Earlier I wrote about upcoming changes to the Citi AAdvantage Executive Card, the premium co-brand card that comes with American Airlines Admirals Club membership. The annual fee is going up (from $450 to $595) and authorized users will no longer be free ($175 for the first 3, $175 for each additional thereafter).
The card is going to offer more bonus loyalty points (10,000 each earning 50,000 and 90,000 Loyalty Points in a year rather than once at $40,000 card spend) and is going to offer more miles for American Airlines spending (4 for the first $150,000 spent, 5 miles per dollar thereafter). Citi is re-introducing travel protections like trip delay coverage to the card. And they’re introducing statement credits with Avis/Budget, GrubHub, and Lyft.
Net net I see these card changes as negative. However the card was too cheap to begin with, and American Airlines lounges have been too chintzy on product as well.
- To promote card changes, this card will have a 100,000 mile bonus offer. July 23 to September, 6, 2023, newly approved cardmembers can receive 100,000 AAdvantage Miles after $10,000 spend on the card within the first 3 months of account opening.
- And American Airlines is promising an improved lounge product – along with a higher membership fee.
American Airlines DCA Admirals Club, E Concourse
I’ve written that the Admirals Club membership fee needs to rise, it’s cheaper than competitors and the card was set up to allow access to as many as 33 people at a time (through authorized user cards) all for a $450 annual fee. But American’s lounge product needed to improve too, since it’s currently surpassed by both Delta and United.
- Admirals Club membership fees will go up, with a top price of $850. Currently an Executive Platinum member pays $550 the first year, then $500 thereafter, while a general member pays $650 the first year, then $600 thereafter, with a sliding scale in-between.
These price increases will ensure the card remains the cheapest way to gain membership, which makes sense because Citi is a volume buyer and both Citi and American want to incentivize their best customers who would buy lounge membership to have this card in their wallet and use it.
- And American promises better food and more free drinks, along with more redesigned club locations. I await specifics on how much longer overcooked mac and cheese and meatballs will remain the standard, what that’ll be replaced by, and whether it’ll compare to United’s or Delta’s lounge food program. As well, I still learning whether there’s anything besides Newark and Denver clubs actually being done in the new lounge motif (the Austin club, announced in 2021, still hasn’t gotten a start date).
What we know so far is some club swill have “a heartier variety of complimentary premium food” with “[n]ew hot and cold breakfast options” and that “[a]ll domestic Admirals Club lounges will feature complimentary sparkling wine, craft beer and spirits.” The booze starts this month.
The food options will include “Cuban pork sliders in Miami and mini crab cakes in Washington, D.C.” Some lounges will offer grab-and-go snacks. And this will start to roll by early 2024.
Credit: American Airlines
Credit: American Airlines
Adding back trip cancellation, trip delay, and baggage coverage removes a reason not to use the card for purchasing American Airlines tickets. Earning 4 miles per dollar on American Airlines tickets, with this coverage, is probably ‘good enough’ to forego 5 points per dollar with an American Express Platinum card since that spending also earns Loyalty Points.
Fundamentally the card is having a price increase, with little to offset that increase. It isn’t a better card for spending money to earn rewards.
- It’s a fair increase, and it was more or less an inevitable one
- And the reason to spend money on the card – or not – largely remains the same as before, which is that it’s a way to earn American Airlines status.
American Airlines DCA Admirals Club, E Concourse
If this price increase comes with a better lounge product, I’d be happy with that tradeoff. And who won’t want to pick up 100,000 AAdvantage miles as an initial bonus on the card two weeks from now? My bet, though, is that any improvements will be marginal and that this won’t unleash a new round of capital spending on lounges, that CFO Devon May won’t go down without a fight.
Information about the Citi AAdvantage Executive Card is neither provided nor reviewed by its issuer.
Gary, it appears the new Loyalty Point bonuses are not tied to spend. So basically card members who fly a lot are getting a 20k LP boost just by having the card.
“Earning 4 miles per dollar on American Airlines tickets, with this coverage, is probably ‘good enough’ to forego 5 points per dollar with an American Express Platinum card since that spending also earns Loyalty Points.”
