The economy has been called K-shaped, E-shaped and possibly other letters, but one thing is for certain: The economy is shaky, and consumers are feeling it.
With 56% of Americans using their credit cards to cover basic necessities, shelling out anywhere between $400 and $900 for an annual fee is becoming harder to justify. So you have to ask yourself, is a premium card worth it right now?
[Read: Rewards Credit Cards]
What to Consider When Choosing a Premium Travel Card
There are multiple types of travel cards: general, airline and hotel. If you value flexibility over loyalty, then a general travel rewards card is worth more. But if you prefer a certain airline or hotel chain and value elite status, then a co-branded airline or hotel card fits your needs better.
Keeping that in mind, it’s important to consider what will provide you the most return on investment, or ROI, on a credit card that charges a high annual fee.
Transfer Partners
If you prefer flexibility with your travel card, it’s vital to consider an issuer’s full list of transfer partners. It’s the best way to achieve perks like free hotel nights or elite status without having to sign up for a co-branded credit card. Popular rewards-earning programs like Chase Ultimate Rewards, American Express Membership Rewards and Capital One Miles have a plethora of transfer partners.
Travel Perks and Benefits
With annual fees quickly approaching the $1,000 threshold, what the cards can provide you in return is more important than ever. In our most recent summer travel survey, we found that a majority of consumers value benefits such as free hotel nights (52%), free checked bags (45%) and upgraded hotel or airline status (32%).
So when ticking off the boxes of required travel benefits, consider perks you’d otherwise pay for like:
— Free checked bags
— Priority boarding
— Free hotel nights
— TSA PreCheck/Global Entry/CLEAR credit
— Upgraded hotel or airline status
— Airport lounge access
[Read: Best Credit Cards]
Statement Credits
Becoming more common with premium credit cards, these statement credits (or coupon books, depending on whom you ask) encourage you to spend at certain businesses and on certain products. But they don’t make sense if you have to go out of your way.
For example, the American Express Platinum Card® comes with a $300 Equinox credit, but if you don’t live near an Equinox or prefer a different gym, you’re essentially out that $300. The same goes for other offered credits like the $200 Oura ring credit or $155 Walmart+ credit. Find a card that doesn’t make you spend extra or go out of your way to earn a perceived perk.
Comparing Top Premium Travel Credit Cards
These are just some of the most popular premium travel credit cards. As you can see, annual fees range from just under $400 to close to $1,000. Normally, you receive the best and most benefits with a high annual fee. But making sure that annual fee is worth it will require some research.
| General Travel Card | Capital One Venture X Rewards Credit Card | Citi Strata Elite? | Chase Sapphire Reserve® | American Express Platinum Card® |
| Annual Fee | $395 | $595 | $795 | $895 (See Rates & Fees) |
| Rewards Rate |
— Unlimited 10 miles per dollar on hotels and rental cars booked through Capital One Travel — Unlimited 5 miles on flights and vacation rentals booked through Capital One Travel — Unlimited 2 miles on every purchase |
— 12 points per dollar spent on hotels, car rentals and attractions booked on CitiTravel.com — Six points on air travel booked on CitiTravel.com — Six points at restaurants on CitiNights? — Three points at restaurants any other time — 1.5 points on all other purchases |
— Eight points per dollar spent on all purchases made through Chase Travel? — Four points on flights and hotels booked direct — Three points on dining worldwide — One point on all other purchases |
— Five points per dollar on flights booked directly with the airline or through AmEx Travel® (on up to $500,000 per calendar year) and on prepaid hotels booked through AmEx Travel — One point on other eligible purchases |
| Travel Benefits |
— Airport lounge access — Global Entry or TSA PreCheck credit — $300 annual travel credit — 10,000 bonus miles every anniversary |
— Airport lounge access — Global Entry or TSA PreCheck credit — $300 annual hotel benefit — $200 annual splurge credit (which includes American Airlines) |
— Airport lounge access — Global Entry, TSA PreCheck or NEXUS credit — $300 annual travel credit — $500 credit for stays with The Edit — $250 credit for select Chase Travel Hotels (through Dec. 31, 2026) — $120 in Lyft credits — IHG One Rewards Platinum Elite status |
— Airport lounge access — Global Entry or TSA PreCheck credit, along with CLEAR credit — Up to $600 hotel credit — Up to $200 Uber Cash credit — Up to $120 Uber One credit — Up to $200 airline fee credit — Marriott Bonvoy Gold Elite Status — Hilton Honors Gold Status — Leaders Club Sterling Status from The Leading Hotels of the World |
| Number of Transfer Partners | 22 | 18 | 14 | 19 |
Let’s say you value perks like airport lounge access and TSA PreCheck. Daily passes for airport lounges typically cost between $50 to $100, and TSA PreCheck enrollment costs about $80 every five years (an annual cost of $16).
If you travel only two times a year but use TSA PreCheck and also check in to an airport lounge every time, your out-of-pocket costs every year for those two benefits would be between $216 and $416 — which is less than most of the annual fees listed above.
This means you have to find the missing value in other ways, such as elite status and statement and travel credits. This is why premium travel cards only make sense for the frequent traveler who can use multiple provided benefits at once.
[Read: Travel Credit Cards]
How to Decide if a Premium Travel Card Is Right for You
A premium travel card could be worth it if you:
— Travel at least three to four times a year
— Value airport lounge access
— Consistently check a bag
— Use statement credits
— Can juggle multiple cards
— Can hit the welcome bonus spending threshold without overspending
Consider skipping a premium travel card if you:
— Prefer a simpler way to earn rewards
— Find managing multiple cards overwhelming
— Only travel one to two times a year
— Don’t plan to use transfer partners
— Don’t care about elite status
[Read: Credit Cards With No Annual Fee]
Nonpremium Travel Credit Card Alternatives
If you’re realizing a premium travel rewards credit card isn’t worth it in today’s economy, consider these alternatives:
| Capital One Venture Rewards Credit Card | Citi Strata Premier® Card | Chase Sapphire Preferred® Card | |
| Annual Fee | $95 | $95 | $95 |
| Rewards Rate |
— 5 miles per dollar spent on hotels, vacation rentals and rental cars booked through Capital One Travel — 2 miles on every purchase |
— 10 points per dollar spent on hotels, car rentals and attractions booked on CitiTravel.com — Three points on air travel and other hotel purchases, at restaurants, supermarkets, and gas and EV charging stations — One point on all other purchases |
— Five points per dollar on travel purchased through Chase Travel (and on Lyft rides through Sept. 30, 2027) — Three points on dining, vacation homes, gas and EV charging, select streaming services and online groceries (excluding Walmart, Target and wholesale clubs) — Two points on all other travel purchases — One point on all other purchases |
| Travel Benefits |
— Global Entry or TSA PreCheck credit — $50 experience credit on every Lifestyle Collection booking — Hertz Five Star status |
— $100 annual hotel benefit — The Reserve access |
— $100 Chase Travel hotel credit — Primary rental car coverage |
More from U.S. News
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Survey: 65% of Americans Alter Summer Travel Plans Due to Rising Prices
Luxury vs. Utility: Evaluating Premium Travel Credit Card Fees in Today’s Shaky Economy originally appeared on usnews.com
