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Airfare is up 21% — are travel credit cards worth it in 2026?
Airfare is up 21% year over year, according to the U.S. Travel Association’s Travel Price Index — and if you’ve booked a flight recently, you’ve probably felt it. The average U.S. domestic round-trip now runs $570, roughly $100 more than it did a year ago.
There’s nothing any of us can do about jet fuel prices. But for frequent flyers, the right travel credit card can offset hundreds of dollars in annual travel costs through signup bonuses, travel credits, and points on every purchase.
The Motley Fool Money team reviews and rates dozens of travel credit cards each year. And right now in 2026, the value proposition is stronger than most people think.
Airfare is up 21%, and travel credit cards are worth more than ever for frequent flyers
Rising airfare actually makes the case for travel rewards stronger, not weaker.
When a round-trip domestic flight costs $570, the welcome offer on a solid travel card — often worth $600 to $750 in travel — can cover that ticket almost entirely.
Even a premium travel card that carries a $395 annual fee could be worth it. Many credit cards include travel credits and rewards, VIP perks like lounge access, and trip insurance which easily offsets the annual fee cost.
For someone who flies two or three times a year, using a travel card for those bookings is one of the easiest ways to claw back some of what rising airfare is taking from you.
Two types of travel credit cards, and how each one earns rewards
Travel cards come in two main flavors, and knowing which one fits your situation makes a big difference in the reward value you get.
Co-branded airline and hotel cards are tied to a specific brand. Think: a credit card that earns miles exclusively with Delta or United, or points only redeemable at Marriott or Hilton hotels. These cards typically earn the most rewards within that brand’s ecosystem and come with loyalty perks like free checked bags or complimentary hotel nights.
General travel rewards cards earn points or miles on all purchases and let you redeem flexibly — for flights, hotels, statement credits, or transfers to airline and hotel partners. Think: Chase Ultimate Rewards points or American Express Membership Rewards Points.
The core mechanics are similar across both card types. Users earn points for each dollar spent on the card, get a welcome offer after hitting a spending threshold within a given timeframe, and enjoy perks like travel credits or priority boarding. Annual fees range from $0 to $700+ depending on the card.
The biggest value drivers for travel credit cards
The fastest way a travel card pays off is the signup bonus.
On many top credit cards, you can earn $500 to $750 in travel value after meeting a spending requirement in the first few months. If you have a trip coming up anyway, timing your application to capture that bonus is one of the smartest moves you can make.
Beyond the welcome offer, here’s where the ongoing value comes from:
- Boosted earn rates on travel and dining — typically 2x to 5x points vs. 1x on a basic card
- Annual travel credits that directly offset the annual fee
- Lounge access — airport day passes can run $50 to $75 each
- Trip delay insurance, baggage protection, and no foreign transaction fees that add up over a year of travel
Are travel credit cards worth it in 2026?
The answer almost entirely depends on how often you fly and how you spend. Here’s how to think about it.
When it makes sense
If you fly two or more round trips per year and tend to spend in the categories most travel cards reward — like flights, hotels and restaurants — a travel credit card almost certainly pays off.
And if you can time an application around an upcoming trip to capture a welcome offer, that’s just extra money back for money you were planning to spend anyway.
When a regular credit card is better
If you don’t spend much money on travel, or the idea of managing points redemptions sounds more stressful than fun, a regular cash back card is probably the better call.
There’s no shame in that. The right card for you is the one that fits how you spend.
Match the credit card to how you actually travel, not how you hope to
One of the most common mistakes with travel credit cards is picking a premium travel card based on aspirational travel habits instead of actual ones.
Credit cards with airport lounge access can be amazing for the right traveler. But if you only fly once a year (or your local airport doesn’t have an available lounge), you’re not getting the true value and could be paying a premium for no reason.
Here’s a simple framework for choosing the right travel card for you:
First, honestly estimate how many flights you take per year. If you’re loyal to one airline or hotel chain, a co-branded card might make sense. But if you mix it up, a flexible rewards card gives you more freedom.
Then compare the annual fee against the credits and benefits you’d realistically use. If the credits cover most of the fee before you even think about points, that’s a strong sign.
And lastly, it’s always good practice to check your credit score before applying. Most of the best rewards credit cards require good to excellent credit — typically a FICO score of 670 and above.
The bottom line
Airfare is up 21% year over year according to the U.S. Travel Association’s Travel Price Index — and with jet fuel costs still elevated, there’s little reason to expect prices to ease before summer ends.
For regular travelers, that environment makes a well-matched travel credit card a stronger value proposition than it was a year ago.
Many welcome offers alone can cover a flight. Annual credits and perks can offset the fees. And the ongoing earn rates mean every dollar you spend on travel is working a little harder.
FAQs
How do travel credit cards work?
Travel credit cards earn points or miles on purchases, which you can later redeem for flights, hotels, or other travel expenses. Most travel cards include a welcome offer, bonus earning on travel and dining, and perks like travel credits or trip protection. Co-branded cards tie rewards to one airline or hotel brand, and general travel cards offer more flexibility across multiple programs.
Are travel credit cards worth it if you only fly once or twice a year?
Yes, possibly — but it depends on the credit card. A no-annual-fee travel card can make sense for occasional travelers. But a premium card with a $400+ annual fee typically requires more frequent travel and active use of included credits, to break even.
What credit score do you need for a travel credit card?
Most travel credit cards require good to excellent credit -— generally a FICO Score of 670 or higher. Premium cards with higher fees and richer perks often want a credit score of 700 or above. You can check your credit score for free through many banks and credit monitoring services before applying.
This story was produced by Motley Fool Money and reviewed and distributed by Stacker.
