Sapphire Reserve Refresh
Earlier today, Chase officially announced the details of the Sapphire Reserve refresh. While Amex has promised “major updates” to their Platinum cards later this year, the Sapphire Reserve is walking the walk right now. Indeed, Chase has thrown the kitchen sink at points and travel hobbyists with this evolving product, and opinions can and will vary. Meanwhile, I don’t plan to jump to any conclusions on my specific benefit values. I’ll provide those down the road after more stick time with the card (yes, we’re keeping one around). Today, I’m discussing my general thoughts on the changes in a thumps up/sideways/down format. I then share another area where I’m staying tuned for more info.
Thumbs Up
- $300 Annual Travel Credit lives on.
- 4x points on direct bookings with hotels and airlines.
- $500 in annual credit ($250 biannually) for prepaid bookings with The Edit.
- Points Boost with up to 2x value on hotels, including the Edit, and certain airlines via Chase Travel.
- $300 Annual Dining Credit ($150 biannually) at restaurants participating in the Sapphire Reserve Exclusive Tables program.
- $300 in annual StubHub credits ($150 biannually).
- Complimentary Apple TV+ and Apple Music subscriptions.
- $75k big spend bonus benefits.
- IHG One Rewards Diamond status.
- Southwest Airlines A-List status.
- $500 Southwest Airlines credit.
- $250 Shops at Chase credit.
Quick Take
Thankfully, the $300 Annual Travel Credit continues, something I didn’t necessarily assume leading up to this announcement. I’m a huge fan of the new 4x bonus categories on direct charges with hotels and airlines. The $500 annual credit for The Edit bookings is a welcome addition, especially if we can continue booking these rates with a combination of cash and points. Chase has teased cardholders with targeted points boosts recently (I wasn’t lucky enough), and I look forward to the newer, more standard version – while fully expecting caveats and exclusions later on.
I’m acquainted with Amex’s Resy dining options more than Chase’s Exclusive Tables program, but I’m cautiously optimistic this will work out for us, as well. I’m confident we’ll dabble with the StubHub credits,fully knowing they won’t necessarily meet my needs for all live acts. Still, it’s a substantive addition to the old benefits, like many of the newer ones. As a current Apple Music subscriber, I’m happy to have that expense completely covered via the Reserve. And we’ll take advantage of Apple TV+, too, a streaming service we haven’t previously prioritized but are curious about, nonetheless.
I won’t commit to big spend bonus benefits at this point but know that many consumers will have valid reasons to pursue them. For what it’s worth, IHG Diamond status is very important to me, but I more easily achieved that via the IHG Premier at the $40k annual spend threshold.
Thumbs Sideways
- Annual Fee increasing from $550 to $795. AU fee increasing from $75 to $195.
- IHG One Rewards Platinum Elite Status.
- Global Entry/TSA PreCheck/NEXUS fee credit.
- DoorDash perks:
- One $5 monthly promo for restaurant orders, two $10 monthly promos for other orders, and DashPass membership (similar to the Reserve’s benefit pre-refresh).
- Lyft $10 monthly in-app credits (similar to the Reserve’s benefit pre-refresh).
- Peloton $120 annual credit ($10 monthly).
Quick Take
You might be asking how I could possibly consider annual fee increases in any way other than negative. I’m primarily okay with the annual fee hike due to my Sapphire Lounge fandom and preference for at least a bit of exclusivity there. I half-joked years ago that Amex should’ve raised the Platinum annual fee to $1k to prevent Centurion Lounge overcrowding (this was seemingly forever ago, before these clubs jumped the shark). In my mind, Chase has gotten ahead of it. They’re pricing out certain customer segments, and hopefully lounge quality endures a bit longer than it otherwise would have. Obviously, I expect many to disagree with my take. And, of course, annual fees going up can’t be 100% positive.
IHG Platinum status is nice but superfluous for many travelers already holding a version of the Chase IHG Premier card. Ditto with Global Entry/TSA PreCheck credits and other cards offering that benefit. DoorDash perks are just okay and the same as the previous Reserve’s version, but it would’ve been nice for more user-friendly increments, particularly at restaurants. Lyft credit remains the same. And Peloton is a yawn for me and many others, but perhaps a yay for some.
Thumbs Down
- Phase out of 1.5 cents per point redemptions across all Chase Travel bookings.
- The Edit annual credits require a minimum two-night booking.
- Earning via Chase Travel bookings decreasing from 10x to 8x.
- Other travel category earning decreasing from 3x to 1x.
