KTC targets credit card spending by Thai tourists
Krung Thai Card forecasts high growth in Thai tourists' spending through its credit cards, expected to hit Bt10 billion this year.
Pittaya Vorapanyasakul, executive vice president at KTC, said that in the first five months of this year, Thai tourists’ spending through its credit cards increased by about 15 per cent, higher than the industry average of 11-per-cent growth. For the whole year, the figure is expected to touch Bt10 billion, up from last year’s Bt9 billion.
She said the company would work towards the growth target by encouraging the 25 per cent of its cardholders currently inactive to start spending.
Positive factors include the current political peace and the introduction of a tax deduction for travel expenses.
Prim Panyasereeporn, KTC vice president for travel and leisure marketing, said that in this half of the year, spending on local tourism had risen by more than 20 per cent from the same period last year, while foreign tourists’ spending increased by only 12 per cent.
Of total spending on tourism, Thais accounted for 70 per cent. Air tickets accounted for most of the outlay at 40 per cent, followed by hotels at 35 per cent.
Spending on hotels increased 17 per cent, as about 600 Thai and overseas hotels cooperated in promotions.
The company has also attracted more premium customers with high purchasing power, having 60 high-end luxury hotels as partners. This group currently accounts for about 20 per cent of its total credit-card spending.
Prim conceded that the company’s largest group of customers – 70-80 per cent – had monthly incomes lower than Bt40,000, so KTC needed to lay out strategies to entice this group.
During the low season running from July to September, 120 hotels will participate in a "Fine Selection" campaign, which KTC expects to stimulate spending with its credit cards by 20 per cent, or about Bt204 million. Total KTC credit-card spending on tourism is expected at Bt1.22 billion during the period.
