Suppose you are planning your next vacation to visit your family who lives far from you. Suddenly, you think about whether you can get a discount or any other benefits during travel because you calculated that the trip is quite expensive.
Well, the answer is yes. This can be possible through travel credit cards, which help you earn rewards for availing of services such as taking flights, hotel stays, and more.
But before you apply for a new travel credit card, it is essential to know how they work. To do so, this post will discuss the working principles of these credit cards.
Working Principle of Travel Credit Cards
With such credit cards, you earn rewards in the form of points or miles by making eligible purchases. These cards work by offering you rewards and benefits for every rupee you spend through this credit card.
However, the points are only credited to your credit card if you make travel-related transactions. These transactions are expenses for flights, hotels, car rentals, or any other recreational activities.
One important thing to note is that these credit cards may offer different reward programs. Some travel credit cards may only offer rewards for certain purchases, such as gas, groceries, or dining out, while some also include transactions for hotel and flight bookings.
Types of Travel Credit Cards
There are several forms of travel credit cards, which are personalised for travellers who mostly prefer these services, such as hotel booking or flight booking.
1. Airline Credit Cards
With an airline credit card, you can get access to collected rewards points to use with a specific air carrier. These cards also offer you yearly airport lounge access, depending on the card’s facilities. Moreover, reward points on these cards can also be redeemed for your flight tickets, free check-in for bags or priority boarding.
2. Hotel Credit Cards
These credit card offers include complimentary loyalty program memberships, bonus points for hotel stays, room upgrades and access to their food buffet at a lower cost. Some of these credit cards also offer complimentary breakfast at hotels.
3. Tie up Travel Credit Cards
Some banks tie up with travel aggregators such as IXIGo, and they offer attractive benefits such as up to 10% off on flight and hotel bookings from the designated travel aggregator. Along with that, they also offer secure and easy payment by offering a tap and pay system to pay a merchant without entering the credit card PIN up to Rs. 5000.
On top of that, some travel credit cards are also free for a lifetime and offer an interest-free period of 45 to 48 days.
How to Choose a Travel Credit Card
Analysing your spending goal or habit is the most important thing you should consider before applying for a travel credit card. Analyse patterns of your travel history, such as the number of hotels and flights you book in a year. This will help you choose an ideal travel credit card that offers the highest rewards for areas where you spend the most.
Final Thoughts
A travel credit card is a valuable option for frequent travellers or those who need to stay in multiple hotels. These cards offer reward points, travel miles, airport lounge access and discounts on flight or hotel bookings. These factors help you save money during travel and leverage your travel experience.