FlyerTalk Forums - View Single Post - OT: UK vs. US credit card bonuses, and FF program culture?
Old Dec 12, 2006 | 3:30 pm
  #7  
Rojo
All eyes on you!
20 Years on Site
 
Join Date: May 2003
Location: USA
Posts: 387
Originally Posted by salut0
OK, I know we all complain about rip-off Britain...
but what about mileage credit card bonuses?

The recent AA Citibank UK card offer (a rarity, since the usual bonus is only 5000 miles) gave you:
20,000 miles for a spend of £1000
ie. 20000 miles : $2000 approx at the current exchange rate (almost £1:$2)

The current US offer (which seems to be standard) gives you:
20,000 miles for a spend of $250
ie. approx 20,000 miles for a spend of £125

That's *eight times* more generous. Why?

I'd be interested to hear people's thoughts here...
The answer to your question is quite easy, it all depends on how mature the credit card market is, how much growth does Citi want in the Credit Card business of each country and the Product Manager's view of its product and competition. Now, if you want to compare the Citi AA credit cards all over the world the best I have found is Mexico's AA Citi Mastercard (take it from an insider):

25,000 miles for opening the account and doing your first purchase (it could be a $1 peso purchase / US$0.09 / UK$0.05)

Earning Ratio:
1.5 miles per MX$11.00 / US$1.00 / UK$0.50
2.0 miles per MX$11.00 / US$1.00 / UK$0.50 on American Airlines purchases

During October, November and December 2006 you get:
2.0 miles per MX$11.00 / US$1.00 / UK$0.50
3.0 miles per MX$11.00 / US$1.00 / UK$0.50 on American Airlines purchases

Annual Fee: US$80 / UK$40 (First year free if you apply over the internet)
Rojo is offline