There are credit cards out there at all kinds of price points — there are some fantastic no annual fee cards, there are some rewarding mid-range cards (with annual fees of under $200), and then there are premium cards (with annual fees of $300+).
Perhaps the three most well known premium cards include the American Express Platinum Card® (learn more), Chase Sapphire Reserve® Card (learn more), and Capital One Venture X Rewards Credit Card (learn more). However, we’re also increasingly seeing co-branded airline and hotel premium cards, like the Citi® / AAdvantage® Executive World Legend Mastercard® (learn more) and Hilton Honors American Express Aspire Card (learn more).
While premium credit cards aren’t for everyone, nowadays I’d say they’re pretty easy to justify for many people who like to travel. Yes, you’ll pay a high fee upfront, but the perks typically more than justify that. In this post, I’d like to take a closer look at the value proposition of premium cards. What kind of perks do they offer, who do they make sense for, who shouldn’t consider these premium cards, and what are the best alternatives?
The basic value proposition of premium credit cards
While each premium credit card has its own unique perks and costs, the general value proposition of premium cards is mostly the same. The idea is that the cards have steep annual fees, and then cardmembers can offset them through a combination of perks, including credits, airport lounge access, and other privileges, ranging from elite status, to free night awards, to exclusive access to things.
Every single premium credit card offers some number of credits, and in a vast majority of cases, those credits have a retail value of more than the annual fee. The catch is that these credits are generally intended to create some amount of breakage, and they’re not all equally easy to use. That’s because some are issued monthly, or quarterly, or semi-annually, and there’s nuance to maximizing them.
These perks also almost never cost the card issuers as much as the retail value may suggest, for one of two reasons:
- The credits are merchant funded, and are intended to make it attractive for cardmembers to switch some business to that merchant
- The credits are for travel portals of the credit card company, so the credit card company earns a commission on bookings, and hopes that they come out ahead that way
On top of that, airport lounge access has become an increasingly common perk of premium credit cards. This often includes a Priority Pass membership, but it also sometimes consists of bank branded lounges, or even lounge access through airline partnerships.
So the way to think through the value of these cards is that you take the annual fee, you subtract the value of the credits you get, and then you decide how much you value the other perks offered, including lounge access.
The argument in favor of premium credit cards
With the basic value proposition of premium cards out of the way, let me talk a bit about the argument in favor of premium credit cards, and who should consider applying. As I see it, it’s worth getting a premium card if you meet some of the following criteria…
You’re willing to put effort into maximizing card credits
For the most part, I tend to think that really making the math on premium credit cards work requires using some number of the credits to help offset the annual fee. You don’t always have to use all the credits, but do try to be realistic about which credits you’ll actually use, and which you won’t.
It could even be that a credit sounds valuable, but if you have to use it monthly, you have to be honest with yourself about whether you’ll find value in that, or will even remember to do that. Again, don’t think you have to use every credit, but just make sure that you’re offsetting enough of the annual fee with credits so that the cost of holding onto the card is otherwise justifiable.
You value airport lounge access perks
Arguably the single most consistent perk of premium cards is that they offer some sort of airport lounge access. That’s not necessarily true for all premium hotel cards, but there is commonly an airport lounge access element to these cards.
If you do value airport lounge access, getting a premium credit card can be the best value way to access those experiences. While different premium cards get you access to different lounge networks, there is also a lot of overlap, so also try to be realistic about that. Having one Priority Pass membership is useful. Having six Priority Pass memberships doesn’t get you much incremental value. 😉
You value travel rewards, airline & hotel elite status
One other thing that most premium cards have in common is that they accrue points that can most efficiently be redeemed for travel rewards, so be sure that’s something you actually value. There’s no point in getting an Amex Platinum and spending money on it, only to redeem your points for gift cards, where you’re losing a massive amount of value.
Along the same lines, lots of premium credit cards offer some sort of airline or hotel elite status. In some situations that’s just entry level status, while in other situations, it’s potentially high tier status. If you stay with a hotel group with some frequency, there’s potentially quite a bit of upside there, and a card’s annual fee could be more than covered by the incremental perks after just one trip.
