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Citibank is targeting wealthy individuals with its launch of a new premium card, Citi Strata Elitte Visa, alongside a $595 fee. This card aims to compete with industry leaders like American Express’s Platinum card and Chase’s Sapphire Reserve, indicating growing competition for high-end credit cards.
Key features expected to be highlighted include accelerated rewards points for travel and dining, annual credits for hotels and select purchases, and lounge access. Citi aims to position this card to offer tremendous value, potentially exceeding $1,500, for users who make use of its features. With this, Citi is looking to re-enter the ultra-premium market, which they exited after discontinuing its Citi Prestige card in 2021 due to intense competition.
With their new offering Strata Elite, Citibank now has a product that competes with the annual fees of some of its competitors while still offering solid rewards and perks. Benefits that come with the card include bookings made through Citi's travel portal, which earns points at a higher value due to a broader industry practice of incentivizing customers to use in-house systems. In addition, the card will offer the noteworthy advantage of transferring ThankYou Points to AAdvantage at a 1:1 ratio which utilises Citi's unique partnership with the airline. Other benefits also include credits for Global Entry and TSA PreCheck application fees, and possibly lounge access through Priority Pass.
The new Strata Elite Visa has been launched as part of Citibank's efforts to gain a stronger foothold in the lucrative affluent customer segment, a demographic that generates substantial revenue through the use of several banking products. With enhanced rewards, valuable travel benefits, and potential cross-selling with its wealth management services, Citibank is looking to strengthen its position against competing issuers that have historically held a monopoly on these premium cards. Strata Elite will be critical for Citi to showcase that they can compete in the market for premium cards and rewards.
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