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Royal Bank's "Avion/Voyages" card
Question:
Got some actual paper documents describing how Royal Bank will replace it Canadian Plus VISA card. As expected it is useless (already got that card changed, will save me $120 per year !). As expected, the royal bank essentially has a travel agency issue tickets and bill the royal bank for such tikets. The Royal bank therefore has put limits on the worth of such ticjets. For instance, for short hauls, you not only need 15,000 points (as in the past with CP/AC), but the ticket must not be worth more than $300. As an example, Montreal-Toronto same day return is $700. So, when you spend points, if the ticket is worth more then the limit, you have to pay the difference. Domestic and transborder tickets must be reserved 14 days in advance, and have the saturday stay-over restriction. Overseas flights must be reserved 21 days in advance and also have the saturday stay limit. Tickets are non-refundable, economy class. Their awards chart does not include any upgrades to business class, all tickets are economy. Australia goes from 75,000 points on CP/AC to 100,000 points on Royal Bank, but is also limited to $2,000 in value, which essentially limits you to flying Canada 3000 or AC/CO during seat sales (thus limited to one month stays). There are no "one way" fares. Interestingly it uses wording such as (translated from french by me): No black out periods or capacity limits (*) and then at the bottom, in small print (*)Depends on seat availability. Other restrictions apply. In other words, Royal bank doesn’t put limits but it limits you to whatever the airlines make available at a low enough cost to fit their maximum ticket value. (aka: seat sales). And in a different document (the rules), it states: (again, my translation) The airline or carrier et the itinerary of the trip to reach the destination will be at the discretion of the bank. Also, since these will most likely be on el-cheapo restricted fares, chances that dates can be changed are very slim (although the bank itself does not impose a limit it does state that changed must be made according to the rules of the ticket). There are temporary promotions. For instance, if you buy an AA or AA-eagle ticket, you might win 100,000 points (tickets must be purchased directly from AA). What is intersting is a small tidbit which I am not sure is related to the Royal Bank’s card: Between Sept1 and 31 august 2001, American Airlines will give you the same status you have on Aeroplan or CP-Plus. You need to call AA at 1-800 486-7523 and be ready to provide proof of your elite level on the AC or CP plans. (same seems to apply to Alaska Airlines. Another supposed advantage is that if you travel British Airways, you might get 30% rebate on hotel or car rental fees. I suspect that such offers are offered worldwide to many and the Royal Bank just uses this as a lure. So, although I am not surprised by the programme, I am quite disapointed that they didn’t do any better. The points are useless unless you spend more than $50,000 per year on your card. Remember that you only get points for your spending. no points for flying.
Response:
> As expected, the royal bank essentially has a travel agency issue tickets and > bill the royal bank for such tikets. The Royal bank therefore has put limits > on the worth of such ticjets. > For instance, for short hauls, you not only need 15,000 points (as in the past > with CP/AC), but the ticket must not be worth more than $300. > As an example, Montreal-Toronto same day return is $700. > So, when you spend points, if the ticket is worth more then the limit, you > have to pay the difference.
It seems that the bottom line is that their is a ceiling on the point value, of $0.02/point. Which may well be what the points used to cost them with CP? True, it’s not worth it. If you use your points smart, you easily get twice that value. Say, 80,000 points for a J round trip to Europe, a $4000 ticket, or $0.05. I just got in the mail an offer for the CIBC Aeroplan credit card. Mass-mailed to all CP FF program members, or perhaps those who requested their points to be transferred to Aeroplan?