The argument against premium credit cards
As I see it, there’s also a pretty strong argument to be made against premium credit cards. I think that’s especially true when the realistic and practical side of our brain kicks in, rather than the side of our brain that gets excited by big headline numbers. As I see it, it’s maybe not worth getting a premium card if one or both of the following things applies to you…
You suffer from credit card fatigue
I think in general we’ve seen the increasing trend of credit card fatigue, whereby people are just growing tired of putting endless mental energy into maximizing credit card perks in order to justify card annual fees.
Can you come out ahead on these cards individually? Absolutely, quite easily, even! However, at some point these products go from feeling like exclusive luxury cards, to being more along the lines of coupon clipping. I have to be honest, I have almost every premium card, and while I do make the math work, sometimes it sure feels like a chore.
Every year I have to remember to use a countless number of credits, sometimes I need to pay with three different cards when I check out of a hotel, etc. You don’t want miles & points to go from something that’s a funny hobby, to something that just feels like a pain.
You are kind of over “normal” airport lounges
Airport lounges can greatly elevate the airport experience, and in particular, there are some amazing first class lounges and business class lounges around the globe. While credit card lounges can also be high quality on the surface, the issue has become the crowding.
There’s an irony to this entire transformation we’ve seen to the lounge situation over the years, and how monetization has changed. Airport lounges used to be a place to get away from the hustle and bustle of the terminal.
Nowadays airport lounges are sometimes the busiest part of a terminal, full of people looking to eat “for free” in order to justify their credit card annual fees. Look, I’m as guilty as anyone, I’m just trying to be realistic, though! At some point, the true luxury becomes just picking up that $20 sandwich in the terminal, and sitting in an empty gate area, where you actually have space to yourself.
Doing the math on some popular premium credit cards
Often I think it’s worth explaining the value of credit cards in the form of examples. So let’s take a look at some of the most popular premium credit cards, and work our way through the math. What annual fees do these cards have, and how hard is it to justify the cost of holding onto them?
I won’t even discuss the welcome offers on these cards, which can get you a ton of value upfront, and are all the more reason to consider at least giving one of these cards a shot. I’m also just trying to provide some examples across a wide variety of cards, but I’m certainly not including all cards.
Just to be thorough, let me mention some of the other cards that I won’t be addressing in more detail, like the Atmos™ Rewards Summit Visa Infinite® Credit Card (learn more), Bilt Palladium Card (learn more) (Rates & Fees), Citi Strata Elite℠ Card (learn more), Delta SkyMiles® Reserve American Express Card (learn more), Marriott Bonvoy Brilliant® American Express® Card (learn more), United Club℠ Card (learn more), etc. After all, the intent is to demonstrate the overall value of the cards, rather than go over every single card detail.
Capital One Venture X Credit Card value proposition
The Capital One Venture X Rewards Credit Card (learn more) has a $395 annual fee, and it’s also the premium card that might be easiest to justify, in my opinion.
How do I justify the annual fee? The card offers a $300 annual travel credit (good as cash through the Capital One Travel portal) plus 10,000 anniversary bonus miles. I value Capital One miles at 1.7 cents each, so those 10,000 miles are worth $170 to me — but even if you redeem them for one cent each, that’s $100 in value. So by my math you’re getting $470 worth of value with those two perks, but at a minimum you’re getting $400 in value, more than the annual fee.
But that’s only the tip of the iceberg when it comes to Venture X benefits, as you’re basically getting a bunch of other things thrown in. The Venture X offers 2x miles per dollar spent, making it one of the most rewarding cards for everyday spending. The Venture X also offers a Priority Pass™ membership and access to Capital One Lounges and Capital One Landings. Then the card offers perks like primary rental car coverage and cell phone protection.
As you can see, it’s really easy to make the math on the Capital One Venture X work, even if you’re not someone who would usually consider a premium credit card.
If you’re looking for a business card instead, the Capital One Venture X Business (learn more) has a lot of similarities, and can absolutely be worth it.
