Credit Card Companies Vie for Traveler Loyalty in Fierce Aviation Market

The Israeli aviation credit card market has seen a significant shake-up over the past six months, with major players launching new loyalty programs and vying for dominance. The competition is estimated to be worth over NIS 100 million, fueled by joining bonuses, fee waivers, and extensive marketing campaigns.

Isracard has emerged as a strong contender, securing the prestigious Flycard, formerly with Cal, for El Al's frequent flyer program. This move is expected to generate NIS 120-160 million in annual pre-tax profit for Isracard over the next decade, with a cumulative potential of NIS 1.2-1.6 billion. Isracard also partnered with Rami Levy and Israir to launch Super Fly, leveraging Rami Levy's customer base of approximately 200,000.

Cal, initially surprised by the loss of Flycard, responded by launching its own program, Flyall, and is reportedly attracting around 100,000 customers. Max has also entered the fray with Max Travel, offering cashback for the travel sector.

While Flyall and Max Travel focus on cashback models for tourism, Flycard and Super Fly, backed by airlines, offer more direct flight-related benefits such as tickets, upgrades, and lounge access. This airline-centric approach is seen as a key advantage, particularly for business travelers whose points can be used for personal flights. Rami Levy's aggressive in-store marketing strategy for Super Fly is also expected to boost its customer acquisition.

Isracard's dual holding of Flycard and Super Fly positions it favorably, allowing it to offer benefits directly tied to flights, which are harder to replicate with cashback alone. The intense competition highlights the growing importance of loyalty programs in retaining and attracting customers in the travel industry.