JPMorgan Chase is hiking the annual fee of its popular Sapphire Reserve credit card by 45% as part of a major overhaul to attract high-spending millennials.
The bank announced Tuesday that the credit card, which is targeted at travel and dining aficionados, will soon cost $795 per year — a dramatic increase from the current $550 annual fee that was rolled out in 2020. The card launched in 2016 with a $450 per year fee.
It’s a tough fee to swallow, but Chase said cardholders will have $2,700 in annual benefits to redeem and that it is increasing the amount of points people can get on flights and hotels booked through its portal. The card is also maintaining the popular $300 annual travel credit.
New benefits are pushing people to use the ecosystem of hotels and dining programs that Chase has built over the past few years. For example, the card has added a $500 credit for luxury hotels as part of its “The Edit” program and a $300 dining credit for dining reservations in its “Sapphire Reserve Exclusive Table” program.
Other additions include a $300 annual credit for tickets purchased on StubHub and a $250 yearly credit for Apple Music and Apple TV+. It previously added a $120 yearly credit for Lyft rides, dispersed in $10 monthly increments.
“The new Sapphire Reserve cards are the culmination of years of focus on the things most important to our cardmembers: travel, dining, entertainment and exceptional service,” said Chris Reagan, president of Chase’s branded cards, in a press release.
Also announced Tuesday was a new Sapphire Reserve card for businesses that also has a new $795 annual fee, with perks aimed at owners like ZipRecruiter and Google Workspace.
The new annual fee and most benefits begin for Chase Sapphire Reserve on October 26. The card has been redesigned with a heavier metal and a new pattern to “reflect the refinement of the Sapphire Reserve Brand.”
Chase has evolved the Sapphire into a lifestyle brand in recent years, pitting the card against American Express’ suite of premium credit cards.
One particular battleground has been airport lounges, with Chase opening several over the past few years at major hubs such as New York, Boston and Phoenix. It’s also chasing after younger people who crave experiences, by rolling out cardmember-exclusive access to lounges at thesummer Olympics last yearin Paris or curated trips to Art Basel in Miami.
American Express, meanwhile, this week teased upcoming changes to its cards. The company said it’s making its “largest investment ever” to its Platinum cards, but didn’t reveal what changes it is making to the lineup that also targets similar customers. Those AmEx cards have had a $695 annual fee since 2021.