Question about the CSR travel credit

[galahad15]

I have a question about the CSR travel credit. The $300 annual CSR travel credit is touted as one of the major perks and benefits that the CSR offers, with cardmembers mentioning that it basically lowers the card's $450 AF to $150.  What I'm not quite sure I understand though is, since cardholders are assumed to be spending at least up to $300 annually on travel, isn't the $300 travel credit money that you would be spending anyway, without the CSR?  So how is it considered to be a net positive, if that is travel money that you would be paying regardless, whether to the CSR, another credit card altogether, or in cash?  Or in other words and to put it another way, I guess I'm not really getting how it is supposed to be a benefit, if you have to spend $300 just to "get" a $300 credit?  Doesn't that technically cancel out the benefit to a zero net gain?  Or is there something else here to the math that I'm not seeing here?

ETA:  corrected typo

[nachoslibres]

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@galahad15 wrote:

I have a question about the CSR travel credit. The $300 annual CSR travel credit is touted as one of the major perks and benefits that the CSR offers, with cardmembers mentioning that it basically lowers the card's $450 to $150.  What I'm not quite sure I understand though is, since cardholders are assumed to be spending at least up to $300 annually on travel, isn't the $300 travel credit money that you would be spending anyway, without the CSR?  So how is it considered to be a net positive, if that is travel money that you would be paying regardless, whether to the CSR, another credit card altogether, or in cash?  Or in other words and to put it another way, I guess I'm not really getting how it is supposed to be a benefit, if you have to spend $300 just to "get" a $300 credit?  Doesn't that technically cancel out the benefit to a zero net gain?  Or is there something else here to the math that I'm not seeing here?

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Two ways to look at it - you have a $450 premium travel card that has a $300 travel credit, or a $150 premium travel card.  That's about it.  The reason why the $300 credit is considered awesome is because competitors like the Amex card and even Ritz are for only fees on specific airlines and/or you have to call to get the credit applied to those charges.  With the CSR, if a charge is coded to travel and you have all or a portion of your $300 travel credit remaining it automatically gets applied against that charge.

[redpat]

It is really a prepaid expense.  I pay $450 but I will have $300 that can be used for travel.  I used mine the first month on a flight I had to book anyway so the net AF out of my pocket is still $150.

The good news is in 2017 I get the $300 advanced to me because my AF doesn't hit until Aug 2017.

The AF is really $55 higher than the CSP card to get 3x on travel and dining, plus 1.50x on UR portal redemptions.

[newhis]

And travel is not only any airline ticket or hotel, also tolls and even parking at the airport.

All automatic, no calls/chat/clics to apply to the $300.

[Anonymous]

The way I see it is that im getting the card to spend on soemthing that i would regardless.

If i'm not going to travel, i'm not going to get this card.

If I am going to travel, I will pay 450 as the AF for this card but have 300 as credit for a flight (or any travel coded purchase) that i would have purchased regardless. What's awesome is that the flight is "covered" under this 300 also gets 3X back so you are gaining 9 dollars from it. 

further, if you apply for global entry because you are traveling and want to use this card for travel purposes, you get a 100 credit for that as well. in a way, you save 20 bucks on the AF per year as global entry is good for 5 years. thus your annual fee that you pay is 130.

but like redpat said, it is considered a prepaid expense for travel. 

[Anonymous]

Here is a good rundown of what the travel credit covers with DPs:  https://www.flyertalk.com/forum/chase-ultimate-rewards/1787630-chase-sapphire-reserve-300-annual-tra...

You will get it reimbursed right away after each charge up to 300.  Then it resets jan 1. So in essence you could get it twice and in 12 months downgrade and keep your points and avoid paying a 2nd AF.  Making it 2100 in free travel after paying 1 $450 af.

[14Fiesta]

And in addition to the mentioned above you get complementary PP lounge access, valued at $399 alone. (CSP doesn't offer that)