Annual Fee Increases for Travel Reward Credit Cards
Annual fee hikes have become a fixture of travel reward credit cards, and honestly, I don’t foresee that changing anytime soon.
On the brighter side, many of these increases come with revamped perks and benefits. Sometimes, these updates can really work in your favor.
For me, this was the case when American Express announced enhancements to the Business Platinum Card. I’ve retained all the benefits I’ve enjoyed as a cardholder recently, and there’s a new one on top of that.
Sure, the annual fee is increasing to $895, but if you’re considering it, the value you can glean from the improved offerings is definitely there. This truly is the way to go.
$600 in Hotel Statement Credit
The standout new feature for me is a monthly credit of $300 for prepaid hotel nights booked through American Express Fine Hotels + Resorts or American Express Travel, which is part of The Hotel Collection. Just a note: the Hotel Collection requires a minimum two-night stay for reimbursement.
This translates to $600 a year in statement credits, significantly boosting the card’s value proposition. Plus, booking through these channels opens the door to some fantastic perks.
- Room upgrades upon arrival, when available at check-in (although some property types might be excluded)
- Access to a $100 credit, usually toward real estate, food, and spa services
- Complimentary daily breakfast for two
- Guaranteed late check-out at 4 PM
- Early check-in at noon, if available
- Complimentary Wi-Fi*
*Note that Wi-Fi is included only if it’s part of a mandatory resort fee.
Interestingly, I got a useful tip on using my credits from my colleague Giselle Gomez, who’s a senior credit card editor. I usually head to Las Vegas several times a year (I’ve already been there three times this year). I’ve noticed a lack of affordable points options since Marriott took over as MGM’s loyalty partner.
These new credits allow me to see my stays at properties like Park MGM Las Vegas priced considerably lower.
$200 Hilton Statement Credit
Another significant feature is the $200 statement credit (up to $50 each quarter) for eligible purchases made directly at Hilton properties, but you need to register first. This is something I’ve found quite easy to leverage, and I don’t expect that to change next year.
My husband and I hold both the Hilton Honors American Express Aspire Card and the Hilton Honors American Express Surpass® Card. We frequently choose Hilton hotels to make the most of the benefits and statement credits these cards offer.
After obtaining my Business Platinum this summer, I’ve had no trouble finding ways to utilize that additional $50. For instance, I used it last quarter to offset dog fees at Hotel 1000 in Seattle, a part of Hilton’s LXR Hotels & Resorts. We enjoy traveling with our pit bulls, so this cost is common for us, and I expect to continue using it like this.
This last quarter, I utilized it to cover the parking fee at Boeira Garden Hotel Porto Gaia, affiliated with the Curio collection by Hilton. Parking can become an extra expense for a frequent road tripper like me. With an 11-month-old daughter, traveling means bringing a lot of gear, so having a car helps us visit multiple sites during our trip to Portugal. Unfortunately, this hotel is not known for cheap parking, so I’ll probably tap into my credits again for that.
$200 Airline Fee Statement Credit
The $200 airline fee statement credit is another perk I appreciate and intend to make full use of next year.
Cardholders select an eligible airline to receive up to $200 a year, covering baggage fees and similar expenses. I typically choose Alaska Airlines as my qualifying airline.
Since I’m based in Portland, Oregon—an Alaska hub—I usually fly with them a handful of times a year. However, as a United Airlines loyalist, I can’t earn elite status to enjoy free checked bags. That’s why I utilize this airline fee credit to get my checked baggage fees refunded, which happens rather often.
Now, a total of up to $400 may seem high for checked baggage fees in a year, but Alaska charges $100 for overweight bags, which is in addition to the standard $35. One hefty checked bag can eat up more than half of your annual airline fee, trust me.
Conclusion
When you’re contemplating a new credit card or assessing the ones you already have, it’s crucial to evaluate your spending and travel patterns to ensure the annual fee is justifiable.
Yet, an expensive card doesn’t necessarily mean it’s a poor investment. In my case, my Business Platinum card generates enough in statement credits to balance that annual fee.
What really stands out to me is that the updated card not only maintains the benefits I already loved but also adds fresh ones.