Chase Sapphire Reserve Card value proposition
The Chase Sapphire Reserve® Card (learn more) has a $795 annual fee, and is probably the most popular premium card with younger generations, given how well rounded it is.
How do I justify the annual fee? Well, the Sapphire Reserve offers a $300 annual travel credit, a $300 annual dining credit, and $500 annual hotel credit. Obviously those perks alone can more than cover the annual fee, though there is some nuance to maximizing them. The travel credit is straightforward and the dining credit is relatively easy to use, while the hotel credit requires booking a certain way.
But the Chase Sapphire Reserve offers many benefits beyond that. For example, the Sapphire Reserve offers excellent bonus categories for spending, including 4x points on direct airfare and hotel purchases, plus 3x points on all dining purchases. The Sapphire Reserve also gives you the ability to redeem all of your Ultimate Rewards points at the best rate possible, including when moving points to transfer partners, like World of Hyatt.
Next, the Sapphire Reserve offers a Priority Pass™ membership, giving you access to 1,300+ lounges around the globe, on top of unlimited access to Chase Sapphire Lounges, plus access to select Air Canada Maple Leaf Lounges. The Sapphire Reserve also offers excellent travel and rental car coverage, which can come in handy if you travel a lot.
Independently I wouldn’t say the Chase Sapphire Reserve is quite as easy to justify as the Capital One Venture X, but the major benefit of this card is all the other cards you can maximize in the Ultimate Rewards ecosystem by having the Sapphire Reserve.
If you’re looking for a business card instead, the Sapphire Reserve for Business℠ (learn more) could be worth it, though just keep in mind the benefits do differ somewhat.
American Express Platinum Card®
The American Express Platinum Card® (learn more) has a annual fee (Rates & Fees), so it’s among the most expensive premium cards out there. Arguably the card set the standard for premium cards, though nowadays its value proposition can be pretty polarizing.
Fortunately, I find the Amex Platinum’s annual fee to be quite easy to justify, thanks to the potentially thousands of dollars in credits it offers. The Amex Platinum offers up to $600 in annual hotel credits, up to $400 in annual Resy credits, up to $200 in annual Uber credits, up to $200 in annual airline fee credits, and more. To me, this card is really about the credits. (Enrollment is required for select benefits)
Beyond that, the Amex Platinum offers a variety of perks, including the most comprehensive airport lounge access of any card. You get a Priority Pass™ membership, limited access to Delta Sky Clubs® (when flying Delta same day), access to Amex Centurion Lounge access, and much more. (Enrollment required)
The one downside to the Amex Platinum is that it’s not actually very rewarding for everyday spending, and doesn’t have many bonus categories. The only thing that gets me excited is to earn 5x points on flights booked directly with airlines or on AmexTravel.com, up to $500,000 per calendar year, and then 1x points.
If you’re looking for a business card instead, The Business Platinum Card® from American Express (learn more) is worth considering, though note that there are some differences between the two versions of the card.
Citi AAdvantage Executive Mastercard
While the above are all bank-branded cards, I thought it would be interesting to look at a premium airline card as well. The Citi® / AAdvantage® Executive World Legend Mastercard® (learn more) has a $695 annual fee. What do you get for that?
Well, the card offers an American Admirals Club membership for the primary cardmember, making this the best card for Admirals Club access. You’re already coming out ahead there compared to the cost of outright buying a membership.
What makes the Citi AAdvantage Executive even better is that you can pay a total of $175 to add up to three authorized users to the card, meaning you’re potentially paying under $60 per authorized user. Those authorized users then also get Admirals Club access when traveling on American or a partner same day, and they can even bring guests.
The card offers several other great perks, like up to 40,000 bonus Loyalty Points per year, up to $120 in annual credits with Avis and Budget, and more. If you fly American frequently, then I think this card is absolutely worth it.
Hilton Aspire Card
In addition to a premium airline credit card, let’s also take a look at a premium hotel credit card. The Hilton Honors American Express Aspire Card (learn more) has a $550 annual fee (Rates & Fees). While that’s no doubt steep, the card should be very easy to justify for anyone who stays at Hiltons with any frequency.
