Is the Reign of Chase Rewards Over? A New Era for Travel Points
For over a decade, the travel rewards landscape has revolved around Chase, largely due to its exclusive access to World of Hyatt, consistently ranked as the best hotel loyalty program. But that dominance is shifting. The emergence of compelling alternatives, coupled with changes to Chase’s own offerings and Hyatt’s award chart, is prompting a re-evaluation of long-held strategies.
The 5/24 Rule and Its Diminishing Grip
The “Chase 5/24 rule” – the policy of denying applications for most Chase cards if you’ve opened five or more credit cards from any bank in the past 24 months – has long dictated how serious travel rewards enthusiasts approached credit card applications. The strategy was simple: prioritize Chase cards first to maximize Hyatt points earning potential. Yet, this rule’s influence is waning.
For many travelers opening only a few cards annually, the 5/24 rule isn’t a major concern. And for those already holding a Sapphire card, protecting remaining 5/24 slots solely for Chase is becoming less justifiable.
Bilt Rewards: A Rising Challenger
Bilt Rewards has quietly become a significant contender. Initially, its appeal was limited by earning rates. However, the recent rollout of Bilt 2.0, particularly the Bilt Palladium Card, has changed the game. The card offers 2x points on everyday spending, with potential to boost that to 3x through Bilt Cash redemptions, and a substantial welcome bonus.
Crucially, Bilt also partners with Hyatt, offering a viable alternative pathway to earning those coveted points. This means travelers no longer require to prioritize Chase to access Hyatt rewards.
Hyatt’s Award Chart Changes: A Double-Edged Sword
Just as Bilt gained traction, Hyatt announced a significant overhaul of its award chart, moving from three to five pricing tiers. While Hyatt maintains a commitment to transparency with a published chart, the introduction of higher tiers – potentially reaching 75,000 points per night – increases the cost of premium redemptions by as much as 67%. This change makes earning points, regardless of the source, even more critical.
The Sapphire Reserve’s Value Proposition Questioned
Chase’s premium card, the Chase Sapphire Reserve, has also faced scrutiny. The recent increase in its annual fee to $795, coupled with the lack of transfer advantages over the $95 Sapphire Preferred for Hyatt redemptions, has led many to question its value. The benefits, while extensive, may not justify the cost for those primarily focused on maximizing point transfers.
Pro Tip:
Don’t automatically assume the highest-tier Chase card is the best. The Sapphire Preferred often provides the core benefits – transfer access and solid earning rates – at a significantly lower cost.
Diversification: The New Strategy
The landscape has shifted from a Chase-centric approach to one that favors diversification. Bilt’s emergence, coupled with changes to Chase’s offerings and Hyatt’s award chart, means travelers have more options than ever before. Spreading points earning across multiple programs can mitigate risk and unlock a wider range of redemption opportunities.
What Does This Mean for the Future?
The future of travel rewards will likely see increased competition among issuers. We can anticipate:
- More Flexible Transfer Options: Other banks may seek to partner with popular hotel programs like Hyatt to challenge Chase’s dominance.
- Enhanced Earning Rates: Credit card issuers will likely continue to innovate with earning structures to attract customers.
- Dynamic Award Pricing: More hotel programs may adopt dynamic pricing models, making point valuation more complex.
- Increased Focus on Lifestyle Perks: Premium cards will likely continue to add lifestyle benefits to justify higher annual fees.
FAQ
Q: Is the Chase Sapphire Preferred card still worth it?
A: Yes, the Sapphire Preferred remains a valuable card, particularly for beginners, offering solid earning rates and access to Chase’s transfer partners.
Q: What is the Chase 5/24 rule?
A: It’s a Chase policy that denies applications for most of its cards if you’ve opened five or more credit cards from any bank in the past 24 months.
Q: Is Bilt Rewards a good alternative to Chase?
A: Yes, Bilt Rewards offers a viable path to earning Hyatt points and other valuable rewards, especially with the introduction of the Bilt Palladium Card.
Q: Will Hyatt’s award chart changes impact my points?
A: Yes, premium Hyatt redemptions will likely cost more points under the new award chart, making it even more important to earn points efficiently.
Did you know? Hyatt consistently ranks as a top hotel loyalty program due to its predictable award pricing and valuable properties.
Ready to rethink your travel rewards strategy? Explore the latest offers from Bilt Rewards and compare credit card options to discover the best fit for your travel goals. Share your thoughts and experiences in the comments below!
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