Visa names first four travel vendor participants in rewards promotion.

Visa U.S.A. has named the participating travel companies in the first installment of its largest marketing initiative to date, Visa Rewards.

Marriott Hotels, Resorts and Suites, Carnival Cruise Lines and Holland America Line, and American Airlines Fly AAway Vacations are participating in the promotion called, "Visa Rewards for Vacation Travel ."

The first promotion rewards consumers with 10% of the dollar value of any Visa purchases made from. Oct. 1 through Dec. 31 in credits to be used for discounts on travel products offered by the four participating companies.

Marriott, Carnival, and Holland America, owned by Carnival, offer 20% in credits on any Visa purchase during the promotion.

Cardholders can use their points for discounts on applicable vacations taken from Jan. 15, 1995, through Jan. 15, 1996.

At a press conference in New York City on Tuesday, Thomas C. Edwards, vice president of travel and entertainment for Visa, called it "the largest, most ambitious marketing promotion in [the association's] history."

Visa Rewards for Vacation Travel is the first installment of a broad range of frequent-user promotions that will be offered under the Visa Rewards umbrella, said Gregory Holmes, a Visa spokesman. It was designed to increase spending on Visa cards while promoting the travel industry,

A multimillion dollar advertising campaign, including television, print, radio, billboard, and direct mall statement inserts from member banks, will kick off the program Sept. 26.

Since Visa Rewards was introduced last month, member banks have ordered more than 100 million inserts, Mr. Holmes said.

Visa anticipates that the program will affect fourth quarter sales volume significantly.

"Visa shared our vision of growing the travel business," said Terry L. Thornton, vice president market planning for Carnival Cruise Lines. The company has been working closely with Visa since it dropped American Express in 1990, he added.

ML Thornton expects to gain a few thousand new customers and exposure because of the program. His company, like Visa's other travel partners, will be advertising the promotion as well.

Although the initial campaign focuses solely on travel, limiting consumers to discounts on specified products from the parmers, such as cruises, hotel rooms, and package vacations, other Visa Reward promotions will range from individual dollars-off coupons to instant savings at nationwide merchants.

Even so, ML Edwards said that travel is one of the most profitable segments of the credit card business big ticket items with low incidence of fraud, as well as high revolving potential.

"I think [Visa Rewards] will do a great deal for our members," said Mr. Awards. "It provides an incentive for consumers to use. their Visa cards for travel and retail purchases."

Some industry experts have compared the Visa Rewards program to MasterCard International's MasterValues program, introduced in 1990, which offers MasterCard holders 10% to 25% in savings on name-brand products. Nearly 2,000 retailers have participated so far.

Both programs are designed to add value to credit cards beyond the incentives offered by individual issuers.

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