For Immediate Release
Citi Australia
Citi Australia Credit Card Index: January - March 2022
HIGHLIGHTS
Aussies jumping on board travel trend in Q1 2022
Highlighted Findings:
- February saw significant spend increase on travel; airlines were up by almost 70% and travel / cruiselines more broadly saw a gain of more than 30% since January 2022
- Petrol appeared on the top 10 spend list for February and March reflecting the higher cost of living on households
- Demand for Citi credit cards was strong, with February seeing the highest acquisition volumes since the March 2020 lockdown
"It's been a tough start to 2022, with unprecedented floods, escalating geopolitical tensions, and the continual impacts of the COVID-19 pandemic. Despite these pressures, Citi cardholders are indicating there is demand to get life back on track and return to a pre-pandemic normal," Citi Australia's Head of Cards and Loans, Choong-Yu Lum said.
"It's pleasing to see strong spend in travel and leisure categories, including airlines, cruiselines, hotels and resorts, dining, and retail, with February seeing significant spend increase in the travel category, with flights up by 69% and travel more broadly up by 34% compared to the previous month. A holiday has been at the top of the to do list for many Australians, after a long two-years of lockdowns, and this spend trend shows us consumers now have the confidence to plan longer-term travel, like international and domestic getaways or cruises."
Travel rewards are in demand
"To remain hyper-relevant to our cardholders, Citi pivoted away from travel rewards over the last few years, instead focusing on more day-to-day perks, such as discounted food deliveries or streaming services. What our cardholders are now telling us is that they want those travel and dining rewards back," Mr Lum said.
"In response, we have launched a partnership with Luxury Escapes to offer credit cardholders exclusive holiday discounts, including up to 10% of Limited Time LUX Exclusive Hotels and International Tours. In April we are also launching a competition for cardholders to win 100 million Velocity points, which could make those travel dreams come true.
"Citi cardholders also really value dining rewards, so we continue to invest in this category, such as our partnership with the Good Food & Wine Show, offering cardholders discounted tickets and show perks."
Top 10 – spend by industry
January
| Category | % share of spend |
|---|---|
| 1. Supermarkets | 11.60% |
| 2. Household goods retailing | 8.20% |
| 3. Business Services | 6.70% |
| 4. Insurance | 6.30% |
| 5. Health/Medical | 5.30% |
| 6. Restaurants | 5.00% |
| 7. Retail goods | 4.70% |
| 8. Sports & hobby goods | 4.50% |
| 9. Legal & tax services | 3.70% |
| 10. Hotels, resorts & spas | 3.70% |
February
| Category | % share of spend |
|---|---|
| 1. Supermarkets | 9.20% |
| 2. Household goods retailing | 7.60% |
| 3. Business Services | 6.50% |
| 4. Insurance | 6.00% |
| 5. Health/Medical | 5.90% |
| 6. Legal & tax services | 5.80% |
| 7. Restaurants | 4.70% |
| 8. Sports & hobby goods | 4.20% |
| 9. Retail goods | 4.10% |
| 10. Petrol & service stations | 3.40% |
March (as at 18th March)
| Category | % share of spend |
|---|---|
| 1. Supermarkets | 9.53% |
| 2. Household goods retailing | 7.41% |
| 3. Insurance | 6.95% |
| 4. Business services | 6.46% |
| 5. Legal & tax services | 5.84% |
| 6. Health & medical | 5.60% |
| 7. Restaurants | 4.98% |
| 8. Sports & hobby goods | 3.99% |
| 9. Retail goods | 3.97% |
| 10. Petrol & service stations | 3.57% |
"Retail, restaurants, and travel categories have been some of the top spend segments for the first quarter of 2022, indicating a rebound in consumer confidence and strong sentiment for the travel and tourism industries. In February and March, we saw petrol become a top spend category, as inflation and global volatility hit our bowsers. We expect this to continue into the coming quarter as the war on Ukraine continues and global inflation rises."
Credit card demand returns to pre-pandemic levels
"February demand for Citi credit cards was at the strongest levels seen since March 2020, when we experienced the full impact of the COVID-19 pandemic and global lockdowns. This demand indicates that credit cards remain a preferred way to pay and that the rewards and incentives we are offering our customers are really resonating. Consumer confidence and spend is strong but with global volatility high and cost of living rising, it will be interesting to see the trends emerging over the next quarter of 2022," Mr Lum said.
What's next?
"With the Budget announced and a Federal Election looming, we are keen to observe how consumers react to uncertain times, both locally and globally, and how this will influence spend. Despite rising costs of living, consumers have amassed record savings during the COVID-19 period, so we believe confidence will remain strong. However, consumers will be more financially savvy with what they buy and how they pay. Cards that meaningfully reward consumers and provide tangible benefits will become increasingly popular, and we have already seen this trend emerging at Citi. Positively, as the world continues to open up, we expect travel and leisure spend will continue to experience strong growth and cardholders will be maximising travel related rewards, like discounts, insurance, and the like," Mr Lum concluded.