Embracing disloyalty: Are consumers rewriting rewards programs?

With the resurgence of travel and consumers increasingly relying on credit to pursue their experiences, one might assume that brand loyalty would become more straightforward.

However, even during times of inflation, consumers are still likely to seek out the best deals to ensure they can make their desired experiences a reality.

Based on the latest earnings results from American Express, the company’s current growth trajectory is driven by younger consumers. Consumer billed business, which includes member spending and cash advances, witnessed a notable 10% increase, reaching a total of $155 billion. The company also pointed out that overall card spending has hit an all-time high. Additionally, travel and entertainment-related expenses experienced a surge of 14% when adjusted for foreign exchange (FX) fluctuations.

Delving into the demographics, American Express emphasized that more than 60% of new consumer accounts were associated with millennials and Generation Z consumers, who collectively drove a significant 21% upsurge in their overall spending compared to the previous year.

 

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