The Premium Card Landscape Continues to Evolve

As we continue to move towards the end of the pandemic, the travel landscape is not only changing by leaps and bounds, but so is the premium credit card industry. Top premium travel credit card brands such as Amex, Chase, and Citi are closely monitoring the marketplace and responding accordingly in the best interests of their consumer customers.

American Express Premium Platinum Card

After various rumors afoot about big changes with Amex, they have indeed revamped their consumer Platinum Card with an array of new benefits, an increase to the annual fee, and a very generous welcome offer of 100,000 points for new cardholders.

However, with that big new customer offer comes an increased annual fee for all its premium cardholders. The already sizeable $550 fee has been raised to $695 as of July 1, 2021. Current cardholders will not see the increased rate until 2022.  

The sticker shock for some is offset by the card’s many credits, a big one being the CLEAR membership credit of up to $100, including access to airport lounges and exclusive elite status. This is well worth the annual fee to many, as the potential credits can add up to $900. What’s more, Amex’s existing perks will not change. Among these are the usual $200 airline fee credit, $200 Uber cash, and up to $100 annual Saks Fifth Avenue credits. And that’s not to mention complimentary elite status with Marriott Bonvoy, Hilton Honors, and more. 

For foodies holding the Amex Platinum Card, they can enjoy full use of Resy, since Amex acquired the restaurant reservations platform a couple of years ago. This gives cardholders exclusive access to reservations at top restaurants and related events around the globe. 

The upshot is that Amex Platinum Cardmembers enjoy not only travel benefits but many other lifestyle benefits and credits, with its entertainment and food-centric options.

Chase Sapphire Reserve Card

Starting next month (August 2021) cardholders of the Chase Sapphire will see an increase to $550 on the annual fee. That’s an increase of $100 from $450. Even though Sapphire is one of Chase’s top-tier cards, many cardholders are considering changing or canceling the card in light of the fee increase. Part of the reason for this is that during the pandemic, some of the card benefits were only temporary, such as a complimentary year of Lyft Pink, $120 DoorDash credits, and a complimentary year of DashPass. 

In the travel space, Chase has done its due diligence in offering cardholders an extended $300 travel credit to cover gas and grocery purchases through the end of 2021. In addition, members are allowed to redeem points via the Pay Yourself Back program for non-travel purchases through the end of September 2021. 

For existing Chase Sapphire holders, the silver lining with the annual fee increase means that if their renewal date is before July 31 and they had a reserve account open before January 12, 2020, they will receive a $100 statement credit towards the annual fee.

Citi Prestige Card

In an abrupt move, Citi announced it is not taking any new applications for the sought-after Prestige card as of July 1, 2021. In addition, current Citi cardmembers are not allowed to convert their existing cards to the Prestige card as of June 19. The good news is that current Prestige cardmembers can continue to use their card benefits uninterrupted, and can also add authorized users to their existing accounts. 

While Citi did not give an official explanation for the reason, it is thought that the move is in response to other changes; Citi could be reassessing whether to overhaul the card in order to make it more competitive with Amex Platinum and Chase Sapphire. Or, Citi could be looking to exit the premium travel card business altogether, as changes in the marketplace have drastically shifted during and after a pandemic world.

The Bottom Line

So while the news is not rosy for Citi Prestige for travel rewards card seekers, Amex and Chase continue to be very competitive in the marketplace for both travel and lifestyle rewards. In a post-pandemic world, the premium travel card rewards landscape is changing rapidly and consumers would do well to jump on premium cardmember offers as much as possible. 

Travel going forward will only increase, and you can expect to see many changes ahead, not only with the top premium credit card companies but with other card reward programs as well.