Today, the travel credit card market continues to evolve as airlines regularly revamp their booking and card usage policies. Driven by data analytics and algorithms, these protocols are difficult for most consumers to understand.
Gennady Podolsky Brings His Travel Card Expertise to the Road Warriors’ Leap Year Roundtable
Fortunately for his clients, global travel advisor Gennady Podolsky is up to the challenge. With over 30 years of travel industry experience, and superb applied mathematics skills, he finds optimal solutions to clients’ complex travel card problems. On February 29, 2024, Gennady Podolsky brought his valuable travel insights to the Road Warriors XXV Leap Year Roundtable.Held at Ernst & Young’s Miami offices, the annual Road Warriors Roundtable event convened numerous business and government leaders. Attendees shared opinions on diverse topics applicable to top-tier business luminaries and policymakers.
During the main stage event, global travel advisor Gennady Podolsky noted that major airlines recently changed the travel booking playing field. He also provided insights on four beneficial travel card programs.
Major Airlines Implement Two Foundational Changes
Major United States-based airlines continue to navigate significant headwinds while reaping the benefits of technology advancements. Global travel advisor Gennady Podolsky outlined two fundamental travel market changes.Frequent Flyer Programs Outshine Airline Flights
First, Gennady Podolsky acknowledged that travelers have long focused on building their “airline status.” By racking up frequent flyer miles with a designated credit card, travelers earned rewards such as free flights and hotel stays.
However, Gennady Podolsky said airlines’ frequent flyer programs now provide more value than the actual flights. “I think a lot of people, road warriors, were used to thinking about airlines in terms of ‘what is my status in America[n], what is my status in United, who is my airline’.
“We need to move away from this completely. The airlines are changing. There's a joke that airlines are no longer airlines. They’re credit cards with a side gig on flying planes.
“For all of the airlines, it's the frequent flyer program, which is the really valuable part of their business. The value of the airline is less than the value of the frequent flyer program. They're raising debt against the assets of the frequent flyer program, not against the planes,” Gennady Podolsky said.
Airlines’ Data Analytics Have Two Ramifications
Next, global travel advisor Gennady Podolsky discussed a foundational change in airlines’ relationships with travelers. “The tables are turning in the relationship between the consumer and the airline. Think about a poker game.
“You are in this game with the airlines. They have 20 different fares. You’re in this opaque thing where you know how much you want to pay but the airline doesn’t, and the airline has to put all these different prices on their website. Then, you play this game [with fares and stays].
30 Years of Frequent Flyer Program Data
“There’s a lot more than meets the eye. It’s not about what you’re searching for at that moment. It’s about everything else they know about you. And they know a lot. They’ve been collecting data on you for 30 years. The way they collect data is with the Frequent Flyer Program,” Gennady Podolsky explained.
Gennady Podolsky submits his frequent flyer data from a less technologically sophisticated partner airline. He is confident that the partner airline won’t share the data, limiting the U.S. airline’s ability to track his activity.
Custom Prices for Every Customer
Today, extensive data analytics enable major airlines to deliver a custom fare based on each customer’s profile, purchasing habits, and bag provisions. Gennady Podolsky described this game-changing dynamic.
Finally, global travel advisor Gennady Podolsky emphasized the value of keeping a credit card “buffer” between consumers and the airline. “The airline wants to know how much you’re willing to pay. Use the credit card, forget the status, and use your frequent flyer number sparingly,” he advised.
Gennady Podolsky’s Travel Credit Card Recommendations
Next, global travel advisor Gennady Podolsky highlighted four notable travel credit card programs. These four cards could maximize travelers’ points.CapitalOne Venture X Program
Gennady Podolsky listed the CapitalOne Venture X card as his top choice. “Three years ago, if you asked me about Capital One, I would have said, never, no way. Now, it is the best card. This is the best program to work with.”
Chase Sapphire Reserve Program
“Chase Sapphire Reserve (and specifically Reserve, not Preferred) would be my second go-to [card program]. “Yes, this is really the queen of the cards. It's expensive, it's $595 a year. [However], when you look at the value of what you get, you get $300 knocked off back to you on the first travel. Then, you get three points for everything travel. [This] includes your Uber rides and hotels and airline tickets.”
American Express Platinum and Centurion Programs
“The other two cards [are from] American Express. It's the grand dame of the cards. They invented the concept that we use today. The Platinum [card] is really the best, unless you can get Centurion. [The black] Centurion is where it's at, but they want $15,000 a year, so you'd better be spending a lot of money to make it worthwhile,” Gennady Podolsky advised.
Citibank Prestige Program
Gennady Podolsky’s final choice is the no-longer-issued Citibank Prestige card. “So, the [Prestige] card that I have (and that I really like) is no longer being issued. So, if you already have the Citibank Prestige, don’t get rid of it. It's the best card, yes. I would wait until it dies before I do anything,” Gennady Podolsky summarized.
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