Airline and hotel co-brand cards are being reshaped by a polarized market. Premium perks and rewards debit cards are squeezing the middle, while AI-driven discovery is weakening loyalty. Issuers need to ensure clearer value, everyday relevance, and AI-ready rewards to win spend in 2026.

Key Question: How should airline and hotel co-brand cards adapt to changing market dynamics to win customers in 2026?

Key Stat: Almost two-thirds of US travelers will use AI to plan trips this year, per Bain & Company. As AI increasingly shapes travel and payment choices, co-brand cards that algorithms can’t easily evaluate risk being invisible at the moment of decision.