Press: Airmiles Credit Card Market Review

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White Space and Airmiles release findings of credit card market review

1 October 2008

Based on research conducted in July 2008, White Space has landscaped the rewards card market, including analysis of cards offered across the air travel, store card and cashback sectors. Key findings have been released today.

Key findings of the Market Review include the following:

Only a small number of rewards cards offer real value to the customer. With half of the cards analysed, the maximum cashback equivalent amount customers can receive back in rewards is less than 2% of spend. The best value cards allow customers to receive over 10% of their spend back in rewards.

The way in which rewards are claimed is often difficult to understand and may be confusing to the customer. Customers may be made to pay additional fees, charges and taxes to claim their rewards and may be made to choose from a narrow range of options if they want the best deal.

Many cards are very restrictive over where rewards can be spent in order to get the best deal.

Based on White Space’s Market Review, AIRMILES have worked with Lloyds TSB to further develop their Airmiles Duo proposition, ensuring that it offers maximum customer value and is easy to understand and use. Including a simple rewards band system, with all rewards inclusive of taxes, fees and charges, Airmiles Duo has been built around the needs of the customer to stand out in a market where the customer can be left short changed.

John Bee, Director of White Space, comments:

“Rewards cards can be a great way for customers to make their credit cards work harder for them, but our research highlights the vast differences in the value that can be obtained from different providers. AIRMILES and Lloyds TSB have worked hard to fully understand their marketplace, and have developed a strong proposition on the back of this.”

Andrew Swaffield Managing Director of AIRMILES, comments:

"In these belt-tightening times and with rising fuel costs it is important we provide our members with the best possible value in recognition of their loyalty to us. It is encouraging to see the proposition we’ve developed with Lloyds TSB really stands out among the other credit card rewards in the market. AIRMILES’ collectors can enjoy free flights with their Airmiles inclusive of airline taxes, fees and charges, along with many other rewards – all without a penny to pay. The Airmiles Duo proposition helps to strengthen our core proposition because it offers our members a tangible reward that makes their hard earned money stretch that little bit further. We’re proud of the impact the Airmiles Duo has made in the market and we plan on building on our successes by continuing to deliver great rewards for our members."

About AIRMILES

AIRMILES is the UK’s longest-established and most rewarding travel loyalty scheme – celebrating its 20th birthday this year. AIRMILES offers a huge choice of travel rewards including free flights with British Airways and many other scheduled airlines – all airline surcharges are included in every Airmiles fare so there’s not a penny to pay. In addition, Airmiles can be used for Eurostar journeys, accommodation in thousands of hotels worldwide, car hire, travel insurance, English Heritage passes and days out including the Alton Towers, London Zoo and LegoLand.

Lloyds TSB and AIRMILES have teamed up to launch the first ever Lloyds TSB Airmiles Duo Credit Card account. With the Duo Credit Card account consumers have the satisfaction of knowing they’re collecting Airmiles every time they spend with up to 1 Airmile collected for every £10 spent. For more information on the Lloyds TSB Airmiles Duo Credit Card account visit www.airmiles.co.uk.

Airmiles can be collected through many collection partners including Lloyds TSB, Tesco, Shell and Southern Electric. The AIRMILES Online Shopping site gives customers the opportunity to collect up to 1 Airmile for every £2 spent with over 100 top online high street retailers including: johnlewis.com, eBay.co.uk, Comet, CD Wow!, Carphone Warehouse, Boden and Waterstones allowing customers to collect both on and off the high street simply by clicking through to the retailer’s web site via www.airmiles.co.uk.

For further information, please contact Lyndsey Smith, Marketing Manager, White Space on 01865 793800.

For information about AIRMILES please contact Susan Barber, Head of PR, AIRMILES on email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call 01293 722 252.

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