Platinum battle for middle class
Neck-to-neck, cutthroat competition of the kind that has become common among producers of consumer products has emerged in the upper echelons of the credit-card business, with both Citibank and American Express (Thai) launching virtually the same mileage-reward campaign for holders of platinum cards.
Both US finance institutions, in cooperation with Thai Airways International (THAI), have launched Royal Orchid Plus (ROP) platinum credit cards, providing direct mileage rewards for card spending.The Citibank Royal Orchid Plus Platinum Select card and the THAI-Amex ROP platinum credit card both target THAI's 2 million ROP members, who are believed to be high-net-worth customers who tend to spend a lot through credit cards. At a time when middle-class purchasing power is declining, the main goals of both campaigns is boosting the number of premium cardholders and lifting the amount being spent. Citibank rolled out its Royal Orchid Plus Platinum Select card just one day after Amex launched its THAI-Amex ROP platinum credit card. Citibank's platinum customers will earn one mile for every Bt20 spent with their cards, while holders of THAI-Amex ROP platinum cards will chalk up one mile for every Bt25 spent. Citibank also offers other travel-related privileges; Amex's benefits run to the end of next year. To qualify to hold a Citibank platinum card, customers must have a minimum monthly income of Bt70,000. Amex demands earnings of at least Bt75,000 a month. Voralak Tulaphorn, Citibank's director of marketing and card operations, said the bank planned to attract about 10,000 Citibank Royal Orchid Plus Platinum Select cardholders. It believes the privileges offered will receive a warm welcome. "The timing is right to launch the card now, because spending in the last quarter of the year increases 15 per cent over that in the third quarter," she said. Monthly spending by Citibank's other platinum cardholders averages Bt60,000 to Bt70,000. However, many of them spend as much as Bt100,000 per card per month. Citibank also offers mileage rewards to holders of its ROP silver and gold credit cards. Both give one mile for very Bt30 spent. There are about 50,000 holders of Citibank's ROP silver and gold cards. Apart from foreign credit-card issuers, local plastic cards also offer mileage points, but customers must redeem the points in exchange for the national carrier's mileage reward. Somruedi Banchongduang The Nation
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