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Citi Prestige benefit and reward changes effective July 23, 2017

Citi Prestige benefit and reward changes effective July 23, 2017

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Old Jul 16, 17, 5:50 am   -   Wikipost
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Last edit by: oopl
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7/16: New changes that will take effect on 7/23.
  • 4th night free bookable online at thankyou.com (benefit applied as discount at checkout)
  • Cash out TY at 1 cpp
  • metal card
  • 75,000 TY for $7,500 spend signup bonus

1. The following benefits will be changed effective July 23, 2017:

- Loss of AA Admirals Club Access (Effectively immediately if the account is opened on or after 09/01/2016. See Post 296.

- $0.0125 per each TY points for airfare redemptions at thankyou.com.

- Loss of Complimentary International & Domestic Golf

- 4th Night benefit will be based on the average nightly rate of your complete stay for reservations made on or after July 23, 2017. Taxes will no longer be included within the statement credit.

2. $100 Annual Fee Reduction will be extended to Citi Priority if you are currently a Citigold client and you are impacted by the increase in minimum balance and downgrade.
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Old Jul 30, 16, 11:17 pm
  #271  
 
Join Date: Jul 2000
Posts: 3,078
Hotels.com and Cashback Comes Close to 4th Night Free

As I mentioned in an earlier post - the change where they will no longer reimburse the taxes for the 4th night is a substantial devaluation.

Which makes alternatives more attractive. When you book with hotels.com, you essentially get 10% off the pre-tax price because of their free night program (but you don't get hotel program benefits, which you do get with 4th night free.)

To that 10%, you can add a further discount by booking with a cashback site. For example, topcashback.com is now giving 7% cashback, so you end up with 17% back on the pre-tax price.

So, doing the math, with a 3-night or less stay you are better off with hotels.com cashback, because you get no discount from Citibank.

With a 4 night stay, you are better with Citi - 25% back on the pre-tax value.

With a 5 night stay, you essentially get a 20% discount with Citi.

With 6 nights, you are getting a 16.6% discount with Citi - slightly less than with hotels.com + cashback.
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Old Jul 31, 16, 1:50 pm
  #272  
 
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Originally Posted by BigFlyer View Post
As I mentioned in an earlier post - the change where they will no longer reimburse the taxes for the 4th night is a substantial devaluation.

Which makes alternatives more attractive. When you book with hotels.com, you essentially get 10% off the pre-tax price because of their free night program (but you don't get hotel program benefits, which you do get with 4th night free.)

To that 10%, you can add a further discount by booking with a cashback site. For example, topcashback.com is now giving 7% cashback, so you end up with 17% back on the pre-tax price.

So, doing the math, with a 3-night or less stay you are better off with hotels.com cashback, because you get no discount from Citibank.

With a 4 night stay, you are better with Citi - 25% back on the pre-tax value.

With a 5 night stay, you essentially get a 20% discount with Citi.

With 6 nights, you are getting a 16.6% discount with Citi - slightly less than with hotels.com + cashback.
I don't think it is that close. Elite benefits like breakfast for a couple, free internet and drinks in the club lounge can be considerable. Plus the say credit allowing you to retain status. Also the points you get to use towards free nights. I am new to the card but don't see myself using it except for the 4th night free benefit otherwise I use a cash back site and the hotels site.
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Old Jul 31, 16, 6:01 pm
  #273  
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Makes me all the more excited for the recently rumored Chase travel card that might just cough up 100k in miles for a sign-on bonus. Although, as for the lounge benefit, I might just have to bite the bullet and grab up the Citi Executive once Citi Prestige's AC benefit dries up, too.

Le sigh.
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Old Jul 31, 16, 6:04 pm
  #274  
 
Join Date: Jul 2000
Posts: 3,078
I've used hotels.com and their rewards program in the past rather than hotel programs as I am fairly price driven - I like to pick my hotel based on price, location, amenities, without taking loyalty programs into account. I think the free night for every 10 nights with hotels.com compares favorably to most hotel programs in terms of free nights.

I was just pointing out that particularly for those that don't participate in loyalty programs, the change regarding refund of taxes does considerably close the gap between 4th night free and other options.



Originally Posted by mcgahat View Post
I don't think it is that close. Elite benefits like breakfast for a couple, free internet and drinks in the club lounge can be considerable. Plus the say credit allowing you to retain status. Also the points you get to use towards free nights. I am new to the card but don't see myself using it except for the 4th night free benefit otherwise I use a cash back site and the hotels site.
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Old Jul 31, 16, 7:03 pm
  #275  
 
Join Date: Jul 2016
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Originally Posted by yugi View Post
It's all because of Costco deal, and also Chase helped here with giving 5x on Freedom till the end of the year. Now, if they continue with that, and also add competitive Sapphire Reserve card, Citi will be completely screwed. And also Amex is offering very good bonuses lately. I already racked 425000 MR points in the last 3 month.
I can't see how Citi still comes out ahead with cards such as the Double Cash, Citi Costco and the Prestige (before its recent benefit reduction). Their match simply doesn't add up. They likely have wafer thin margins but make up because of immense volume of $$$ run on those cards.

Originally Posted by garykung View Post
At least Citi is dare to send out an email so quick...

Citi'c changes for other products are still not yet officially announced...
What "other" changes??????? They recently actually increased benefits on many cards including the period of extended warranty and the amount of coverage for trip cancellation insurance.

