Credit/AdobeStock
A simple truth lies at the heart of a credit union’s mission: A member’s loyalty is earned, not given. Attracting and retaining members is, therefore, an ongoing and central priority – credit unions’ growth, profitability and prominence in the communities they serve depend on it. In a world where large commercial banks often appeal to customers with sophisticated, feature-rich reward programs, credit unions can either emulate those strategies or carve out their own approach that speaks directly to their members’ desire for everyday value and meaningful benefits.
According to Consumer Affairs, 48 million Americans used a car rental service in 2023, up 19.4% from 2022. Introducing car rentals into their rewards portfolios gives credit unions a way to tap into this demand, as well as a straightforward means to meet members' demand for practical, everyday value. This addition strengthens member satisfaction and engages them with rewards that fit naturally into their daily lives and routines.
Here, we’ll explore the intersection of car rentals and loyalty strategies and how credit unions can leverage this reward category to improve member acquisition and retention significantly. With 24% of American drivers actively using car rentals for daily use instead of travel-associated rentals, according to a CarTrawler report, “Driving Loyalty: Market Insights on Car Rentals & Reward Programs,” it’s a timely and prescient opportunity to deliver everyday value to credit union members.
Meeting the Growing Demand for Car Rentals
Understanding members' needs is vital to the success of any loyalty program. One benefit that credit union members need – more often than commonly thought – is access to attractively priced, trustworthy rental cars. Recent insights from CarTrawler's report reveal that offering car rental as a reward or booking option within a credit union loyalty program can improve member engagement and satisfaction.
A survey of more than 3,500 U.S. consumers finds robust demand for car rental offers among loyalty program members, including those tied to financial institutions. About 45% of respondents – some 27 million consumers – say they would likely rent a car through a loyalty program. With one in four loyalty members, or 60 million Americans, renting a car on average annually, car rentals could prove instrumental in elevating the member experience through rewards that deliver everyday value and utility.
Demographic data also shows up-and-coming trends among younger members. The 25-39 age group, which tends to engage more selectively with traditional loyalty programs, expressed the highest interest in car rentals, presenting a significant opportunity for credit unions and similar organizations aiming to attract and retain these younger new members.
Everyday Engagement: Car Rentals Beyond Travel
While car rentals are often associated with leisure travel, a significant share – 24% – of U.S. rentals serve everyday needs: Moving, family visits or weekend trips. This trend presents a chance for credit unions to engage members year-round, extending beyond the seasonality of typical travel-related rentals.
The survey’s insights underscore this demand for convenience: 63% of everyday rentals are picked up at local branches rather than airports, reflecting consumers’ preference for accessible neighborhood options. Credit unions can tap into this steady demand by integrating car rentals into their loyalty programs, driving ongoing engagement and building stronger, lasting connections with members. With the right partnerships, credit unions can position themselves as key players in their members' everyday travel needs, improving loyalty and member retention rates while creating additional revenue streams.
The Central Role Trust Plays in Member Engagement
Simply offering car rental options isn’t enough to help credit unions meet their recruitment and engagement goals; members must trust the brands behind those options as well. Trust is also a critical factor in loyalty program membership, with 43% of respondents citing it as the main reason for joining a program. For financial loyalty programs, which include credit union rewards programs, trust ranks as the most important membership factor at 37%, 46% and 49%, respectively.
Trust in the car rental brand also plays a significant role in consumer decisions, alongside price and vehicle suitability. Collaborating with trusted brands – or with a partner that sources inventory from trusted brands – can enhance the value proposition of loyalty programs by offering exclusive member-only discounts and perks that resonate well with consumers. This indicates that credit unions can boost member satisfaction by offering transparent pricing, member-exclusive deals, and personalized car rental options that can attract new members and strengthen ties with existing ones.
Notably, 88% of loyalty members who rented a car through their program in the past year were willing to do so again, underscoring high satisfaction and strong potential for repeat engagement among the majority.
Flexibility and Personalization: Keys to Member Experience
Flexible payment options, such as combining points and cash, resonate strongly with consumers. This financial flexibility is likely an even stronger motivating factor for credit union members who might have prioritized competitive rates when choosing their banking institution. In fact, 63% of American loyalty program members prefer this flexibility when redeeming car rental rewards. This preference is especially pronounced among younger professionals, with 56% of 25-39-year-olds citing flexibility as a critical driver of engagement.
Credit union loyalty programs that offer members-only discounts, simple booking processes and transparent pricing can further enhance the member experience by reducing frustrations related to hidden fees or high costs. These tailored solutions improve satisfaction, encourage repeat engagement and strengthen loyalty.
Unlocking Revenue Opportunities
Integrating car rentals into loyalty programs offers substantial revenue potential. With the U.S. car rental market valued at approximately $39.29 billion and projected to grow to $44.7 billion by 2028 (+2.6% CAGR) over the next five years, loyalty programs can capture a greater share of travel spending simply by closing the gap between the 12% of members who currently rent cars through loyalty programs and the 45% who express interest. Converting interested members could significantly boost programs’ market influence.
Credit union rewards programs can create a comprehensive ecosystem that addresses members' diverse needs by providing travel rewards that extend beyond flights and hotels, driving both engagement and revenue.
Rethinking Loyalty: The Everyday Pull of Car Rentals
Have credit unions cracked the loyalty equation? The true value (and success of) a loyalty program shouldn’t be determined by a long list of “perks,” many of which never get used. Instead, the focus should be tapping into what members genuinely find useful. Car rentals, typically seen as a travel add-on, are actually part of members' everyday lives – used for moving, visiting family or weekend trips. Integrating car rentals into rewards programs allows credit unions to offer value that feels relevant every week, not just on vacation.
By making car rentals a fixture of their rewards programs, credit unions can encourage frequent interactions, shaping a loyalty experience that grows naturally from daily routines and strengthens over time. Just like their relationships with members.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
