Canadian Credit Card Market Sees Surge in Promotions and Partnerships
Canadian credit card issuers have upped their game in 2023, offering a range of lucrative promotions, benefits, and new features to customers.
Riley Harper
- 2023-12-30
- Updated 12:11 AM ET
(NewsNibs) - In an effort to attract and retain customers, Canadian credit card issuers have rolled out generous welcome bonuses and introduced a variety of new perks. The trend throughout the year has seen welcome bonuses structured to require customer spending over a more extended period, sometimes stretching into the second year of card ownership. American Express has remained a leader in the space, offering cardholders a plethora of transfer partners, competitive earning rates with its Amex Offers, and attractive referral bonuses. Similarly, the Air France KLM World Elite Mastercard and Cathay World Elite® Mastercard have both offered significant welcome bonuses and travel discounts, though the Cathay card comes with a higher annual fee and fewer additional benefits.
Evolving Loyalty Programs and Airline Partnerships
Loyalty programs have seen various changes and expansions. Aeroplan maintains popularity, offering various ways to earn points and new program features, though it has faced challenges with Family Sharing accounts and partner airline issues. It also saw the return of Oman Air First Class bookings to its online award inventory and is anticipated to improve search functions and possibly add new airline partnerships. Porter Airlines not only expanded its route network but also revamped its VIPorter loyalty program and formed partnerships with other airlines such as Air Transat and Alaska Airlines. WestJet and Air Canada have both restored their pre-pandemic flight networks and announced new routes, while WestJet's Rewards program has experienced stability since its 2020 Member Exclusive Fares revamp.
Strategic Acquisitions and Future Developments
The Canadian credit card and airline markets are also undergoing significant consolidation and strategic partnerships, with RBC set to acquire HSBC Canada, which will likely impact HSBC's current product offerings like the HSBC World Elite Mastercard. AIR MILES is experiencing a revival thanks to BMO's lucrative promotions and revitalized partnerships. Strategically, MBNA Rewards will become convertible to Alaska miles in 2024, following an initiative that introduced a 5x earning rate at wholesale clubs. Furthermore, airlines are increasingly shifting towards revenue-based models for status qualifications, rather than distance or frequency of flights, and Air Canada has adjusted its lounge access policy to streamline space utilization while planning to retrofit several aircraft with new business class products in 2024, and signalling updates to long-haul fleets, complemented by the forthcoming delivery of Airbus A321XLR aircraft in 2025.
The Canadian financial and travel industries are witnessing a dynamic era of competitive innovation and customer-focused enhancements. Credit card issuers and airlines continue to adapt their offerings to meet evolving consumer preferences and market demands, setting the stage for further growth and customer engagement in the coming years.
