Citigroup Unveils New Strata Elite Credit Card to Compete in Luxury Market
Citigroup is introducing the Strata Elite Card, a fresh entry in the competitive world of luxury credit cards. With an annual fee of $595, this new card aims to attract customers seeking rewards without the higher costs associated with rivals like American Express’ Platinum Card and JPMorgan Chase’s Sapphire Reserve Card.
The Strata Elite Card will offer bonus points for everyday expenses and significant rewards for travel-related purchases, including stays at hotels, car rentals, and dining. Furthermore, it includes a $300 credit for hotel bookings and a $200 “splurge” credit redeemable at popular retailers such as Best Buy and Live Nation.
Citi has previously tried to solidify its presence in this upscale market with the Citi Prestige card, which launched in 2013. Although well-received initially, the Prestige struggled to compete against newer offerings like the Sapphire Reserve card from Chase, which quickly gained popularity after its release in 2016. As a result, Citi halted new applications for the Prestige card in 2021, although existing cardholders retained their benefits.
With tough competition against other high-fee cards such as Capital One’s Venture X and an upcoming entry from start-up Bilt, the Strata Elite must carve out its niche. Chase recently increased the Sapphire Reserve’s annual fee to $795, while American Express is planning adjustments to its rewards structure later this year.
Owning multiple high-fee cards can lead to annual fees exceeding $1,000, prompting consumers to weigh the costs against the benefits. Credit card companies aim to justify these fees with valuable perks, presenting these offerings as premium subscription services. However, consumers might hesitate to juggle multiple high-end cards annually.
The Strata Elite is the third option in the Citi Strata card series, which follows a tiered approach to cater to different customer preferences. Alongside the Strata Elite, potential applicants can also choose from the basic Citi Strata Card and the higher-tier Strata Premier.
The card promises the most rewards for travelers who book through Citi’s travel portal, where they can earn up to 12 points in Citi’s “Thank You” rewards program. Credit card issuers encourage users to book travel through their platforms, allowing banks to negotiate better terms directly with airlines and hotels. Major players like American Express, Chase, and Capital One have all enhanced their travel offerings in recent years to make their services more appealing to consumers.
