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The Aeroplan® Credit Card, which already has one of the best initial bonus offers and great encouragement to spend (for bonus miles and elite status), is running an interesting summer spend bonus.
Cardmembers earn a total of ten points per dollar using their card for international purchases (purchases made outside the United States) between July 1 and September 30, 2022, up to 15,000 points ($1500 spend). No registration required.
This isn’t 10 bonus points, it’s 10 points total, so it’s fewer ‘extra’ points in accelerator categories. (Since this is capped, the offer is better spending on things other than dining at restaurants, grocery stores and purchases made directly with Air Canada since those already earn 3 points per dollar).
But there’s a few things I find really interesting here.
- Foreign transaction fees were once a challenge. Chase was the first to really drop foreign transaction fees from their travel cards. This is costly, and loss of a revenue stream, but the reason they did it is simple (it just took other issuers longer to learn): when cardmembers would go overseas they’d put the foreign transaction fee cards away. And when they’d return home those cards wouldn’t necessarily return top of wallet. It was better to keep customers using the cards overseas and eat the cost than to charge the fees.
- But actually encouraging foreign spend? That’s not something we see as often. Keep the customer using that card over others and it’s possible they may keep the card top of wallet over others when they return. It associates the card further with travel, which makes sense with an international airline’s card.
- And you don’t just have to think long haul travel. This is the Air Canada Aeroplan card, and travel to Canada counts. Many of the card’s customers are likely to be people living part of the year in the U.S. and in Canada, that’s a seven figure customer potential market. Dual residence Canadians (especially those who have retired) are likely to summer in Canada, winter in the U.S.
- 10 points per dollar is an expensive promotion and it needs to be funded, but they’ve really limited the cost. $1500 goes pretty quick on an international trip even if you’re using points for air and hotel. And that leaves dining spend that’s already bonused, again limiting since it means an extra 7 points per dollar rather than an extra 9.
I do really love the way the Aeroplan® Credit Card is coming up with interesting promotions, and keeps the offers coming. It’s less than two months since they announced spend on this and their other credit cards will be a way for members to keep their status for next year Since it’s 30,000 points earned on the card by November 30, $1500 spend this summer with the card outside the U.S. can get you half way there!