HSBC targeting 25 percent growth in credit card business
The Jakarta Post, Jakarta | Business | Wed, June 09 2010, 12:21 PM
The Indonesian unit of London-based HSBC bank is targeting a 25 percent growth in credit card transactions by its customers this year to Rp 37.5 trillion (US$4.05 billion), supported by a growing number of partner vendors in the hotel, airline and travel industries.
HSBC's vice president for consumer asset marketing Danny Hadhyan said in Jakarta on Tuesday that the bank had booked total credit card transactions worth about Rp 30 trillion last year from about 850,000 credit cards issued by the bank.
"HSBC has chosen the hotel, airline and travel sectors as this year's focus for credit card marketing because they are developing rapidly, supported by several policies, including departure tax exemption and development of infrastructure, making it easier and more convenient for people to travel," he told reporters at the launch of a new cooperation between the bank and the Accor Hotel group.
Danny said that one of its marketing strategies was to work with big players in the three sectors. Citing an example, he said the bank offered 50 percent discounts to HSBC card holders who stayed at any of Accor's 800 hotels worldwide.
HSBC has been working together with airline company Air Asia by releasing a new type of credit card offering privileges - booking priority, exclusive discounts and reward points, which can be used to buy tickets - to their holders.
Besides Air Asia, the bank has also been working together with other airline companies, including Cathay Pacific, Japan Airlines and Singapore Airlines, by offering attractive discounts and cash-back programs as part of its marketing strategies.
"As of December last year, about 21 percent of our credit card transactions came from the hotel, airline and travel sectors. We expect transactions from those sectors to grow by up to 40 percent this year," Danny said.
According to the Indonesian Credit Card Issuer Association, the country's total credit card transactions as of December last year reached about Rp 131 trillion with about 11.5 million cards circulating, indicating an increase of 23 percent from 2008. (rch)
