New Delhi [India], December 25 : Flight bookings and airline mile transfers have emerged as the most preferred use of credit card reward points in India in 2025, overtaking cashback for the first time, according to a new report by AI-driven credit card optimisation platform SaveSage.
The study found that nearly one-third (32%) of all reward points redeemed by SaveSage users were used for flights or airline mile transfers, reflecting growing awareness of high-value redemptions amid rising travel costs. In total, users redeemed Rs 850 crore worth of credit card reward points for travel during the year.
Based on anonymised data from over 110,000 users managing more than 500,000 credit cards, the report highlights a broader shift towards premium travel experiences. Business-class seats, long-haul international flights and luxury hotel stays saw strong growth as consumers sought to maximise the value of their reward points rather than opt for flat cashback.
SaveSage's analysis shows that users earned an average reward value of 15.6% for every Rs 100 spent on travel bookings, the highest among all spending categories.
Overall reward efficiency improved sharply to 7% in 2025, up from 2.2% in 2024. Users aged 30-35 were the most financially savvy cohort, with an average optimisation rate of 11%.
Geographically, Pune, Bengaluru and Gurugram recorded the highest reward efficiency. At the same time, Tier-2 cities such as Ranchi, Jaipur and Hyderabad showed the fastest improvement, indicating a widening adoption of strategic reward usage beyond major metros.
The report also coincides with strong growth in credit card usage nationwide. Reserve Bank of India data shows monthly credit card spending rose 19.6% year-on-year to Rs 2.14 lakh crore in October 2025.
Within the SaveSage user base, travel redemptions peaked in November and December, accounting for over one-third of annual travel-related redemptions as users approached yearly limits.
Despite rising travel aspirations, the study found that several premium card benefits remain under-utilised. Only 0.3% of eligible users availed complimentary airport spa services, while even users with unlimited lounge access averaged just one visit every four weeks.
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