Citi unveils Strata Elite credit card with $595 fee to challenge Amex and Chase in premium market

Citigroup has launched its highly anticipated Strata Elite Credit Card, entering the ultra-premium credit card arena with a $595 annual fee. This new offering is positioned to directly compete with American Express’s Platinum card and Chase’s Sapphire Reserve, both dominant players in the luxury travel rewards market.

The Strata Elite aims to attract affluent consumers by delivering significant value and exclusive perks at a lower fee point compared to its rivals. While Amex Platinum charges $695 annually and Chase Sapphire Reserve recently increased its fee to $795, Citi is marketing the Strata Elite as a cost-effective alternative potentially offering up to $1,500 in annual value for users who fully leverage its benefits.

The Strata Elite card emphasizes rewards in key lifestyle categories. Cardholders can earn up to 12 points per dollar spent on hotels, car rentals, and attractions booked through Citi Travel, alongside elevated rewards for dining during peak weekend hours.

The card’s annual credits are substantial, including a $300 hotel credit valid on multi-night stays booked via Citi’s travel platform, a $200 “Splurge” credit redeemable at select retailers such as Best Buy and Live Nation, and four American Airlines Admirals Club lounge passes per year—a unique benefit not offered by competing premium cards.

Additional perks include lounge access, a biannual $100 Blacklane chauffeur credit totaling $200 annually, and a Global Entry or TSA PreCheck fees every four years. The Strata Elite also waives foreign transaction fees and comes with comprehensive travel and purchase protections. Members enjoy exclusive offers at premium hotels, such as complimentary breakfast, late checkout privileges, and $100 experience credits at select locations.

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A key highlight setting the Strata Elite apart is its ability to transfer points at a 1:1 ratio to American Airlines AAdvantage miles. This feature marks the first time in the U.S. consumer credit market that Citi has enabled such a transfer, following American Airlines’ recent partnership with Citi’s ThankYou Rewards program. Points can be earned at competitive rates across multiple categories, with authorized users available for $75 each, granting nearly full card benefits including lounge access. This approach signals Citi’s renewed focus on the high-end travel segment, reminiscent of its earlier Citi Prestige card, which was discontinued for new applicants in 2021.The launch of the Strata Elite intensifies the competition among premium credit cards amid a highly active “perk war.” Chase’s recent increase of the Sapphire Reserve annual fee to $795 was paired with enhanced benefits, while American Express continues to evolve its Platinum card, maintaining its $695 fee but adding new credits and exclusive experiences to retain customers. Capital One, with its Venture X card priced at $395 annually, is also expanding its travel offerings to capture affluent consumers seeking premium perks at a lower cost.

Despite rising fees in this segment, analysts note that the demand for luxury travel rewards remains strong, supported by Federal Reserve data indicating average U.S. credit card interest rates above 20%, which accentuates the value of rewards and benefits for consumers.

Citi’s head of U.S. cards and lending highlighted the design philosophy of the new card, stating, “The modern customer, who is affluent with a passion for travel and dining, told us they want to maximize the rewards they can earn in the categories they care about.”

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