Despite its subpar airline miles accrual rates, the HSBC TravelOne Mastercard has gained immense popularity in Malaysia since its launch.
This popularity can be attributed to several factors, ranging from lounge access perks to effective marketing strategies.
HSBC’s marketing and launch strategy for the TravelOne Mastercard was highly effective. The bank had a prominent presence in major malls, particularly at Mid Valley Megamall, where a large booth showcased the card.
The scale of these efforts likely played a crucial role in the card’s success, creating significant buzz and awareness among potential customers.
The card also benefited from substantial social media promotion. Influencers and known personalities were engaged to highlight the card's benefits, maintaining the momentum of its launch. This strategic use of social media helped keep the card in the public eye, ensuring sustained interest and applications even months after its launch.
Annual Income Requirement and Fees
The HSBC TravelOne Mastercard has an annual income requirement of RM60,000 and an annual fee of RM300. This places it within the reach of middle to upper-income individuals, making it a viable option for a significant portion of the population.
There has been a notable increase in spending power among individuals in their mid-20s to early 30s. This demographic is often well established in their careers and can easily meet the RM60,000 annual income requirement for the HSBC TravelOne Mastercard and similar credit cards.
Recognizing this growing market, many banks are keen to attract these consumers, despite the less favorable airline miles conversion rates. It's widely known that people in this age group tend to spend more than the average person, particularly when the appeal of accumulating miles and points is strong.
Lounge Access Perks
One of the most appealing features of the HSBC TravelOne is its lounge access benefits. Cardholders are entitled to 6X lounge access per year, which also extends to supplementary cardholders.
In Malaysia, lounge access is a coveted perk, and the allure of escaping the hustle and bustle of crowded airports is a significant draw for many. This feature alone is likely one of the primary reasons for the card’s popularity, as Malaysians have shown a strong preference for lounge access privileges.
Airline Conversion Partners
The HSBC TravelOne boasts numerous airline conversion partners. However, most of these partners offer subpar conversion rates, which may deter some potential users.
Interestingly, many of these conversion partners were not present during the credit card's initial launch. While I'm glad to see more airline conversion partners, the conversion rates are definitely ridiculous to an extent that it's difficult to look beyond any redemption that costs you more than 25 HSBC points for 1 air mile.
Of course, as a global bank, HSBC has various hotel conversion partners as well. Unfortunately, the conversion rates leave much to be desired.
Dining and Travel Spend Benefits
The card offers a 0.23 MPR (Miles Per Ringgit) on dining, capped at RM2,000 monthly. This same rate applies to travel spend, which includes expenses at hotels, airlines, and online travel agencies. While these rates are competitive, the caps might limit the card's attractiveness to high spenders. Nonetheless, for the average consumer, these benefits provide a reasonable way to accumulate miles on everyday expenses.
As the HSBC TravelOne Mastercard has various conversion rates for different airline partners, the MPR figures are simply based on conversion to Enrich miles.
If you were to perhaps aim for something like a conversion to Qatar Airways Avios, this would translate to a 0.11 MPR! Interestingly enough, transferring your points to British Airways Avios has a lower conversion rate, despite it being possible to seamlessly transfer Avios between British Airways and Qatar Airways.
Overseas Spend Rate
For overseas spending, the HSBC TravelOne offers a 0.38 MPR, capped at 20,000 points per month. This translates to a spend of around RM2,500 monthly. This feature is particularly attractive for those who travel frequently and make significant purchases abroad, enhancing the card’s appeal to the globetrotter demographic.
However, let's be realistic here. Most of us hardly travel abroad for longer than two weeks at a time, and for some, even two weeks is a stretch. While we all look forward to those year-end or summer vacations, it's important to remember that the best time to splurge is during these holidays as a reward for our hard work throughout the year. With the HSBC TravelOne, though, the RM2,500 cap on overseas spending can be a limitation.
When on vacation, the last thing you want is to worry about hitting a spending cap. You want to enjoy your trip and treat yourself without having to do mental calculations every time you make a purchase. Many other credit cards offer more generous or even uncapped rewards for overseas spending, making them more suitable for those who want to maximize their points without constraints.
Whether you're buying souvenirs, dining out, or booking excursions, having a higher or no cap on overseas spending rewards can make your travel experience smoother and more rewarding.
Instant Redemptions Feature
An interesting feature of the HSBC TravelOne is its instant redemption capability via the mobile app. In Malaysia, where banking technology often lags behind, this feature stands out.
Instant conversions from bank points to airline miles are rare, making this a notable convenience for users.
For instance, in my experience with CIMB, it takes a day for Bonus Points to transfer to Enrich miles and several days for transfers to other programs like Avios or Asia Miles. While not a decisive factor for most, this feature adds to the overall appeal of the HSBC TravelOne.
Final Thoughts
The HSBC TravelOne Mastercard's popularity in Malaysia can be attributed to a combination of attractive lounge access benefits, effective marketing, and strategic social media promotion.
Despite its less competitive airline miles accrual rates, the card offers enough perks and conveniences to make it a compelling choice for many Malaysians. The focus on customer experience, from lounge access to instant redemptions, ensures that the HSBC TravelOne remains a strong contender in the credit card market.
Be sure to check out my full review of the HSBC TravelOne Mastercard.
