Travel Credit Cards – What are They and What Makes Them Unique?
UAE residents are among the top 5 spenders on travel as mentioned in a recent study conducted by Visa. There are several reasons why travel expenses form a significant part of a UAE resident’s spend – an expat population of over 80%, tax free salaries, attractive holiday packages, proximity to several international tourist destinations, kids studying abroad are a few.
Travel credit cards are normally associated with those that earn airmiles on spends. Emirates Skywards and Etihad Guest miles are the most popular airmiles programs in the UAE and are offered as rewards on several credit cards issued by UAE banks. “Travel” credit cards have evolved over the years from a simple airmiles offering to a multitude of benefits bundled together. Today, any cards that offer the below travel related features can be classified as travel credit cards:
Rewards: Cards that earn rewards in the form of airmiles or any other type of rewards which which can be redeemed against free flight tickets & upgrades, hotel bookings and upgrades, car rentals and so on.
Convenience: Cards that offer complimentary access to airport lounges, complimentary airport drops or pickups (some of the cards offer these in other countries as well), free “Meet and Greet” facilities and so on. These features can potentially save the cardholder over a thousand dirhams if used wisely.
Leisure benefits: Hotel discounts, international golf memberships, shopping offers in international locations (outlet village shopping in Europe for example) and so on.
Travel related co-branding: These are travel cards associated with popular travel partners such as booking.com cards, Marriott Bonvoy programs and so on.
A few important tips in choosing and using travel credit cards-
- Non-AED transaction rates: This is an important aspect one need to be aware of. Banks charge a fee for transactions incurred on credit cards in non-AED currencies and these charges typically vary anywhere between 2% to 3.9%. In many cases these charges alone would reduce the potential benefits that can be earned from using the card. It is recommended that one reads the fine print on fees and charges to ensure that the rates are clear and understood. The ADCB Traveller credit card is an example of one that does not have a charge for non-AED transactions which is a unique benefit offered to cardholders.
- Understand the finer details of the features and benefits offered:
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- Complimentary airport drop and pick up is a useful travel feature offered by many banks. This feature alone has the potential to save you hundreds of dirhams each year depending on how often you travel. However, there are differences in various aspects such as a) the number of transfers in a year b) whether intercity transfers are offered c) if there is a minimum spend requirement to avail the offer d) if the airline ticket needs to be booked on the same credit card and so on.
- Complimentary Airport Lounge Access: While most of the credit cards in UAE limit the number of free visits in a year, there are a few credit cards which have unlimited access for the primary as well as the supplementary card holders. Some credit cards (Visa Infinite for example) offer free access not only for the card holder but also for a guest. There are also differences in the specific airports and lounges where the offer is applicable so it is advisable to check these details before your trip.
You can find a detailed rating of features such as airport transfers, valet service, cinema offers, golf benefits etc. on Soulwallet. Click here to find out more.
Takeaway
Whether you are travelling to exotic locations (the fjords in Norway or Mount Fuji in Japan anyone?) or even just back home to your family, an ideal travel credit card can not only make your trip more pleasant and seamless but also save you valuable dirhams at the same time.
Take advantage of Soulwallet’s credit card comparison platform to make sure you make an informed decision and – safe travels!
