by Yoo Jaehoon
Published 10 Apr.2022 13:00(KST)
[Asia Economy Reporter Yu Je-hoon] As COVID-19 shows signs of becoming endemic, the card industry is ramping up related discount events and the launch of products and services.
According to the card industry on the 10th, recently, each card company has been actively launching specialized marketing and products/services focused on overseas travel. NH Nonghyup Card is currently running a promotion offering up to 15% discount benefits in the overseas travel sector. Customers who access Expedia through Nonghyup Card’s lifestyle and culture discount service portal 'Chaeum Sketch' and book hotel accommodations using Nonghyup Chaeum credit or check cards receive a 15% discount on the payment amount year-round.
Also, until the 30th of this month, customers who pay for international flight tickets on Interpark Airlines can receive an immediate discount of up to 12%. Additionally, immediate discounts ranging from 5% to 10% are available at Chamjoeun Travel, Hana Tour, and Online Tour.
Samsung Card has renewed the design of its flagship mileage credit card, the ‘Samsung & Mileage Platinum Card,’ and is running an event this month where customers who spend over 200,000 KRW using this card will receive 7,000 SkyPass miles.
KB Kookmin Card is also conducting discount events in the airline and travel sectors. Until the end of this month, customers who pay for eligible international flight tickets on Hana and Interpark Tour will receive up to a 10% discount, and purchasing overseas travel products at certain online shopping malls offers up to a 15% discount. At Lotte Internet Duty Free, customers who spend over 250 USD will receive reward points that can be used immediately based on the amount spent.
New products and services are also emerging. Hyundai Card launched the industry’s first ‘Mileage Emergency Recharge Service,’ which allows users to pre-charge the required mileage and then repay it with mileage accumulated by using the private label credit card (PLCC) Korean Air Card. Lotte Card also introduced the ‘Amex Platinum Asiana Club Lotte Card’ earlier last month, which accumulates up to 3 miles per 1,000 KRW spent.
The reason the card industry is continuously releasing products and services targeting overseas travel is that COVID-19 has recently shown signs of subsiding, and consumers are increasingly interested in overseas travel. Generally, overseas sales by card companies are known to be more profitable compared to domestic credit sales, which are restricted by various merchant fee regulations. However, since COVID-19, the amount of card usage abroad by residents has fallen to mid-2010s levels.
An industry insider said, "It is not yet comparable to pre-COVID-19 levels, but looking at related card sales, overseas travel demand is gradually recovering," adding, "The travel industry and others expect that pent-up revenge consumption, which has been suppressed during the pandemic, could explode after COVID-19 becomes endemic, so expectations are quite high."
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