State Bank of India Launches Travel Credit Card - India Report

30.04.2024 - 03:35 / skift.com / Air India / Haitham Mattar / Bulbul Dhawan / Airlines

India’s largest bank State Bank of India (SBI) has launched its first-ever travel focused credit card. ‘SBI Card MILES’ has been launched in three variants to cater to different types of travelers, from beginners to frequent flyers. 

“Indian travelers are large global spenders and with increased and more robust travel plans, consumers are looking for curated benefits to enhance their travel experiences,” said Abhijit Chakravorty, CEO of SBI Card. 

Rise of travel credit cards in India: Travel credit cards are rising in popularity in India. Card services company Visa in its report released in December 2023, stated that 95% of Indian travelers select credit cards for international travel, driven by features such as travel miles, cashback, rewards, and high limits on spending. Travel credit cards were the fastest growing category in 2023, with a year-on-year demand increase of 27%, according to a report by fintech platform ZET. 

Several brands are coming up with travel credit cards. Last year, Marriott launched India’s first-ever co-branded hotel credit card in collaboration with HDFC Bank. SBI also has seven co-branded travel credit cards including those with railway company IRCTC, Air India, and online travel platform Yatra. IndiGo has partnered with Kotak and HDFC Bank for co-branded credit cards, while online travel company EaseMyTrip has a co-branded card with Standard Chartered. 

Mahindra Holiday and Resorts has recorded its highest-ever annual performance in financial year 2023-24. It recorded a 12% year-on-year increase in total income, which stood at INR 14.2 billion ($171 million). During the year, the company added nearly 400 keys to its inventory, with resorts in locations such as Sikkim, Assam, Turkey, Thailand, and Georgia. 

The group has also reached a member base of nearly 300,000 after adding more than 20,000 members in the 2023-24 fiscal year. 

Mahindra Holidays and Resorts has set a target to double its inventory from the current over 5,000 rooms to 10,000 rooms by 2030. For this, it is planning to invest up to INR 45 billion ($539 million) over the next three to four years.

IHG Hotels and Resorts is planning to double its portfolio of operational hotels in India to 100 properties in the next five years. In 2023, IHG launched its voco brand in India, and signed hotels across luxury, premium, midscale, and upper midscale segments. In a statement, the company said that it is targeting high-growth secondary markets such as Amritsar, Lucknow, Kasauli, and Katra. 

IHG’s India, Middle East and Africa managing director Haitham Mattar said, “India’s hospitality sector is experiencing a dynamic transformation, driven by a confluence of factors including increased disposable income, a growing