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| Rewarding loyalty |
| by Brian Kelly |
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Hi everyone,
Before we get into this week’s topic, I wanted to share a few thoughts with you (and answer your questions) about what to do if you have upcoming travel plans, given the state of world affairs right now.
I’m sharing a lot of information and reader experiences on my Instagram stories. Thank you to everyone who has shared their experience with me. It’s been an unbelievable week watching the developments in the Middle East unfold — so much has happened since last week’s newsletter.
It’s been fascinating to learn and help people find flights and ways out of the Middle East since the conflict broke out. But, the biggest question people have, by far, is “Is it safe to travel?”
The bottom line is no one can make that decision for you. You have to do what is best for you, your family and your situation. But I will share my opinion as a travel expert and what I would be doing.
I am currently traveling in Portugal, where I feel, frankly, safer than I do in the U.S. I am avoiding the Middle East right now (the countries directly involved), as well as Egypt and Turkey. The State Department issued an alert of “Worldwide Caution” for U.S. citizens. Would I go to Morocco? Yes. That’s just a personal decision. What about sub-Saharan Africa, South Africa and Asia? Also yes. But I’ve also traveled to those regions before and feel comfortable there. I wouldn’t transit through the Middle East, though; I’d fly from the West Coast to and through Asia. Even Mexico is largely back to normal now.
No matter where you decide to travel, it’s always a good idea to enroll in the State Department’s Smart Traveler Enrollment Program to log trips and receive travel alerts.
Now, on to this week’s topic — cobranded credit cards and how they’re changing the loyalty game.
Out of all the card options available, flexible rewards credit cards are still my go-to credit cards. I’m a free agent now, and while I’m still loyal to certain airlines and hotels (and hold some cobranded cards), most of my spending goes on transferable rewards cards, mainly because I value the flexibility and choice of transferring my rewards wherever I want. I know many TPG readers feel the same, enjoying the versatility of holding cards with dozens of transfer partners.
But airlines and hotels aren’t too happy about this … and it’s starting to show.
Cobranded cards need to reinvent, and they are. They’re taking back the power by creating rules and regulations that give cobranded cardholders earlier access to awards, better and cheaper deals and more points and miles. Things that used to be free for all flyers are now exclusively reserved for airline and hotel cardholders.
Here’s what you need to know to come out on top.
United, Hyatt, Southwest and more: Understand the new rules
It’s been a big month for brands deciding to reward their cobranded credit card holders. Recently, United Airlines made a sweeping announcement stating that customers with United credit cards will earn more miles when flying than those without, and they’ll also have access to the best mileage deals.
TPG spoke with Jill Doyle, the airline’s managing director of its MileagePlus program, who told us, “We just know that when somebody has a credit card, they are more valuable to United.”
Hotels are starting to make similar changes. Hyatt just revamped its award program, drastically amending its award chart and stating that select elite members (Explorist and above) and World of Hyatt credit card holders will receive one month of early access to award night availability.
And elite members and those with credit cards win when it comes to Southwest Airlines’ new seating policy since the airline has recently shifted to assigned seating. It depends on the card (Southwest offers a few), but cardholders (and elite members) can select extra-legroom seats and preferred seats, sometimes as early as the time of booking.
Pick your top brands and stay loyal
Airlines and hotels are starting to reward loyalty and those who get their cobranded credit cards, but not necessarily with new and exciting perks. They’re now rewarding you for things that used to be free and available to all (like choosing a seat, earning a specific amount of miles or having access to certain award fares or rates).
So, in order to stay afloat in this new world, where you need to prove your loyalty in order to have basic travel allowances, define your loyalty ASAP and apply for a couple of cards for your favorite airline or hotel. Many cobranded credit cards have annual fees as low as $95, and it’s fairly simple to outweigh the fee with perks like free checked bags or a free hotel night.
Holding elite status with the brand might mean you get benefits similar to those of cardholders, so make sure to read the fine print before getting any new cards.
While I love my flexible reward cards, I’ll still keep my cobranded cards for the airlines I fly most often. They offer perks like lounge access and free nights, and while I won’t allocate a majority of my spending to them, I’ll make sure to have a few on deck.
Continue spending on your flexible rewards cards
Although the cobranded cards are shoving their way back into the game, I’ll still remain a free agent. Globally, although airlines like Air France and Emirates have recently made changes that benefit their own elite members, I don’t see this happening to the same extent with non-U.S. airlines and hotel brands since cobranded cards are less popular abroad.
I’ll still put the majority of my spending on my favorite flexible rewards cards:
Safe travels,
BK
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| Photo Credit: JONNO RATTMAN. |
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