"Choose Card Benefits and Travel" Overseas Trips Increase... 'Card Tech' Rises

Increased Interest in Overseas Travel with Face-to-Face Consumption Revival
Card Industry Actively Engages in Overseas Event Marketing
Ensuring Benefits Reach Long-Term Customers

More users are carefully evaluating the benefits relative to their credit card usage. The photo is not related to the specific content of the article. [Image source=Pixabay]

[Asia Economy, Intern Reporter Lee Gyehwa] As face-to-face consumption, which had been subdued after the lifting of social distancing measures, is revitalized, interest in overseas travel is increasing. The industry is actively engaging in event marketing by offering related benefits. Consumers are carefully examining the benefits and engaging in card tech (signing up for new cards to receive benefits, then canceling and switching to others).

According to data from the Korea Tourism Organization's Data Lab, the number of overseas tourists is increasing every month. In February, the number of overseas tourists was only 112,722, but it surged to 145,503 in March, 215,246 in April, 315,945 in May, 412,798 in June, and 674,022 in July.

In particular, travel to Japan is increasing significantly. With the full resumption of visa-free individual travel to Japan next month, personal travel to Japan is possible for the first time in two years, and combined with the weak yen, travel to Japan appears to be booming. According to TMON, from the 12th of last month to the 25th of this month, sales for Japan travel surged 27 times (2558%) compared to the previous period (August 29 to September 11). The number of airline ticket bookings increased 22 times (2056%), and the number of travelers increased 26 times (2469%).

In response, the card industry is actively launching overseas event marketing. Hyundai Card is running an event until the 10th of next month offering a 20% discount on payments for international airline tickets purchased through travel platforms such as Hanatour, Interpark Tour, and Yogi Yettae. Woori Card is also running an airline ticket discount event until the end of the year. Every Monday, they provide a 30,000 KRW discount coupon for Jin Air on a first-come, first-served basis, which can be used for domestic and international airline ticket payments over 300,000 KRW.

Demand for overseas travel, which had contracted due to COVID-19, is increasing. The photo is not related to the specific content of the article. [Image source=Yonhap News]

As card companies compete to launch overseas travel event marketing, consumers are carefully reviewing card benefits and engaging in card tech. Card tech involves not just using one card continuously but comparing events and using various cards to receive benefits, then canceling and issuing cards with better conditions suited to their purposes.

A netizen comparing card benefits ahead of a trip to Japan said, "Since I have to use a card anyway, I want to use it efficiently by applying airline ticket and overseas usage card fee cashback benefits when traveling abroad this time," adding, "If I meet the spending requirements well, accumulating mileage and cashback offsets the somewhat high annual fees." They also added, "If you travel abroad two or three times, the amount you get back is greater, and you can also use airport lounges. I plan to use it wisely and switch to another card with bigger benefits."

Another netizen said, "Cards with good benefits are gradually disappearing these days," and added, "I compare and analyze benefits and conditions through online platforms like Naver Pay, Kakao Pay, and Toss before issuing cards." They also noted, "Even if you use and cancel cards issued this way, it does not affect your credit rating."

However, there are concerns that while card company events may be efficient for short-term new customer acquisition, they could increase cost burdens in the long term. Experts suggest that card companies' costs, including product development and marketing, will rise, and benefits should be directed toward long-term customers who can generate stable performance.

Professor Lee Eunhee of Inha University's Department of Consumer Studies explained, "Consumers may engage in card tech for profit, but it is not a desirable phenomenon," adding, "Indiscriminate card switching worsens card companies' profitability, and the resulting disadvantages inevitably fall back on consumers." She emphasized, "Card companies have no choice but to continue events in the short-term membership recruitment competition," and added, "They need to establish management policies that can maintain VIP customers in the long term."

This content was produced with the assistance of AI translation services.