A travel credit card can help users earn air miles, free flights, get considerable discount on hotel stays, along with several other travel benefits like complimentary airport lounge access and membership to hotel loyalty programs. But, with numerous options available, choosing the best travel card for you could be tricky. However, if you know what you are specifically looking for, then you can find the right card that suits your travel preferences and gives maximum value.
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Choose between Co-branded or General Travel Cards
A number of travel credit cards are offered in collaboration with airlines, hotel chains or travel portals, which provides complimentary memberships to get priority check-in, class upgrade, free stays, etc. However, rewards earned on such cards can usually be redeemed only with the associated brand. Despite limited redemption options, co-branded travel cards are possibly the smartest way to save on your trips, especially if you have brand preferences.
For example, if you prefer flying with Vistara and are a high-spender, you could get up to 5 complimentary Vistara Premium Economy Tickets with Club Vistara IDFC FIRST Credit Card. Similarly, if Marriott Group of Hotels is the preferred choice for your stays, getting Marriott Bonvoy HDFC Credit Card could help you save a substantial amount.
General travel credit cards, on the other hand, give you more flexibility to offset travel costs like flight tickets or hotel stays, without limiting to a brand. Axis Atlas Credit Card, for instance, lets you earn accelerated EDGE Miles for travel spends which can be transferred to multiple airlines and hotel loyalty programs.
High-spenders should aim for High Rewards and Milestones Benefits
Most travel credit cards would offer value-back as reward points or air miles, which is different for each card. Consumers who put high spends on their credit cards should look for a travel card with high reward rate, as they would be able to maximize the returns.
Generally, good travel cards would offer a reward rate anywhere between 2 per cent and 5 per cent, though it can vary across cards. Axis Vistara Signature Credit Card gives a 2 per cent value back as Club Vistara (CV) Points whereas Intermiles HDFC Signature Credit Card gives 8 per cent value-back as Intermiles. When evaluating rewards, consider how you earn rewards and how you can redeem them. In the above example, CV Points and Intermiles may not offer an equivalent monetary value but could fetch you free flights or reduced airfare when you book via Club Vistara or Intermiles Platform.
In addition to the general reward rate, high spenders should also consider milestone benefits where reaching a spend threshold can provide good value. For example, with Axis Vistara Signature, you can get up to 4 premium economy tickets on spending up to Rs. 9 Lakh in a year. Some cards may also offer bonus reward points on reaching spend milestones.
Sign-up bonus rewards or a one-time discount on airfare as welcome benefit could also give you a good start but should not be the sole reason to opt for a card.
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Take Travel Perks into Consideration
Travel credit cards also offer additional benefits like complimentary airport lounge access, low foreign exchange mark-up fee, travel insurance covering loss of documents, check-in luggage, etc. Before selecting a travel credit card, you must take these additional perks into consideration and choose the one that offers the right combination of rewards and additional benefits.
For example, if you often travel overseas, benefits like a low forex mark-up and international lounge access could add convenience to your travel experience. Similarly, if free hotel stays are offered as a part of a membership, cardholders should check whether it applies to hotels chains in other countries as well.
If you cannot find what you are looking for in a single card, you can also consider getting two different travel credit cards with one focused on rewards and the other on the additional perks. All-rounder cards like SBI Card ELITE and Axis SELECT also provide lounge access or complimentary memberships.
Make Road Trips Cheaper with the Right Fuel Credit Card
Since travel cards are mostly synonymous with airline cards, they rarely have anything for those who prefer road trips and weekend getaways. Such travellers could get a substantial value out of a fuel credit card.
Mostly offered in collaboration with fuel brands like Indian Oil or Bharat Petroleum, fuel cards offer reward points that can be redeemed for free fuel at the eligible fuel stations. Indian Oil Axis Bank Credit Card provides 4 per cent value-back at Indian Oil fuel stations and BPCL SBI Card Octane gives 6.25 per cent value-back at BPCL petrol pumps. It is also important to check the redemption value of earned reward points.
Since value-back is given as reward points, the right fuel card would be the one that not only offer accelerated earning on fuel purchase but also reward you generously for spends other than fuel. The BPCL SBI Card Octane, for instance, offers higher earning on everyday categories like dining, departmental store and grocery spends which would add to the user’s reward balance, later used to offset fuel costs.
Keeping a combination of a travel credit card and a fuel credit card could fetch maximum value for such users. For example, you can save up to Rs. 5,000 per month on domestic hotels with Standard Chartered EaseMyTrip Credit Card and get 4 per cent value back on fuel with Indian Oil Axis Bank Credit Card. Combining the benefits on these two cards to cover the cost of your road trip and hotel stays could give good value.
At the end of the day, the decision as to which travel card would be the right one depends on your travel habits and the kind of benefits you are looking for in a travel card. Compare the options and choose the one that suits your needs the best and gives maximum value back.