What are you getting for the Hilton Aspire Card annual fee? Benefits include Hilton Honors™ Diamond Status for as long as you have the card, an anniversary free night award annually, which can be redeemed at a property costing up to 250,000 Hilton Honors points, up to $400 in annual Hilton resort credits (get up to $200 in statement credits semi-annually for eligible purchases made directly with participating Hilton resorts), up to $200 in annual airline flight credits (get up to $50 in statement credits each quarter, for a total of up to $200 back each year, on flight purchases made directly with an airline or through AmexTravel.com), and more.
Personally I think the Hilton Diamond elite status and anniversary free night award alone justify the annual fee on the Hilton Aspire. Then if you add in the Hilton resort credits and airline flight credits, you can potentially come out way ahead with this card.
What’s the best alternative to premium credit cards?
Many people assume that high annual fee cards must also be rewarding for actual spending. While that’s sometimes the case, it’s by no means consistently the reality. Some premium cards are more lucrative for spending, while others aren’t.
So while premium cards may be needed to unlock certain perks, like some kinds of airport lounge access, it’s absolutely not needed to get a great return on spending. As a matter of fact, many of the best cards for actually spending have lower or even no annual fees.
Some of the most lucrative cards for spending include the American Express® Gold Card (learn more), Capital One Venture Rewards Credit Card (learn more), Chase Sapphire Preferred® Card (learn more), and Citi Double Cash® Card (learn more).
Premium credit card value FAQs
Bottom line
There are credit cards at just about all price points. While many people have no issue picking up a no annual fee or sub-$100 annual fee card, premium credit cards with high annual fees are a different story.
I’m not saying everyone should pick up a credit card with a $300+ annual fee, though I do think the cards are easier to justify than most would assume. That’s especially true with a card like the Capital One Venture X, which offers annual credits and perks that more than justify the annual fee.
Cards like the Amex Platinum and Chase Sapphire Reserve might take a little more work to maximize, but it’s still not too hard to make the math work, assuming you value airport lounge access, and are willing to put the effort into maximizing the credits.
Meanwhile if you’re loyal to a specific airline or hotel group, there’s also a lot of value to picking up the most premium card in the collection, whether it’s the Citi AAdvantage Executive or Hilton Aspire.
The one caution I’d add is that actually getting good value from premium cards requires putting in a lot of effort, and understandably, that’s not something everyone wants to do. Shocking as it might be, not everyone’s life revolves around maximizing credit card perks. 😉 Also, airport lounges sure have changed over the years, and while the quality is often great, crowding has really made these lounges lose some of their luster.
What’s your take on the value proposition of premium credit cards? Which do you find to be worthwhile?
The following links will direct you to the rates and fees for mentioned American Express Cards. These include: American Express Platinum Card® (Rates & Fees), and Hilton Honors American Express Aspire Card (Rates & Fees).
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
Celebrating a wedding anniversary at the Waldorf-Astoria New York was a fantastic experience. Knowing our room was free with my Aspire card-we even got a $50 F&B credit which went a long way towards paying for our drinks in Peacock Alley- made it even more magical. Considering the room rate was about $1500, i don't have to wonder whether the $550 annual fee is worth it.
The Capital One Venture X is really the only premium credit card that requires (almost) no effort to entirely recoup the annual fee.
If only the CSR changed it’s Sapphire Reserve Exclusive Tables credit to a broad OpenTable credit like Amex/Resy — it would make the card an absolute no brainer.
None of these cards are worth holding after the SUB, except if they offer a perk that you would buy anyway. For me, that means all the Delta cards plus the sub-$100 hotel cards that come with an annual free night. I shouldn't need a calculator to figure out if a card is "worth it." If you do, then the answer is NO.
Chase SR resturant credit is easy to use IF you can find a restaurant in your area you wan to go to. Not every restaurant is covered.
@Ben, quick clarification on the Hilton Aspire free night credit. It's only available for "standard" room redemptions up to 250k, which is hard to find at that level. It's still a great card as a keeper since I can easily use the free night, stay at Hilton with frequency, and the airline credit is super easy to use. I don't use it for my math, but the Clear membership is also a nice touch. EWR...
