Going after affluent consumers may seem like a no-brainer, but as the definition of luxury evolves, a new approach may be needed. For Mastercard, that means going “fewer, better, louder” when it comes to offerings for affluent customers. Juan Pablo Vivas, Mastercard’s SVP of Global Credit Products, explained to Karen Webster why the time has come to upgrade experiences for affluent cardholders around the globe.
Luxury just isn’t what it used to be.
Though affluent consumers have a propensity to travel and spend money, it’s not always about the private jets and exotic beaches that may immediately come to mind.
The needs and desires of affluent consumers — who are typically defined as having an individual income above $100,000 — are drastically changing.
In order to meet the needs of affluent consumers globally, Juan Pablo Vivas, SVP of Global Credit Products of Mastercard, said the company is working to bring a portfolio of new capabilities to market.
The New Face Of Luxury
The way people are thinking about affluence or luxury is being redefined.
In recent years, there’s been a stronger focus on these consumers, and Mastercard has done extensive research to learn more about not just how and why they pay but what matters most in the daily lives of its affluent cardholders.
That research spanned 11 countries and brought Mastercard into the homes of more than 1,400 of its customers to gain insight into what things are most valuable to consumers. What it found is that affluent consumers have a strong desire to travel as a family and make lasting memories.
“Just by listening and observing affluent consumers, you can quickly realize that the new luxury is time,” Vivas explained, adding that the best way to think about this is through simplicity.
In order to bring the luxury of time and the concept of simplicity to travel, Mastercard is rolling out a number of new features that provide its World Elite cardholders with more rewards and memorable travel experiences.
What Matters To The Affluent
Mastercard is offering eligible cardholders an enhanced travel experience via unique airport lounges that are not available to any other network, which includes the exclusive Mastercard lounges.
By simply using their Mastercard, cardholders will be provided access to any lounge and have a consistent global experience, no matter where they are in the world, Vivas stated.
In understanding the priority that affluent consumers place on spending time with family, Mastercard is also launching a Kids Dining Perks program to its World Elite cardholders in collaboration with InterContinental Hotels & Resort.
The program will initially roll out across 25 locations in the Asia-Pacific region — the highest concentration of affluence in the world — offering every child under the age of 12 the ability to eat for free with a paying adult.
Vivas said the revitalization of Mastercard’s value will start with China, Singapore and Hong Kong, but there are plans to continue the expansion of making the affluent family’s travel more enjoyable.
Another offering for traveling families will be complimentary hotel nights for World Elite cardholders in the Middle East and Africa at over 175 participating Starwood Hotel & Resorts properties. These World Elite cardholders can get one complimentary hotel night after booking two hotel nights or two complimentary hotel nights after booking four hotel nights.
Many credit card benefits go for quantity over quality, offering the illusion of value but not really delivering anything of interest.
But Vivas said it’s the relevant things that matter.
The focus Mastercard is taking involves going “fewer, better, louder,” Vivas explained, noting the importance of offering capabilities and features that are meaningful to affluent consumers, while meeting their needs.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More