Travel Credit Card Selection: Experts Advise on Cost, Perks, and Value Amid Rising Fees and Changing Terms

Credit card issuers, such as American Express, Chase, and Citi, have raised annual fees for premium travel cards, with some increasing by over 45%. Experts warn that high APRs can cancel out travel rewards, and consumers should consider whether the perks justify the rising costs. Co-branded cards tied to specific airlines or hotels offer benefits like free checked bags and status upgrades, but only for that airline. General travel cards offer more flexibility but may not provide the same level of benefits.

In recent months, several major credit card issuers have significantly increased the annual fees for their premium travel cards. American Express, Chase, and Citi have all raised their fees, with some increases exceeding 45%. This financial shift has sparked concern among consumers and experts alike, who warn that high annual percentage rates (APRs) can potentially negate the value of travel rewards. As these cards target frequent travelers, the question remains: do the perks justify the rising costs?

American Express Platinum Card and Chase Sapphire Reserve

Two of the most prestigious travel rewards cards, The Platinum Card® from American Express and the Chase Sapphire Reserve®, have recently seen substantial fee hikes. The Amex Platinum raised its annual fee to $895 in September 2023, while Chase increased the annual fee of the Sapphire Reserve to $795 in June 2023. Both cards offer a wealth of benefits, including access to airport lounges, bonus points for travel spending, and various credits for travel and other expenses.

Amex Platinum Card

The American Express Platinum Card offers a wide array of credits and perks, including up to $200 airline incidental statement credit per calendar year, up to $600 hotel credit, and up to $400 Uber Cash. Additionally, the card provides a variety of lifestyle credits, such as up to $300 digital entertainment credit and up to $300 Equinox credit. However, the sheer number of credits can be overwhelming, and users must stay vigilant to utilize them effectively.

Chase Sapphire Reserve

The Chase Sapphire Reserve, on the other hand, offers a more straightforward set of benefits. It provides a $300 annual travel credit, up to $500 annual statement credit for hotels booked via The Edit, and up to $300 annual dining credit at Sapphire Reserve Exclusive Tables. The card also offers a complimentary DoorDash DashPass subscription and $25 in DoorDash promos each month. While the Sapphire Reserve has fewer credits requiring activation, its benefits are generally easier to use.

Co-branded vs. General Travel Cards

Co-branded cards, such as those tied to specific airlines or hotels, offer unique benefits like free checked bags and status upgrades. However, these benefits are limited to the partner airline or hotel. General travel cards, like the Amex Platinum and Chase Sapphire Reserve, provide more flexibility but may not offer the same level of specialized benefits.

Conclusion

The rising annual fees on premium travel cards have raised significant concerns. While both the Amex Platinum and Chase Sapphire Reserve offer substantial benefits, the high fees may not be justified for all travelers. Consumers should carefully evaluate their travel habits and preferences before deciding whether the perks outweigh the costs. As travel patterns and preferences continue to evolve, it is essential to stay informed about the latest developments in the credit card landscape.

References

I’m a credit card editor, and here’s my verdict on the Chase Sapphire Reserve vs. Amex Platinum cards^[1] https://www.cnn.com/cnn-underscored/money/chase-sapphire-reserve-vs-amex-platinum