Let’s be clear from the start: the Chase Sapphire Preferred Card changed travel rewards forever.
Even if you don’t have the card, features on cards you do have are undoubtedly based on some bold bets from when the Sapphire Preferred launched, like the end of foreign transaction fees.
But since those triumphant days, an endless array of other cards have launched too, and like any other business, some new comers have brought new and exciting benefits to the marketplace too.
The recent addition of the Capital One Venture X card ushered in a new era of rewards, albeit at a different annual fee point, and a variety of co-branded cards, like the new Aeroplan card are also looking to shake things up.
Which leaves an important question: is the Chase Sapphire Preferred Card “dead” due to all the new offerings? After changes of its own this year, it’s not an easy question to answer. An 80,000 point bonus worth at least $1000 toward travel may impact things.
Chase Sapphire Preferred Card: Then And Now
In 2021, the Chase Sapphire Preferred and Chase Sapphire Reserve Cards underwent makeovers of their current offerings. Prior to these changes, it was probably fair to say that the Sapphire Preferred was still a “good” all around starter travel rewards card, but no longer much more than that.
It was getting beaten in earning categories it once championed like dining or airfare, and didn’t have any particularly unique features, outside of a food delivery pass and its clever travel protections, which it still has.
The travel protections like trip delay and lost luggage were arguably the best features.
The 2021 makeover added a $50 annual credit when you book a hotel through Chase Travel — not bad for a $95 annual fee card — and bumped up points earning rates too.
The card now offers: 5X points on travel booked through Chase Travel, 3X on dining and delivery services, 3X on streaming services and a 10% rebate on the points you earn. In other words, if you earn 100,000 points, you’ll get an additional 10,000 each year.
Of course, the same lucrative 1:1 points transfer partners also exist, which means when it comes time to burn points, there’s lots of airline and hotel options.
And — points can be converted into “cash” towards travel at a rate of 1.25X, so 100,000 points equals $1,250 toward travel purchases via Chase Travel.
A key hack with this, is that you can then earn airline miles on these tickets when you use points this way, since it counts as if you paid cash, rather than when you convert credit card points into airline miles to buy a ticket, which you don’t get rewards for.
So Where Does Chase Sapphire Preferred Stand?
This is where things get tricky. The Chase Sapphire Preferred now earns 3X on dining, which is a formidable opponent of the Amex Gold at 4X on dining. Sure, it’s an entire point “per” lower, but it’s a $95 annual fee card versus a $250 annual fee card.
The Chase Sapphire Preferred doesn’t offer 5X on “all” airfare like Amex Platinum, but again, it’s a $95 a year card, instead of $695 like Amex Platinum. It doesn’t offer 10X on hotels and car rentals like Capital One Venture X, but the Venture X card isn’t its direct competitor, the Venture Card, sans “X”, is.
In reality, there are only two close direct competitors in terms of annual fee, and that’s the Capital One Venture (not the more premium Venture X) and the Citi Premier. If you have needs for higher earn rates, or benefits, it’s worth considering going up to annual fee cards at higher levels. If not, here’s how these three cards break down…
Travel Earning Rates
Chase and Capital One each offer an opportunity to earn 5X on travel with the Sapphire Preferred and Capital One Venture respectively, but only if you book through their respective travel websites.
For direct purchases with hotels or airlines, Chase offers the same 2X on airfare of direct hotel bookings made with chains or airlines as Capital One Venture. That’s better than 1X, but when you’re making large purchases, earning 5,000 points for a $1,000 flight is nicer than 2,000 points.
Citi Premier, meanwhile, offers 3X points on airfare and hotels booked directly with airlines or hotel chains, and you don’t need to book through the Citi website. This is a lower earning rate than what’s theoretically possible with higher fee cards, or via the Chase and Capital One Travel booking websites, but it gives more flex to booking.
So if it’s purely about across the board earn rate, Citi wins for flexibility, but if you’re happy booking travel through the new Capital One Travel, or Chase Ultimate Rewards Travel, the Sapphire Preferred and Venture tie for the win thanks to the 5X earning on airfare, hotels and cars.
Travel And Fee Credits
Should you expect big benefits from a $95 annual fee card, or do those only really come from more expensive cards? Thanks to robust competition in the marketplace, the answer is you can expect some!
Chase offers $50 toward a hotel booking made through Chase Travel each year, which can make a big dent in the annual fee. The card also offers a complimentary ‘DashPass’ subscription from DoorDash, which retails for $9.99 a month That’s basically circa $120 a year in value, if consumed. Together, that’s a $95 a year card offering $170 in credits.
Citi Premier, for its part, offers a $100 credit when you spend at least $500 on a hotel booked through ThankYou.com or by calling the Citi Travel desk.
Capital One has gone a slightly different direction, offering (2) lounge passes to its new Capital One Lounges in various US airports and bundled in Hertz “Five Star” elite status as well as dining access. There’s also recently been new fee credits towards travel and lifestyle memberships, like GravityHaus, with savings up to $300 annually.
Again, these are all pretty impressive for $95 a year cards with great earning rates and points transfer partners. A new 80,000 point welcome bonus worth at least $1000 does not hurt in the slightest.
Where Does Chase Sapphire Preferred Fit?
The big question for the Sapphire Preferred Card, and the others it competes directly against, is whether they’re caught in the middle?
The no annual fee Chase Freedom Flex offers many great earning rates on travel and other categories, just without the travel perks or points transfer partners and other low or no annual fee cards also push the boundaries too.
