I'm a travel expert, and this is why I'm not getting the Citi Strata Elite card

CNN

13 hours ago

CNN Underscored reviews financial products based on their overall value. We may receive a commission through our affiliate partners if you apply and are approved for a product, but our reporting is always independent and objective. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. Citi is launching the new Citi Strata Elite credit card, its contender at the high end of the market for travel rewards credit cards. The offering, which competes directly with The Platinum Card® from American Express (see rates and fees) and the Chase Sapphire Reserve®, charges an annual fee of $595. That fee is the lowest of the three, compared to an annual fee of $695 for the Amex Platinum and $795 for the Sapphire Reserve.
While those are eye-popping sums, the cards offer benefits and credits that can add up to more value for card holders than the cost of the annual fees. And does that go for the Citi Strata Elite as well? It can, depending on what you value and spend money on. Credit cards should always be considered in terms of the value they bring you, which is, of course, subjective.
Below, we'll describe the perks of the Citi Strata Elite card, and why they're not enough to get me to switch away from the Chase Sapphire Reserve as my premium travel rewards card. We'll also tell you why the Strata Elite, while it doesn't work for me, may be a good choice for you.
The Citi Strata Elite card has an annual fee of $595, but Citigold® Private Client and Citigold® clients will pay less.
The former, who maintain a minimum combined average monthly balance of at least $1,000,000 in eligible linked deposit, retirement and investment accounts, receive a $595 credit the first year — making the card effectively free — and a $145 credit toward the fee each year. Citigold clients who have at least $200,000 in those same assets with Citi get a $145 annual credit.
The size of your welcome bonus will depend on where you apply for the card. New customers who apply online and are approved for the Citi Strata Elite can earn 80,000 bonus ThankYou® Points after spending $4,000 within the first 3 months of opening the account. But it's better to apply at a Citi retail branch, because if you do that and are approved, your bonus will be a huge 100,000 points. Even at the lower end, that's enough to fly to Europe or Asia in business class.
The card's points earnings are relatively high in some categories:
12 points per dollar spent on hotels, car rentals and attractions booked on cititravel.com.
6 points on air travel booked on cititravel.com.
6 points at restaurants, including delivery services, every Friday and Saturday from 6 p.m. to 6 a.m. ET; 3 points any other time.
1.5 points on all other purchases.
There's one big caveat here: The best returns are reserved for bookings made on the Citi Travel portal. You won't get good returns for buying directly from travel providers, such as airlines and hotels. Booking from a third party, like a card issuer's portal, doesn't get you the same protections or flexibility in case of disruptions, though. With hotels, you won't get points with the hotel's loyalty program or have any elite status recognized either. This can be a major crippling factor for many when considering the Citi Strata Elite.
The boosted weekend dining rewards are a refreshing perk in the world of rewards cards, and earning 1.5 points per dollar on everyday purchases outpaces the standard 1 point per dollar offered by competing cards. Still, the need to go through the portal for those great travel earnings is a big downside.
Unlike the Amex Platinum and Chase Sapphire Reserve, the Citi Strata Elite doesn't require you to keep track of as many different credits. Yet those credits can amount to $700, more than the annual fee, if you use them all in full:
Up to $300 annual hotel benefit: Every calendar year, you'll get up to $300 off a hotel stay of two nights or more booked through Citi Travel.
Up to $200 Annual Splurge Credit: Every calendar year, earn up to $200 in statement credits on your choice of up to two merchants among five (1stDibs, American Airlines, Best Buy, Future Personal Training and Live Nation).
Up to $200 Blacklane credit: Every calendar year, up to $200 in statement credits with Blacklane, a global chauffeur service (up to $100 January through June and up to $100 July through December).
Every four years, you'll also receive a statement credit up to $120 as reimbursement for the application fee for Global Entry or TSA PreCheck.
Another useful benefit for travelers are the four day passes per calendar year to American Airlines Admirals Club® airport lounges. A day pass for flyers who don't qualify for access otherwise costs $79, so four passes are worth $316.
As a frequent flyer, I love Priority Pass lounges, found all over the world, and the Strata Elite delivers on this front too. The card comes with a complimentary Priority Pass Select membership, giving card holders and authorized users (who can be added for a $75 annual fee) complimentary access to more than 1,500 lounges. This includes up to two guests. Since that level of Priority Pass membership costs $469 annually, this is another great benefit.
You also get access to The Reserve by Citi Travel, a collection of 4.5- and 5-star hotels on the Citi Travel platform. When booking one of them with the card on the portal, you'll get a daily complimentary breakfast for two, free Wi-Fi, a $100 experience credit (varies by property) and early check-in, late checkout and room upgrades, subject to availability.
In a major win for American Airlines loyalists, the Strata Elite becomes the only credit card that lets users transfer ThankYou points to AAdvantage miles at a 1:1 ratio — something previously only possible through hotel programs like Marriott Bonvoy and World of Hyatt.
Transferring points to an airline partner is generally the way to extract the most value, and this feature opens up myriad ways to fly on American or its partners using credit card points. It's a huge development.
Even better, the ability to transfer points to American applies to card holders of the much less expensive Citi Strata Premier® Card, with an annual fee of $95. Those with the legacy Citi Prestige card, which is no longer open to applications, can transfer points to American too.
Given those benefits, plus the ability to transfer points to American Airlines, why am I not rushing to get the Citi Strata Elite, even though I am a flyer who covers 100,000 miles in an average year?
It's simple. I have other cards that get me similar top-tier benefits or earn more on everyday basics.
My premium card will remain the Chase Sapphire Reserve, which, even with its $795 annual fee, gives me usable credits that bring the fee down to essentially zero. It earns less than the Strata Elite on travel, with 4 points per dollar on flights and hotels but doesn't require booking through a third-party portal.
The Citi Double Cash, our benchmark card for everyday expenses, earns 2 points per dollar on everything, for no annual fee. That's a 33% better return than the Strata Elite on everyday spending.
If you aren't concerned about booking travel on a third-party portal, the Citi Strata Elite's high earning rates on flights and hotels are hard to beat.
This is a great card for people who dine out on weekends too. No other card earns 6 points per dollar on dining, and if you do most of your restaurant spending on Friday and Saturday nights, the Strata Elite will reap vastly more points on that than the competition.
Take stock of the card's overall benefits to see if it makes sense for you. If you spend at one or more of the five merchants offering what Citi calls 'Splurge Credit,' for example, you've essentially got $200 more in your pocket just from using the Strata Elite to pay. Add to that the other perks of the card related to goods or services you would purchase anyway, and see if the combined value at least equals the annual fee.
Besides the Sapphire Reserve, the Amex Platinum is another card worth considering for frequent flyers since it earns 5 points per dollar on flights booked directly with airlines or through American Express Travel. It also offers benefits that can offset the $695 annual fee.
Another great alternative is the Capital One Venture X Rewards Credit Card, with an annual fee of $395. Like the Strata Elite, it offers its highest points earnings when booking through the issuer's own travel portal, but makes for an excellent daily driver as well, with 2 points per dollar on all spending. Add to that several high-end benefits that travelers value, like top elite status with Hertz, and you have a winner.
A great combo to maximize points earnings would be the Citi Strata Premier plus Citi Double Cash, with just $95 in annual fees. The Double Cash would earn 2 points per dollar on all spending, while the Premier would earn 3 points on flights, hotels, restaurants, supermarkets, gas stations and EV charging stations.
So, if you travel often or want to, by all means, consider the Citi Strata Elite card — just be aware that a card with such a high annual fee makes sense only for people who utilize enough of its many perks to make the cost worthwhile.
Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.