Case study on credit card (plastic money):-

Case study on credit card (plastic money):-
The Significance Of Plastic Money To The Hospitality Industry: A Case Study Of Rainbow Towers Group Of Hotels
The study sought to investigate the significance of plastic money to the hospitality sector with the Rainbow Towers Group of Hotels as a case study.
Despite the fast progression in the adoption of plastic money especially in the tourism sector the world over, its usage in Zimbabwe has remained relatively low and it is with that in mind that the study sought to establish the significance of using plastic money in the hospitality sector in Zimbabwe. The study also assessed consumer preferences as far as payment methods are concerned and also established the various uses of plastic money while on holidays in Zimbabwe all in an effort to draw insight for policy makers and players in the hospitality sector boost competitiveness.
The study adopted a qualitative approach informed by semi-structured questionnaires to collect primary data. Using purposive sampling technique, the study used a sample of 100 tourists selected from Harare's Rainbow Towers hotels; 50 from Rainbow Towers Hotel and Conference Centre and another 50 from New Ambassador Hotel. The study had a response rate of 67%. This study found out that plastic money is significant in the hospitality sector of Zimbabwe as its use stimulates tourist activity as consumers transact with great ease and convenience. As a result increased tourist activity attracts more foreign currency inflows and spending, thereby impacting positively on the economy as a whole. However, the use of plastic money in Zimbabwe's hotels is constrained by limited facilities such as the Point of Sale and ATM devices.
The majority of respondents in the study preferred to use plastic money for making payments when on holiday, while the minority preferred other methods of transacting such as using the traditional cash. The study also found out that plastic money was most used to buy goods and services which include food and for shopping. The use of plastic money also proved to be popular in entertainment and activities followed by online reservations.
2.Low maintenance
3.Credit card use irresistible.
4.Customers not price-sensitive to credit card rates.
5.Credit card regulation
2.Little customer loyalty
1.Overseas markets
2.Technological innovations
1.Credit card companies
However, it was least popular in buying air tickets. The study recommended awareness campaigns to promote the usage of plastic money as a safe and convenient method of transacting. It encouraged players in Zimbabwe's hospitality sector to take advantage of such technological innovations in order to maximize revenue and remain competitive. Also the study recommended the branded loyalty card system as a way of attracting and retaining customers with the overall objective of maximising sales in the sector.

Loan Case Study – David
Age – 35
Occupation – Self Employed Carpenter, ABN for last 5 yrs.
Income – Averaging $1,800 per week
Assets – $460K Home; $25K Ute; $12K Tools of Trade
Liabilities – $220K Mortgage; $15K Car Loan; $20K Personal Loan; $25K Credit Card; $20K Credit Card; $10K Credit Card; $10K Store Card; $5K Interest Free Card
Credit Impairment –$15K credit default registered 2010 (unpaid); $2500 Utilities default registered 2011 (unpaid), $1170 court judgment registered 2009, $800 Telco default registered 2013. Discharged Part IX in 2012, entered 2011.

David went through a divorce in 2010, he has taken over all marital debts and in addition he has accumulated a $20K personal loan which was used to pay legal fees when the divorce was finalised. David entered into a part IX payment arrangement with his creditors in March 2010 as a result of financial and emotional turmoil surrounding his divorce. He has since been discharged from the payment arrangement in March 2011.

David will qualify for the Low Doc Easy loan as all his credit defaults and Part IX payment arrangements were entered into more than 3 yrs ago. The product ignores telco defaults < $1000. Our loan products do not credit score and do not have a limit on the number of debts that can be consolidated. David will need to declared his income from his self employed business activities and provide either 6 months business bank statements OR 6 months BAS OR his accountant may complete the Accountants Letter template we provide.
Mutual fund groups /pages-

Nisha Jain [MBA FA]
Manager Fintech
Aircrews Aviation Pvt Ltd

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