PIONEER

Average annual fee per credit card is $39. Surprisingly low IMHO.

Charge offs for bad debt about 2/3 of a $billion.

Additional expense for membership rewards about 1/3 $B because they raised their estimate of the % of points that will be redeemed to 94%.

Coolers

Didn't expect their predicted redemption rate would be so high.

PainCorp

I thought the same thing. Maybe they have some awesome transfer bouses coming up?

Wishful thinking, obviously....

some dude

Or perhaps there are other forces at play. I'm certainly burning my AX MR points at a much faster pace now than in the past. I have a bit more time to travel, and with devaluations everywhere, it seems like this may be a 'last hurrah' of the way things used to be.

mia

Overlapping discussion here:

http://www.flyertalk.com/forum/ameri...t-5-400-a.html

gum

Thank you Pioneer for sharing the info: "Average annual fee per credit card is $39."

I am not really sure if this number is astonishingly low or not. Just thinking of many co-branding credit cards like the German Payback Amex or some BA cards. I assume there is a revenue split with a percentage which the interested public doesn't know.

But one message is interesting: If the average yearly fee is only 39 $ then all of the people having a higher tier card shouldn't be disappointed with their colour they now have. Think of the different posts with strategies of manufacturing spending to get an invitation for the next level.

So this number reassures all Green, Gold, Platinum card holders that they are paying above the average and can be confident with their card.

kngspook

Perhaps a little OT, but what are you referring to by "the way things used to be"? And why do you think it's ending (as opposed to maybe a temporary dip)?

nall

There are a lot of cards with a $0 annual fee.

CFFrost

And I would presume that those cards are held, on average, for a much longer duration of time than higher fee cards.