A $395 annual fee isn’t what most travelers expect from a hotel company best known for brands like Days Inn and Super 8. But that’s the price Wyndham Hotels is charging for its new Wyndham Rewards Earner Premier Card, the company’s first entry into the premium travel credit card market.
Wyndham Hotels & Resorts is the world’s largest hotel franchisor, with approximately 9,200 hotels across more than 95 countries. While the portfolio includes higher-end and midscale brands, much of its footprint is concentrated in the economy and budget segments. That positions Wyndham differently from hotel loyalty programs tied to premium-focused brands such as Marriott and Hilton, whose cobranded cards are issued by Chase and American Express, respectively.
“Barclays’ move to amp up the Wyndham card with a premium offer is interesting,” said Brian Riley, Director of Credit at Javelin Strategy & Research. “It won’t displace the Marriott or Hilton cards, but it will be a challenge for Barclays to attempt to enter the luxury market. They might have some take-up, but for the down-market chain, the Wyndham Rewards Earner has a relatively high fee at $395.”
Chasing Rewards
To justify the high annual fee, the new card offers a sizeable welcome bonus. Cardholders can earn up to 90,000 points after spending $6,000 within the first three months. However, that spending requirement is relatively high compared with many competing premium travel cards.
“Another 30,000 kicker, based on the Wyndham hotel spend of $750, sweetens the offer,” said Riley. “But the most interesting aspect of the new card is to see how Barclays is embellishing the offer with a TSA credit and a warehouse club membership, along with meal credits.”
Upgrading the Entire Line
The launch marks one of the most significant overhauls of Wyndham’s cobranded credit card portfolio in years. The rest of the Wyndham Rewards card lineup is also receiving updated earning rates, statement credits, and discounts on award bookings.
What’s more, the Wyndham Rewards Earner Business card’s annual fee will increase from $95 to $149, while the Earner Plus card’s fee will rise from $75 to $95. Both cards will now earn eight times points per dollar spent on stays at Wyndham properties. The no-annual-fee Wyndham Rewards Earner card remains unchanged.
The move follows last year’s introduction of the Wyndham rewards debit card, which the company is marketing to younger travelers.