On the other end of the spectrum, there’s the increasingly premium cards, like the Sapphire Reserve, Venture X or Amex Platinum, which offer potentially $1,000’s in annual value, albeit with higher annual fees charged up front.
So is there a sweet spot with the $95 a year Chase Sapphire Preferred, or is the card somewhat stuck in the fray? That comes down to personal choice, as to whether the differences between the “no fee” Freedom, are glaring. For someone who just uses cash back, the answer is probably that the Freedom does enough.
But for someone who uses points transfers to airlines or hotels, or appreciates the protections like primary rental car coverage, Sapphire Preferred is clearly better.
Then that leaves the final question of whether you’re a super user, and would benefit more from the higher annual fee cards with higher multiples and more in the moment travel perks than the Sapphire Preferred offers. Basically, would you be better off with a card offering lounge access and more travel credits?
Where I come out? If you travel relatively infrequently, the Sapphire Preferred is a fantastic starter card which is not “dead” in the market. It’s a safe choice with great perks and fantastic travel partners, all at a price mosts people can stomach.
If you travel really frequently, the other cards may, but may not, be better. Across the board though, the Sapphire Preferred Card is more compelling in 2022 than it’s been in a few years, so the only question is whether you need a card that does more for you, less for you, or whether this is just right.
I had the Chase Sapphire Reserve and dropped it when the annual fee hit end of last year in favor of the Venture X. I also have the Amex Gold and I plan on picking up the Chase Sapphire Preferred shortly. Here’s my thinking:
I like the Venture X but their travel portal is still very much in beta (too many missing airlines and fares that are bookable on other OTAs). I don’t chase hotel status or points so I’m fine using the Cap1 portal for hotels to get 10x points (plus Cap1 matches hotel prices). That leaves the Chase Sapphire Preferred as a great option for the same 5x points on airfare purchases through their portal, where I’ve never had an issue booking flights.
As far as the 4x Amex on restaurants beating out the 3x on dining for the CSP, Amex codes many places not as “restaurants” but as cafes, diners, bars, etc. and leave you with 1x points. I never had an issue with Chase properly categorizing their broader “dining” category with the 3x points. I basically keep the gold for grocery spend and because I like MR, but I could downgrade that card depending on the retention offer.
All that said, the CSP with its new perks fits very nicely where my spend is going right now so I’m happy to round out my card collection with some UR points.
Just dropped it & upgraded an Ink cash to a CIP for keeping 3x travel and transfer partners. Now w/ Freedom, CFU, an ink cash, and the Ritz I have all the same points earning, card protections, Priority pass (the Best PP, and all free AUs get it as well), etc intact. Only lose the 1.5 cpp redemption which did not use much at all anyway. I did not downgrade as I am trying to trim the physical amount of cards in the house…bu I made sure to transfer my credit line to other cards so as to not have that affect credit score. And by upgrading a CIC to a CIP, I am still able to jump on a CSP or CSR if a high SUB comes along. I don’t think I am missing anything else from this change.
@Vince. I would not upgrade my Ink Cash to the Ink Preferred because you get 5X on internet, phone, office supply store spend with the Ink Cash and only 3X with Ink Preferred. That’s a losing proposition. You had two Ink Cash cards and kept one?
Don’t forget those GoPuff credits 🙂 $10 per month until the end of 2024.
But if I use my Sapphire Preferred and book a Hyatt stay via the Chase booking site to get the $50 credit, do I then lose my Hyatt benefits from Globalist? If so, then I should use this for a hotel where I have no status. I have status with Hilton, IHG and Marriott too.
Generally correct. Some hotels may honors status benefits even when booked through a “third party” website, like the Chase site, but they’re typically not obligated to. Your logic tracks that it’s great for places where you’re 1) buying what you want – a breakfast rate, a suite etc. or 2) chains you’d get nothing anyway.
I have had TERRIBLE experience with “Chase Travel. I purchased four “FULLY REFUNDABLE” flights that over the past few months that had to be cancelled and refunded. I’ve gone through their TEDIOUS call-in center process (45+ minutes!) multiple times, and had each one properly cancelled. The cash portion was refunded to my card, but after weeks of calls and emails they have not refunded the UR points amounting to over $1000. If it was one instance, ok, a mistake. But FOUR instances, it is a pattern of theft. BEWARE of Chase Travel. They are not well trained, everything has to be checked with a supervisor, and then… nothing happens. I think an article on this should be written! But of course Chase is a sponsor of all the travel websites and blogs, so nobody will criticize them.
Regarding Chase Travel . . . and AMEX Travel . . . and (fill-in-the-blank) travel portal, most are operated by Expedia. Capital One has moved from Expedia to a different provider. Thomas, your experience would likely be replicated on any other travel portal. Frequent Miler strongly advises to NOT book via travel portals. While this prevents the double-dip mentioned in this article, in most/many cases, greater value is found by transferring points to the airline’s program.
The Amex Green Card has 3X on travel and dining and has a $100 per year Clear credit.
Depending on one’s transfer partner targets, the Citi Premier is a great card — 3X across airfare, hotels, dining, groceries, and gas for the same annual fee as the Sapphire Preferred (rental cars are 1X).
Final note, the Amex Gold Card has a $120 per year dining credit and $120 per year Uber credit. To some, those are usable credits and all but covers the card’s annual fee. The card also earns 3X on airfare.
Replaced MY CSR and Wife’s CSP with VentureX, VentureX is an amazing value. Happily kept my CSP, INKCASH and FREEDOM and FREEDOM UNLIMITED .
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