Is this a change or are you saying that earning 1 loyalty point per $ is worth it? Currently AA spend only provides loyalty points at 1 per $ though AA miles are earned at 2 per $.
“overcooked mac and cheese and meatballs will remain the standard”
Wait, hold up – looks like I relinquished my AC membership (in favor of less time in airports or just eating at actual restaurants) too early…in my day it was snack towers of sadness and cheese plates. What you describe sounds fantastic.
“I still learning whether there’s anything besides Newark and Delta clubs actually being done in the new lounge motif ”
Huh?
Gary, if you have the card, can you access the American lounges any time, or only when flying American?
@gina – you have to be flying American or a qualifying partner airline, you cannot for instance (1) access the lounge when not flying based on your membership, or (2) access when flying a non-partner airline like Southwest.
If you want to access when not flying American, try this https://viewfromthewing.com/the-surprising-way-you-can-throw-big-group-parties-at-the-airport-whether-youre-flying-or-not/
@Collin Weber — err.. Denver.
Hopefully, the sparkling wine will be better than Andre or Barefoot.
@Steve – 4 AA miles + 1 Loyalty point will be worthwhile to those who care about AA status, even though they are giving up more (5) of a more valuable currency (Membership Rewards)
@DWT – Indeed, it appears you’ll get a Citi Loyalty Points bonus for spending on the Barclays Aviator cards! 😀
It would make a lot of sense for AA to improve the lounges then jack up the price when people can see that the improved lounges provide more value but that’s not how American does things.
Gary — can you elaborate on what this means: “10,000 each earning 50,000 and 90,000 Loyalty Points in a year rather than once at $40,000 card spend”
It feels like there are some words missing or maybe it’s a typo?
Will cardholders be able to continue to bring ticketed guests (same record locator) to the club? Thanks!
One important thing of note in the terms: “ American Airlines AAdvantage® bonus miles are not available if you have received a new account bonus for a Citi® / AAdvantage® Platinum Select® account in the past 48 months.”
I’ve been doing the SUB game since 2017 or so…but I have no idea how I could ever hit $10k spend in 3 months no matter how bad I want 100k AA miles.
American Airlines AAdvantage® bonus miles are not available if you have received a new account bonus for a Citi® / AAdvantage® Platinum Select® account in the past 48 months. The card offer referenced in this communication is only available to individuals who reside in the United States and its territories, excluding Puerto Rico and U.S. Virgin Islands.
Are existing authorized users grandfathered in and the 175 fee won’t apply?
– What is new? An increase in the annual fee by 32% + charges for additional cards with a promise of better meatballs in the Club and giving more AA miles which may have even less value tomorrow.
@Eric – no
Will the rental car insurance be primary coverage? Why use this card for the $120 Avis/Budget credit if there’s no insurance included? Will continue to use another card that already includes primary coverage.
What’s not to like? Fewer people in lounges and upgraded F&B, for an extra $145 a year, with more than enough spending credits to result in a net reduction in annual cost. Folks will complain about almost anything, I suppose. For those of us who travel on AA all the time (for better or worse), I’ll take this change every single day.
When does this go into effect?
Gary: I have been an Admirals Club member for 30 years, paying an annual fee for myself (EP) and wife (PP). I just received an email saying my fee next year would be $1,500 (for the “household.”)
This isnt consistent with the pricing you quote above – can you explain please?
@Solucia – club membership pricing is based on elite status and first year vs subsequent year pricing is different.
Literally just got an email blast that makes it pretty explicitly clear that the loyalty point bonus applies just for having the card, regardless of spend on it, that’s actually pretty strong:
As an employee we tried the new food and it is NOT an improvement. I wouldn’t pay these new prices for that cheap quality. $79 for a day pass and $850 for a membership for one person is too much for these embarassing options. Even for the credit card, $100 less than AMEX and not nearly as many offers. (Even the Lyft credit is a puny $10/month AFTER 3 rides)
With this price hike, there’s going to be a lot less members and people are going to cancel their Citi card (and I’ll be one of them)