Open Skies... Revival of Popularity for Overseas Travel-Related Cards

Increase in Overseas Credit Card Usage Expected
Card Companies Preparing for Travel Demand

As the first year-end after the social distancing measures were lifted approaches, Incheon Airport Terminal 1 is bustling with travelers on the 26th. / Yeongjongdo - Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Minwoo Lee] Credit card companies are increasingly offering related benefits targeting suppressed travel demand. With overseas credit card usage already rising sharply, they appear to be quickly attracting customers ahead of the peak season in the second half of the year.

According to the Credit Finance Association on the 4th, the overseas usage amount of personal credit cards from seven major card companies?Shinhan, Samsung, KB Kookmin, Hyundai, Lotte, Woori, and Hana?totaled 7.9396 trillion KRW from January to November last year. This is an increase of nearly 2.7 trillion KRW compared to the same period the previous year. In November alone, the amount reached 872.9 billion KRW, surpassing the summer peak of August (871 billion KRW). Considering the sharp increase in overseas travel to countries such as Japan at the end of the year, it is certain that the total overseas usage amount for the entire last year, to be announced in mid-month, will exceed 8 trillion KRW.

In the popularity rankings of credit cards, cards related to overseas travel have returned to the top ranks for the first time in about two years since COVID-19. According to the rankings based on the number of product views and application conversions collected by the domestic credit card platform 'Card Gorilla' from January 1 to December 25 last year, the 'Samsung Card & MILEAGE PLATINUM (Skypass)' ranked 10th. Following its entry into 8th place in the third quarter of last year, it continued to attract attention in the fourth quarter, placing it among the top ranks for the year.

The card benefits with the highest increase in searches on the Card Gorilla platform were all related to overseas travel. 'Airport Lounge/Priority Pass (PP)' saw a 255% increase in searches compared to the previous year, securing an overwhelming first place. Additionally, categories such as airline mileage (126%), travel/accommodation (103%), and overseas (100%) showed triple-digit growth, sweeping the top ranks in search increases.

Credit card companies are also responding to this trend by promoting various benefits to attract customers. Samsung Card partnered with the Canada Tourism Board at the end of last month to provide travel-related content and various discount benefits. Hana Card is also running a discount event of about 7-10% for purchases of various travel products and overseas airline tickets until the end of this month.

A card company official said, "Although the proportion of overseas travel in total sales is not large, the increase in overseas travel demand can lead to various additional consumption, so we are paying great attention," adding, "We expect demand related to overseas direct purchases to increase once the won-dollar exchange rate stabilizes."