Loyalty programs have long been a staple in the travel industry, enticing members with points, discounts, and exclusive perks. Traditionally, these programs revolved around flights, hotel stays, and retail discounts. However, as consumer preferences shift toward greater personalization and tangible rewards, a new trend is emerging: car rentals as a major loyalty benefit.
A recent study by CarTrawler highlights an overlooked yet lucrative opportunity within the travel loyalty ecosystem: rental cars. With 1 in 4 loyalty members renting a car annually and nearly half of surveyed travellers expressing interest in booking car rentals through loyalty programs, this market is poised for significant growth. As loyalty programs evolve to meet modern traveler demands, integrating car rental benefits could revolutionize the way people plan and enjoy their trips.
The Rising Demand for Car Rentals in Loyalty Programs
The travel industry is witnessing a surge in car rental demand, particularly within loyalty programs. According to industry projections, the U.S. car rental market will grow to $44.7 billion by 2028, making it one of the most promising sectors for loyalty expansion.
Why is this happening?
- Convenience and Accessibility – Car rentals offer travellers more freedom and flexibility, especially in destinations with limited public transport options.
- Undervalued Loyalty Benefits – Many travellers prioritize flights and hotels when redeeming points, yet car rentals provide comparable, if not better, value.
- Personalized Travel Experiences – Travellers now seek more than just discounts; they want exclusive member-only perks, seamless booking, and flexible payment options.
The Hidden Market: Everyday Car Rentals
While many associate car rentals with vacation or business travel, a growing segment—24% of rental bookings—is for everyday use. These include:
- Weekend getaways
- Visiting family and friends
- Moving or running errands
Unlike seasonal travel demand, everyday car rentals occur year-round, making them a steady and reliable revenue stream for loyalty programs. Surprisingly, 63% of these bookings are made at local rental branches rather than airports, proving that travelers are increasingly looking for convenient, city-based rental solutions.
Boosting Engagement Through Rewarding Redemptions
Travel remains the top redemption category for loyalty points, with car rentals ranking just behind flights and hotels. 64% of travelers say they would be more likely to book a rental car through their loyalty program if they could redeem points for the booking.
Additionally, split payment options (combining cash and points) are becoming essential. With 63% of travelers regularly using a mix of both, programs offering flexible payment methods stand to attract more engagement.
Maximizing Travel Rewards with Car Rentals
How can travelers make the most of these new opportunities?
Choose Loyalty Programs with Strong Car Rental Partnerships – To maximize the benefits of loyalty programs when renting a car, travellers should choose programs that have strong partnerships with rental companies. Many major airlines and hotel chains offer exclusive perks for members who book rental cars, including bonus points for rentals, discounted rates, and flexible cancellation policies. These benefits not only enhance the travel experience but also help travellers save money and accumulate rewards faster.
Redeem Points Strategically – When it comes to redeeming points, strategy is key. Instead of letting points expire or using them on low-value redemptions, travellers should compare redemption values across different categories, as some programs offer better returns for car rentals than hotels or flights. Additionally, using split payments—a combination of points and cash—can stretch rewards further and reduce out-of-pocket expenses. Finally, booking in advance is crucial, as rental car demand fluctuates, and early reservations ensure better availability and rates. By making smart, informed choices, travellers can maximize their rewards and enhance their overall travel experience.
Prioritize Perks and Convenience – Travellers increasingly expect seamless booking experiences and transparent pricing when renting cars. 42% of travellers rank member-exclusive discounts as a top priority, while 39% prefer a simple online booking process. Programs that offer these features can significantly enhance the traveler experience.
How Loyalty Programs Can Elevate the Car Rental Experience
For loyalty programs to maximize this market opportunity, they must go beyond basic discounts and points-based systems.
Key strategies include:
- Enhancing Personalization – Using data-driven insights to tailor rental car options to traveler preferences (e.g., luxury cars for premium members, eco-friendly options for sustainability-focused travelers).
- Transparent Pricing and Flexibility – Avoiding hidden fees and offering competitive pricing consistent with direct rental bookings.
- Focusing on Trust – 43% of travellers cite trust as a primary reason for joining a loyalty program. Providing reliable and well-reviewed car rental partnerships strengthens consumer confidence.
A New Era for Travel Loyalty
As travel loyalty programs continue to expand and adapt, car rentals are becoming a central part of the equation. This shift not only benefits travellers looking for added value but also strengthens loyalty programs by increasing engagement and retention.
With the car rental market projected to hit $44.7 billion by 2028, loyalty programs have an incredible opportunity to capture a share of this growing industry. By offering rewarding redemptions, member-exclusive perks, and seamless booking experiences, travel loyalty programs can redefine how travellers experience car rentals—turning them from an afterthought into an essential part of trip planning.
Every journey leaves a mark, and small choices can make a big difference. Choosing eco-friendly stays, supporting local communities, and being mindful of plastic use help preserve the beauty of the places we visit. Respecting wildlife, conserving resources, and traveling sustainably ensure future generations can experience the same wonders. By treading lightly and embracing responsible travel, we create meaningful connections and lasting memories. Here’s to adventures that inspire and footprints that honour our planet.
Safe and mindful travels!
This article is informed by insights from CarTrawler’s Driving Loyalty: Market Insights on Car Rentals & Reward Programs (October 2024) report, which explores the evolving role of car rentals in travel loyalty programs.