Smart credit card users know how to cash in on frequent flier miles, cash back and loyalty points. But as cardholders have grow smarter about credit card rewards, credit card issuers have been forced to steadily increase the amount of points and miles their customers are earning for spending and as sign up bonuses. In many instances, account holders have become disillusioned with points and miles that, at times, can be difficult to redeem.
In response, credit card issuers have begun to add more perks to their hotel and airline reward credit card products that go far beyond mere points and miles. However, consumers often have multiple options with big travel branded credit cards and the most expensive options are not always the best.
Delta is leading the field of airline cards by offering the most non-mileage perks. For example, their Delta SkyMiles Reserve card from American Express grants cardholders priority access at check in, security, and during boarding, as well as checked bag fee waivers. Furthermore, it offers customers upgrade priority over others at the same status levels that do not hold this card. However, this card carries a hefty $450 annual fee. For those who want miles and free checked bags, the lower fee Gold Delta SkyMiles card is a much better option.
The Continental Airlines Presidential Plus card offers many of the same benefits as the high end Delta Reserve credit card and also includes upgrades on award travel for elite members who are also cardholders. Yet again, however, consumers can save about $300 on fees and still get benefits such as priority boarding and free checked bags with the more reasonably priced Continental OnePass Plus card.
The American Airlines AAdvantage Executive card is another high end airline product that extends exclusive non-mileage privileges to its cardholders. Miles earned by AAdvantage members with this card will continue to count towards their million mile program, even as other non-flight miles do not. Nevertheless, this card also comes with an eye popping $450 annual fee. And, unlike with Delta or Continental, there is no lower cost alternative packed with value adding benefits.
Banks that offer credit cards that are co-branded with hotel chains are also looking to reward their customers with perks beyond points. Starwood hotels grant holders of their Starwood Preferred Guest card Gold Elite status when they spend $30,000 on their card in a calendar year. This entitles them to free room upgrades and late checkout privileges. Likewise, holders of the Marriott Rewards card from Chase will also receive 10 night stay credits in order to elevate them to Silver Elite status.
At the same time, banks are increasing the ancillary benefits included with their cards. These perks commonly include purchase protection and travel insurance policies, as well as concierge services. Some cards are even adding identity theft recovery assistance as a standard feature.
There is a clear trend towards offering card holders a more diverse spectrum of benefits, rather than simply points or miles. The key thing for consumers is to strongly consider whether or not the benefits offered can be taken advantage of. If they can, then free checked bags and priority boarding benefits can more than offset annual fee costs and the miles earned on purchases can be viewed as pure credit card rewards profit.
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