Originally Posted by MapleLeafss View Post
...but I almost never fly AA so I don't care about Admiral's Club or AA redemptions. I get tons of use out of Priority Pass flying mostly through LGA and YYZ and also use the 4th night free 2-3x per year for anywhere from $400-$700 each time.
The AA lounge at LGA requires you to pay for even snacks. So other than seating, what purpose does this lounge serve anyway?

Last edited by mia; Jul 31, 16 at 7:20 pm
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Old Jul 31, 16, 7:32 pm
  #276  
mia
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Originally Posted by edealinfo12345 View Post
I can't see how Citi still comes out ahead with cards such as the Double Cash, Citi Costco ...
Many cardholders carry a balance and pay interest.

The AA lounge at LGA requires you to pay for even snacks. So other than seating, what purpose does this lounge serve anyway?
Admirals Clubs provide free light snacks, house drinks, wi fi, etc.

Scroll down to the section headed Amenities:

https://www.aa.com/i18n/travel-info/...irals-club.jsp
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Old Jul 31, 16, 9:55 pm
  #277  
 
Join Date: Jul 2016
Posts: 379
Originally Posted by mia View Post
Many cardholders carry a balance and pay interest.



Admirals Clubs provide free light snacks, house drinks, wi fi, etc.

Scroll down to the section headed Amenities:

https://www.aa.com/i18n/travel-info/...irals-club.jsp
Other than free bagels w/cream cheese or a muffin, they offer little (probably worth $2 at most...compared to the $$$$ more you pay for a business or first class ticket). Here is their menu......even a measly breakfast BLT will run you $6 on a business class ticket. They even have the kahunas to charge $2 for chips and $3 for soda or bottled water...[This is for the AA lounge at La Guardia Airport in New York City]

[I wouldn't get excited or appreciative of a free bagel].

https://www.aa.com/content/images/pr...s/lga-menu.pdf

Last edited by edealinfo12345; Jul 31, 16 at 10:01 pm
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Old Jul 31, 16, 10:52 pm
  #278  
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Originally Posted by mia View Post
Many cardholders carry a balance and pay interest.
Interchange fees. Issuing banks rake in roughly $30 billion dollars annually from interchange fees (Visa and MC gets around the same amount each year as well). That is how they make money on all credit cards unless customers are not using the card for daily purchases. This is why they offer category bonuses; to entice customers to use the card.

Lotsa moola. Then you add in the customers carrying a balance and all the other fees (late fee, balance transfer fees, cash advance fees, annual fees, etc.) it becomes a lucrative business proposition for the credit card issuers. To sustain organic revenue growth in the credit card business line, the banks have to offer competitive credit cards

The Costco deal was a bad move on Citi's part as the interchange fee is almost non-existent for Costco purchases (including gas) coupled with the large cash back bonuses (virtually eating up bulk of interchange revenues), so Citi will be mainly hinging on customers carrying a balance for that product line. Will be a very long time before they see a positive ROI from this investment and the effects of this deal is already being felt in the other product lines (couldn't afford exclusivity with AA for instance) where they have to aggressively cut costs to sustain same P&L levels for their credit card business line. I suspect the Prestige was one of the first cards getting the hatchet and I wouldn't be surprised other cards will be seeing cuts in benefits.

Perfect opportunity for the other issuing banks to pounce.

Last edited by golfingboy; Jul 31, 16 at 11:09 pm
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Old Aug 1, 16, 11:57 am
  #279  
 
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Originally Posted by sailpgd View Post
If Citi had kept either the golf perk or the 1.6 AA redemption rate I would have kept the card. I am now going to cancel next June when my AF hits.
I just got the card a couple weeks ago. So a year from now, I'll need to do the math again and see whether the card still makes sense. Don't care about the golf, and won't use the 4th night enough for that change to have much effect. I have the Premier already; the loss of 1.6x on AA, and loss of AC access, will almost certainly swing the decision toward Prestige cancellation then.
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Old Aug 2, 16, 9:11 am
  #280  
 
Join Date: Dec 2015
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Used an AA lounge for the first time yesterday at ORD, what a joke. Bad bagels, and Chobani was the best breakfast offering. I had the chance to buy day old sushi or bottled coke for an upcharge. Every PP lounge I've used is significantly better than that disaster of a hellhole.
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Old Aug 2, 16, 6:50 pm
  #281  
 
Join Date: Apr 2002
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The challenge is that there are very few domestic priority pass lounges.
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Old Aug 2, 16, 7:25 pm
  #282  
 
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Originally Posted by TTT103 View Post
The challenge is that there are very few domestic priority pass lounges.
No. The real challenge is there are never in the terminal you're flying from.
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Old Aug 2, 16, 7:45 pm
  #283  
 
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You're not missing much - they're pretty crappy.


Originally Posted by mnscout View Post
No. The real challenge is there are never in the terminal you're flying from.
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Old Aug 2, 16, 9:08 pm
  #284  
 
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Originally Posted by mnscout View Post
No. The real challenge is there are never in the terminal you're flying from.
Darn right, ORD pisses me off
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Old Aug 3, 16, 6:40 am
  #285  
 
Join Date: Feb 2005
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Thumbs down No more Admirals Club = No more Prestige Card

Agree with all of you. The Admirals Club is not the greatest, but it's the ONLY lounge available to AA passengers at most US airports. PP lounges are non-existent at my home airport (DCA), or they're located in international terminals with limited hours and not accessible to domestic travelers. The Admirals Club benefit was the primary reason I applied for a Prestige Card and is the primary reason I will drop the card at renewal time.
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