Barclays Travelocity Rewards American Express Review (discontinued)
Updated March 25, 2014.
The Facts
There were two versions you can choose from: No Annual Fee and "Earn Rewards Faster" ($39 annual fee). However, since mid 2013, only the non-fee version has been available for new applications. The existing customers of $39 version continue to keep the 5-2-1 rewards.
The Facts
There were two versions you can choose from: No Annual Fee and "Earn Rewards Faster" ($39 annual fee). However, since mid 2013, only the non-fee version has been available for new applications. The existing customers of $39 version continue to keep the 5-2-1 rewards.
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- Best Use of Travelocity Rewards points: The current rewards chart is like this: 5K = $50 statement credit, 7.5K = $75 statement credit, 20K = up to $400 of airfare or flight+hotel package through Travelocity. Obviously, the travel redemption option is the best, and it is quite easy to achieve 2% return since you just need to find a flight or package that is over $400.
The Math
Assuming you are using the travel redemption to achieve 2% return, the non-fee version is as good as Fidelity Amex in general spending and you get 6% on Travelocity purchases. The catch here is a little more work, especially since there are many complaints that Barclays or Travelocity has difficulties honoring the bonus rewards due to the fact some flights booked through Travelocity.com show up on the credit card's statement as direct purchases from airlines. It is not uncommon that third party booking show up this way, but if you want to have a robust rewards program you shall be able to fix this. Cardmembers have to fill a ticket for each transaction that is not correctly coded to get the promised rewards, which can be frustrating.
$39 version vs. non-fee version: The $39 version can return 10%-4%-2%. Please note that you only get 4% on ONE category which you choose from gas, groceries or dining, not all three or the top spending one. To cancel out the $39 annual fee, you need to spend $1,000 on Travelocity or $2,000 on 4% category, which should not be too hard to achieve. So for most people, $39 version is the one to go with.
The Conclusion
On paper, Travelocity Rewards American Express, especially the $39 version, can be extremely valuable if you use the travel redemption option. However, Barclays' rewards system for Travelocity purchases is very flawed and hasn't been fixed for years. Since the better of the duo - the $39 version has been discontinued for new applications, we have to take it down from our Top List. For general spending, still consider 2% cashback without hassles from Fidelity Amex, while for airfare we suggest PenFed Amex for 5% easier cash back.