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hegemony

5 Things Amex and Citi Need to Do in Response to Chase Sapphire Reserve (TPG)

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Here's my take on these five things.

 

Match Chase’s $300 travel credit

No. This discount screams "unsustainable." Amex and Citi should look to add and strengthen benefits, not get in a race to the bottom over a feature that Chase may have to nerf in a few years.

 

Offer 3x points on travel and dining

Maybe. This is the star feature of the Chase Sapphire Reserve. Amex really does need to strengthen the points awarded by the Platinum Card, but may not need to match the CSR. Just using the PRG's points structure should work. Citi should be fine. They also offer 2x points on entertainment which may balance out the 2x at restaurants.

 

Improve transfer partners

Definitely. Citi would benefit enormously by adding AA as a transfer partner. Any of these three issuers should target AS. Amex and Citi need to improve the points ratio for Hilton. Amex's program would also benefit greatly if BA, B6, and IB transferred at a 1:1 rate.

 

Increase the redemption rate for portal bookings

Is doing so sustainable? My guess is no based on Citi reducing their redemption rates. No need to match what might be a temporary benefit by Chase.

 

Offer primary rental car insurance

If Chase can offer this with the CSP at no extra charge, then Amex and Citi ought to figure out how to do so on a $450 card.

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I agree that the $300 generic travel discount will probably not last more than a few years. Of all features I think that screams "nerf me" the most. It's just too generous.

 

I don't think anyone should rush out and copy Chase's benefits. The idea is to innovate new products, not just copy one another.

 

My guess is that the Reserve will be watered down over the years just like the original Sapphire has been, and the Citi Prestige is being next year. Just the nature of things. Generous product gets quietly watered down over the years.

 

It's TPG, so not shocking he thinks everyone should just copy Chase.

Edited by kdm31091

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It's TPG, so not shocking he thinks everyone should just copy Chase.

Like Citi cares what he says. :rofl:

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It's TPG, so not shocking he thinks everyone should just copy Chase.

Like Citi cares what he says. :rofl:

 

:lol:

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