Travel credit cards are a game-changer for frequent travellers, offering a range of perks like reward points, complimentary lounge access, and discounts on airfare. Whether you're jet-setting for leisure or business, understanding the features, benefits, and potential charges of travel credit cards can help you make the most of your journeys. Here's everything you need to know about travel credit cards.
Benefits of a travel credit card
Reward points and air miles
Travel credit cards allow you to earn points or miles on every transaction, especially on travel-related expenses like flight bookings, hotel stays, and dining. These points can later be redeemed for airfare, upgrades, or other travel perks.
Example: Some cards offer up to 5X points on travel bookings made through partner platforms.
Complimentary airport lounge access
Many travel credit cards provide free access to domestic and international airport lounges, offering a comfortable space with refreshments, Wi-Fi, and other amenities while you wait for your flight.
Tip: Cards like SBI Elite and HDFC Diners Club offer extensive lounge access programs.
Discounts and cashback
Travel cards often include exclusive discounts on flights, hotels, and travel packages booked through partnered platforms.
Example: Some cards provide 10–15% discounts on certain hotel chains or cashbacks on international spends.
Waivers on forex markup fees
For international travelers, some cards waive or reduce the foreign exchange markup fee, making purchases abroad more cost-effective.
Standard forex charges: Usually range between 2% and 3% of the transaction value.
Travel insurance
Many travel credit cards come with complimentary travel insurance, covering lost luggage, trip cancellations, and medical emergencies.
Pro tip: Check the insurance limits and coverage before relying solely on this benefit.
Features to look for in a travel credit card
Reward structure
Choose a card that aligns with your spending habits. If you frequently book flights, a card with higher rewards for airline bookings will maximize your benefits.
Partnerships
Cards tied to specific airlines, hotels, or travel platforms often offer higher rewards and exclusive perks. For general travellers, non-partner-specific cards provide more flexibility.
Annual fees
Travel credit cards often come with an annual fee. However, many cards offer fee waivers if you meet a minimum annual spend threshold.
Example: Some cards waive annual fees if you spend ₹2–₹3 lakh annually.
Global acceptance
Opt for cards with a widely recognized network like Visa, Mastercard, or AmEx to ensure hassle-free transactions worldwide.
Expiry of reward points
Some credit cards have reward points with expiry dates, while others allow points to accumulate indefinitely. Pick one that suits your travel frequency.
Charges associated with travel credit cards
Annual and joining fees
Most travel credit cards charge an annual fee ranging from ₹500 to ₹10,000, depending on the card’s features. Some cards also come with a one-time joining fee.
Tip: Look for cards offering benefits that outweigh the fee, such as complimentary lounge access or bonus reward points.
Foreign exchange markup fees
While some cards waive these fees, others may charge 2%–3% on international transactions.
Example: Forex-free cards like Niyo Global or IndusInd Legend can help reduce costs for overseas spending.
Interest rates
If you don’t pay your bill in full, the interest charged can range from 2%–4% per month. To avoid hefty charges, always clear your dues on time.
Redemption charges
Some cards levy a nominal fee when you redeem your reward points for tickets or other travel-related perks.
Who should consider a travel credit card?
A travel credit card is ideal if you:
- Frequently travel domestically or internationally.
- Want to enjoy luxury perks like lounge access and travel insurance.
- Spend heavily on travel-related expenses like flights, hotels, and dining.
- Can pay your credit card bill in full each month to avoid interest charges.
Popular travel credit cards in India
HDFC Diners Club Privilege
Annual fee: ₹2,500
Features: 12 domestic and 6 international lounge visits annually, higher reward points on travel bookings.
SBI Elite Credit Card
Annual fee: ₹4,999
Features: Complimentary movie tickets, lounge access, and milestone rewards.
Axis Vistara Infinite Credit Card
Annual fee: ₹10,000
Features: Free business-class ticket on activation, Club Vistara membership, and milestone rewards.
Yatra SBI Credit Card
Annual fee: ₹499
Features: Discounts on flights and hotel bookings, rewards on travel expenses.
Travel credit cards are an excellent tool for frequent travellers to save money and enjoy luxury perks. However, choosing the right card depends on your travel habits, spending patterns, and the benefits you prioritize. Always compare features, fees, and rewards before committing to a card. With the right travel credit card in your wallet, every journey can become a more rewarding experience.
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