The credit card rewards market has become a high-stakes battleground in 2025, with issuers rolling out new benefits and revamped product lines to attract or retain affluent, travel-focused customers.
In some cases, though, the upgrades come with dramatic fee hikes. In recent weeks, JPMorgan Chase announced a substantial overhaul of its Chase Sapphire Reserve offering, including a fee increase from $550 to $795 per year and the launch of a business version of the card.
American Express has signaled a major refresh of its Platinum Card by year’s end, including upgrades to its Centurion Lounges and a new “Sidecar” fast-format lounge concept in Las Vegas.
Citi, meanwhile, has reentered the ultra-premium market with the $595 Strata Elite Card, boasting a $1,500 estimated annual value through hotel, travel, and lifestyle credits.
Against this backdrop, Capital One is taking a markedly different approach: extending new travel benefits to customers of its no-annual-fee rewards cards.
Expanding benefits without raising fees
Starting August 12, new cardholders of Capital One’s VentureOne, Quicksilver, and Savor products will receive a $100 Capital One Travel credit—the first time the bank has offered a travel credit on these no-fee cards.
That comes in addition to existing sign-up bonuses: 20,000 miles for VentureOne or $200 cash back for Quicksilver and Savor after spending $500 in the first three months.
The move is paired with a large expansion of the Capital One Travel platform, which now offers access to more than 500,000 vacation rental properties and 180,000-plus bookable activities and excursions. Those can be reserved directly through Capital One Travel, earning cardholders 5x rewards on bookings. The curated experiences range from wine tours in Napa, California, to private boat charters in the Caribbean—signaling a push toward personalized, experiential travel.
All three cards now also include complimentary Five Star status with the Hertz Gold Plus Rewards program. Perks include access to a wider selection of vehicles, complimentary upgrades when available, and the ability to bypass the rental counter at select locations.
A contrarian strategy in the rewards arms race
While competitors are focusing on the upper end of the market—and justifying triple-digit annual fees with expanded lounge access, premium status perks, and lifestyle credits—Capital One’s latest move targets a broader swath of consumers: those who value travel benefits but aren’t willing to commit to high annual fees.
By offering benefits traditionally reserved for higher-tier products, the bank can entice casual travelers to book through its proprietary platform, increasing transaction volume and cross-selling opportunities without the friction of an annual fee.
This could be especially relevant as inflation and economic uncertainty make consumers, including those who travel regularly, more cost-conscious. According to a 2024 JD Power report, more than 60% of rewards cardholders cited “no annual fee” as a top priority when considering a new card, while still ranking travel perks among the most desired benefits.
Competitive implications
Capital One’s timing is notable. Chase’s Sapphire Reserve fee hike may prompt some cardholders to reevaluate whether they’re fully utilizing their premium benefits. Amex’s forthcoming Platinum refresh and Citi’s Strata Elite launch are both aimed squarely at high-spending travelers, potentially leaving an opening for Capital One to appeal to consumers who are priced out of the premium tier.
By expanding its no-fee travel offerings while maintaining premium-like features, Capital One is betting that it can capture spend from travelers who are increasingly strategic about card benefits—and less inclined to pay $600 to $800 per year for access.
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