Are High-Fee Travel Reward Credit Cards Worth the Price?

How much should you pay for a travel reward credit card? 

When I first delved into the realm of travel reward cards, my stance on annual fees was unwavering—I steered clear of any card with a fee exceeding $100 per year. After all, one can enjoy fantastic vacations with lower-fee travel reward credit cards. However, not all costs are created equal. In this blog post, we'll explore the world of high annual fee travel reward credit cards and unveil the surprising benefits that may make these cards well worth the investment. Some worthwhile travel reward cards have higher annual fees.

Luxurious Travel Perks: Elevating Your Journeys

One of the additional benefits of high-fee credit cards is unparalleled access to luxury travel perks such as: 

Airport Lounge Access:

High-fee cards often grant complimentary access to exclusive airport lounges worldwide, offering a haven of comfort, complimentary refreshments, and a serene pre-flight atmosphere.

Global Entry and TSA PreCheck:

Say goodbye to long security lines. Many premium cards cover the application fees for Global Entry or TSA PreCheck, expediting your journey through airports with ease.

Elite Status in Hotel and Airline Loyalty Programs

Investing in a high-fee credit card can open the doors to elite status in various loyalty programs: We have spoken about the American Express Hilton Aspire and American Express Marriott Brilliant cards and the elite status granted with those cards in previous posts.  Credit cards that are cobranded with a hotel chain, is one of the best ways to earn elite status quickly. The higher status will sometimes come with upgraded hotel rooms, free breakfast, free parking, or other perks. Hotel credit cards often also come with free night awards. Many airline credit cards will offer a free checked bag, discounts on food, and other benefits. Many cards with high annual fees offer a larger welcome bonus (for new cardholders) and offer a statement credit monthly on spending such as restaurants, delivery services, Walmart+, or business services. Many also earn points faster, meaning more free hotel stays. 

Extra points for Travel Purchases 

Some high annual fee credit cards offer annual statement credits towards certain travel expenses or annual travel credit, while others may offer bonus points for travel. Credit card issuers will vary in their offerings, but many do offer benefits for travel charges. Many will also have no foreign transaction fees, which can add up for frequent travelers. Some offer a free companion ticket for domestic flights. 

While it may be challenging to quantify the dollar value of all the services offered by high-fee cards, let's use American Express as a demonstration. I’m using American Express as a demo, but many other high-fee credit cards are also worthwhile investigating.

Note: 

-Global lounge access cost varies, estimated 2 visits at $40 each for comparison purposes 

-Marriott Bonvoy Brilliant American Express- Free night award for 85,000 points, approximate cost for an equivalent hotel stay

-Hilton Honors American Express Aspire Card- free night award can be used for a standard room at any hotel

The benefits shown in the chart, do not consider the sign-up bonus points you would gain with these cards, as that is harder to put a dollar value on. However, there is value in the sign-up bonuses. Once you become comfortable with the travel hacking world, many travel reward credit cards with higher annual fees are worth investigating. If you would use the benefits, earn statement credits, etc that are often offered with higher fee cards, then it may be worthwhile having those cards in your wallet. High-fee cards are not for everyone, especially if you are new to the travel rewards game, over time you may become more comfortable paying a credit card annual fee to gain more travel perks. There is not a right or wrong way to do this. 

The best travel credit card will be different for everyone, depending on your travel plans and spending habits. Be sure not to rule out premium travel cards, they are often a good choice when taking into account the whole package. Although high annual fees may initially seem daunting, the benefits accompanying premium credit cards can significantly outweigh the costs. From exclusive travel perks to elite loyalty program status, these cards are designed to elevate your overall travel experience. Before dismissing a high-fee credit card, consider the value it brings to your lifestyle and travel aspirations. Just be sure to read the fine print and make sure you will use the benefits offered. After all, the true worth of a premium credit card extends beyond the price tag—it unlocks a world of possibilities.

To learn more about our travel reward credit card strategies check out: 

1. Travel Hacking 101: The Ultimate Beginner's Guide to Getting Started

2. Starting with the Lowest Level Reward Card is Best

3. Using a Partner (Person 2) for Your Credit Card Travel Hacking Strategy

4. Earning Reward Strategically-Use Credit Card Points for Your Next Vacation

5. Travel Hacking- How I Started Part 1 

6. How I Started Part 2 

7. Choosing Your First Travel Reward Credit Card and Begin Travel Hacking 

8. A Guide to Planning Your Disney World Using Reward Points

9. Maximizing your Hilton free night certificates: Tips and Tricks to Get the Most Out of Your Rewards

10. You Reached Your First Travel Credit Card Sign-Up Bonus: Now What?

11. Overview of the Hilton Honors Program

12. Taking a Closer Look at the Marriott Bonvoy Program

13. Traveling Hacking on a Budget: Our Tips for Saving Money on a Disneyland Vacation

14. Traveling with Kids: How to Pack for a Trip Efficiently

15. Are High-Fee Travel Reward Credit Cards Worth the Price?

16. American Express Hilton Honors Credit Card: Elevating Your Travel Experience