Just curious as to why a lot and/or most of the credit cards that offer annual travel incidentals features tend to limit it to just airlines and airfare? For example, is there a reason why the issuers do not make the travel incidentals eligible for other travel methods (such as trains for instance)?
@galahad15 wrote:Just curious as to why a lot and/or most of the credit cards that offer annual travel incidentals features tend to limit it to just airlines and airfare? For example, is there a reason why the issuers do not make the travel incidentals eligible for other travel methods (such as trains for instance)?
My guess is that it helps them target the type of user that is most valuable for them.
People who travel by air are probably more affluent and bigger spenders than people who travel by train or bus (this is a generalization of course). People on corporate expense accounts probably travel by air way more frequently than any other method. Card users that spend more are more valuable to the issuers so banks are always trying to target them.
Banks hand out rewards and perks not out of the kindness of their hearts, but in order to make more money.
@wasCB14 wrote:
@Anonymous wrote:
@galahad15 wrote:Just curious as to why a lot and/or most of the credit cards that offer annual travel incidentals features tend to limit it to just airlines and airfare? For example, is there a reason why the issuers do not make the travel incidentals eligible for other travel methods (such as trains for instance)?
The harder it is to use the less likely you are to use it.
The technical term is "breakage" for these wasted allowances.
CSR was designed with the knowledge that millennials have "unconventional" travel preferences (not just planes and chain hotels). The super-flexible travel credit shows Chase wants the credit to be easy to use, even if it costs them more money. When Amex responded with the Uber credits on Platinum, they showed they still like to save some money from expected breakage (monthly and not annual, just Uber and not competitors).
Yes the CSR is admittedly more flexible than other cards (i.e., such as the BoA Premium Rewards card) in terms of travel incidentals redemption options. However, due to the AF which is incurred, whether it is $450 vs. $150, I was actually more interested in the FNBO Travelite card that I have since it provides a $100 annual travel incidentals credit, but also with no AF -- although as far as I am aware, in the case of the Travelite, the annual $100 travel credit can only be redeemed for airline transactions. IME, with the Travelite card, the travel credit is more like $100 of free money per year, whereas with the CSR, you're spending money you would have spent on travel anyway, ultimately even before the minimum $150 AF kicks in? Also I think I read somewhere on here recently that the CSR recently changed the T&Cs so that rewards points are no longer applied to purchases that count towards the yearly $300 travel credit?
CSR is a $150 AF card w/ an additional travel flex of 1.50x UR redemption through chase’s travel portal.
3x is huge for business and personal spend.
Personal Cards: Amex Plat | Amex Delta Res | CSR | Citi AA Exec Business Cards: Ink+ | Amex BGR
@wasCB14 wrote:
@Anonymous wrote:
@wasCB14 wrote:
@Anonymous wrote:
@galahad15 wrote:Just curious as to why a lot and/or most of the credit cards that offer annual travel incidentals features tend to limit it to just airlines and airfare? For example, is there a reason why the issuers do not make the travel incidentals eligible for other travel methods (such as trains for instance)?
The harder it is to use the less likely you are to use it.
The technical term is "breakage" for these wasted allowances.
CSR was designed with the knowledge that millennials have "unconventional" travel preferences (not just planes and chain hotels). The super-flexible travel credit shows Chase wants the credit to be easy to use, even if it costs them more money. When Amex responded with the Uber credits on Platinum, they showed they still like to save some money from expected breakage (monthly and not annual, just Uber and not competitors).
CSR is also hopeful that people don't use the travel credit. Otherwise just lower the fee to 150 dollars and get rid of the travel credit. Also you do realize trains and non-chain hotels pre-date Millenials?
I suppose some people won't use it, but I expect breakage on CSR's $300 travel credit is lower than it is for Prestige's $250 airfare credit...and especially Amex's airfare extras and Uber credits.
I think there is a psychological element at play with the credits (at least for CSR). Call it a $150 card and it may not seem all that different to non-credit-geek customers from the numerous $95 cards (even thought it certainly is). But call it a $450 card (even if, economically, it's closer to $150) and high-spending customers may take more pride in it. They can show off the "$450" card to friends and dates.
I take pride in traveling for free and I played some very exclusive private golf courses for only $100 w/ CSR infinite. The little things some don’t know you can get with this card.