Uniteds Relationship With Chase Bank Under Review?
#31
Original Poster
Join Date: Sep 2005
Location: JZRO
Posts: 9,169
Indubitably. But transferabilitythe lifeblood of URis a thorn in United's side, given Chase's CSR/CSP cards competingand winning!against United's. This begs the question, Would United suffer if it found another bank to issue its credit cards? Methinks not.
#32
FlyerTalk Evangelist
Join Date: Jan 2005
Location: home = LAX
Posts: 25,927
Could something like that (a "recalibration") happen with UR:UA in a renegotiation?
The "right" (from UA's perspective) transfer ratio "recalibration" would take care of any concern UA has about UR transfers without actually ending the ability to transfer.
Of course, such "recalibration" wouldn't be called that by FTers, they would use the word "devaluation" in that case.
IMHO all UA needs is to negotiate a way to make it harder to earn 1 UA miles with UR cards than with UA cards, and then their problem is solved. I don't see why it has to be all or nothing?
Last edited by sdsearch; Oct 21, 2017 at 8:45 am
#33
Join Date: Apr 2013
Posts: 225
Just curious...My Marriott card is in the drawer now, since CSR gives me more value even for Marriott stays (3x URs vs. 5x MRs). What is your rationale for using Marriott card, if you dont mind sharing? Cheers.
#34
Moderator: Travel Buzz
Join Date: Aug 2012
Location: Sunny San Diego
Posts: 3,090
Yes, but would Chase suffer if it lost UA, one of it's most valuable transfer partners, for those undeniably successful UR earning cards? Methinks so. I think Chase has a huge incentive not to cut themselves off at the knees here. They developed a terrific and valuable program with resounding success. But they need those partners. If UA left, and left the UR program, than Southwest would be the next most valuable airline partner (IMO), and that would leave most of the Eastern, Midwest and Southern part of the country finding those "valuable" Ultimate Reward points not quite so valuable.
Last edited by StartinSanDiego; Oct 21, 2017 at 9:46 am
#35
Join Date: Apr 2012
Location: SFO
Programs: AS MVP Gold 75K, UA Gold, Marriott LTT, Avis President's Club
Posts: 1,539
As long as they keep KE and SQ i'm happy
I'm a UA 1K and its getting harder and harder to find saver space (albeit better than AA/DL). However, anytime I search dates I want on KE they have first/business saver space. With SQ, I may need to adjust a day or two, but its there.
I'm a UA 1K and its getting harder and harder to find saver space (albeit better than AA/DL). However, anytime I search dates I want on KE they have first/business saver space. With SQ, I may need to adjust a day or two, but its there.
#36
Join Date: May 2013
Programs: UA Au Marriott Ti Hilton C
Posts: 152
Otherwise, I'm generally with you on CSR vs. Marriott.
Another possible reason for Marriott are travel package redemptions, I guess.
#37
Join Date: Aug 2005
Location: HPN
Programs: not anymore! I'm FREE!
Posts: 3,449
For FTers, transfer partners are key when evaluating a rewards credit card. But the vast majority of the credit card-using population has no idea what a transfer partner is, or how to use them, or why doing so it a good idea. Which is why Chase would probably cut UA in a heartbeat if UA insisted on charging too much more for its miles. Chase is already trying to cut costs with the CSR program. Saying sayonara to UA is one way to do that.
#38
Join Date: Sep 2010
Location: San Francisco, CA
Programs: United Plat
Posts: 492
For FTers, transfer partners are key when evaluating a rewards credit card. But the vast majority of the credit card-using population has no idea what a transfer partner is, or how to use them, or why doing so it a good idea. Which is why Chase would probably cut UA in a heartbeat if UA insisted on charging too much more for its miles. Chase is already trying to cut costs with the CSR program. Saying sayonara to UA is one way to do that.
J.P. Morgan, United Renegotiating Card Partnership
United said they are focusing on terms of the partnership as a way to try to increase profitability
Would AMEX be able to take United while keeps partnership with Delta?
#39
Join Date: Apr 2005
Location: ATL
Posts: 802
This is on Monday's (23OCT2017) Wall Street Journal. Headline:
J.P. Morgan, United Renegotiating Card Partnership
United said they are focusing on terms of the partnership as a way to try to increase profitability
Would AMEX be able to take United while keeps partnership with Delta?
J.P. Morgan, United Renegotiating Card Partnership
United said they are focusing on terms of the partnership as a way to try to increase profitability
Would AMEX be able to take United while keeps partnership with Delta?
#40
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,877
An article in Fortune, which is based on the WSJ piece, includes this observation:
...in other words, there could be a change in the financial terms (e.g. Chase could pay UA more for each new card account opened, or more per mile), but we would see no difference in the Chase products.
United is one of the banks biggest co-brand card relationships, and will hope to use its leverage to extract better terms at the banks expense. Its not clear how much any renegotiation will benefit customers.
#41
Moderator: Travel Buzz
Join Date: Aug 2012
Location: Sunny San Diego
Posts: 3,090
From Airline Weekly (bolding mine), discussing why United's third quarter profit margins were slimmer than expected:
Why is United stumbling, despite
a backdrop of strong demand
and economic growth?
There’s blame to go around: its
overexposure to troubled Asian
markets, its underexposure to
lucrative domestic markets, bruising
battles with ultra-LCCs, costly
missteps in its basic economy
rollout, a suboptimal credit card
partnership and damage from a
hurricane that hit its Houston hub.
Why is United stumbling, despite
a backdrop of strong demand
and economic growth?
There’s blame to go around: its
overexposure to troubled Asian
markets, its underexposure to
lucrative domestic markets, bruising
battles with ultra-LCCs, costly
missteps in its basic economy
rollout, a suboptimal credit card
partnership and damage from a
hurricane that hit its Houston hub.
#42
A FlyerTalk Posting Legend; Moderator: American Express, Capital One, Citi, Chase, Credit Card Programs, Diners Club, Signatures
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,877
It seems improbable that independent analysts have identified this as a material deficiency. More likely, this is part of a UA management campaign to put Chase on notice that they are serious about renegotiating.
Last edited by mia; Oct 23, 2017 at 10:07 am
#43
Original Poster
Join Date: Sep 2005
Location: JZRO
Posts: 9,169
Like you, I can find none. Therefore, my Marriott and Explorer cards are entombed.
#44
Join Date: Nov 2016
Posts: 156
amex should (probably will) make a play for this contract. they obviously have experience with delta and wouldn't be competing against their own products. would probably be super aggressive too
#45
Join Date: Apr 2012
Location: SFO
Programs: AS MVP Gold 75K, UA Gold, Marriott LTT, Avis President's Club
Posts: 1,539
We'll see what AMEX does. It will be interesting with a new CEO coming in early next year.