Over the past decade, airline loyalty programs have effectively marketed ultra-premium credit cards , making these expensive payment methods among the most popular with Americans today. Offering perks like lounge entry, access to complimentary upgrade lists, and even annual gifts in the case of some cards, the ultra-premium credit cards offered by major airline loyalty programs have become some of the best-selling in America today. Get all the latest aviation news on Simple Flying! These credit cards seem to have it all: they can get you into the lounges you want, give you the upgrades you want, and allow you to earn both elite status and a massive amount of miles that you can use to book free travel.
All of these benefits are easily accessible to the consumer who has the pockets to cover a multi-hundred dollar annual fee, which, for the highest tier of airline credit cards, tends to sit between $500 and $700 . With such ubiquity within American society today, some people are quick to purchase one of these expensive cards without considering the potential downsides. Furthermore, airlines have been quick to aggressively market these expensive credit cards , without considering the potential ramifications for their loyalty programs of doing so.
Let's take a look at both sides of this picture and explain why both customers and airlines should be careful when thinking about ultra-premium credit cards. What issues have ultra-premium credit cards created for airlines and customers?.