@Ben, quick clarification on the Hilton Aspire free night credit. It's only available for "standard" room redemptions up to 250k, which is hard to find at that level. It's still a great card as a keeper since I can easily use the free night, stay at Hilton with frequency, and the airline credit is super easy to use. I don't use it for my math, but the Clear membership is also a nice touch. EWR and ORD now have the gate style in use, and it's very convenient at ORD T1 especially.
I recently dropped the CSR. I've had it since the beginning, and it was an easy to justify card with the benefits it provided. And given when my annual fee was renewing, I was still grandfathered in to the lower fee for the past year. But this year, can't justify the steep fee when I have other cards providing some overlapping benefits. The Edit credit sounds great in theory, but the often mentioned rate inflation, and limited hotels it could be used at, it was too hard to use. I barely go in to NYC anymore, so the dining credit is worthless.
I do find a few of these cards beneficial… but jesus Im so over the coupon clipping. I’ve gotten to the point where many of the benefits are simply not worth the time and mental energy it takes to obtain them anymore. Frequently I don’t get every benefit I would be entitled to, and I am at peace with my decision to not aim for every benefit a card offers. So these days, a card...
I do find a few of these cards beneficial… but jesus Im so over the coupon clipping. I’ve gotten to the point where many of the benefits are simply not worth the time and mental energy it takes to obtain them anymore. Frequently I don’t get every benefit I would be entitled to, and I am at peace with my decision to not aim for every benefit a card offers. So these days, a card must have Major Airline Lounge Access with status earning credits (F* priority pass and its trash brethren), or a hugely advantageous benefit requiring minimal effort. Other than that, not interested.
Ben- why isn’t the B of A premium rewards elite card on your list? It certainly fits with your criteria.
I just counted this morning, I have 9(!) cards with AFs over $350. Looking through my list, I believe I'm easily getting value back on 7 of them, with 1 (AMEX Gold) being borderline and 1 more (the AA Exec) that I'm still figuring out with the new coupon book. For most cards, I'm not even considering lounge access in my calculations, so it's basically the coupon books that I am able to make use of.
In reality, society would be better off if we all gave up the coupon book perks and the credit card fees charged to businesses were lowered from 2.5% to 1%. The collective lower prices would far outweigh the occasional free flight.
@mildmidwesterner You really believe that prices would go down if the interchange fees were lowered?
@samar Given how competitive consumer prices are, yes, but it probably wouldn't be completely obvious. In reality, I think we would see price increases be put off for longer. For example, that washing machine you're shopping for would stay at $899 a few months longer before increasing to $929. You might also see "convenience fees" for online purchases, such as UberEats, decrease in the short term. The savings would be small and incremental, but they...
@samar Given how competitive consumer prices are, yes, but it probably wouldn't be completely obvious. In reality, I think we would see price increases be put off for longer. For example, that washing machine you're shopping for would stay at $899 a few months longer before increasing to $929. You might also see "convenience fees" for online purchases, such as UberEats, decrease in the short term. The savings would be small and incremental, but they would add up over time.
@MildMidwesterner, bud, you are dreaming. Tune into any retail earnings call and you'll hear CEOs literally bragging to Wall Street about expanding margins through 'pricing power.' (Ah, corporate euphemisms.) If interchange fees dropped to 1%, that 1.5% difference wouldn't show up on a washing machine price tag months later; nope, straight to EBITDA. Businesses pocket windfalls, they don't share them. @samar is right to doubt your 'thesis'.
Mildmidwesterner is totally right, and speaks like a small business owner. I am one as well.
to the others… well you clearly don’t see or are not aware of the financials of small and medium businesses. In my small businesses, credit card interchange fees are easiest the single greatest expense other than my cost of goods and salaries. They are more than my rent!!! and we’re located in a major downtown area.
So...
