Premium Travel Reward Credit Cards: High Profile but Unsustainable

According to the report, U.S. households are adding new credit despite sky-high volumes of outstanding credit card debt as well as auto finance and student loans. Winning new customers and coming up with new payment tools is exciting, but issuers need to keep their eye on the ball particularly since the lending growth is outpacing household income growth.

According to the report, U.S. households are adding new credit despite sky-high volumes of outstanding credit card debt as well as auto finance and student loans. Winning new customers and coming up with new payment tools is exciting, but issuers need to keep their eye on the ball particularly since the lending growth is outpacing household income growth.

The latest in premium credit card products, travel credit cards targeted to consumers with strong credit scores and above-average income, grab headlines with sky-high introductory rewards and fees. Consumers are attracted by rewards and the 24-karet gold-plated cards, but is this an unrealistic business model? Will customer attrition occur in the second year when $450 fees come due with only a fraction of the first-year benefits available?

The report, "Premium Travel Reward Credit Cards: High Profile but Unsustainable ", discusses the long-term proposition of these high-reward/high-fee cards and presents analysis pointing to four reasons the model will not stand the test of time:

Highlights of the research report include:

Key Topics Covered:

1. Executive Summary

2. Introduction

3. U.S. Premium Travel Cards Offer Rich Reward Opportunities

4. U.S. Premium Travel Cards, as Designed, Are Unsustainable

5. Advice for U.S. Issuers

6. Conclusions

Companies Mentioned

For more information about this report visit https://www.researchandmarkets.com/research/6z3jvs/premium_travel

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