FlyerTalk Forums - View Single Post - (Ended Nov 30, 2017) Now for all CA residents! Instant companion pass for Visa card
Old Oct 9, 2017, 4:22 pm
  #14  
joshua362
 
Join Date: Oct 2001
Programs: LTP, PP
Posts: 8,690
Originally Posted by toomanybooks
This is amazing. Perhaps the strongest CC signup bonus ever offered by anyone.

I think I must not understand the CC/airline business if this is anywhere close to making sense economically.
You do. All this says that there is plenty of margin and markup to give back and profits to enjoy on both sides. More so today and banks and airlines have merged the competition down to a precious fee.

Chase enjoys the endless merchant processing fees, annual fee and usurious interest earnings from non FT and non financially savvy customers. That's a huge segment of the population to which credit cards are like crack and revolve balances monthly.

Condiencently I just moved my CC processing business to Chase for a promised 3% flat rate cost vs. the 6-7% all in bs I was paying. My phone rings all day with pedders pushing their CC services. That and Goggle marketing must be ridiculously profitable to spend so much time & effort to drum up new business.

WN enjoys the income from the points purchased by Chase to hand out and incurs very little incremental cost to bring a companion onboard. Again, outside of FT and the travel blog universe, the overall CP utilization rate must be fairly low, 1 or 2 trips a year. Most people have jobs and a family that get in the way of heavy use like retirees and travel bloggers can boast. It's a nice shiny gold star to aim for but my yearly usage has varied from 4 RT to 0 since 2003...

YMMV.
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