American Express U.S. Co-Branded Credit Card Billed Business, by Card Partner, 2015-2018
- Bank of America
- Focus on Strong Demographics, Multi-Product Appeal
- Co-Brand Card Programs
- Table Bank of America: U.S. Co-Branded Credit Card Programs, by Brand, Segment, Sub-Segment, Network, and Type, 2019
- Barclays
- Largest European Credit Card Issuer
- Co-Branded Credit Card Programs
- Table Barclays U.S. Co-Branded Credit Card Programs, by Brand, Segment, Sub-Segment, Network, and Type, 2019
- JetBlue
- Co-Branded Credit Card Purchase Value Trends
- Table Barclays U.S. Credit Card and Co-Branded Credit Card Purchase Value, 2015-2018
- Capital One
- Co-Branded Program Generates More Value than Private Label
- Table Capital One Co-Branded Credit Card Loans and Purchase Value, 2016-2018
- Program Partners
- Table Capital One Financial: Private Label and Co-Brand Credit Card Program Partners, Retail Segment and Card Type, 2018
- Impending Walmart Launch
- Co-Branded Program Generates More Value than Private Label
- Citibank
- Citi-Branded Cards vs. Citi Retail Services
- Co-Branded Credit Card Programs
- Table Citibank U.S. Co-Branded Credit Card Programs, by Brand, Segment, Sub-Segment, Network, and Type, 2019
- Major Co-Branded Card Partners
- Co-Branded Credit Card Purchase Value Trends
- Table Citibank Co-Branded and Non-Co-Branded Credit Card Purchase Value, 2016-2018
- First National Bank of Omaha
- Table First National Bank of Omaha U.S. Co-Branded Credit Card Programs, by Brand, Segment, Sub-Segment, Network, and Type, 2019
- JPMorgan Chase
- Consumer, Small Biz General Card Operations Are Largest by Purchase Value
- Co-Branded Credit Card Programs
- Table JPMorgan Chase U.S. Co-Branded Credit Card Programs, by Brand, Segment, Sub-Segment, Network, and Type, 2019
- Synchrony Financial
- Co-Branded Credit Cards in U.S.
- Table Synchrony Financial U.S. Co-Branded Credit Card Programs, by Brand, Segment, Sub-Segment, Network, and Type, 2019
- Co-Branded Credit Cards in U.S.
- U.S. Bank
- Visa Dominates Co-Branded Programs
- Table U.S. Bank U.S. Co-Branded Credit Card Programs, by Brand, Segment, Sub-Segment, Network, and Type, 2019
- Visa Dominates Co-Branded Programs
- Alliance Data Systems
- appendix
- Background
- Major Retailer Benefits: Usable Data and Customer Loyalty
- Major Cardholder Benefit: Buying Power
- Methodology
- Consumer Survey Methodology
- Market Size and Forecast Methodology
- Table Indexes
- Terms and Definitions
- Active card user
- Call data
- Compound annual growth rate (CAGR)
- Credit card trust
- Co-branded credit cards and affinity credit cards
- General-purpose credit card
- Own-branded credit card
- Private label (store) credit card
- Purchase value
- Revenue passenger mile
- Self-reported credit score
- Tender share
- Background