Banks dig into travel

TRAVEL remains the top discretionary spending priority for consumers, who continue to prioritise trips by cutting back in other categories such as dining and retail, according to a Phocuswire report. However, the way consumers plan and book travel is shifting as they look to stretch budgets and maximise the value of rewards. With nearly half of consumers choosing their primary card based on rewards, travel has become the most powerful driver of credit card usage, particularly as inflation pushes travellers to rely more heavily on loyalty programmes to offset rising costs. Younger generations, especially millennials and Gen Z, are leading adoption, using points strategically and opening new credit accounts at higher rates. To capitalise on this, banks are investing in end-to-end travel platforms that integrate booking, rewards redemption and AI-driven servicing, effectively turning travel into a core customer engagement channel. “What these financial institutions didn’t have until recently was the technology to make their travel products genuinely competitive. Today, we are seeing financial institutions begin to lean on modern technology solutions to launch end-to-end travel booking portals with the goal of owning the entire travel relationship. In doing so, they are creating direct-to-consumer channels that allow customers to earn and burn on travel,” reports PhocusWire.