Jan 19, 2015, 5:54 am
Last edit by: beltway
Major changes coming into effect April 19, 2015:
- Annual fee reduction from $125 to $95 (with refunds for the difference to existing cardmembers)
- Increased earning on a new broad Travel category (rather than only Airfare and Hotels), but reduced earnings on Dining and Entertainment
Effective April 19th, 2015, unless you are participating in a limited-time offer, you will earn:
-- 3 ThankYou Points for every dollar you spend on purchases at airlines, hotels, car rental agencies, travel agencies, gas stations, commuter transportation, taxi/limousines, passenger railways, cruise lines, bridge and road tolls, parking lots/garages, campgrounds and trailer parks, time shares, bus lines, motor home/RV Rental and boat rentals;
-- 2 ThankYou Points for every dollar you spend on purchases at restaurants and on select entertainment merchants, including sports promoters, theatrical promoters, movie theaters, amusement parks, tourist attractions, record stores and video rental stores; and
-- 1 ThankYou Point for every dollar you spend on other purchases.
Airlines are classified as merchants that provide air travel. Hotels are classified as merchants that provide sleeping or meeting room accommodations, and may include goods and services that are on a bill for these accommodations by a hotel, motel or inn. Car rental agencies are classified as merchants that provide short-term or long-term rentals of cars. Travel agencies are classified as merchants that provide travel information and booking services, and include travel aggregators and tour operators. Gas Stations are classified as merchants that sell fuel for consumer use and may or may not be attended. Commuter transportation is classified as merchants that provide suburban and local mass passenger transportation over regular routes and on regular schedules, including ferries, commuter railways and subways. Taxi/limousine are classified as merchants that provide passenger transportation services for hire and includes horse-drawn cabs and carriages, bicycle taxis, aerial tramways, airport shuttles or cable cars. Passenger railways are classified as merchants that primarily provide long-distance transportation and may include overnight accommodations on the train. Cruise lines are classified as merchants that provide passenger transportation on the open sea or inland waters for the purpose of vacation or pleasure and operate predefined and advertised routes. Bridge and tolls are classified as merchants who collect fees associated with toll roads, highways and bridges. Parking lots/garages are classified as merchants that provide temporary parking services for automobiles, usually on an hourly, daily or monthly contract or fee basis. Campgrounds and trailer parks are classified as merchants that provide overnight or short-term campsites for recreational vehicles, trailers, campers, or tents. Timeshares are classified as retailers that sell, lease, and rent timeshare real estate and arrange timeshare condominium exchanges. Bus Lines are classified passenger bus transportation services that operate on a regular schedule over predetermined routes. Motor Home and Recreational Vehicle Rental are classified as merchants that rent motor homes, RVs, pop-up campers, tent trailers, and other recreational vehicles on a daily, short-term, or extended-term basis. Boat Leases and Boat Rentals are classified as merchants that primarily provide boat rental and leasing services, including fishing boats, non-crew houseboats, sail boats, powerboats, jet skis, and yachts. Restaurants are classified as dining establishments that primarily prepare food and drinks for immediate consumption by consumers, either on the merchant’s premises or packaged for takeout, and include bars, cocktail lounges, discotheques, nightclubs, taverns and fast food restaurants. Sports promoters are classified as merchants that operate and promote live sporting events (professional or semi-professional), and may also include sports stadiums. Theatrical promoters are classified as merchants that operate live theatrical productions or concerts, and include ticketing agencies. Movie theaters are classified as establishments that sell tickets and refreshments for movie productions. Amusement parks (including zoos, circuses and aquariums) are classified as establishments that operate parks or carnivals and offer mechanical rides and games and/or live animal shows. Tourist attractions and museums (including art galleries) are classified as establishments that operate attractions and exhibits for tourists.
We do not determine how merchants or establishments are classified, however, they are generally classified based upon the merchant's primary line of business. We reserve the right to determine which purchases qualify for this offer. Purchases not eligible to receive the additional ThankYou Points include, but are not limited to, purchases made at warehouse clubs, discount stores, department stores and convenience stores.
