Instant credit is being offered to Thomas Cook customers on a new credit card that will be trialled through the group’s travel agencies.
Agents in 41 pilot shops will be able to earn £10 per credit card application filled in at their shops from next week. Financial services managing director Mark Nancarrow revealed such products, excluding foreign exchange, could make up 50% of the group’s UK profits in future. Further financial products are planned.
The new credit card, a joint venture with Barclays, replaces the previous Thomas Cook credit card provided for the last six years through MBNA. Agents have been trained on how to help customers apply.
Consumers who are approved for the card will be able to put the cost of their holiday on the credit card immediately. Nancarrow said: “They will get a PIN number straight away.”
The card, which has an interest rate of 17.9% APR, rewards the customer with ‘travel pounds’ to spend on Thomas Cook products every time it is used.
Consumers receive 2% of spend back in travel pounds when they use the card in a Thomas Cook store and 1% when it is used elsewhere. The 2% levy charged for using a credit card is waived if used in a Thomas Cook agency.
At its peak, the old Thomas Cook credit card had 250,000 customers. So far 40,000 of the old card users have switched to the new card.