Many of the nation’s largest card issuers this summer are raising the ante on rewards for affluent cardholders, but at least one issuer is dangling an enhanced card-rewards deal accessible to middle-income consumers.
Barclaycard US on Aug. 25 announced a short-term offer for new customers of its cobranded Choice Privileges Visa Signature credit card enabling cardholders to earn up to five free nights at Choice Hotel properties including Comfort Inn, Econo Lodge and Rodeway Inn.
Consumers who apply for the cobranded Choice card before Nov. 3, 2011 can earn up to 24,000 bonus points in Choice Hotels International Inc.’s loyalty program. Points may be redeemed at some 6,000 Choice hotels around the world.
New cardholders are also eligible to earn an additional 16,000 points after their first paid Choice Hotels stay, the company said in a press release.
Cardholders typically earn up to 15 points for every dollar spent at Choice hotels and two points for purchases elsewhere.
There is no annual fee for the card.
The promotion marks the first time Choice hotels has offered so many free nights to cardholders, Greg Brown, Choice Hotels’ vice president of loyalty, promotion and relationship marketing, said in a press release.
Choice’s promo is clearly targeting a different group than certain other high-profile card-rewards offers announced within the same week, Brian Riley, research director with TowerGroup, tells PaymentsSource.
“Several large issuers recently have announced programs going after very specialized audiences among affluent consumers, but Choice is in a different league, going for middle-of-the-road consumers,” Riley says. “It’s a bit of a departure from the pack, but definitely part of a trend of issuers jockeying for attention for card-rewards programs, which have gathered a lot of marketing thrust recently.”
Capital One Financial Group on Aug. 23 announced the new Capital One Cash card enabling new cardholders to earn a total of 1.5% cash back on purchases in any category, with no annual fee and no maximum limit on rewards (
American Express Co. one day earlier rolled out a lush new rewards program with a $95 annual fee targeting Mercedes-Benz enthusiasts (
JPMorgan Chase & Co. also on Aug. 22 added new dining and travel perks to its Sapphire credit card for affluent cardholders (
Choice Hotels’ promotion proves that the card-rewards market is likely to continue to be competitive for the foreseeable future, Riley notes.
“While Amex continues to be the leader in going after very specific upscale audiences, and Chase is following them, other card issuers are working the middle ground, and clearly they see opportunity there.”
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