As India is growing to be a booming market for credit cards, we can observe people are using credit cards more on their advantages. Credit cards offer not only the the cash back and reward points now a days, rather the card issuers are also focusing on "enthusiast' segment of this credit card industry.
Luxury travel, be it staying at the finest hotels or flying in luxury in Business Class or First Class, credit cards can save you a lot of money. Be it directly with upfront discounts or be it with loyalty programs of airlines and hotels. This specific segment has been dominated by two major US Banks so far majorly, which are American Express and Citi Bank. The affluent segment of the credit card users had taken advantage of the Hotel Loyalty Programs and Airline Loyalty Programs through memberships being offered or through the opportunity to transfer the points to the loyalty programs. No Indian bank stepped forward to get into this in this kind of bigger scale.
Things started changing when Citi Bank announced their decision to exit India and the enthusiasts started to digging for good options to fulfil their appetite of the luxury of the Hotel and Aviation loyalty programs. As Citi announced the deal with Axis Bank of selling out their retail business, people were really worried about how well Axis will manage to retain the benefits Citi Bank offers through their top 2 credit cards, Prestige and PremierMiles. Though Axis introduced Axis Atlas credit card and a new point system as Edge Miles, it just came neck on neck to Citi PremierMiles but hey, the legendary Citi Prestige was still suppose to be replaced.
Surprisingly, Axis Bank recently introduced the feature to transfer their Edge Points to 10 Frequent Flyer Programs and 3 Hotel Loyalty Programs. Before digging into this, let's cover some basics of Points and eligible Cards.
Axis is now allowing you to transfer 5 cards' Edge Points to Frequent Flyer Programs and Hotel Loyalty Programs. They have segregated the cards in 2 categories.
1. HNI Cards: Axis Burgundy Private (aka Axis One Card), Axis Reserve, Axis Magnus
2. Normal Cards: Axis Select, Axis Privilege
Let's see the below chart for the Edge Points to Frequent Flyer Programs and Hotel Loyalty Programs conversion:
Luxury travel, be it staying at the finest hotels or flying in luxury in Business Class or First Class, credit cards can save you a lot of money. Be it directly with upfront discounts or be it with loyalty programs of airlines and hotels. This specific segment has been dominated by two major US Banks so far majorly, which are American Express and Citi Bank. The affluent segment of the credit card users had taken advantage of the Hotel Loyalty Programs and Airline Loyalty Programs through memberships being offered or through the opportunity to transfer the points to the loyalty programs. No Indian bank stepped forward to get into this in this kind of bigger scale.
Things started changing when Citi Bank announced their decision to exit India and the enthusiasts started to digging for good options to fulfil their appetite of the luxury of the Hotel and Aviation loyalty programs. As Citi announced the deal with Axis Bank of selling out their retail business, people were really worried about how well Axis will manage to retain the benefits Citi Bank offers through their top 2 credit cards, Prestige and PremierMiles. Though Axis introduced Axis Atlas credit card and a new point system as Edge Miles, it just came neck on neck to Citi PremierMiles but hey, the legendary Citi Prestige was still suppose to be replaced.
Surprisingly, Axis Bank recently introduced the feature to transfer their Edge Points to 10 Frequent Flyer Programs and 3 Hotel Loyalty Programs. Before digging into this, let's cover some basics of Points and eligible Cards.
Axis is now allowing you to transfer 5 cards' Edge Points to Frequent Flyer Programs and Hotel Loyalty Programs. They have segregated the cards in 2 categories.
1. HNI Cards: Axis Burgundy Private (aka Axis One Card), Axis Reserve, Axis Magnus
2. Normal Cards: Axis Select, Axis Privilege
Let's see the below chart for the Edge Points to Frequent Flyer Programs and Hotel Loyalty Programs conversion:
Partner Name | Program Name | Conversion Rate (HNI Cards) EDGE Points = Airmiles | Conversion Rate (Other Cards) EDGE Points = Airmiles |
|---|---|---|---|
Ethiopian Airlines | ShebaMiles | 5:4 | 10:1 |
Turkish Airmiles | Miles&Smiles | 5:4 | 10:1 |
Air France-KLM | Flying Blue | 5:4 | 10:1 |
Etihad Airways | Etihad Guest | 5:4 | 10:1 |
United Airlines | United MileagePlus | 5:4 | 10:1 |
Singapore Airlines | KrisFlyer | 5:4 | 10:1 |
Qatar Airways | Privilege Club | 5:4 | 10:1 |
SpiceJet | SpiceClub | 5:4 | 10:1 |
Air Asia | Asia Rewards | 5:4 | 5:1 |
| Air Vistara | Club Vistara | 5:4 | 10:1 |
ITC | Club ITC | 5:4 | 5:1 |
IHG | IHG Rewards | 5:4 | 10:1 |
Marriott International | Marriott Bonvoy | 5:4 | 10:1 |
As it can be already observed that Axis has given a great transfer ratio to their HNI cards, so keeping the rest two cards aside, let's see how much value we can get out each Edge points.
