February 28, 2007

•  

  
  NEWS: Indian Holiday Credit Card Use Booms

  More and more middle-class Indian families are turning to plastic to finance their vacation getaways abroad – an estimated 20% jump, say travel trade analysts. Indian "high season" for holidays has just ended –November through February- and experts are seeing a big jump in those families booking airfare and hotel rooms using credit cards.
  
  The plastic boom is attributed to the ease and convenience of families being able to pay for their vacation in installments by using credit. But the shift is more than just financial; it's cultural as well. More and more middle class families are taking "vacation tours" abroad as status luxuries, just as much as to enjoy the time away from the cares and concerns of home. Rather than deciding upon a single destination and determining what to do there, vacation tour operators essentially conduct the vacation for families by organizing trips and activities. Among the lower-middle class particularly, it is considered impressive to have had the means to take one's family on such a trip. And using plastic to defer the payment on these tours is part of that plan. In the Indian travel trade business, "lower-middle class" families are those that make Rs 15,000 to Rs 20,000 per month. Middle-class is looked at as making of Rs 20,000 to Rs 25,000. This latter group take the most vacations during the high season, say analysts.
  
  
     Back to News Main Page