May 6, 2018
Chase is Reducing Three Sapphire Reserve Benefits
The Chase Sapphire Reserve has been one of my favorite credit cards ever since it first launched. It earns tons of valuable Ultimate Rewards points and offers many excellent and easy to use perks. It earns 3x points per $1 on travel and dining, offers an annual $300 travel credit, Priority Pass lounge access, and more.
The trouble is these perks are costing Chase millions of dollars and it doesn’t look like the bank is making all that much money off the card. According to leaked documents, Chase will be rolling out a series of benefit cuts starting this month.
- Customers will no longer earn points on travel purchases that qualify for the annual $300 travel credit (this means 900 less Ultimate Rewards points per year).
- Priority Pass guest access will be limited to two complimentary guests per visit. Additional guests will cost $27 each.
- Price protection is being eliminated.
Chase intends to notify cardholders in early May and implement the changes on August 26, 2018. The loss of 900 points per year isn’t really a big deal, but it comes across as petty cut. How much could 900 points per card really be costing Chase? It just seems silly.
The cuts to Priority Pass guest access could be significant if you often bring lots of guests into the lounge with you. I’d image this will hit families with many children the hardest. I can’t really blame Chase for making this change. None of its competitors allow unlimited guest privileges and this just seemed overly generous.
Price protection offered up to a $500 per item reimbursement, up to $2,500 per year. This is clearly an expensive benefit for Chase, although I’d bet most cardholders don’t know about it or don’t actually take advantage of it.
Overall, these changes aren’t terrible and I can understand the reasons behind them. The Sapphire Reserve still provides a fantastic value proposition.
H/T: Doctor of Credit