Credit where it’s due
Canada’s banks offer their customers a host of loyalty-plan options that focus on increased flexibility.
Norman Howe became an American Express Air Miles Reserve credit card holder as soon as the new card became available in February.
“The Reserve card fits my needs exactly,” says Howe, president and chief executive officer of the Toronto- based travel company Butterfield & Robinson. “Because I’m in the travel business, I always pay attention to anything that relates to making life better when I’m travelling.”
He cites such benefits as front- of- line access for security lines and airport lounges, free companion flights and being able to use Air Miles to pay taxes and fees on airline tickets, as well as the cost of a ticket.
“I appreciate benefits that save me time and the insularity from the hassle most people associate with travel,” says Howe, who is constantly on the move across North America and visiting his company’s offices in France and Italy, as well as travelling across North America.
“This card also gives me the flexibility of not being beholden to a particular airline. Both from the point of view of our business philosophy and my personal philosophy, I like the service and strong travel focus. It is also a nice coincidence that the American Express and Air Miles brands have come together with such an interesting card. Of course, it comes at a price but the price is pretty reasonable given the benefits associated with it.”
The card is focused on travel and premium service, says American Express director of product development Laura Scheck. She highlights such benefits as the concierge service and FlexFly options associated with the Reserve card, which carries a $ 299 annual fee. “It’s really designed to make travel a happy, easy experience from the moment you book your trip throughout your travels.”
Scotiabank has also just launched its own suite of American Express cards. “We are the only bank in Canada that is issuing American Express cards,” says the bank’s senior vice- president Mike Henry. “On this suite of travel- related cards, customers earn points which can very quickly be turned into travel benefits. The comprehensive travel offering on the gold card rewards customers for everyday spending, provides a wonderful concierge service and insurance coverage. There are lots of relevant perks for people who want to be safe and secure when they’re travelling and it is one of the very few cards that offers all types of coverage for people over 65.”
Because Scotiabank focuses on choice and value for all customers, he adds, it also has numerous other loyalty programs on offer. “We try to help our customers by giving them choice in the way they want to be rewarded, whether that’s through cash back or entertainment.”
For example, there is the Scene Visa card for moviegoers ( the Scene program is run in partnership with Cineplex Entertainment), the Scotia-Hockey NHL Visa for sports enthusiasts and Momentum credit cards for members who prefer cash rewards.
Cheryl Longo, executive vicepresident of CIBC card products, says, “we’re seeing more Canadians enjoying cashback reward cards, particularly young Canadians who value receiving cash to help them save or offset other expenses.”
This is why CIBC recently launched the CIBC Dividend Unlimited World Elite MasterCard, she says. “This premium card offers up to two per cent cash back with no limit on the cash reward. CIBC customers also love that the card has purchase security and extended warranty insurance to protect such purchases as electronics.”
However, notes Longo, “we’ve seen that as Canadians age, their credit card preferences change, with fewer preferring cash back and more preferring to collect travel rewards. Overall, Canadians continue to value travel rewards, with one in four earning rewards for flights on their credit cards.”
With this in mind, CIBC launched a new premium travel rewards card in March. The CIBC Aventura Visa card for business offers small business owners the ability to earn loyalty rewards for flights on a variety of airlines and other modes of travel and includes a number of travel- related benefits.
BMO Bank of Montreal also recognizes the varied requirements of its customers through its offerings. The BMO World Elite MasterCard is a premium card that focuses on travel rewards, while the BMO Cashback World MasterCard offers annual financial rebates and the no- fee BMO Air Miles MasterCard focuses on Air Miles collection.
“Everyone has unique needs and goals when it comes to their finances, and the credit card they choose should reflect that,” says BMO director Nick Mastromarco.
TD Canada Trust, also determined to give customers a range of choices, has just launched its first MasterCard.
“This makes TD a dual- issue bank providing both Visa and MasterCard to our customers,” says the bank’s associate vice- president of consumer credit card products Stephen Menon. “We’ve definitely seen increased interest in people’s desire for cashback products, though people still want travel rewards.”
RBC Royal Bank vice- president of global loyalty program and rewards Donna Lue- Atkinson also emphasizes the value that customers place on the flexibility of loyalty programs.
“Customers want flexibility,” she says. “They don’t want rewards to have an expiry date and more and more people are treating their loyalty points as a way to extend their purchasing power, for saving or paying down debt.”
She adds that, while travel is still the most popular form of reward redemption, such trends as ecommerce are affecting the demand for immediacy in rewards programs.
“To ensure that RBC stays relevant in view of this trend, we launched RBC Rewards eMall in December 2012 and it is proving very popular,” she says.