• You may earn ThankYou Points as long as your Card Account is open and current. If your Card Account is closed, you will not be able to earn ThankYou Points and you will lose any accumulated ThankYou Points that have not been transferred to your ThankYou Member Account. Balance transfers, cash advances, convenience checks, returned purchases, disputed or unauthorized purchases/fraudulent transactions, finance charges, Card Account fees, and fees for services and programs you elect to receive through us do not earn ThankYou Points unless otherwise specified.
• If you do not already have a ThankYou Rewards Member Account ("ThankYou Member Account"), one will be set up for you. ThankYou Points earned from purchases post to your Card Account at the close of each billing cycle, and at that time we will transfer the ThankYou Points you earned to your ThankYou Member Account. (Bonus ThankYou Points may take one to two additional billing cycles to post to your Card Account.) ThankYou Points are not eligible for redemption until they are transferred to your ThankYou Member Account. ThankYou Points may not be redeemed
-- 3 ThankYou Points for every dollar you spend on purchases at airlines, hotels, car rental agencies, travel agencies, gas stations, commuter transportation, taxi/limousines, passenger railways, cruise lines, bridge and road tolls, parking lots/garages, campgrounds and trailer parks, time shares, bus lines, motor home/RV Rental and boat rentals;
-- 2 ThankYou Points for every dollar you spend on purchases at restaurants and on select entertainment merchants, including sports promoters, theatrical promoters, movie theaters, amusement parks, tourist attractions, record stores and video rental stores; and
-- 1 ThankYou Point for every dollar you spend on other purchases.
Airlines are classified as merchants that provide air travel. Hotels are classified as merchants that provide sleeping or meeting room accommodations, and may include goods and services that are on a bill for these accommodations by a hotel, motel or inn. Car rental agencies are classified as merchants that provide short-term or long-term rentals of cars. Travel agencies are classified as merchants that provide travel information and booking services, and include travel aggregators and tour operators. Gas Stations are classified as merchants that sell fuel for consumer use and may or may not be attended. Commuter transportation is classified as merchants that provide suburban and local mass passenger transportation over regular routes and on regular schedules, including ferries, commuter railways and subways. Taxi/limousine are classified as merchants that provide passenger transportation services for hire and includes horse-drawn cabs and carriages, bicycle taxis, aerial tramways, airport shuttles or cable cars. Passenger railways are classified as merchants that primarily provide long-distance transportation and may include overnight accommodations on the train. Cruise lines are classified as merchants that provide passenger transportation on the open sea or inland waters for the purpose of vacation or pleasure and operate predefined and advertised routes. Bridge and tolls are classified as merchants who collect fees associated with toll roads, highways and bridges. Parking lots/garages are classified as merchants that provide temporary parking services for automobiles, usually on an hourly, daily or monthly contract or fee basis. Campgrounds and trailer parks are classified as merchants that provide overnight or short-term campsites for recreational vehicles, trailers, campers, or tents. Timeshares are classified as retailers that sell, lease, and rent timeshare real estate and arrange timeshare condominium exchanges. Bus Lines are classified passenger bus transportation services that operate on a regular schedule over predetermined routes. Motor Home and Recreational Vehicle Rental are classified as merchants that rent motor homes, RVs, pop-up campers, tent trailers, and other recreational vehicles on a daily, short-term, or extended-term basis. Boat Leases and Boat Rentals are classified as merchants that primarily provide boat rental and leasing services, including fishing boats, non-crew houseboats, sail boats, powerboats, jet skis, and yachts. Restaurants are classified as dining establishments that primarily prepare food and drinks for immediate consumption by consumers, either on the merchant’s premises or packaged for takeout, and include bars, cocktail lounges, discotheques, nightclubs, taverns and fast food restaurants. Sports promoters are classified as merchants that operate and promote live sporting events (professional or semi-professional), and may also include sports stadiums. Theatrical promoters are classified as merchants that operate live theatrical productions or concerts, and include ticketing agencies. Movie theaters are classified as establishments that sell tickets and refreshments for movie productions. Amusement parks (including zoos, circuses and aquariums) are classified as establishments that operate parks or carnivals and offer mechanical rides and games and/or live animal shows. Tourist attractions and museums (including art galleries) are classified as establishments that operate attractions and exhibits for tourists.
We do not determine how merchants or establishments are classified, however, they are generally classified based upon the merchant's primary line of business. We reserve the right to determine which purchases qualify for this offer. Purchases not eligible to receive the additional ThankYou Points include, but are not limited to, purchases made at warehouse clubs, discount stores, department stores and convenience stores.
