Business of Loyalty: Bank of America Steps Into the Premium Travel Credit Card Game
Skift Take
Bank of America has a new premium loyalty credit card for the travel industry, but its uses may be limited. Still, for the right kind of traveler the new card can end up being very lucrative.
Points credit cards have surged in popularity over the last few years as consumers have started taking a healthier interest in using loyalty points for free travel and upgrades.
The industry has matured to where there are now several competing banks and products vying for a spot in the spendthrift’s pocketbook. This week, Bank of America also introduced a card to compete with the incumbents, though the value proposition is slightly different than a traditional rewards card.
Until recently, only one major premium credit card was the king of the hill among high spend travelers: the American Express Platinum card. Coming with a hefty annual fee (this year it went up from $450 to $550), the card rewards consumers with points for every purchase, issuing bonuses for transactions in categories like Travel or Dining. In turn, consumers can spend those points on one of many Membership Rewards partners or simply get credit for travel purchases.
Last year, a challenger entered the ring when Chase launched Sapphire Reserve, a card with similar benefits and a few di
