snic

And in fact, throughout the whole survey there was absolutely nothing about transfer partners. The questions kept asking things like, "given X set of benefits vs Y set of benefits, which would you choose," and sometimes the benefits were phrased in terms of amount of cash back you could get. It was as if the idea that anyone transfers their points to a different program had never entered Citi's mind. Much less the idea that the set of transfer partners could be important to deciding which card to get.

Statistically, Citi could be correct: most people are far more interested in cash back than points. (Almost anyone I talk to about credit cards IRL, i.e. not online, never brings up points or transfer partners, and is instead focused on cash back.) On top of that, it might actually cost banks less if customers took cash back vs converting to points (at least for some transfer partners). Their strategy could be to include these transfer partners to attract a handful of big spenders who travel a lot - but the average customer just doesn't care.

jbeans

This is the Prestige they're doing research on though, which I assume is what Citi would deem to be their top tier/premium credit card. A card like that is typically targeted towards ppl who spend more than average and travel a decent amount. An average customer who doesn't spend much or travel probably would not be looking at a personal credit card with a $450 annual fee.

yugi

Citi will need to offer 5x on travel and dining in order to beat Chase and Amex, or 3x on mobile wallet AND online to compete with Amex and US Bank, bring back flight points, bring back companion tickets and match USB and Chase with 1.5cpp for travel (not just air) redemptions. They can limit 4th night and may limit PP. I'm fine with that. Then I will start using the card. I have 2 of those right now,but don't use them a lot.

snic

That remains to be seen. Chase is conducting this experiment right now with the CSR. I know several people who signed up for the card because of its high bonus, then promptly converted the points to cash (in one case, using the cash to buy economy class tickets across the Pacific - uggh!). Many of them are probably gaming the system, but Chase is gambling that some significant fraction will keep the card because of its benefits and glam factor, and continue to pay the high annual fee - which is not so high after subtracting the travel credit. I'm willing to bet that many of those who keep the card have no interest at all in transfer partners, and are interested only in cash back and certain other benefits. The extent to which people believe that points programs are just scams is amazingly high.

sdsearch

Keep in mind that the current earnings on the Prestige aren't much better than the current earnings on the far cheaper Premier AFIK. The Premier already has 3x on "the broadest definition of" travel and 2x on entertainment, with a $95 AF. In fact, as far as I can determine from a current application landing page, the 3x on travel on the Prestige is nowhere near as board as the 3x on travel on the cheaper Premium (no gas, no parking garages, etc, etc)! Why is that?

I would think Citi would want to put some differentiation in earnings on the Prestige over the Premier (though hopefully by improving the earnings on the Prestige rather than by gutting them on the Premier !).

edsh

Another variation of this survey came out last week. The most disappointing aspect of this new survey was that every option presented had a 4th night free hotel stay that could only be used twice per year.

novaguy30

well that's bad news...although i've never used it more than once per year...but this card is really now just a skeleton of what it used to be....what's the point...i guess citi is happy making money from the costco card and doesnt care about anything else?

mia

Very improbable. Even if Costco were wildly profitable it's a VISA product, and Citi needs MasterCard activity to earn incentives. I think the fact that there is no new account bonus offer for Prestige indicates that a refresh is in the works. I bet the 4th Night benefit is heavily used by a small proportion of cardholders, and while it may not be an expensive benefit, it may not be achieving Citi's marketing objective.

garykung

Also - Citi is not making as much money as most thinks.

Remember:

1. Costco accepts all Visa cards, not just the one from Citi.

2. Citi Costco Anywhere is a cash card and we are now in the world of points/miles/etc. With all the spending requirements, the 1% difference is minimal.

cplush

didnt they just refresh this last year? i remember a marketing blitz by all the instagram "influencers" on ellis island in NYC for this card.

mia

There were changes implemented summer 2017, but those were announced in July 2016, just before Chase Sapphire Reserve launched in August 2016. I think Citi is due for a refresh now that they have seen what Chase offered, how American Express (and smaller issuers) responded.

travelinmanS

I've really started utilizing the 4th night free benefit this year. I love it and it's saved me quite a bit more than the annual fee so far. If they get rid of it I'll get rid of the card as nothing else if really valuable. That being said, I'd understand why they would want to look at limiting the benefit. I'm gonna try and cost them $4,000 this year

mikesyr18

Or a complete axing is in the works. Everyone should make an observation... TY isn't a great program unless you travel internationally, nor does Citi seem interested in improving the program itself, or the cards that earn the points. I look around the boards and see people being offered a PC option to the Double Cash. I see benefits from the Prestige being nerfed. I see no signup bonus on the Prestige. I've seen the axing of the AT&T Access More I see low sign up bonuses for the Premier. I don't see improvements on Cit's point earning cards while issuers like Chase and AMEX who seem to be interested in improving their points earning systems.

They should just give up and make themselves look ridiculous like they always do instead of delaying the inevitable. It's not like they aren't the most transparent bank in showing they don't care about their customers.

mia

Citi has a history of tinkering with ThankYou Rewards and cards. It's part of their corporate culture. It could be that they will refresh ThankYou Rewards and the full Prestige/Premier/Preferred lineup simultaneously, as they have done before. If they do there will be a great deal of angst, until someone takes the time to find the new sweet spot. Citi usually delivers value, but not always where we expect it.

krazykanuck

Also it's been what, 3-4 years since the more-less current incarnation of the Prestige card came out? It's due for another evolution. Citi just can't leave well enough alone for better or worse.

I'll admit, TYPs partners are better for international travel but they also overlap with a few UR/MR partners like Singapore, Etihad, Flying Blue, etc. So for those of us that earn and burn in all the ecosystems, it's good to have point diversification. Also if you're going for high level aspirational awards it's nice to be able to contribute from multiple places.

That being said I really don't get Citi's strategy, but I'll continue to hold my Prestige as long as it delivers value to me. 4th night free and the airline credit make it a net negative AF card, retention bonus helps even more.