Mildmidwesterner is totally right, and speaks like a small business owner. I am one as well.
to the others… well you clearly don’t see or are not aware of the financials of small and medium businesses. In my small businesses, credit card interchange fees are easiest the single greatest expense other than my cost of goods and salaries. They are more than my rent!!! and we’re located in a major downtown area.
So enjoy the free flights, but don’t minimize the impact our points actions have on small businesses that have not added on the extra 3% credit card charge everyone despises. Or at minimum, understand why the 3% gets passed on to the one that “benefits”.
I’m honestly getting credit card fatigue. I have cut my CC portfolio in the past 18 months and will continue to do so.
These premium travel cards with crazy annual fees only make sense if you travel a lot. And even then, I’m not sure it makes sense for most frequent travelers to carry multiple expensive cards unless work is reimbursing you or the math genuinely works for your business.
For most people, one good...
I’m honestly getting credit card fatigue. I have cut my CC portfolio in the past 18 months and will continue to do so.
These premium travel cards with crazy annual fees only make sense if you travel a lot. And even then, I’m not sure it makes sense for most frequent travelers to carry multiple expensive cards unless work is reimbursing you or the math genuinely works for your business.
For most people, one good card is probably enough. Ideally, one that gets you into a decent lounge without a long line and with food you actually want to eat.
Otherwise, take the thousands of dollars you’re paying in annual fees and just spend some of that money at airport restaurants when you travel. I’m not convinced you lose that much. You might actually have a better experience.
And you avoid all the nonsense of tracking credits, remembering deadlines, using benefits just because you paid for them, and constantly trying to “get your money’s worth” from a fee you paid upfront. At some point, simplifying may actually leave you better off.
To me, it’s the dichotomy of keeper-cards (ones that pay for themselves thanks to credits or benefits, often a quantitative but also subjective, circumstantial determination) verses churn-and-burn for sign-up-bonuses.
Most of the high-end issuer cards, like Amex Platinum, Chase Sapphire Reserve (if you can stomach the high fees and actually use nearly all the major credits) still keepers to me. I haven’t had the best luck with CapitalOne, but I’m confident Venture X is...
To me, it’s the dichotomy of keeper-cards (ones that pay for themselves thanks to credits or benefits, often a quantitative but also subjective, circumstantial determination) verses churn-and-burn for sign-up-bonuses.
Most of the high-end issuer cards, like Amex Platinum, Chase Sapphire Reserve (if you can stomach the high fees and actually use nearly all the major credits) still keepers to me. I haven’t had the best luck with CapitalOne, but I’m confident Venture X is on that last, too. Maybe Citi Strata Elite, too, but it’s new and just not as popular (c’mon, Citi Nights!) Is Bilt Palladium? Well, we’re all figuring out how to burn the excess Bilt Cash before expiration, so, we’ll see.
Unless and until certain issuers go ‘once-per-lifetime’ many co-branded cards are churners (think American, United, etc.) Regrettably, the Amex ones are not as churn-able, so Hilton, Delta, etc., might be ‘keepers’, if you use the credits on higher-end versions like Aspire or (Delta) Reserve.
Then there’s the new-ish mid-tier of card products that aren’t no-fee or merely $99 per year, they’re in that $200-400 category, like an Amex Gold or an BofA Alaska Atmos Summit, but, like, again, other than a SUB, the math has to work for you as to whether the credits and benefits offset those fees. I tend to think merely breaking-even isn’t enough. You should account for the extra effort and spend usually required to ‘play the game.’
Has anyone compared nightly rates for The Edit properties on other travel portals? I have found that most Edit properties in Europe have inflated nightly rates on the Chase Portal which greatly devalue the $250 CSR credits when the same room at the same properties can be booked for significantly less.
The Edit is across-the-board inflated. I recall reporting of Chase even unveiling a targeted price-match tool, but only for certain users. If they were serious about not price-gauging, they’d release that match-tool to all CSR users.
The CSR is the main ultra premium card I don't hold anymore, and it's mainly because of the inflated cost of The Edit. It became too much effort to find value vs booking hotels using other CC credits.
