MCLEAN, Va., June 23, 2011 /PRNewswire/ -- Capital One
Financial Corporation (NYSE: COF) today released the findings of
its quarterly Capital One Rewards Barometer,* which surveys how
consumers accumulate and redeem credit card rewards. Given the
current economic climate, high value credit card rewards are
becoming even more critical as consumers plan their summer
getaways. While about a third used their credit card rewards for
summer travel last year, more than 40 percent plan to use their
rewards for travel this summer.
Redemption Trends
The survey reveals that 62 percent of respondents are not
planning a "staycation" as an alternative to a summer trip this
year. For those who would use credit card rewards to supplement
their summer vacation, the most popular redemption choices were
hotels (55 percent), air travel (48 percent) and gas (42 percent).
"Pain at the pump" resulting from soaring fuel prices is another
factor affecting summer travel, with 48 percent of survey
respondents reporting that gas costs will influence their summer
travel plans.
Rewards Satisfaction Trends
In the past three months, 43 percent of respondents redeemed
rewards, yet only 24 percent of consumers are completely satisfied
with their current program. Blackout dates (26 percent) and
inability to book a last minute trip (24 percent) continue to be
the main barriers preventing consumers who wanted to redeem rewards
for travel but couldn't. "Free money" continues to be the number
one motivation for consumers to earn and use credit card rewards
(61 percent). Many consumers (33 percent) also note that they
appreciate the everyday savings provided by rewards programs.
Hidden Fees Awareness
Given summer is the peak international travel season, it's no
surprise that more than one-third of respondents (36 percent)
indicate they would use rewards for a summer vacation outside of
the United States, with
Rome being the top international
destination.** While credit card rewards can offset the costs of an
overseas getaway, nearly 60 percent of respondents are unsure as to
whether they would be charged foreign transaction fees on their
credit card purchases that could drive up their vacation costs
between 2-3 percent. Only 19 percent of consumers report that they
are not charged this fee. Additionally, other fees raising vacation
costs such as fuel surcharges (12 percent) and baggage fees (10
percent) have prevented respondents from successfully redeeming
rewards for travel.
"Planning a summer vacation can be stressful given today's
economic conditions. With soaring gas prices and increasing airline
fares, consumers are seeking greater value from their credit card
rewards to maximize their benefits, " said Troy Jamison, Vice President of Loyalty Services
at Capital One. "A key to easing the stress of the financial impact
of summer travel is to use a rewards card that fits one's lifestyle
offering simple and flexible means to earn and redeem those rewards
on their own terms."
Capital One offers the following tips for travelers on how they
can use their rewards to save some money and make their summer
vacations more satisfying:
- Follow your travel habits: If your travel patterns -
such as hotel or airline - vary from trip to trip, a credit card
that is not linked with a specific brand may be an optimal
choice.
- Don't let your vacation expire: Rewards programs differ,
so read the fine print to make sure you redeem for your vacation
before you lose those hard earned rewards.
- Account for extra fees: Additional charges such as fuel
surcharges, baggage fees and foreign transaction fees can add up,
so take those costs into consideration when budgeting. Also
investigate whether your credit card rewards program allows you to
use rewards to cover these costs.
For more information about Capital One rewards visit,
www.capitalone.com
* Survey conducted among U.S. Adults 18+ who indicated that
they currently have a credit card with a rewards program that is
issued by a bank or credit card company
** Air Transport Association, May 16,
2011, 26.3 million international travelers forecast for June
– August, topping last summer's record of 25.8 million by 1.9
percent
Survey Methodology
This BIGresearch® survey was conducted from May 31-June 8, 2011 among U.S. Adults 18+ who
indicated that they currently have a "rewards credit card" – that
is, a credit card with a rewards program that is issued by a bank
or credit card company. The total sample size for this survey was
N=1,045, with a margin of error of plus or minus 3.1%. BIGresearch®
consumer intelligence provides answers for the marketplace around
demand, media influence, predictive applications, and new thinking.
Users include some of the largest manufacturers, retailers, Wall
Street firms, hedge funds, and leading edge companies across the
U.S. and Internationally. BIGresearch® consumer insights are
gathered online using very large sample sizes to empower users with
unique insights.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a
financial holding company whose subsidiaries, which include Capital
One, N.A. and Capital One Bank (USA), N.A., had $125.4
billion in deposits and $199.3
billion in total assets outstanding as of March 31, 2011. Headquartered in McLean, Virginia, Capital One offers a broad
spectrum of financial products and services to consumers, small
businesses and commercial clients. Capital One, N.A. has
approximately 1,000 branch locations primarily in New York, New
Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company,
Capital One trades on the New York Stock Exchange under the symbol
"COF" and is included in the S&P 100 index.
Capital One is committed to driving industry leading rewards by
consistently engaging its customers with rich rewards, perks and
benefits. The No Hassle Rewards® program from Capital One
offers easy ways to earn rewards and a flexible suite of redemption
options including travel, cash back, merchandise, gift cards,
experiential rewards and more. With No Hassle Rewards, there's no
limit to the amount of rewards a customer can earn and rewards
don't expire.
Contact: Sukhi Sahni
703.720.2390
sukhi.sahni@capitalone.com
SOURCE Capital One Financial Corporation