Are banks the new travel agents?
With customers increasingly booking travel products online, major banks across India are tapping on the opportunity by tying up with major travel service providers, such as, OTAS, hotels, airlines.
Even travel insurance is becoming one of the key products booked online by customers. In a bid to tap this
Credit/debit card holders from metros and mini metro cities are now booking travel and lifestyle products online more frequently
growing segment of travel product buyers, India’s second largest private sector bank – HDFC Bank is now aggressively working on var- ious business strategies. To start with, the bank has tied up with multiple OTAs and hotels to provide cash-back, discounts and benefits for HDFC credit/debit card holders. Furthermore, the recently launched HDFC Bank Diners Club International Credit Card for premium customers is focussed on travel and lifestyle products.
Talking exclusively to Travtalk, Parag Rao, Senior Executive VP – Business Head – Credit Cards and Merchant Acquiring Services, HDFC Bank said, “The credit/ debit card holders from metro and mini metro cities are now booking travel and lifestyle products online more frequently while the small city customers are still skeptical about the online card usage. Slowly the trend is changing as banks are coming up with more secured online payment solutions. Interestingly, booking for travel products is increasing online, especially domestic air tickets. To give out the figures, close to 20 per cent of our total online transactions (amounting ` 50,000 crore) consists of travel products. Through unique tie- ups with airlines and hotels, we work out a solution where all the participating parties (service provider, bank and customer) benefits out of the deal.”
Senior Executive VP – Business Head – Credit Cards and Merchant Acquiring Services, HDFC Bank