• You may earn ThankYou Points as long as your Card Account is open and current. If your Card Account is closed, you will not be able to earn ThankYou Points and you will lose any accumulated ThankYou Points that have not been transferred to your ThankYou Member Account. Balance transfers, cash advances, convenience checks, returned purchases, disputed or unauthorized purchases/fraudulent transactions, finance charges, Card Account fees, and fees for services and programs you elect to receive through us do not earn ThankYou Points unless otherwise specified.
• If you do not already have a ThankYou Rewards Member Account ("ThankYou Member Account"), one will be set up for you. ThankYou Points earned from purchases post to your Card Account at the close of each billing cycle, and at that time we will transfer the ThankYou Points you earned to your ThankYou Member Account. (Bonus ThankYou Points may take one to two additional billing cycles to post to your Card Account.) ThankYou Points are not eligible for redemption until they are transferred to your ThankYou Member Account. ThankYou Points may not be redeemed
Mostly positive changes coming to Citi ThankYou Premier 4.19.2015
Jan 13, 2015, 10:25 pm
#16
Join Date: Feb 2012
Location: LAX
Programs: AA, TY, UR, UA, US, WN, MR, SPG
Posts: 1,453
Have either Citi or AA said why TYP don't transfer to AA? Has either one of them said that they don't want the co-branded cards to be devalued? Citi would still have to pay AA for the miles, and AA would still get $$.
And in any case, I'm not sure I buy this argument. AmEx MR points transfer to DL, and Chase UR points transfer to UA. DL's attempt to limit MR transfers was rolled back after complaints. If Citi/AA were worried about devaluing their co-branded cards, all they'd need to do is change the benefits on either the co-branded cards or the TYP cards to distinguish them from each other.
And in any case, I'm not sure I buy this argument. AmEx MR points transfer to DL, and Chase UR points transfer to UA. DL's attempt to limit MR transfers was rolled back after complaints. If Citi/AA were worried about devaluing their co-branded cards, all they'd need to do is change the benefits on either the co-branded cards or the TYP cards to distinguish them from each other.
This is, of course, all speculative. But I understand their reasoning if it is the case.
Jan 13, 2015, 11:46 pm
#17
Join Date: Jun 2011
Posts: 3,528
Have either Citi or AA said why TYP don't transfer to AA? Has either one of them said that they don't want the co-branded cards to be devalued? Citi would still have to pay AA for the miles, and AA would still get $$.
And in any case, I'm not sure I buy this argument. AmEx MR points transfer to DL, and Chase UR points transfer to UA. DL's attempt to limit MR transfers was rolled back after complaints. If Citi/AA were worried about devaluing their co-branded cards, all they'd need to do is change the benefits on either the co-branded cards or the TYP cards to distinguish them from each other.
And in any case, I'm not sure I buy this argument. AmEx MR points transfer to DL, and Chase UR points transfer to UA. DL's attempt to limit MR transfers was rolled back after complaints. If Citi/AA were worried about devaluing their co-branded cards, all they'd need to do is change the benefits on either the co-branded cards or the TYP cards to distinguish them from each other.
Jan 14, 2015, 5:03 am
#18
Join Date: Jan 2013
Programs: AA, SPG, MR, UR, Cash Back!
Posts: 606
With that exact scenario, your option is to use your 20K TY points at 1.25x (Premier) for $250 credit towards the $1K flight, and pay the $750 out of pocket. If you had the Prestige, it would get you $320 credit and cost you $680. ThankYou points are not the ONLY answer, but they are AN answer, and can be quite lucrative/valuable in certain scenarios. Anyone who counts solely on a single reward program is bound to be highly disappointed in at least half the scenarios.
Citi used to (and still does, comparatively) hand out TY points like candy. For example, in 2014, I earned 3100 points a month for absolutely no spend. These were points they gave out for banking with them. With the 1.6x multiplier, that was like $50 a month in flight credit. They had a card in 2013/2014 that gave 5x at drugstores, uncapped. People MSed millions of points. I would wager that the absolutely staggering number of outstanding TY points on Citi's balance sheets has steered them away from allowing AA as a transfer partner. These programs are huge, but an influx of 100MM+ points into AA would definitely have an effect.
