Airline vs. Hotel Co-Brand Credit Cards: Which Is Right for You?

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There’s a dizzying array of travel-related credit cards on the market, and they generally fall into three main categories:

1. Bank cards that earn points redeemable for travel
2. Bank cards that let you transfer points to loyalty program partners
3. Co-brand cards that earn points in a single loyalty program

The last category includes airline and hotel cards. These cards not only earn miles or points in their respective programs but often come with perks that justify the annual fee.

However, that’s where the similarities end. The benefits vary greatly because of differences in business models. Today, I’ll focus on mid-range co-brand cards—those with annual fees typically between $89 and $150.

Benefits of Hotel Co-Brand Cards

Hotel co-brand cards often include a mix of these perks:

• Free internet access
• Night credits to help you qualify for elite status
• Free night certificates, usually capped by a point value or category (sometimes upgradeable with extra points)

Hotel cards are somewhat limited in their offerings due to the nature of the hotel business. Most hotel locations are franchises, meaning the parent company doesn’t own the properties outright. Instead, they provide benefits they can directly control, such as loyalty program perks like night credits or free night vouchers.

Benefits of Airline Co-Brand Cards

Airline cards, on the other hand, offer a different suite of benefits:

• Preferred boarding groups
• Free checked bags
• Discounted in-flight food and Wi-Fi
• Spending that counts toward elite status

Since airlines own the planes (or have contracts with regional carriers), they have far more control over the passenger experience. This lets them tie cardholder perks directly to flights.

Which Type of Card is More Valuable?

If you’re just starting, you might wonder whether an airline or hotel co-brand card is the better choice. The answer depends on your travel habits:

• Infrequent travelers can get outsized value from an airline card. Benefits like a free checked bag and preferred boarding can save more than the annual fee on just one trip.
• Frequent travelers with elite status may already receive most of the benefits offered by airline co-brand cards. In this case, the night credits from a hotel card might be more valuable—helping you retain top-tier status like Hyatt Globalist or Marriott Ambassador Elite.

My Choice

If I had to choose, I’d keep my airline co-brand cards over hotel ones. Why? We check bags on several trips a year, and the savings easily outweigh the annual fees. But as always, Your Mileage May Vary!

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This post first appeared on Your Mileage May Vary