Free Travel, Free Nights

[NRB525]

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@TheBoondocks wrote:
Long term lurker, that's exactly what I'm trying to say, you and Shadow get me lol.

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Well, everyone else commenting on this thread also gets it.

Here is the math:

Pay $850 in Annual Fees for the combination of Chase Sapphire Reserve plus US Bank Altitude Reserve. Discuss with Significant Other "Why are you spending $850 in credit card annual fees???" Explain.

Spend $325 for Travel Coded costs on the US Bank Altitude Reserve, see a $325 credit on a near term statement. Net fee: $75.

Spend $300 for Travel Coded costs on the Chase Sapphire Reserve, see a $300 credit on a near term statement. Net fee: $125.

Out of pocket cost:

$325 paid for travel on Altitude Reserve

$300 paid for travel on CSR

$75 paid for Annual Fee on Altitude Reserve

$125 paid for Annual Fee on CSR

Total amount paid: $850

[Anonymous]

 If you are getting less benefit than the annual fee why keep them?  Even at $150 dollars fee are you getting more value out of the card over a 2 percent cash back card with no fee.  Or another travel card with a lower fee 

If you are an infrequent traveler the Priority Pass is going to have limited value.  A lot of the Priority Pass lounges aren't even worth going into.  Some are in other terminals than the one you are flying out of.   

[TheBoondocks]

Hahaaha NRB!

[wasCB14]

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@NRB525 wrote:

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@TheBoondocks wrote:
Long term lurker, that's exactly what I'm trying to say, you and Shadow get me lol.

---

Well, everyone else commenting on this thread also gets it.

Here is the math:

Pay $850 in Annual Fees for the combination of Chase Sapphire Reserve plus US Bank Altitude Reserve. Discuss with Significant Other "Why are you spending $850 in credit card annual fees???" Explain.

Spend $325 for Travel Coded costs on the US Bank Altitude Reserve, see a $325 credit on a near term statement. Net fee: $75.

Spend $300 for Travel Coded costs on the Chase Sapphire Reserve, see a $300 credit on a near term statement. Net fee: $125.

Out of pocket cost:

$325 paid for travel on Altitude Reserve

$300 paid for travel on CSR

$75 paid for Annual Fee on Altitude Reserve

$125 paid for Annual Fee on CSR

Total amount paid: $850

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If everyone else gets it, then I guess I don't.

$325+$300+$75+$125=$825, not $850.

The notional net AF (which I dispute, given that I think it is necessary to add back the opportunity cost of rewards on $300 of travel) on CSR is $150.

So by your chosen method of determining net AF, it should be $325+$300+$75+$150, right?

[NRB525]

Yes, $150 net on the CSR.

[UpperNwGuy]

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@Anonymous wrote:

 If you are getting less benefit than the annual fee why keep them?  Even at $150 dollars fee are you getting more value out of the card over a 2 percent cash back card with no fee.  Or another travel card with a lower fee 

If you are an infrequent traveler the Priority Pass is going to have limited value.  A lot of the Priority Pass lounges aren't even worth going into.  Some are in other terminals than the one you are flying out of.   

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Exactly!  Priority Pass has limited value for those who travel infrequently, and for those who only travel domestically, and for those whose flights leave from a different terminal.

And, if you have the Priority Pass benefit on two or more high-fee cards, you are paying for the same Priority Pass benefit two or more times.

[wasCB14]

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@UpperNwGuy wrote:

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@Anonymous wrote:

 If you are getting less benefit than the annual fee why keep them?  Even at $150 dollars fee are you getting more value out of the card over a 2 percent cash back card with no fee.  Or another travel card with a lower fee 

If you are an infrequent traveler the Priority Pass is going to have limited value.  A lot of the Priority Pass lounges aren't even worth going into.  Some are in other terminals than the one you are flying out of.   

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Exactly!  Priority Pass has limited value for those who travel infrequently, and for those who only travel domestically, and for those whose flights leave from a different terminal.

And, if you have the Priority Pass benefit on two or more high-fee cards, you are paying for the same Priority Pass benefit two or more times.

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Plus some lounges wait-list PP customers, restrict them to off-peak hours, or sometimes refuse PP entirely even though they are officially participating and are listed. Under extreme crowding cases I've heard of Amex customers being turned away from the small CentSFO (after being given a restaurant voucher or a promised credit)...but that's rare. In contrast, lounges refusing PP is quite common.

I'm not sure about the "paying twice" idea. I don't know what issuers pay these days for customers' Priority Pass, but I kind of suspect issuers may have negotiated lower bulk membership rates. Since so many cards offer it now and lounges are busy, I wonder if issuers feel the fair value of PP has declined...and that PP is willing to deal at lower prices, since they sell so many memberships in bulk.