Only if you would get enough "freebies" from a lounge that more than cover the annual cost of the card. That assumes you're ok with Wawa level food, cheap booze (if you drink), and crowded lounges sometimes with lines to get in. Airline lounges may or may not be useful in the event of flight disruptions.
Paying $500 to $1K a year for a vanity card does not make economic sense.
"Paying $500 to $1K a year for a vanity card does not make economic sense." for YOU.
For many of us who spend a non-trivial amount of time moving around the earth, these cards make absolute sense.
Regarding the Aspire card, the four $50 quarterly airline credits are annoying. Just let us use the $200 as we see fit.
Steve, Aspire’s credit is one of the more flexible and broad airline reimbursements out there, especially after Amex recently nerf’d Platinum’s ‘incidental fee’ credits. For Aspire, just buy $50 of United Travel Bank per quarter. It’ll add up quickly. Doesn’t expire for 5 years. This is the way.
"For many of us who spend a non-trivial amount of time moving around the earth, these cards make absolute sense."
But you are not in the majority. A average person does not live their life onboard their local hub airline. So it does not make economic sense to hold it for a great majority of people.
And the value proposition is diluted considerably for the average traveler. A decade ago when CSR was introduced it...
"For many of us who spend a non-trivial amount of time moving around the earth, these cards make absolute sense."
But you are not in the majority. A average person does not live their life onboard their local hub airline. So it does not make economic sense to hold it for a great majority of people.
And the value proposition is diluted considerably for the average traveler. A decade ago when CSR was introduced it was a no brainer for even a family of one time travelers. You paid $450 in fees. But got $300 in travel credit. You could take as many guests as you wanted to a PP lounge. You got the $28 benefit at airport restaurants. Just one round trip to grandma's at Thanksgiving for a family of four, gave you your annual fees worth of value without trying.
But now that's not the case. There are quarterly credits and monthly credits and one card even has a monthly cab app credit after you have had 3 rides with that cab app company. Its getting ridiculous. Plus every single day you hear of issuers chipping away at benefits, making them more difficult to use.
Bottomline its a hobby that becomes less rewarding by the day and its got to a point where spending that much amount is ust not worth it.
That is exactly what I said: Only if you would get enough "freebies" from a lounge that more than cover the annual cost of the card.
Someone flying 3-5 times a year would not get enough freebies to cover the cost of the card.
Using Ben's reasonable approach, i.e. spend $20 and find a quiet area in the terminal, it would take many visits to a lounge to recoup the annual fee for some of these cards. I view airport lounges in many locations as less comfortable than a quiet gate, but I do not travel as much as some and some airports do not have much quiet gate area (Keflavik for example).
George always throwin’ shade at Wawa…
@1990
I would be happy if there was a Wawa in Malta.
But, to be honest here, I am happy that in Europe, the banks don't throw around these credit card deals. In fact, my LH Senator card or FC travel get me into lounges around the world. So, I guess you might say free agency works for me.
What is most interesting is that European banks are now rolling out is a system that...
@1990
I would be happy if there was a Wawa in Malta.
But, to be honest here, I am happy that in Europe, the banks don't throw around these credit card deals. In fact, my LH Senator card or FC travel get me into lounges around the world. So, I guess you might say free agency works for me.
What is most interesting is that European banks are now rolling out is a system that bypasses both the Mastercard and Visa systems for processing European Visa and Mastercard, thereby lowering the merchant discount, and ultimately to the consumer. But, not me with my American cards. The fatcat regulations cause virtually all banks in Europe to not issue cc to Americans.
In short, the three things that bug me about travel are: this incessent obsession with tie in between banks and airlines, necessitating excellent excel skills, higher merchant fees that I and the merchant must pay to fund Delta, etal. Doors! I truly don't get it. Without standing on my toes, I can see you. And it makes me feel encapsulated.
And finally, what's with lounge obsession. I bought a ticket to fly, not to soak up all the booze and food in a lounge. And frankly, in Europe and Asia, I have not stood in lines to do so.
Since the late 60's, I "get by" with my greenie and my Navy Federal Visa( for which I earn 10 points($) for every travel dollar: tickets, hotels.