Citi is enhancing its Premier credit card to offer new benefits and protections to travelers.
The banking giant Strata Premier Cardannounced on Monday (May 13), offers greater benefits and more opportunities to earn rewards, and comes amid an increase in travel spending across all age and income groups.
“We hear from our cardholders that they want to be rewarded for their travel as well as their everyday spending,” Antonio Merola, head of proprietary products for US brand cards at Citi, in a press release. “The Citi Strata Premier Card now offers extra ways for cardholders to earn on travel and turn their purchases into future experiences.”
The card offers protection in cases such as canceled or interrupted trips and lost luggage, as well as annual discounts of US$100 on hotel stays of US$500 or more.
“About three bedrooms of American consumers are likely to take advantage of credit card travel benefits, so we partnered with Citi to update a card product that improves traveler experiences,” said Jason LaneExecutive Vice President of Global Account Management at Mastercard. “We focus on the essential benefits that travelers value, adding protections that help ensure every trip goes smoothly.”
As covered here last month, spending by high-income consumers contributed to an increase in travel spending in the first quarter.
The latest from PYMNTS Intelligence “Latest transactions” Analysis of consumer spending patterns during the quarter shows an increase across all age groups in the travel category, with credit card usage recording a 24% increase compared to the previous quarter.
However, it was consumers aged 44 and over and earning more than $100,000 per year who consistently spent more than their younger counterparts and those with lower incomes.
Research suggests that seniors’ willingness to use credit cards for travel purchases underscores their trust in credit providers, many of which offer protections against canceled trips and fraudulent charges.
“The difference in spending can also be attributed to different priorities, financial strategies or available leisure time, with many older consumers retiring and having more flexibility to travel,” the PYMNTS Intelligence report states.
As discussed here last week, There are other factors that drive the increase in travel spending, such as the increase in business travel, especially among global multinational companies. Companies like American Express Global Business Travel as well as major airlines recently reported a recovery in corporate travel.
