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Travel spend on credit cards back thanks to trans-Tasman bubble

Travel spend on credit cards back thanks to trans-Tasman bubble

06 May, 2021 - 3 min read

Credit card usage is making a resurgence compared to COVID-lows recorded this time last year, according to the latest Citi Australian Credit Card Index.

The research from Citi found that spend for April 2021 was 35 per cent higher than April 2020 at the beginning of the pandemic. This marks the third month in a row in which credit card spend was above COVID levels, indicating sustained economic recovery in Australia.

This increase in spending year-on-year aligns with the latest data from the Australian Prudential Regulation Authority ADI statistics for March 2021, which found that credit card lending grew by 1.3 per cent.

“April 2020 was the worst month for credit card spend in at least four years, and it’s exciting to see April 2021 tell a much more positive consumer story,” said Choong Yu Lum, Head of Credit Cards and Loans at Citi Australia.

“While we did record a slight drop in spend month-on-month, this is attributed to April typically being a quieter month as children head back to school and recreational activities slow down ahead of winter,” said Mr Lum.

Travel spend reaching new heights

Citi Australia also noted that rewards points redemptions increased in April 2021 by 6 per cent, particularly across travel categories and Velocity points.

This growth was attributed to eased travel restrictions domestically and internationally, including the trans-Tasman travel bubble between New Zealand as of 19 April.

Top 10 Spend by Industry – April 2021

Category	Share of spend
Supermarkets	9.47%
Household good retailing	7.48%
Insurance	6.55%
Business Services	5.93%
Health/Medical	5.51%
Legal/Tax Services	5.31%
Restaurants	4.31%
Sports and Hobby Stores	4.30%
Retail Goods	4.22%
Hotels, Resorts and Spas	4.00%

Source: City Australia Credit Card Index, April 2021.

“Resurging after a year’s lull are Travel and Airline categories: general travel and experience redemption was up 10 per cent, and Velocity points up 14 per cent,” said Mr Lum.

“It is another strong indication that our trans-Tasman travel bubble is working when it comes to stimulating spend on tourism. Additionally, we expect that increased domestic travel has contributed to this spike.”

If you’re daydreaming of your next holiday, a credit card that rewards you with travel perks and bonuses may be a helpful addition to your trip. RateCity data shows that there are currently 6 credit cards on the market offering bonus Virgin Velocity frequent flyer points on sign up.

Keep in mind that there is more to a credit card than its perks and rewards. You’ll ideally want to compare the interest rate and fees before applying.

20.99%

$150

for 12 months then $295 thereafter

Australian Credit Licence 233714

Fees & charges apply

Westpac Altitude Black (Altitude Velocity)

Apple, Google & Samsung Pay
Balance transfer

20.99%

$99

for 12 months then $175 thereafter

Australian Credit Licence 233714

Fees & charges apply

Westpac Altitude Platinum (Altitude Velocity)

Bonus Points
Apple, Google & Samsung Pay
Balance transfer

20.74%

$74

for 12 months then $149 thereafter

Australian Credit Licence 244616

Fees & charges apply

Virgin Money Virgin Australia Velocity Flyer Card (Points Offer)

Bonus Points
Apple & Samsung Pay
Balance transfer

20.74%

for 12 months then $149 thereafter

Australian Credit Licence 244616

Fees & charges apply

Virgin Money Virgin Australia Velocity Flyer Card (Balance Transfer Offer)

Balance Transfer
Apple & Samsung Pay
Balance transfer

Disclaimer

This article is over two years old, last updated on May 6, 2021. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent credit cards articles.

Compare credit cards

23.99%

Not Applicable

$99

More details

Australian Credit Licence 392145

Fees & charges apply

David Jones Premiere credit card

Promoted
Apple, Google & Samsung Pay
Low annual fee

13.99%

6.99%

$69

More details

Australian Credit Licence 392145

Fees & charges apply

Latitude Financial Services Latitude Low Rate Mastercard- Rewards Offer

Promoted
Special
Apple, Google & Samsung Pay
Balance transfer
Low annual fee

23.99%

Not Applicable

$295

More details

Australian Credit Licence 392145

Fees & charges apply

David Jones Prestige credit card

Promoted
Apple, Google & Samsung Pay

9.99%

for up to 9 months, then 21.99%

22.74%

More details

Australian Credit Licence 286655

Fees & charges apply

Kogan Money Black Card

Promoted
Special
Apple & Google Pay
Balance transfer
No annual fee

Product database updated 31 Jan, 2025

This article was reviewed by Personal Finance Editor Georgia Brown before it was published as part of RateCity's Fact Check process.

Alex Ritchie

Personal Finance Editor

Alex Ritchie was a Personal Finance Writer and Editor at RateCity, and has been writing about Australian finance for over six years. Her expertise and passion covers loans, credit, superannuation, and closing the gender pay gap, and she aims to help young Aussies to overcome their financial apathy. Alongside RateCity, Alex has been published in numerous publications, including Australia's Money Magazine, Business Insider, Lifehacker Australia, and in health via NPS MedicineWise.