Holidays are a time for travel, shopping, and creating memories, but they can also strain your budget. The good news is that your credit card can help you save money through cashback offers. In 2025, most banks in India provide special cashback schemes on flights, hotels, dining, shopping, and fuel, especially during peak travel seasons. By using your credit card strategically, you can maximize savings and enjoy more value for every rupee spent.
This guide explains how to maximize credit card cashback during holiday travel, highlights the top cards for cashback, and provides tips to ensure you don’t miss out on rewards.
Why Cashback Matters During Holiday Travel
Holiday spending is typically higher due to travel, shopping, and entertainment. Cashback can help offset some of these costs. Here’s why it’s beneficial:
- Direct Savings
Cashback reduces your actual spending. For example, a 5% cashback on a ₹20,000 flight saves ₹1,000 instantly.
- Increased Spending Power
With cashback, you can afford more activities, better accommodations, or additional shopping.
- Reward Optimization
Using cards with higher cashback on travel, dining, and shopping ensures maximum returns on holiday expenses.
- Promotions and Seasonal Offers
Banks often provide extra cashback during holiday seasons, festivals, and peak travel periods.
How Credit Card Cashback Works
Credit card cashback is typically a percentage of your transaction amount credited back to your account. There are several types:
- Flat Cashback
- A fixed percentage (e.g., 1–5%) on all transactions.
- Best for general spending without restrictions.
- Category-Based Cashback
- Higher cashback on specific categories like travel, dining, or online shopping.
- Example: 5% on flight and hotel bookings, 2% on groceries.
- Limited-Time Offers
- Extra cashback during festivals, bank promotions, or peak travel months.
- Reward Points as Cashback
- Some cards provide points that can be converted into cashback or statement credit.
Top Credit Cards for Cashback During Travel
Here are some of the best credit cards for maximizing cashback during holiday travel in India:
1. HDFC Millennia Credit Card
Overview:
HDFC Millennia offers accelerated cashback on online spending, including travel bookings.
Key Features:
- Annual Fee: ₹1,000 plus taxes
- Cashback: 5% on online retail, flight, and hotel bookings via HDFC SmartBuy
- Reward Points: Earn points on other purchases, redeemable for statement credit
- Additional Perks: Contactless payments, EMI conversion
Pros:
- High cashback on online travel bookings
- Easy redemption through statement credit
- Moderate annual fee
Cons:
- Cashback capped on certain platforms
- Limited offline cashback
Best For: Travelers who frequently book flights and hotels online
2. Axis Bank Ace Credit Card
Overview:
Axis Ace is designed for cashback enthusiasts, offering cashback on multiple categories including travel and dining.
Key Features:
- Annual Fee: ₹499 plus taxes
- Cashback: 5% on Google Pay transactions including travel bookings; 2% on other spends
- Reward Points: Redeemable for statement credit or gift vouchers
- Additional Perks: Complimentary movie tickets, dining discounts
Pros:
- High cashback for digital payments
- Low annual fee
- Easy cashback redemption
Cons:
- Limited high cashback categories
- Cashback may have monthly caps
Best For: Travelers who use digital wallets for booking flights, hotels, or buses
3. ICICI Platinum Chip Card
Overview:
ICICI Platinum Chip Card offers basic cashback benefits suitable for budget-conscious travelers.
Key Features:
- Annual Fee: Nil or minimal depending on variant
- Cashback: 1–2% on travel bookings and other retail spends
- Reward Points: Can be redeemed for statement credit
- Additional Perks: EMI options for travel and shopping
Pros:
- Low or zero annual fee
- Cashback on essential travel expenses
- Secure chip-based transactions
Cons:
- Lower cashback rates compared to premium cards
- Limited additional perks
Best For: Travelers seeking simple cashback without paying an annual fee
4. SBI Card Unnati
Overview:
SBI Card Unnati is a budget-friendly card that rewards holiday travel with accelerated cashback on specific categories.
Key Features:
- Annual Fee: ₹499 plus taxes (waived first year)
- Cashback: 5% on travel portals and online bookings; 1–2% on other spends
- Reward Points: Redeemable for statement credit or travel bookings
- Additional Perks: Welcome benefits and festival offers
Pros:
- High cashback on travel bookings
- Affordable annual fee
- Seasonal offers increase cashback value
Cons:
- Limited premium travel benefits
- Monthly cashback cap applies
Best For: Holiday travelers looking for good cashback at a low annual cost
5. Kotak Mahindra Sapphire Credit Card
Overview:
Kotak Sapphire combines cashback and reward points to maximize travel savings.
Key Features:
- Annual Fee: ₹999 plus taxes
- Cashback: 5% on flights and hotels booked online; 2% on other spends
- Reward Points: Redeemable for flight tickets, hotels, and gift vouchers
- Additional Perks: Lounge access at select airports, concierge services
Pros:
- Balanced cashback and rewards for travel
- Moderate annual fee
- Additional lounge access enhances travel comfort
Cons:
- Cashback capped on specific categories
- International benefits limited
Best For: Travelers who want cashback along with travel perks like lounge access
Tips to Maximize Cashback During Holiday Travel
- Plan Your Bookings Strategically
- Use your card on platforms offering maximum cashback for flights, hotels, buses, and trains.
- Combine Cashback with Reward Points
- Some cards allow you to redeem points for further discounts on travel, multiplying savings.
- Book Through Partner Portals
- Many banks provide additional cashback when booking via their travel portals (HDFC SmartBuy, Axis Travel, ICICI Travel).
- Look Out for Seasonal Offers
- Banks often offer extra cashback during festivals, holidays, and peak travel months.
- Track Cashback Limits
- Some cards cap cashback monthly or annually. Plan spending to stay within high-earning thresholds.
- Use Digital Payments
- Credit cards linked with Google Pay, Paytm, or PayU may provide additional cashback when booking travel.
- Pay with the Same Card for Full Journey
- Using one card for flights, hotel, taxi, and meals ensures maximum cashback accumulation.
Common Mistakes to Avoid
- Ignoring Cashback Categories
Booking flights or hotels outside high-cashback categories can reduce potential savings.
- Missing Portal Bonuses
Many banks provide extra cashback through their travel portals—always check before booking.
- Exceeding Caps Without Planning
Cashback limits are often per month; unplanned spending may yield lower returns.
- Not Combining Points and Cashback
Reward points can often be converted into statement credit or travel vouchers—don’t leave them unused.
- Forgetting to Check Offers Regularly
Banks frequently rotate promotional offers; missing them reduces potential cashback.
Conclusion
Holiday travel can be expensive, but the right credit card can turn spending into savings. By using cards like HDFC Millennia, Axis Ace, ICICI Platinum Chip, SBI Unnati, and Kotak Sapphire, travelers can earn significant cashback on flights, hotels, buses, and shopping.
Maximizing cashback requires strategic planning, including booking through bank portals, paying with the right card, and combining cashback with reward points. Following these tips ensures more savings, a comfortable travel experience, and better value for every rupee spent during holidays.