Citi AAdvantage Transfer Partnership
Amidst the recent announcement of Citi’s new premium credit card, the bank unveiled what I consider bigger news. After temporarily enabling 1:1 moves of ThankYou points to American Airlines miles in the past, the Citi AAdvantage transfer partnership is now here to stay! This is a game-changer in the points and travel hobby, which will include some long-term effects we don’t yet know. Like other major developments, this big news comes with positives and negatives for travelers. Today, I’m getting into both.
Better
More Miles
Until this move, American Airlines was the lone holdout among the big three domestic airlines to not have a permanent bank point transfer relationship with any of the credit card heavyweights (Amex, Chase, and Citi). But now, many Citi cardholders can unlock more AA and partner flight options by transferring their ThankYou points to AAdvantage. Plus, Strata Premier, Elite, and Prestige cardholders can earn AAdvantage miles at eye-popping rates in generous categories. Those cardholders have even more options with other products like the Custom Cash or Double Cash in their arsenal. The Citi AAdvantage transfer partnership is even more noteworthy due to the fact that cobranded AA cards don’t offer a ton of generous bonus categories, to say the least. Here are just a few new options using Citi’s ThankYou point-earning cards:
- 5x AAdvantage miles via Prestige dining spend
- 6x miles via Strata Elite “Citi Nights” dining spend
- 3x miles via Strata Premier grocery store, gas, and dining spend
More Competition
I’ve enjoyed Citi’s eclectic mix of partners over the years, perhaps Choice Privileges the most. But up to this point, Citi hasn’t really given Amex and Chase much reason to fear the bank. Now, with this development, Citi has added a unique bank point transfer partner which is very useful to a large group of travelers. The AAdvantage transfer capability will encourage many travelers to move their spend away from Amex and/or Chase to Citi. This increased competition should create more pressure on those two to deliver more attractive products to prospective customers.
The Best $95 Annual Fee Card Gets Better
For years, I’ve considered the Citi Premier/now-Strata Premier as the best mid-tier card out there. Meanwhile, Chase and Amex are delivering updated benefits of varied value while raising annual fees on similar cards well beyond the Premier’s $95. As I alluded to earlier, the Premier comes with the best collection of bonus points earning in staple categories, like grocery stores, dining, gas stations, and certain travel expenses. And Citi has just indirectly improved the Premier with this partnership while maintaining that $95 annual fee. I imagine a not-insignificant amount of Chase Sapphire Preferred cardholders will flank to the Premier.
Cobranded Card Refresh
Within the MtM Diamond Slack, we’ve talked about the Citi AAdvantage transfer partnership cannibalizing certain spend. Cobranded AA cardholders could easily decide to move that spend (earning redeemable miles and Loyalty Points) to Premier, Elite, or Prestige cards earning redeemable miles at a substantially higher rate. For many who don’t particularly care for elite status, certain cobranded AA cards have immediately become less attractive for spend.
Will this encourage Citi and AAdvantage to refresh cobranded cards, incentivizing cardholders to keep spending on them? Perhaps. But, invariably, the parties considered this before moving forward with this new Citi AAdvantage transfer partnership. Maybe they’re fine with how things stand with the cobranded cards for the foreseeable future. Or perhaps some other changes are on the way. Regardless, I now think it’s more likely AAdvantage cards will be refreshed than I did several days ago.
A Loyalty Points Correction…
As I mentioned above, coupling these huge Citi card earning multipliers with AAdvantage transfers will cause some to move their spend to cards not earning Loyalty Points. Will this thin the AAdvantage elite status ranks? Even if it does, it wouldn’t necessarily be substantial. Still, as someone who enjoys chasing and achieving AAdvantage elite status, I’d like to think this tempers mass qualification a bit – not that we would ever truly know.
Worse
More Miles
It’s safe to say way more AAdvantage miles exist for redemption now than a few days ago. Existing AAdvantage members with considerable balances won’t be happy. Even more competition now exists for award space, from the good deals to the overpriced ones. It’s hard to ignore the potential of AAdvantage miles feeling more Delta-like overnight. Hopefully, American is fully aware of the program’s, um, advantages, and won’t do anything to massively devalue it. Regardless, beyond some official devaluation, the ability to redeem AAdvantage miles in substantial amounts isn’t as exclusive anymore.
Busier Admirals Clubs
With more AA flyers will come more travelers looking for lounge access. Admirals Clubs, already packed and generally the lowest-end out of the big three domestic airlines’ lounge options, will become even less of a pleasure. And many will opt for the shiny, new Citi Strata Elite, offering four Admirals Clubs passes annually. Hey, at least the card didn’t offer unlimited access. But now, more prospective Admirals Clubs visitors exist than before.
Or Even More Loyalty Points Interest…
Just as easily as I can convince myself that less Loyalty Points will be earned based on the Citi AAdvantage transfer development, I could easily talk myself into thinking the opposite. Safely assuming more travelers will opt for American thanks to this change, more will inevitably be interested in achieving elite status. With this intrigue, and the genuine fun I and many others have experienced with the Loyalty Points scheme, I can only imagine more elites will be around moving forward. Perhaps that’ll convince AA to revamp elite levels, something certain individuals can absorb. But I don’t expect that from AA any time soon.
Citi AAdvantage Transfer Partnership – Conclusion
Quite simply, more eyes are on the AAdvantage Loyalty Program now than before. While American likes it that way, many existing customers like me don’t. I’m prepared for fewer award deals, higher standard rates, and even less elite status recognition. That’s how I’m managing my expectations, at least. But currently, am I doing anything to change my behavior with American? No, and that means I’m allowing them to control the situation – for now. I’ll see where things go from here, and I’ll adapt and overcome accordingly.
What do you think of the new Citi AAdvantage transfer partnership?
