Banks and Airlines Crack Down on Travel Rewards

Travel rewards are losing their appeal as airlines and banks tighten perks and overhaul loyalty programs and premium credit cards with higher fees and harder-to-use benefits. The golden age of travel hacking is fading, as once generous rewards and benefits are becoming scarce. This shift is making it harder for cardholders to score luxury flights and perks.

The travel rewards landscape is undergoing significant changes, with airlines and banks tightening perks and overhauling loyalty programs and premium credit cards. This shift is making it harder for cardholders to score luxury flights and perks, signaling the end of the golden age of travel hacking.

Alaska Airlines, for instance, is set to launch a new combined loyalty program, Atmos Rewards, on October 1, replacing HawaiianMiles and Mileage Plan [1]. This program will see changes in how miles are earned, redeemed, and utilized, particularly on routes to and from the islands. The airline has confirmed that HawaiianMiles will cease to exist after September 30, with any miles, elite status, and account activity transferring to the new program in early October.

The new program promises a 1:1 mileage conversion, ensuring that every Hawaiian Mile will be equivalent to one mile in the new program. However, award pricing changes are already in effect, with some first-class award seats on Hawaii routes now pricing at up to 300,000 miles round-trip [1]. This volatility in award pricing is making it more challenging for travelers to plan and secure luxury flights.

Meanwhile, premium credit cards are also seeing an increase in annual fees. According to NPR, Citibank's new premium card will cost $595, American Express charges $695 for its platinum card, and Chase's new premium card will cost $795 a year [2]. These high fees are part of a broader trend of premium cards becoming less attractive to consumers, as they often come with high interest rates and limited benefits.

The rise in premium credit card fees and the overhaul of travel rewards programs are making it harder for consumers to maximize their travel rewards. However, these changes also present opportunities for savvy travelers who can navigate the new landscape and find value in the evolving programs.

References:
[1] https://beatofhawaii.com/from-hawaiianmiles-to-atmos-countdown-to-august-20-launch/
[2] https://www.npr.org/2025/08/17/nx-s1-5501558/premium-credit-card-fees-are-rising-for-whom-are-these-cards-a-good-deal