Cathay Pacific Asia Miles - HSBC $15 = 1 Asia Mile from 1 Feb 2009

Just got this tiny piece of paper from HSBC ... with "revised" terms and conditions for HSBC credit cards.

From 1 Feb 09, HK$15 = 1 Asia Mile.

The annual fee has gone up to HK$300 per year.

I'll be using my HSBC card even less from now on ....

And I'll remember to convert my existing points to miles before 1 Feb 09!

Thanks for the heads up - I hadn't received (or didn't notice) that. I had been keeping points in my account until just before expiry to get maximum total life, but I guess now I'll just move everything across and cancel my Mileage Programme membership. I'm only putting a few thousand dollars a year on the HSBC card now anyway as a last resort if both the CX Amex and the Citi Premier Miles aren't usable for some reason.

I don't use my HSBC cards often anyway unless during special promotions (e.g. Elements), but I think I still have some ~1M points these couple of years via various promotions - need to convert all of them to Asia Miles or other programs soon...

but, what I'm afraid is, other banks will soon follow suit, and so HKD 12=1 mile becomes HKD 15, HKD 6 = 1 mile becomes HKD 7.5, HKD 8 = 1 mile becomes HKD 10, etc...

argh... i'm a bit annoyed- i've got a installed payment on my HSBC card- i guesss there isnt much i can do about it... anyway, with a total of 5000HKD i wont lose much....

Does anyone in the business know if this is fundamentally because AsiaMiles has increased the price to merchants of buying them?

I think the key underlying reason is that the "cost of lending" and default rates have gone up leading to a reduction in margin for the cc companies. I would expect the others to follow suit.

I think the key underlying reason is that the "cost of lending" and default rates have gone up leading to a reduction in margin for the cc companies. I would expect the others to follow suit.

Correct. Credit Card margins have gone down sharply. The average Cost of Fund (transfer pricing) has gone up to almost 4-5% for the last few months, where normally its close to 1-2%. Add on the credit card defaults, tightened lending policies and falling transaction volume, then you have the Credit Card associations increasing their fees. Its all adding fuel to the flames, so banks are doing whatever to cut costs. The bank I work for is converting from cash rebate to loyalty points programme since the reduction in costs is close to 30%. Why? there's always the individual that forgets about his soon-to-expire points :p

Although my bank's credit card products is not associated with any airline FFP transfer program, we have heard news on the street that the airlines are increasing their "administrative charges" and generally increasing the cost of Credit Card points to FFP Miles conversion. This is why Citi broke up with CX. AMEX hopes in aligning with CX, they can crosssell another AMEX card to the CX AMEX member, but they're paying big bucks to win CX's heart.

I wonder if the Canadian CX card will experience the same thing:

The RBC CX Platinum Visa gives you 1 Asia Mile for $1 CAD spent, so about HK$6.30. Or you can use the Visa Infinite Avion to convert the points 1:1 to Asia Miles for the same spending. Granted it has an annual fee of $150 and $120 respectively. Maybe I should convert the Avion points before they change the conversion ratio.

Just got this tiny piece of paper from HSBC ... with "revised" terms and conditions for HSBC credit cards.

From 1 Feb 09, HK$15 = 1 Asia Mile.

The annual fee has gone up to HK$300 per year.

I'll be using my HSBC card even less from now on ....

And I'll remember to convert my existing points to miles before 1 Feb 09!

Do you know if this is also true for HSBC to Krisflyer?

I believe so. The amendments are here: http://www.banking.hsbc.com.hk/hk/personal/special/card/images/prom238x_5.gif and the 15:1 seems to be generic, not specific to AsiaMiles.

I have already redeemed my remaining points and will cancel the Mileage Programme Fee as soon as they arrive (typically, there is no way to do this online so I guess I will need to go to a branch and fill in a form!).

I usually just call their hotline and tell them I want to opt out of the Mileage Program (otherwise it's automatic renewal every year after you sign up for it) - and then it's really handled smoothly on their side, no need to go to their branch at all...

I usually just call their hotline and tell them I want to opt out of the Mileage Program (otherwise it's automatic renewal every year after you sign up for it) - and then it's really handled smoothly on their side, no need to go to their branch at all...

I dont know for HSBC card. But I remember a couple of years back when AMEX announced some less atractive mileage gain on my French spending. I called them to cancel my card. I have several credit cards but was spending a lot on this AMEX. To induce me to remain customer, they extended the old mileage credit indefinitely. Maybe HSBC would to the same for high-spending clients.

thanks for the headsup.. will be transfering all my HSBC points before Feb then... the only thing I find attractive with the HSBC cards these days are the dining promotions they have.. otherwise with other purchases, I rather use Citibank or Amex cards...

The HSBC Philippines Premier Master card converts to 1 Asia Mile for every 35 PHP spent = 1 Asia Mile for 5.78 HKD

Reading the above this looks like good value

That is extremely good value by the standards of HSBC, and better even than the best cards in HK (which do HK$6:AM1 for some promos and HK$8:1AM more generally).

Thats for Premier, the Philippine HSBC Regular Credit Cards convert to asia miles at 70 PHP to 1 mile, thats about HK$11.40:AM1

Interesting - there's no mileage benefit from being Premier in Hong Kong - all HSBC HK cards are currently $12:1, going to $15:1.