With 5:4 transfer ration from Edge Points to Loyalty Programs, it can be observed that 1 Edge Point = 0.80 ₹
Now let's discuss about the individual cards and how to maximise the earning of Edge Reward Points.
1. Axis Magnus:
Joining Fee: 10,000 + GST
Welcome Benefit: ₹ 10,000 Tata Cliq Voucher
Forex Markup: 2% + GST = 2.36%
Base Reward Rate: 1.2% (12 Edge RP on ₹ 200 spend)
Loyalty Programs Conversion Rate: 4.8% (at 5:4 ratio)
Milestone Benefits: 25,000 bonus Edge RP on every calendar month on fulfilling 1 lakh spend, Annual fee waiver at 15 lakh spend
The sweet spot of Magnus comes when you're spending 1L every month, consistently. The total Edge RP gain would be at exact 1L spends: 6,000 + 25,000= 31,000.
Now if you convert it to the 5:4 ratio of Airmiles / Hotel Loyalty Program Transfer, it'd be 24,800 miles / hotel loyalty program currency. That's straightaway a 24.8% Reward Rate which is HUGE!
Wait, the calculation of maximising it is not over. Now adding to that Axis has its own affiliate portal, Axis Travel Edge, where you'll get 5x Edge RP on your travel spends. Now if someone is just doing a transaction of exactly 1L at Travel Edge, the total accumulated Edge RP would be:
25,000 + 6,000 * 5 = 55,000 Edge RP, which at 5:4 ratio is 44,000 Airmiles/ Hotel Loyalty Program currency, and yes, if you're wondering about the percentile of the RP, wait, hold your breathe, that's an ASTRONOMICAL figure of 44% Airmiles/ Hotel Loyalty Program currency.
2. Axis Reserve:
Joining Fee: 50,000 + GST
Welcome Benefit: 50,000 Edge RP
Forex Markup: 1.5% + GST = 1.77%
Base Reward Rate: 1.5% on Domestic Spends (15 Edge RP on ₹ 200 spend), 3% on International Spends (30 Edge RP on ₹ 200 spend)
Loyalty Programs Conversion Rate: 6 - 12% (at 5:4 ratio)
Milestone Benefits: Annual fee waiver at 25 lakh spend
Though Axis Reserve looks a bit dull in first impression but hey, it has its charm in a bigger way. The 6% is a flat reward rate while transferring those points to loyalty programs. But when doing International spendings, you get a whooping 12% reward rate at the same category. Though the 1L milestone of Magnus puts the reward rate so high, but remember it'd only be generating 4.8% reward rate before 1L and after 1L as well. If you've bigger spends, don't have consistent 1L spendings on every month, and doing good amount of forex transactions, it's the card for you.
Axis Reserve is not only now tremendously rewarding but also comes with unique lifestyle benefits. You can check out this article about the discussion on If Axis Reserve Does Really Worth the Fee or Not.
Axis One Card/ Axis Burgundy Private Credit Card:
Joining Fee: Free for Burgundy Private Clients (For downgrade of acc, ₹ 50,000 + GST fee applicable)
Welcome Benefit: 30,000 Edge RP
Forex Markup: 0 %
Base Reward Rate: 1.5% on Domestic Spends (15 Edge RP on ₹ 200 spend)
Loyalty Programs Conversion Rate: 6 % (at 5:4 ratio)
Milestone Benefits: N/A
This card is a very special card Axis issues to their Burgundy Private clients who're maintaining 5 Cr+ NRV. The 0% markup and no cash withdrawal fee, this card work as credit + debit + forex card. Even though it comes with great lifestyle benefits, it's still not as rewarding as Axis Reserve at a very specific part, which is international transactions.
