Myths about co-branded travel card
What could be better than spending Christmas in Goa? Perhaps, travelling for free and getting discounts on hotel stays and dining out. It seems like a tempting bait, and one that has been offered by co-branded travel credit cards for over a decade now.
While there have been enough takers, given the tie-ups with airlines, both domestic and international, hotel chains, Indian Railways and travel portals, very few people give it a careful consideration before picking up one. While everyone looks at the fee and interest rate on rolling over credit, it's equally important to check whether the card actually suits your lifestyle.
This is particularly important considering the fact that travel service providers and credit card companies have refused to loosen their belts and continue to cut back on their offerings after the recession. Take the Citibank-Jet Airways Platinum credit card.
So far, cardholders were getting one complimentary upgrade voucher on cumulative spends of Rs 2 lakh, but from November this year, this threshold has been raised to spends of Rs 3.5 lakh. Similarly, in the case of the ICICI Bank-Kingfisher Airlines Platinum card, while customers previously bagged five free flights on joining, the current welcome kit contains only three free flights (see table).
So how do you know whether you should go in for a co-branded card or not? Go through these common myths surrounding co-branded travel cards as well as tips on securing more mileage from them.
Myth: It will encourage me to travel more.
No, it won't. If you aren't already a frequent traveller, your card will notch up miles or points very slowly, making redemption a veritable nightmare. Ask Avinash Barua, a 23-year-old sales executive with a leading telecom provider. "I try to take at least two trips a year, apart from my annual pilgrimage to my hometown.
I thought this would make me an ideal candidate for a co-branded travel card. Besides, there would be the incentive to take more trips to bag additional miles. However, I found out that while I'd spend around Rs 5,000 per flight, I'd earn far fewer miles, and a one-way free flight needs 10,000-odd miles," he explains.
The rule of thumb when it comes to co-branded cards is to pick one that lets you earn points for something you already do. "If more than 50% of your card spend is on a single category, why not seek an advantage there? So, if you shop frequently, get a card that ties up with a retail outlet or one that gives you cash back on, say, groceries," says an HSBC executive.
Source: Economic Times
|
Was this article useful? Subscribe to our newsletter to get daily updates in your email for free. |
|
|
Related posts:
