topic Re: Citi AAdvantage Executive Annual Fee in Credit Cards

Citi AAdvantage Executive Annual Fee

speednangels — Sat, 25 May 2024 05:23:16 GMT

Just came up on my renewal for the Citi AAdvantage Executive card and had my annual fee post. I was surprised to see that my renewal only shows on annual fee of $450 instead of $595. I first got the card in April 2023 and Citi upped the annual fee starting in July 2023. I don't recall seeing any info about a delayed kick in for the new annual fee nor anything mentioning a potential 'grandfathering' of the prior annual fee. Has anyone else seen the $450 for a recent renewal? Pleasant surprise nonetheless.

Re: Citi AAdvantage Executive Annual Fee

MarkintheHV — Sat, 25 May 2024 09:39:33 GMT

My annual fee is coming up in July. I have been wondering if I will get my original $450 or if they bill me the $595. I am already researching other cards to convert to if they try to hit me for $595. I already have the AA business card (only use it for bill pay), so I am looking at no/low annual fee alternatives.

Now that Delta is finally serving my main destination in Texas, I haven't been flying AA too much, so my reserve card serves me well.

Re: Citi AAdvantage Executive Annual Fee

Aim_High — Sun, 26 May 2024 20:25:09 GMT

Interesting that the AF is still being charged at only $450, @speednangels.

The thread announcing the changes was almost a year ago and my own notification was on 07/12/2023, >according to my posting in that thread. But I was pleasantly surprised to see that my AF was next charged in October 2023 at the original $450 rate. I thought I was just getting in 'under the wire.' Perhaps they are giving all existing cardholders a full year at the older rate as courtesy? Or perhaps the higher AF will only apply to new applicants?? (That would be nice.) Meanwhile, I've been able to redeem some of the new credits with no issues, which has lowered my effective AF. I don't use LYFT to get the $120 annual ($10 monthly) credits, but I have been using the $10 monthly GrubHub and the $120 annual AVIS rental car credits.

Data points from existing cardholders after July-August time frame would be especially helpful, as would be data points from members who were approved last fall after the increases were first announced.

Re: Citi AAdvantage Executive Annual Fee

speednangels — Mon, 25 Nov 2024 06:58:00 GMT

Wanted to quickly bring this back to see if there are any additional/more recent data points. Anyone else who had the card prior to the AF increase still receive the old AF rate when renewing this year?

Re: Citi AAdvantage Executive Annual Fee

nccarguy1 — Tue, 26 Nov 2024 02:49:16 GMT

My annual fee posted on my July 2024 statement at $450.

Re: Citi AAdvantage Executive Annual Fee

Aim_High — Mon, 09 Dec 2024 01:12:06 GMT

@nccarguy1 wrote:
My annual fee posted on my July 2024 statement at $450.

I dodged the AF increase last year but they assessed my October 2024 AF at $595.

I think the grace period is over, @speednangels.

Re: Citi AAdvantage Executive Annual Fee

NAVYCHOP — Sun, 15 Dec 2024 09:03:17 GMT

The big jump was not the annual base fee from $450 to $595. It is that they started charging for additional cards. I had a renewal fee exceeding $1600 this year based on the number of additional cardholders I had on the account. I had to cut some back to bring my annual fee to a more manageable level in the $900 range. In the past all additional cards were no cost. So this year my annual fee roughly doubled from $450 to $900 and I have fewer additional cardholders on the account than when I paid $450 a year.

Re: Citi AAdvantage Executive Annual Fee

Aim_High — Sun, 15 Dec 2024 23:23:09 GMT

@NAVYCHOP wrote:
The big jump was not the annual base fee from $450 to $595. It is that they started charging for additional cards. I had a renewal fee exceeding $1600 this year based on the number of additional cardholders I had on the account. I had to cut some back to bring my annual fee to a more manageable level in the $900 range. In the past all additional cards were no cost. So this year my annual fee roughly doubled from $450 to $900 and I have fewer additional cardholders on the account than when I paid $450 a year.

I hear you, @NAVYCHOP. That was a big change. However, I completely understand CITI and AA's dilemma also and, to a limited extent, support limiting authorized users more. I just believe they took the crack-down too far.

The purpose of the Admiral's Club was to give the airline's most frequent fliers and heaviest spenders a private place to get away from the main public areas, while enjoying the food, beverages, and perks. Of course, operating a lounge like this is expensive. Before accounting for the AAdvantage Executive credit card or a higher elite status, the normal annual membership fee is $800 for an individual and $1600 for a household. Even a one-day pass is $79.

Previously, allowing up to 10 AUs with full lounge access at no added annual fee was an invitation to abuse. I personally know of some groups of unrelated people (and probably families also) who split that high AF multiple ways. Then, each of those people could bring guests to the Admirals Club. The result was overcrowding and inconvenience for the airlines higher-spending guests, defeating the original purpose of having an "elite" lounge. Plus, there was a huge added cost to operate the lounges. There is a big difference in someone paying $800 for annual access, another for $450, and another for $45 at the old AF rate. (So a group dividing up that old AF by 10 was paying less than the price of a one-day pass for an entire year's access!)

I do believe they should have included somewhere between one and three complimentary AUs, mainly to allow for spouses, regular travel companions. or limited immediate family members. At that $450 to $595 AF price-point, that would have been reasonable. IMO, it would not have even been wrong for CITI to ask about the nature of relationship or to require some proof. However, allowing ten, and then not being more strict about the relationship, was a bridge too far. I don't know of any other lounge program that would allow such loose membership tolerances and it's a wonder it lasted at all. Those who didn't split the fee 10 ways, and who pay that full $595 to $800 for membership shouldn't have to wait in line for access, find crowded lounges with limited seating, or experience cuts in the quality of service for the lounge to continue operating efficiently. The AU fee just puts everyone on a more equal playing field and discourages abuse.

While I don't like the increase and wish I could add my spouse as a free AU, we usually travel together so it's not worthwhile for her to have a separate membership. I haven't used my $120 annual LYFT credits but I've used some or all of the AVIS and GrubHUB credits which has softened the increase. I'm actually paying less for the fee today if I fully use just those two credits ($450 versus $595 - $120 - $120 = $355.) If I used all three, the effective AF would be just $235.