Now as we've discussed that how these cards are rewarding us, let's discuss how much real-life value these rewards points do have. Till now all these card holders including me used to value out the reward points at max with the Amazon GVs but now with miles transfer, we can jump and diversify these then not so useful Edge Rewards to one of the most rewarding Reward Points currency out there.
Let's start with the most highlighted Loyalty Programs:
1) Aviation Loyalty Program:
There's an amazing thread by @jay on Finding and Booking Award Flights , you can get a broader idea on how to do it in more efficient way
i) KrisFlyer (Singapore Airlines): One of the Star Alliance partner and one of the most used Frequent Flyer program out there, it's. Let's see what's the miles requirement for it to travel specific routes (here for sake of calculation route being considered is ( Delhi [DEL] to Singapore [SIN] ), to 3 different class, namely Economy, Premium Economy, Business and First/Suite.
KrisFlyer (Singapore Airlines) | Economy | Premium Economy | Business | First / Suite |
|---|---|---|---|---|
Miles Requirement | 20,000 | 34,500 | 43,000 | 58,500 |
Edge Points Requirement | 25,000 | 43,125 | 53,750 | 72,500 |
Revenue Ticket Price (Approximate) | ₹ 20,000 | ₹ 38,000 | 61,500 ₹ | ₹ 1,32,500 |
As you know the miles requirement for each and every class, let's see how much spends on each type of cards are required:
Card Name | Economy | Premium Economy | Business | First / Suite |
|---|---|---|---|---|
Reserve | ₹3,33,333 | ₹ 5,75,000 | ₹ 7,16,667 | ₹ 9,66,667 |
Burgundy Private / Axis One | ₹3,33,333 | ₹ 5,75,000 | ₹ 7,16,667 | ₹ 9,66,667 |
Magnus | ₹4,16,667 | ₹ 7,18,750 | ₹ 8,95,833 | ₹ 12,08,333 |
* Please do note, the accelerated reward points in International spends of Axis Reserve, milestone benefit of Axis Magnus, travel edge transactions haven't been considered. If they get considered, you can get way more value at way less spends.
For example if you're spending 1L every month with Axis Magnus and getting 31,000 (25,000+6,000) Edge RP every month, it'd take only 2 months to get a Business Class ticket and 3 months to get the First Class / Suites ticket. That's 3L of spends, mind you.
For Axis Reserve, if you're doing all the International spends, one need 4 L of spends to get a Business Class ticket, and 5L of spends to get First class ticket. Now the good part is, if you've big spends, you can even do it in a month with Reserve, where for Magnus you need to wait for 3 months to get the maximum value as after 1L, the return will decrease to 4.8%.
ii) United Airlines (United MileagePlus): United Airlines offers different airline partners such as ANA, Lufthansa etc. It comes with pretty low taxes than others like Avios / Etihad. Here the mile calculation will be on the route of Delhi (DEL) to Tokyo, Japan (HND)
ANA | Economy | Business |
|---|---|---|
Miles Requirement | 27,500 | 60,500 |
Edge Points Requirement | 34,375 | 75,625 |
Revenue Ticket Price | ₹ 60,172 | ₹ 1,36,898 |
As you now know the Miles requirement, let's see what's the spending requirement on each card:
Card Name | Economy | Business |
|---|---|---|
Axis Reserve | ₹ 4,58,333 | ₹ 10,08,333 |
Burgundy Private / Axis One | ₹ 4,58,333 | ₹ 10,08,333 |
Magnus | ₹ 5,72,917 | ₹ 12,60,417 |
* But hey, don't forget that this is just the basic calculation, with the accelerated RP and milestone benefits, the spending requirements will be much less.
2. Hotel Loyalty Program:
i) Marriott Bonvoy: The biggest hotel chain in the world and comes with one of the most lucrative loyalty program. It provides different type of hotel brands under one roof, from their best in class EDITION, Ritz Carlton to Farifield, there's option for everyone. Here I'm going to mention few hotels to compare the value one can get. For the best possible value, counting their highest category of rooms available through points as well as through revenue pricing.