This is, of course, all speculative. But I understand their reasoning if it is the case.
Citi used to (and still does, comparatively) hand out TY points like candy. For example, in 2014, I earned 3100 points a month for absolutely no spend. These were points they gave out for banking with them. With the 1.6x multiplier, that was like $50 a month in flight credit. They had a card in 2013/2014 that gave 5x at drugstores, uncapped. People MSed millions of points. I would wager that the absolutely staggering number of outstanding TY points on Citi's balance sheets has steered them away from allowing AA as a transfer partner. These programs are huge, but an influx of 100MM+ points into AA would definitely have an effect.
This is, of course, all speculative. But I understand their reasoning if it is the case.
I'm not trying to argue, I'd like to like citi but I haven't found their mark in my portfolio.
Jan 14, 2015, 7:13 am
#19
Join Date: Oct 2014
Posts: 14
TYP's redeem at 1.6 for AA (with a Prestige), and then also earn miles for the flight they were redeemed against. That's a big difference and I'd much rather have that than lose the 1.6 redemption to gain miles transfer.
That's speculation, but you know it's what would happen if AA became a transfer partner. TYP's are getting tougher to earn if you don't have Citigold or an old Forward card, but it's still a very valuable program if you're an AA/US flier.
Edit: To get back on topic though, if you just redeem points for the 1.25 multiplier (and don't fly AA), it's a pretty good head-to-head against the CSP with the new earn multipliers. The transfer partners are still a bit too thin for me to tout that TYP feature though. That's why I still consider the Premier a product looking for a market.
That's speculation, but you know it's what would happen if AA became a transfer partner. TYP's are getting tougher to earn if you don't have Citigold or an old Forward card, but it's still a very valuable program if you're an AA/US flier.
Edit: To get back on topic though, if you just redeem points for the 1.25 multiplier (and don't fly AA), it's a pretty good head-to-head against the CSP with the new earn multipliers. The transfer partners are still a bit too thin for me to tout that TYP feature though. That's why I still consider the Premier a product looking for a market.
Last edited by Chupacabras; Jan 14, 2015 at 7:53 am
Jan 14, 2015, 10:26 am
#20
Join Date: Jul 2009
Location: DCA/IAD
Programs: AS, US, Hilton, BA, DL, SPG, AA, VS
Posts: 1,628
This is what I've heard as well. It makes no sense for Citi to not want AA as a transfer partner. If they really want to complete with UR & MR, they need AA as a partner.
Jan 14, 2015, 1:03 pm
#21
Join Date: Dec 2011
Location: San Francisco
Programs: Amex MR, SPG Gold, HHonors Gold, AS MVP
Posts: 518
Another thought: It is possible that the issue is not with Citi but with AA. That is, perhaps there is a provision in Citi's contract with AA that forbids them from re-selling the miles they purchase from AA to any but AA co-branded cards.
Jan 14, 2015, 1:19 pm
#22
Join Date: Feb 2012
Location: LAX
Programs: AA, TY, UR, UA, US, WN, MR, SPG
Posts: 1,453
I don't understand why Citi would care about diluting the AAdvantage franchise if they are losing customers to other Citi cards. Undoubtedly whatever managers are in control of the AAdvantage cards would not like to have their fiefdom shrink, and I think that's the issue -- Citi internal politics. If that's the case it's pretty dumb, and I would point out that I have read interviews with Chase execs who say they don't care if somebody shifts spending from a United MileagePlus card to another Chase card -- because why would they?
Another thought: It is possible that the issue is not with Citi but with AA. That is, perhaps there is a provision in Citi's contract with AA that forbids them from re-selling the miles they purchase from AA to any but AA co-branded cards.
Another thought: It is possible that the issue is not with Citi but with AA. That is, perhaps there is a provision in Citi's contract with AA that forbids them from re-selling the miles they purchase from AA to any but AA co-branded cards.
Jan 14, 2015, 1:28 pm
#23
Join Date: Dec 2011
Location: San Francisco
Programs: Amex MR, SPG Gold, HHonors Gold, AS MVP
Posts: 518
But don't they mainly care about capturing spend? As it is now I think UR and MR points are more valuable than either TYPs or AA miles so all else equal I think most would rather spend to collect those than what Citi are selling. Add AA as a TYP transfer partner and Citi's currency looks significantly more competitive. You've chosen "both" but I think a lot of people may go with "neither." One is admittedly not quite as good as both but it's a lot better than neither, especially if that customer then spends a lot on that one card.
