Premium Travel Credit Card Changes

A recent Chase rumor might change my plans

In a recent post, I wrote about how I’m considering making changes to my travel credit card setup. Specifically, I might change to a different premium travel credit card later this year. I explained the different options I was considering as well as the pros and cons of each option. I suggest that you read that one if you haven’t already.

One of the options I’m considering the most is product changing my Chase Sapphire Preferred to the Sapphire Reserve card. Recently, a rumor started circulating on Reddit about changes coming to the Sapphire Reserve which includes an annual fee increase. Here is a blog post about the purported changes. I’ll copy and paste a list of these rumored changes:

• Fee and Points

  • $795 annual fee

  • 8X Chase Travel hotel and cars (reduced from 10X)

  • 8X Flights booked through Chase Travel℠ (increased to from 5X)

  • 4X Direct flights and hotel (increased from 3X)

  • 1X General/other travel (i.e., rideshare, taxi, bus, subway, parking, etc) (reduced from 3X)

• New Benefits

  • $500 Chase hotel Edit credit ($250 semi-annually) $250/semi-annual (hotel portal run by Chase for select hotels)

  • $300 Sapphire Reserve Tables dining credit ($150 semi-annually)

  • $300 StubHub credit ($150 semi-annually)

  • $300 DoorDash credit ($25 a month)

  • $120 DoorDash membership

  • $250 credit toward Apple TV+ and Apple Music

  • $120 Lyft credit ($10 a month)

  • $120 Peloton credit ($10 a month)

• Big Spenders: $75,000 Spent on the Card During a Year

  • $500 Southwest Airlines credit

  • Southwest A-List status

  • IHG One Rewards Diamond Elite Status

  • $250 The Shops credit

My knee jerk reaction is to be instantly repulsed by that annual fee increase, and that is quite a hard pill to swallow. I’m also not happy about the large number of new credits that could be added as well. In general, I’m not happy with the trajectory that credit cards seem to be on. I’ve been seeing an increasing number of cards from different issuers following the American Express playbook: increase annual fees and add more credits. I’m very unhappy about this. Chase is going to take the things I hate about the Amex Platinum card and graft it onto the Sapphire Reserve card.

Let me give a few of my thoughts about the proposed changes:

• I would like the increased earnings on flights book in the Chase portal (increased from 5X to 8X).

• Increasing to 4X for flights and hotels booked directly would be welcome.

• I’m very unhappy about the possibility of the 3X general travel category being reduced to 1X. This is a particularly hard blow, because it was one of the major reasons I am considering this card.

• All of the credits listed under “New Benefits” would be difficult or impossible for me to use fully.

• All of the benefits that are unlocked after spending $75,000 on the card are well out of reach for me.

Suffice it to say, I’m feeling disappointed. I was drawn to the Sapphire Reserve due to its relative simplicity and straightforwardness. I’ve grown weary of the Amex coupon book, but it looks like I will be getting no relief with this card. I should point out that all of this is still just a rumor, and it might be a total fabrication. However, I think I should consider what I might do if these rumors do turn out to be true.

Possibility 1

Chase Ritz Carlton Card + Another Mid-Tier Travel Card

Regardless of what changes I make, my Ritz Carlton card will remain in my setup. It has excellent benefits and protections as I’ve explained in a previous post. It earns Marriott points which are not as flexible or valuable as other points currencies. That’s why I’m thinking about adding a mid-tier travel credit card that will earn points that I can transfer to travel partners and get better value.

About two months ago, Lukes Points and Miles posted a video about the Fairwinds Visa Signature Credit Card. The Fairwinds Credit Union is located in Florida, and as far as I know, anybody can join it and apply for this card. It has the following earnings:

• 5X points on travel. Travel is defined very broadly on this card. I would like this, because it would catch a lot of the miscellaneous travel expenses that many other cards don’t such as:

  • Airbnb

  • Vrbo

  • Subway

  • Parking

  • Ferries

  • Tolls

  • Buses

• 3X on dining

• 2X on everything else, which could make it a good catch all card.

This card is a very compelling option, especially because of the broad travel and catch-all category. In his video, Luke talked about the value of redeeming points for Delta and Airbnb gift cards which sounds like fantastic options to me. I’m sure there are other good redemptions in the travel portal.

I am considering other mid-tier travel cards.

Possibility 2

Chase Ritz Carlton + Citi^® / AAdvantage^® Executive World Elite Mastercard^®

I fly with American Airlines about 80% of the time, so a premium airline card seems like something worth considering. American Airlines miles are worth approximately 1.6 cents per point which are some of the most valuable out there.

I would also avail myself of the Admirals Club lounges when I fly, and that combined with the lounge access on the Ritz Carlton card would give me fairly comprehensive lounge access.

The final option is to just have my Ritz Carlton card as my sole premium travel card.

The annual fee on my Amex Platinum card comes due in November. I don’t plan to get any other premium cards until then. For now, I’m going to wait and watch.