Travel Credit Card Perks Face Cuts as Annual Fees Climb, Experts Advise Careful Evaluation

As premium travel credit cards raise annual fees and restrict popular benefits, industry experts warn that maximizing rewards is becoming increasingly difficult, urging consumers to reassess whether these cards still provide value. Annual fees for top-tier cards can range from $95 to more than $500, according to NerdWallet, while interest rates can run higher than average.

“Annual fees are not inherently bad; you just need to make sure that you’re getting value from [the card],” said Ted Rossman, industry analyst at Bankrate. “It’s getting harder to maximize, though.”

Woman walking by an airport | Source: Pexels

In June, the Chase Sapphire Reserve raised its annual fee 45%, from $550 to $795. Capital One announced that beginning in February, Venture X Rewards and Venture X Business cardholders — both with $395 annual fees — will no longer be able to bring guests to its airport lounges for free. American Express has also tightened access, requiring Platinum cardholders, who pay $695 annually, to spend $75,000 in eligible purchases before bringing up to two guests to a lounge.

Carrying a balance can quickly negate the value of perks, experts caution. “Any interest that you owe will easily diminish the value of any of these benefits,” said Sally French, travel expert at NerdWallet. Premium travel cards can carry rates between 25% and 30%, compared with the average credit card rate of about 20.13%, Rossman noted.

Woman using a credit card | Source: Pexels

Travel cards typically fall into two categories: co-branded cards tied to specific airlines or hotels, and general travel cards with broader rewards. French advises frequent travelers loyal to one brand to consider co-branded options, while those seeking flexibility may prefer general cards.

For infrequent travelers, a no-fee card may be the best choice. Cardholders not maximizing benefits can often downgrade to a less expensive option, which Rossman said is better for credit than closing the account.