June 17 (UPI) — JPMorgan Chase is banking on a slew of new travel rewards to justify a massive annual fee increase of 45% on its popular premium credit card.
The bank announced Tuesday that its Sapphire Reserve card will now cost users $795 each year in exchange for double the value of points for select travel offers, a $500 annual credit on select resorts and a $300 dining credit for select restaurants, starting next Monday.
“It’s been almost 10 years since Sapphire first launched, and we really think we tapped into something special in the premium card space when it did,” Chris Reagan, president of branded cards at Chase, told reporters last week. “But we know that the industry has changed a lot since then.”
In addition to travel perks and airport lounge access, the card will include a free Apple TV+ subscription, a $300 DoorDash credit and a $300 credit for StubHub tickets. The card also features a $120 credit for TSA Precheck and Global Entry.
Chase said it also tweaked the points structure on the card with eight-times the points — more than double — on purchases through Chase Travel, four times the points on flights and hotels booked directly and three times the points on dining.
Five times more points can be earned on “eligible” transportation, along with points for everyday spending, according to Chase, which touted its “new points redemption accelerator program” that will replace what first drew customers to Sapphire Reserve.
“We’re bringing elevated benefits and greater value in the areas that our current members are most passionate about,” said Sam Palmer, general manager of Chase Sapphire, who promised the new Sapphire Reserve will deliver “over $2,700 in card member value.”
Those who spend more than $75,000 a year in card purchases will see even more benefits.
Chase launched its Sapphire Reserve card in 2016 before it quickly became one of the most popular premium credit cards for travel, according to travel news website One Mile at a Time.
“When the Sapphire Reserve first came out, it was a solid middle-class play that offered champagne travel on a beer budget,” said senior Bankrate analyst Ted Rossman. “These premium cards are going more luxury, and I wonder if the $800 fees are becoming too much for some to stomach.”
While the changes for new cardmembers go into effect Monday, existing cardmembers will not see the changes — or increased annual fee — until Oct. 26.
