Vacation and its financing Opinion poll carried out by Citibank a.s. in conjunction with the Factum Invenio agency

1. Vacation and its financingOpinion poll carried out by Citibank a.s. in conjunction with the Factum Invenio agency Prague, May 9, 2006

2. Methodology • Research was implemented through a technique of standardized, managed personal interview with the employment of MDA technology within the framework of FACTUM Omnibus classic, multi-thematic research • Target group is a set of 1,002 respondents selected through allocation procedure representing the CR‘s population from the age of 15 up. • Allocation signs: sex, age, education, region, size of the site of permanent address. • Questioning was run in the period of Apr 20 to 26., 2006

3. Summer vacation plans Almost half of the population plans to go someplace for vacation in the summer. Do you plan to go someplace for vacation in the summer? All respondents) (N=1002, data v %) Don‘t know 7,4% Yes 47,3% No 45,3%

4. Vacation home or abroad? Some 60% of people planning summer vacation wish to spend it abroad, 40% in the CR. ti kteří plánují letos létě dovolenou, možnost více odpovědí)

5. Anticipated cost of summer vacation Almost a half of those questioned plans that their total cost of summer vacation will be below Kc10,000 per person, one third between Kc10-20,000 and, one fifth plans for more than Kc20,000. Those who plan to have summer vacation)

6. Manner of financing summer vacation • Most people will finance summer vacation from savings (87,2 %). • 12% will finance it through borrowed money Base N=474, i.e. Those who plan to have summer vacation)

7. Does the vacation mean reduction of one‘s spendings? • Approx. for a half of the population who plan their summer vacation, the vacation means to reduce one‘s spendings either before or after the vacation.

8. Manner of making payments during the vacation • 85 % of people pay in cash while on vacation. • 12% are using debit card, 8% credit card. Base N=474, i.e. Those who plan their summer vacation

9. Loss or theft of money while on vacation • Each fifth person planning summer vacation this year has already experienced either loss or theft of his/her money when on holiday.

10. Travel insurance • Two thirds of people have stated that, when they go on their vacation, they have their travel insurance policy obtained.

11. Place where travel insurance policy is obtained from • More than a half do obtain their travel insurance from insurer companies (57,3 %). • Almost two fifths obtain their insurance from travel agents (38.7%). • 5% obtain their travel insurance from banks. • Obtaining insurance policy through one‘s payment card was mentioned by 3% of those questioned. Base N=319, those who obtain their travel insurance)

12. Recapitulation.... • Half of the population plans to go on summer vacation this year • Out of which, almost two thirds are going to go abroad for their vacation • For a half of the people who plan to have their vacation it means that either before or after their vacation, they will have to reduce their spendings • Almost 90 % of respondents do finance their vacation from savings • More than four fifths of people pay in cash while on vacation • Each fifth citizen has experienced loss or theft of their money while on vacation. • Two thirds of people do obtain their travel insurance policy to cover vacation. • Most frequent location where such travel insurance policy is obtained is insurer company followed by travel agents.

13. More effective solution to vacation? CREDIT CARDS! Credit card – general benefits • Security (immediate stoplisting upon theft/loss; upon the card‘s fradulent misuse, the bank‘s money is stolen not that of the card holders‘) • Option to repay vacation-related costs without the need to limit one‘s spendings either before or after the vacation • Chance to obtain travel insurance policy without the need to visit bank or insurance company • Travel insurance is cheaper when obtained on the card than at any insurance company • Advantageous rate of exchange • Immediate availability of ready cash money • No-interest period

14. Benefits of Citibank credit card • Highest level of security – holder‘s photo and signature attached onto the card‘s front side • Free and immediate stoplisting of card upon loss or theft • No liability on the holder‘s side upon the card‘s theft or loss • Longest no-interest period - 55 days • Option for direct debit for the minimum repayment or, for 100% of the outstanding amount • Supplementary services – Cash on Phone or, Installment Purchase • Fee-free maintenance of card account (if at least Kc36,000 is spent on the card per year)

15. Financing vacation with Citibank credit card • Per the research, almost a half of the people plan to spend for their vacation less than Kc10,000, one third plans to spend between Kc10-20,000. • If cardholder spends Kc10,000 for his/her vacation on average, under the Cash on Phone program s/he would repay approx. Kc1,800 a month for 6 months. In total, s/he would pay the Bank Kc10,650. • While, under the Installment Purchase program, the card holder would have to pay just Kc10,500. • During the 55-day, no-interest period, the same cardholder would have to repay just the Kc10,000 s/he had borrowed from the Bank. Comparison of ways how to finance one‘s vacation

16. Back up slides

17. Structure of the respondents‘ sample