Krungsri Consumer head Atis Ruchirawat said its cardholders are keeping overseas travel in their budgets while cutting other purchases, even as overall card spending has risen just 1% year to date, the Bangkok Post reported.
Japan was among the five highest-spending overseas destinations for Krungsri credit cardholders. Purchases there totaled 1.2 billion baht from January through August, up 7% from a year earlier and equal to 25% of their overseas card spending, according to figures Ruchirawat cited.
The United States, the United Kingdom, China and Hong Kong made up the rest of the cardholders’ five leading foreign spending markets. Ruchirawat expects travelers to shift toward closer destinations, particularly Japan, South Korea and China, amid conflict in the Middle East and protests in Europe.
Cardholders have reduced spending on luxury goods, fashion, dining and hospitality while continuing to travel abroad, Ruchirawat said. He also reported a recent slowdown among higher-income customers, citing international turmoil and flooding in Bangkok and nearby provinces.
Fuel spending has risen alongside energy prices linked to the Middle East conflict, the Bangkok Post reported. The report also cited stronger stock market returns and the artificial intelligence boom as sources of support for card spending.
Krungsri Consumer has partnered with JCB International to introduce the Krungsri JCB Ultimate Credit Card, the Bangkok Post reported. The card is aimed at Thai customers interested in the Japanese lifestyle. Under the partnership, Krungsri Consumer aims to issue 20,000 new cards and generate 1.5 billion baht in spending by 2027.
Ruchirawat said the company will continue assessing how the floods affect purchasing power. He expects full-year Krungsri credit card spending to grow 2% to 3% if the floods have a limited impact and the recent improvement in spending continues.