Jan 14, 2015, 4:45 pm
#24
Join Date: Jan 2015
Posts: 37
One thing worth noting is that Citi is really focusing their products on different net worth/income clients. Citi heavily promotes the Prestige to a different customer than some of Citi's other cards. For example, the Prestige has an annual TYP boost for Private Bank (PB) members. So, for PB Prestige cardholders interested in AA flights, 1 point is worth 2 cents on AA (1.25 x 1.6 cents), 2 points are worth 4 cents (2.5 x 1.6 cents) and 3 points are worth 6 cents (3.75 x 1.6 cents). I diversify my points in different programs, but I do a lot of leisure travel on AA, so my dining (2x), flight and hotel (3x) spend on Prestige are worth way more to me than UR or MR.
Jan 15, 2015, 11:55 am
#25
Join Date: Sep 2005
Location: SEA
Programs: DL, SPG, UA.
Posts: 230
The annual fee is now a bit more reasonable; keeping the fee at $125 a year after all the benefit changes in October 2014 was a bit much.
Presumably they don't want to create any incentive for folks to keep both the Premier and the Prestige any more?
If the TYP bonus categories are identical, why wouldn't I just put the travel and dining spend on the Prestige (and enjoy its many other benefits)? Or are there benefits to having a Premier Visa vs. a Prestige Mastercard?
I've just brought down my Premier Flight Points balance to <300 and with the loss of the 3x on dining, I'm just going to cancel the Premier and put that spend on the Prestige instead.
Presumably they don't want to create any incentive for folks to keep both the Premier and the Prestige any more?
If the TYP bonus categories are identical, why wouldn't I just put the travel and dining spend on the Prestige (and enjoy its many other benefits)? Or are there benefits to having a Premier Visa vs. a Prestige Mastercard?
I've just brought down my Premier Flight Points balance to <300 and with the loss of the 3x on dining, I'm just going to cancel the Premier and put that spend on the Prestige instead.
Same boat, have the premier and just wound down all the legacy flight points, was looking at a combo premier and prestige for the 3x in both dining and travel (given that nearly all by forward dining purchases has not counted for 5x lately).
As someone who doesn't fly AA (unless for some magical reason i can buy AS flights through AA for 1.6c/pt), this change is interesting.
The Prestige has value to offer, but now there is little differentiation between the two products outside of annual fee for additional travel benefits. I wonder how sensitive Citi's target market for these cards are to an AF difference between $95 and $200 (net of airline fee benefit)?
Jan 16, 2015, 6:42 pm
#26
Join Date: May 2013
Posts: 258
Bummer, my primary use for this card too. No reason to keep it really, I'll just get points with my prestige. More towards the relationship bonus.
Last edited by voodoogirl; Jan 16, 2015 at 6:49 pm
Jan 18, 2015, 4:52 pm
#27
Join Date: Jan 2015
Posts: 2
I, too, was keeping both the Prestige for travel and Admirals Club access and the Premier for dining/entertainment. There is no need to have both now. I will not renew the Premier when the annual fee becomes due.
Jan 18, 2015, 7:24 pm
#28
Join Date: Apr 2011
Programs: UA Gold, AA Gold, Hyatt Plat, SPG Gold, Marriott Plat, Hilton Gold, Hertz Pres Circle, etc etc
Posts: 382
I'm excited by the change. I have the old Forward so get 5x on dining/entertainment there, so the switch to 3x from 2x on travel and gas instead is a nice pickup, and likely worth me keeping the Premier.
Jan 18, 2015, 7:35 pm
#29
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
Jan 18, 2015, 7:55 pm
#30
Join Date: Apr 2011
Programs: UA Gold, AA Gold, Hyatt Plat, SPG Gold, Marriott Plat, Hilton Gold, Hertz Pres Circle, etc etc
Posts: 382
Can't paste it now, but all the new terms eff 4/19/15 are spelled out under the Card Benefits tab of my account and travel will cover not just airfare and hotels but just about everything you could imagine Plus gas.