Quick Take
While it’s nice Chase gave a warning and ability to make Chase Travel bookings at 1.5 cents per point redemption level for a bit longer, travelers can’t ignore the hit they’re taking soon. This long-term, across-the-board Chase Travel benefit is a substantial loss. The Edit annual credit isn’t as attractive since it requires a two-night minimum. But this negative will be tempered if we can continue booking these rates with cash and points, as I mentioned earlier. Chase Travel bookers with cash lose 2x in earning. Perhaps a bigger negative is all other travel spending dives from 3x to 1x.
What I’m Watching For
Interestingly, I read nothing about the future of Pay Yourself Back with the Chase Sapphire Reserve. I’ve primarily cashed out this way since this feature’s inception over five years ago (I routinely cashed out at one cent per point in prior years). It’s been the primary reason I’ve held the Reserve the past several years. I’m intrigued to hear how Chase will maintain this benefit, if at all. As of right now, I can’t necessarily assume it will continue. That said, I imagine Chase will update us soon on the feature in a separate announcement covering all cards with PYB benefits, similar to what they’ve done in the past.
Sapphire Reserve Refresh – Conclusion
As I mentioned up top, I plan to continue holding a Chase Sapphire Reserve in its new form. Bottom line, can I justify the $245 hike, even if I don’t feel it until the annual fee hits in 2026? While I’m not getting deep into the weeds on valuations in this article, I’m confident this new version of the Reserve clearly adds a net-$245 or more in value for our situation. Even if Pay Yourself Back ends, I can easily rationalize a long-term hold. A step below that, an occasional rental of the card via upgrade and downgrade is a no-brainer for us.
I look forward to messing around with the new Reserve more. So many angles exist to this refresh, and I’m stoked for the challenge at maximizing the card in unique ways. Have fun, and do big things!
What’s your take on the Chase Sapphire Reserve refresh?
Thank you for you’re thought Jack. You are spot on.
I did get the Autograph card last year and have been eyeballing the green as well. Trying find my fit!
To me, the CSR has been intended to be an upscale travel card. The *target* cardholder is someone who travels often and spends much on travel. That *target* cardholder will get value out of the CSR and the annual fee will be an afterthought.
With the refresh, the same applies. While the card has been couponized, the *target* cardholder should easily capture many (but not necessarily all) of the credits. And, the annual fee remains an afterthought. In my case, the refresh creates substantial value and the coupons are indeed easily captured. For others, it’s not the case and perhaps the CSR is not a fit for them.
With the refresh, Chase raises the bar for what a premium travel card is. And, it has been first-to-the-market. And, it has captured my attention. Which poses a challenge for an Amex Platinum refresh. It needs to break that attention. If it only matches the CSR refresh, no thanks. If it expands its coupons in the same manner as it has employed coupons thus far — $10 per month for this or that — no thanks.
(As a side note, I don’t use Sapphire Lounges, Centurion Lounges, or Priority Pass lounges. I’m fortunate enough to always have access to airline-operated lounges. The point being: low-cost lounge access is not my objective.)
Great perspectives, Jack! I agree this update puts more pressure on Amex to do something better than a low-rent refresh.
People who will get their money’s worth are never the target audience. The target audience is people who THINK they will get their money’s worth but won’t. That doesn’t mean that some people won’t make it work to their advantage. But they are never the target audience.
Forgive me if I wasn’t clear.
I did not say that the target cardholder is someone who will get their money’s worth. I said that the target cardholder is someone who travels often and spends much.
I did not say that the target cardholder will get their money’s worth. I said the target cardholder will get value out of the CSR. That value might be objective value (cash) or subjective value (whatever). And, the value they believe they are receiving will be enough for them to not mind the annual fee.
Pax
Yes, fair enough. I suspect there are folks who can make this work even if they don’t spend a lot as long as they can target the coupons.
I spend and travel a lot, but unfortunately not in patterns that are terribly useful for the new CSR. I put quite a lot of spend on the 3x generic travel category that I will move to Ink Preferred. Oddly I can make the Amex Platinum work…for now. But a few changes in coupons could make all the difference.
I absolutely agree that many existing cardholders are not a fit for the CSR refresh. These people need to find a new solution for their circumstances. It’s the nature of the game. Good luck.
I’ve been prepping to close out my card after my AF hits August 1. But after talking to a Chase rep this morning, looks like I won’t pay the new AF until 2026. So I will get a year with the new changes but not the new fee. Not a huge traveler like many on here, but have been able to benefit from the card enough to pay the $550. Until my new fee hits, I will get a chance to see if I can make it work for $795, but there’s a snowballs chance I can. Until then, I will make sure I take advantage of the new CSR lounge at PHL.
If it’s not a fit, it’s not a fit. And, that’s okay. Perhaps consider the Amex Green, the Citi Strata Premier, or the Wells Fargo Autograph (either flavor). Best of luck.
Enjoy, GMan58!