United’s new TravelBank card. (Image: United)
Both Delta and United this week introduced new credit cards that carry no annual fee and are designed for those who earn a lot more miles from spending than by flying. They are also for those who hate paying banks steep annual fees for card benefits they may infrequently or never use. But they still want to be in the points and miles game.
Delta’s entry from American Express is called the Blue Delta SkyMiles card. In addition to carrying no annual fee, the card lets users earn two SkyMiles per dollar spent at U.S. restaurants and on purchases made directly with Delta, as well as one mile per dollar on other purchases. In-flight purchases made on Delta bring users a 20 percent statement credit, and those who sign up for the new card can get 10,000 bonus miles when they spend at least $500 in the first three months.
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Delta’s no-fee card from AmEx. (Image: Delta)
The airline said the card’s target market is “the new or casual traveler” in the 18-34 age group. Delta said its studies indicate those travelers are more likely to travel for leisure and to dine out at restaurants than other age groups. (More details here) Today Delta launched a social media contest around the launch of the new card, offering a grand prize of a four-day vacation in Nashville. #DeltaAmexBlue
United’s new no-fee card, from Chase, is called the United TravelBank Card, and is also designed for less frequent travelers. This one won’t earn MileagePlus miles; it’s a cash-back card that returns a percentage of money spent – 2 percent for United purchases and 1.5 percent on other purchases. The returned cash goes in to the United TravelBank, where it can be applied toward United flights.
“The card also offers a broad list of additional benefits not widely found in traditional cash-back cards, including no foreign transaction fees, trip cancellation/interruption insurance, auto rental coverage and 25% back as a statement credit on food and beverage purchases onboard United-operated flights,” the company said.
Those who apply for the United TravelBank Card and spend $1,000 in the first three months will earn $150 in TravelBank cash. (More details here)
“If you are a regular user of airline miles the Delta proposition is stronger. If you don’t want to mess with miles, and United tends to have a lot of flights where you live, the TravelBank card could save you more money,” says Brian Karimzad of the MileCards.com website.
Would either of these cards appeal to you? Why or why not? Please leave your comments below.
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I’m not surprised. I love your newsletter, Chris, thanks for keeping us so informed!
No free baggage on the new Delta card
Since I now use my Barclaycard for travel benefits, I feel I’m using my DL Gold mainly for free baggage…does this new card offer that?
No interest in that United card. Why get 2% back, only good for United flights, when there are other cards that give you 2% back in cash ?
Fills a niche, certainly, but the big attraction for most loyalty cards is the big signup bonus. Without that, you’re really relying on spending a huge amount on these cards to get to a free flight. And if you’re spending that much you might prefer one of the premium cards that gives you 3-times points/miles for each dollar spend on travel.
Welcome back to work Chris! These cards aren’t likely focused on those of us that read this (certainly not me but I am happy to pay for the DL Amex card as an Atlantan) but that said, it’s a smart move on the airlines and their issuing partners. There are fewer and fewer new partnership opportunities for the airlines that are sizable enough to move the needle in terms of NTR (non-transportation revenue) and while the issuers would prefer the additional fee income, they are also trying to expand their customer base with Millennials and as you mentioned, less frequent travelers who don’t fly enough to justify the annual fee.
Thanks for mentioning that, A! Notably, the United card does not charge foreign transaction fees. Usually the low or no annual fee card do charge foreign transaction fees, but don’t for the higher priced cards marketed to true frequent travelers.
No on the Delta card. Sadly, the greedy b’s want to charge 2.7% Foreign Transaction Fee. Disappointed you did not mention.
Hey Chris, I’ve missed my Travel Skills emails — glad you’re back !
Great write-up. The Delta card is also great for those who like Delta, but don’t fly enough on them to make paying the $95 per year for the Gold Amex worth it. I also like the 2 miles for restaurants, etc.