Travel credit cards were simple. Or at least it’s easier. Use it for daily purchases, earn rewards, and redeem points and miles for free for travel.
Sadly, they aren’t that simple anymore.
Getting the same value from a travel card is as difficult as ever. Card issuers increasingly dictate where cardholders should spend to enjoy benefits. The extensive list of statement credits may resemble classic coupon books.
Credit card experts agree that the value is still there, but cardholders will need to manage increasingly complex perks to get it. Additionally, those who prefer simple reward structures and flexible benefits will have fewer and fewer options in the market.
Here’s how you can decide whether your travel cards are worth the trouble, and if you decide to keep them in your payment playbook, how to make the most of them.
Complicating the benefits of cards is now a trend
Just a few years ago I defined a great travel reward card as a card that offers easy-to-use benefits and an easy way to offset annual fees.
As a credit card journalist, I have based that definition on existing card products American Express Platinum Card and Chase Sapphire Reserve®. Both cards provided valuable travel credits, prompt airport security perks, airport lounge access and charged an annual fee of $550. They set up a bar for the industry. American Express® Gold Card It was another great option with meal credits and an annual party price of $250.
Today we have similarly defined good travel cards. Sadly, fewer cards fit that definition.
When a travel card starts to turn into a coupon book
The unfortunate trend began in 2021 when American Express raised its Platinum Card annual fee to $695. The issuer also added more than $1,300 to the credit benefits in the statement. In theory, it would increase the annual fee of $145 than justification. In reality, it wasn’t that simple.
The card received six new statement credit benefits including hotel, entertainment and shopping.
This in addition to the perks of existing statement credits:
In total, Amex Platinum has 10 statement credits. These benefits are primarily advertised as annual credits, but only four are fired each year. Four are every month, one is six months, and one is every four years (or four and a half years). This makes credit tracking a lot of work. They don’t roll over either. The Uber-free month and Uber cash for that month is gone.
Needless to say, most of these benefits are branded. That is, if you are trying to offset your annual fees with a statement credit, the card will tell you where you will use it. You will be shopping regularly at Walmart. Your gym is Equinox. Even digital entertainment credits only apply to Disney+, Disney+Bundle, ESPN+, Hulu, The New York Times, Peacock, and The Wall Street Journal. Have you just subscribed to Netflix and Spotify? You’re not lucky.
It’s safe to assume that it works well for American Express, as the company did the same thing with Amex Gold. Last year, annual fees increased from $250 to $325. The issuer added a new statement credit benefit of up to $7, up to $7, using your card with Dunkin’ (registration required) and then using $7 per month (registration) and added $50 in semi-annual credits for purchases at Resy restaurants in the US on the Resy app after registration or on Resy.com.
Even explanations of these benefits sound complicated. Needless to say, we guarantee that it will actually be used.
And so, American Express has established a trend.
Another publisher participating in the trend
I wanted to encourage readers not to normalize it in all the ways American Express made the most popular cards look like a coupon book. Many other cards offered flexible travel perks without a mountain of brand credit to mark monthly planners.
I was hoping that the trend wouldn’t catch. But it did.
Recently, Chase did exactly the same thing with Chase Sapphire Reserve. The annual fee jumped from $550 to $795. This increased as card access was significantly reduced for the average cardholder.
The message is clear. This card is less convincing for frequent travelers who want to enjoy premium benefits without breaking the bank. It is an expensive card with the benefits that match users who currently enjoy a lot of existing discretionary spending.
Chase has added credit perks in a new statement that appears to reflect that message, including food, food delivery and airfare credits.
Other new benefits include:
This list of merits requires some serious spending and mental mathematics that I find complicated. I am a credit card writer. I can only imagine what it would be like for everyday cardholders.
Again, we see that the benefits of the brand have increased. Lyft and Doordash statement credits and promotions are monthly. Therefore, it is recommended to use these apps regularly. Or, miss the value. This card is also recommended to sign up for Peloton, watch Apple TV, or fly with Southwest.
Chase Sapphire Reserve shapes spending instead of complementing existing habits. It is a booklet of metal card-shaped vouchers for the upper class.
Some cards still offer flexibility perks
Travel cards that don’t tell you where to use them are becoming increasingly rare. But the more cards succumb to benefits branding, the brighter their competition.
If your goal is to access premium travel perks without eye-catching annual fees, I Capital One Venture X Rewards Credit Card – At least for now.
Card perks include:
This card has an annual fee of $395. It’s less than half the Chase Sapphire Reserve fee. I usually use annual travel credits and anniversary bonuses to book one Capital One Travel to offset the price of Venture X.
Depending on how American Express and Tracking cards have changed in recent years, you will not find an equivalent offer. And as credit card enthusiasts, we hope that we don’t lose this card to the trends in expensive coupon books.
Be aware of the benefits of any card. As you can see, they can change suddenly and change the entire value proposition of the card.
Conclusion
Credit cards are not static. Recently, premium travel credit cards have undergone changes, and have been gradually reducing profits for certain brands.
If you have a travel credit card with a high annual fee, it may work very well for you. For example, your spending habits may actually match perfectly. Alternatively, the annual fee is not a huge blow to your budget, so you can enjoy the profits without worrying about offsetting it.
Either way, whether your priorities are savings or a luxurious experience, make sure you get the value you want from your cards. And remember: having your credit card decide where you want to use it is a slippery slope. You need a financial product that matches your existing lifestyle and not a product that needs to be changed.
