Originally Posted by
krazykanuck
I don't know this, but I'd expect that there is some form of revenue to United for spend on their co-branded cards while spend on the CSR, there wouldn't be any kickback for that. I'd be willing to bet that CC spend on the United co-brand cards is down, maybe a lot, since the CSR release, since if you hold both, there's no reason to spend on your United card when you earn more points on the CSR (unless it's a United flight and you need the checked bag waiver, or you're spending to meet the PQD waiver). Also with the United card being 5/24 restricted that must be limiting new sign ups at least a bit.
Lots of reasons one might spend on UA cards. For example, many need to hit the PQD waiver, which means mine gets at least 25K, even if it means many restaurant purchases gets me 2x vs. 3x (I have a legacy UA card that doesn't exist anymore). Also get groceries, drug stores, gas stations at 2x, as well, while CSR only gives me 1x, so I use it there instead of CSR.
Originally Posted by
krazykanuck
The other competitive argument, who else would UA pair up with for a co-brand card? Every other major issuer already has an airline, or in Barclay's case they have like 4, so.... where would they go without DL or AA throwing a fit? I think UA and Chase, for better or worse, are kinda married to each other for the near/mid term.
UA could pair with anyone they want. I doubt they will go away from Chase...too much $ for both, IME. And while there aren't a lot of huge, national banks left, there are lots of big regional banks that probably would jump at the chance to sign up with UA on co-branded cards. Thinking banks like Fifth Third, or even TD Bank. Not necessarily household names in certain parts of the country (doubt those in California knows TD, for example), but if UA co-branded, they'd market and folks would still get it. There are also other bigger banks - does Wells Fargo, for example, have a big airline partner (though I would be very hesitant to get anything from WF with their reputation, but it could be an option).
Originally Posted by
1120
Good post, krazykanuck.
I should have been more clear - I think CSR is superior to all of the airline branded cards.
In my experience, the UR portal is often competitive or better than (to me) the ever diminishing availability of flights via FF programs.
I have wondered what Chase's other co-branded card partners (UA, Marriott, etc) think about UR.
Here's my guess: They've lost material market share to UR cards and they aren't happy about it.
I'll be interested to see how this plays out.
It depends what you are looking for - CSR works better for a lot of people, but not everyone can afford or even want a card with a $450 AF.
The other issue is that no matter what, CSR (and Amex Plat...and Citi Prestige, etc.) are still out there and are competing. If Chase and UA were to end their agreement, UA would find another bank and have them offer their cards. And they'd still have the same issues of competing...doesn't matter which bank is issuing it. UA could, i suppose, pull out of UR, hoping that there would be many that switch back to a UA card (whether they are issued by Chase or someone else). But I'm not sure that would work out so well. CSR and similar are always going to offer more flexibility than single-airline branded cards. UA could try to add new features to help make up for that, but reality is, they will never be as flexible.