I’m sick and tired of credit card coupon books, especially when they’re used to justify annual fee increases. Some consumers can make the economics work. The economics of the Entertainment Book used to work, too! There can be value here but the approach doesn’t respect my time, and it isn’t premium.
American Express really built this model with Platinum. And it’s spread. Delta cards have higher annual fees and more statement credits. It’s work and it’s a lot to track. And they’ve got you moving spend to the card – and often recurring spend, that’s annoying to switch out of – by doing so.
Now, in addition to revamping Hilton Surpass this year, the Hilton business card is losing benefits, seeing a new increased annual fee, and statement credits to help you cover that fee. It’s all so… annoying.
The card no longer will come with 10 annual Priority Pass visits or even free nights after each of $15,000 and $60,000 spend in a year. Yet it will cost more.
They’ve added $60 per quarter in Hilton statement credits and National Car Rental executive status. And they’ve changed ongoing earn – instead of 12x on Hilton spend / 6x on certain business and travel categories / 3x on everything else it’s now 12x on Hilton / 5x on everything else up to $100,000 in spend each calendar year then 3x thereafter.
The card, in my view, is more expensive and less valuable. Although it’s clear that for the first $100,000 in spend on the product what the value proposition is – effectively in my opinion a 2.5% rebate, but there’s no reason to have a nearly $200 annual fee to get that.
Amex is hardly alone, right? It was one thing when there were just airfare or travel credits against annual fees, which were almost as good as cash for people who spend real money on airfare. But when it’s merchant-funded offers like statement credits to drive business to a third party (your card company, effectively, selling you B2B) or offering accelerated earn with a specific partner and the issuer may not even be paying for it but it’s used to justify a higher annual fee?
I get it. The issuer wants to raise the fee, and make that go down easier. They want you moving your spend and jumping through hoops – and there are only so many cards you’ll do it with so if they succeed they capture more wallet share. American Express data must suggest the approach works because of how it’s spread. They’re happy. Customers are tired. At least I am.
The question is, have they figured out how to game us? Or will it erode brand value long-term?
Bottom line is you have to be a heavy user of these cards. It becomes a part time job to use the points etc. Paying a yearly fee for the airlines cards only is worth it for the free checked bag. I get 3% back on travel on AAA Visa and depending on the month you can get 5% back on Discover. I’ll take cash in hand over these oie in sky miles or points.
In Amex’s defense, this particular implementation of the “coupon book” actually makes a lot of sense. A $60/quarter credit with Hilton for… a Hilton credit card meant for people that frequent Hilton hotels!
Not flight credits, not credits for random unrelated services or businesses. Conceivably , there should be no issue in getting value here, even if you only leverage 3 out of 4 credits. If you’re staying less frequently than that, perhaps a Hilton CC with a $195 membership fee isn’t the right card for you.
When my card renews in January, I will cancel it. The only reason I had it was for the 15k free night. I would cancel it now, but I may as well get the $60.00 quarterly credits until January.
I am confused. I have the Hilton Surpass card and I am getting a free night for $15K spend in 2024. That is an existing card, but I looked at Amex page for new Hilton cards and they are still offering $15K free night with new Surpass cards.
I agree with your general annoyance about the trend (particularly with Amex) to “compensate” for higher AF fees by adding useless coupon book rewards, but that isn’t really the case here. The super expensive Aspire card DOES seem to be cluttered with tedious and (to me) useless credits, but the Surpass card has a $50/quarter credit for all Hilton spend that pretty much covers the higher AF if you stay at a Hilton property just once in a year. Some of the other details in the article seem mixed up too – I don’t think the point reward rates you quote are correct, for instance. And the new AF for Surpass is $150, not $195.
I agree with Gary regarding the Hilton business card, but that wasn’t on my radar anyway. The Hilton Amex cards are a “Goldilocks” bunch. The Aspire is NOT worth it, as there’s plenty of cards which don’t become a second job to use. The Hilton Surpass is the sweet spot, as it’s very easy to maximize the card than before for people who ACTUALLY stay at Hilton properties; the card is $50/yr for me, and the rest of the benefits are just icing. If that requires any work/mental energy on your part, the vanilla Hilton is for you. Not difficult.
Inexpensive PP access can be had through the Altitude Reserve/Venture X. (for normal families who travel as 4+ people…Amex Platinum/Sapphire Reserve lounge access is far too limited with guesting to be useful)
Well analyzed and well written and very correct.