Frequent Miler on the Air
Which cards will be couponized next? | Coffee Break Ep51 | 4-1-25
Apr 1, 2025
Credit card issuers are raising annual fees while adding puzzling credits, sparking speculation on the future of couponization. The discussion dives into anticipated updates for the Platinum card and potential shifts in airline and hotel rewards. Exciting predictions emerge about Southwest and American Airlines credit cards adapting to this trend. Insights into partnerships with car rental companies also reveal how these strategies may reshape credit card incentives. The conversation explores the complex landscape of maximizing rewards in this evolving market.
19:06
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Quick takeaways
- Credit card issuers are increasingly adopting couponization by raising annual fees while offering seemingly random credits to justify these costs.
- Predictions suggest that both airline and hotel cards, including the Southwest and Marriott Brilliant cards, may soon incorporate couponization strategies to enhance customer loyalty.
Deep dives
The Rise of Couponization in Credit Cards
Credit card issuers have increasingly adopted a strategy of couponization, where they raise annual fees and provide unrelated credits to justify these increases. This trend began with the AmericExpress Platinum card in July 2021, which elevated its fee to $695 while introducing various credits such as Uber and digital entertainment. Following suit, many other cards, including the City Advantage Executive Card and Amex Business Gold, have incorporated similar tactics, often providing seemingly random benefits like restaurant and rideshare credits. This approach is seen as a way for issuers to market cards favorably, claiming high annual value without clearly stating the limitations associated with redeeming these credits.
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