Property Name | Revenue Price | Bonvoy Points | Edge Points |
|---|---|---|---|
JW Marriott, Bengaluru, Prestige Golfshire Resort & Spa India | ₹ 46,550 | 1,04,200 | 1,30,250 |
The Ritz-Carlton Maldives, Fari Islands | ₹ 4,25,000 | 1,34,000 | 1,67,500 |
Al Maha, a Luxury Collection Desert Resort & Spa, Dubai | ₹ 1,31,000 | 1,18,000 | 1,47,500 |
The Ritz-Carlton, Half Moon Bay, CA, USA | ₹ 2,75,000 | 2,75,500 | 3,43,750 |
As now you know how much Edge Points are required, let's see how much spending each card will be requiring to get this:
Property Name | Reserve | Burgundy Private / Axis One | Magnus |
|---|---|---|---|
JW Marriott, Bengaluru, Prestige Golfshire Resort & Spa India | ₹ 17,36,667 | ₹ 17,36,667 | ₹ 21,70,833 |
The Ritz-Carlton Maldives, Fari Islands | ₹ 22,33,333 | ₹ 22,33,333 | ₹ 27,91667 |
Al Maha, a Luxury Collection Desert Resort & Spa, Dubai | ₹ 19,66,667 | ₹ 19,66,667 | ₹ 24,58,333 |
The Ritz-Carlton, Half Moon Bay, CA, USA | ₹ 45,83,333 | ₹ 45,83,333 | ₹ 57,29,166 |
* Do note, Marriott is going on Full Dynamic pricing and redemption after 31st December, 2022. Best is to make your plans before that for maximum utilisation of the Bonvoy Points
** Don't forget that this is just the basic calculation, with the accelerated RP and milestone benefits, the spending requirements will be much less.
ii) Club ITC: A hotel chain that's trusted by millions of Indians and they're one of the finest 5 star hotel chains in India and a very lucrative loyalty program. The Green Points of Club ITC gives tremendous values sometimes. I'm comparing 4 properties of India to understand the value you'll get.
Property Name | Revenue Price | Green Points | Edge Points |
|---|---|---|---|
ITC Gardenia, Bengaluru | ₹ 17,640 | 14,400 | 18,000 |
ITC Royal Bengal, Kolkata | ₹ 16,660 | 14,000 | 17,500 |
ITC Grand Chola, Chennai | ₹ 19,600 | 16,000 | 20,000 |
Welcomhotel by ITC Hotels, The Savoy, Mussoorie | ₹ 19,800 | 17,600 | 22,000 |
As now you know how much Edge Points are required, let's see how much spending each card will be requiring to get this:
Property Name | Reserve | Burgundy Private / Axis One | Magnus |
|---|---|---|---|
ITC Gardenia, Bengaluru | ₹ 2,40,000 | ₹ 2,40,000 | ₹ 3,00,000 |
ITC Royal Bengal, Kolkata | ₹ 2,33,333 | ₹ 2,33,333 | ₹ 2,91,667 |
ITC Grand Chola, Chennai | ₹ 2,66,667 | ₹ 2,66,667 | ₹ 3,33,333 |
Welcomhotel by ITC Hotels, The Savoy, Mussoorie | ₹ 2,93,333 | ₹ 2,93,333 | ₹ 3,66,667 |
* Don't forget that this is just the basic calculation, with the accelerated RP and milestone benefits, the spending requirements will be much less.
Special Note: You can transfer ITC Green Points to Marriott Bonvoy at 2:3 ratio for maximising the value, but there's a cap of 60,000 Green Points per calendar year.
I've been asked many times by many users that what if someone just consider the reward points to be used as gift vouchers, will Magnus and Reserve be still viable against HDFC INFINIA.
The basic earning of Magnus is 1.2% and with 25,000 Edge Points the reward rates jumps to 6.2%, and if get converted to amazon vouchers, it'd still give 6.2% cash equivalent value though for INFINIA is 1.66% and with Reserve it's flat 1.5% and 3% on international spends. If you redeem your reward points for multi brand voucher then the reward rate will become 2.4% for Magnus in general spends and if someone is hitting the 1 lakh milestone, the reward rate will become 12.4% which is HUGE.
So Axis Reserve and Magnus both beats the mighty HDFC INFINIA in both loyalty program transfer and voucher redemption in selective or all conditions. Oh yes, did I forget to mention, that even Standard Chartered Bank's Ultimate credit card beats INFINIA with 3.3% return on gift vouchers.
Folks, that's all as for now. You can redeem and maximise the points through many redemptions. At the end the value only matters when you've the travel plan. The best you can do is to plan your travel then transfer your points to the suitable loyalty program(s).
If you want to add or share something, feel free to and we'd be updating with any better redemption in future as well.
