Axis ATLAS Devaluation: Is it still rewarding for travellers?

Prior to the devaluation the card offered rewards in two categories bifurcated as, 2 EDGE miles per Rs.100 on all categories and 5 EDGE miles per Rs. 100 on travel spends, thus, offering accelerated rewards on all travel bookings. Now the incremental reward structure on the card will be spend-based, limiting users to earn incremental rewards only on travel spends up to Rs. 2 Lakh, as follows:

(i) 2 EDGE Miles per Rs. 100 spent across all categories
(ii) 5 EDGE Miles per Rs. 100 spent on travel spends up to Rs. 2 Lakh per month
(iii) 2 EDGE Miles per Rs. 100 spent on travel spends above Rs. 2 Lakh per month

Also, in addition to the previously excluded categories now gold/ jewelry, rent, wallet, Government institution, fuel and utilities spends will also be exempted from rewards earning. Earlier insurance transactions greater than Rs. 5,000 were not eligible for rewards, now all insurance transactions irrespective of the amount are ruled out.

Axis ATLAS is broadly a travel credit card with airline benefits, thus the spend-based capping for incremental rewards on travel spends comes as a major drawback for users.  To maximize the benefits on this card, users will have to divide their travel bookings in months, to derive the maximum reward benefit on transactions up to Rs. 2 Lakh. While this could be feasible for those who plan their trips in advance, spending on emergency trips beyond the accelerated threshold will earn comparatively less value.

Besides, the now elongated list of exclusions also cover some everyday spends like fuel, insurance, and utilities and big-ticket spends like insurance and jewelry purchases, limiting the overall rewards earnings and eventually the savings potential.

Axis Bank also revised the annual and milestone benefits for Axis ATLAS credit card. In comparison to earlier where users could earn up to 17,500 and 10,000 EDGE miles as milestone and annual benefits respectively, now the benefit is comparatively limited as follows:

The reduction in the bonus EDGE miles via both welcome and annual benefit comes as a major demerit, specially for heavy spenders. Earlier users could cumulatively earn up to Rs. 27,500 in a year on spending around Rs. 15 Lakh. Now spending this value would fetch a maximum benefit of Rs. 15,000 only. The difference of 12,500 EDGE miles, clearly keeps users at a loss of Rs. 12,500 or 25,000 miles- values sufficient enough to even grab two free economy class flight tickets.*

However, keeping aside the devaluation, even when the card offers comparatively less than earlier via milestone and annual benefit, standalone,  the return is still decent. On spending Rs. 15 Lakh, you still get a benefit of Rs. 15,000 in addition to the rewards you earn on your travel and non-travel spends. 

*The value of  EDGE miles could vary, as per travel destination, dates, partners, etc.

Another major change in Axis ATLAS Credit Card is the revision in the EDGE Miles program. The redemption ratio remains the same,  at 1 EDGE Mile = 2 Partner Points across all airlines and hotels except Marriott Bonvoy where 2 EDGE Miles = 1 Marriott Bonvoy Point.

However, all existing miles transfer partners have now been divided into Group A and Group B, with varying capping on the redemption limit. Users can still redeem a total of 1,50,000 points in a year, but  a  maximum of 30,000 EDGE Miles for Group A partners and 1,20,000 EDGE Miles for Group B partners in a year. The partners are distinguished as follows:

The grouping of travel partners in groups with varying redemption limits could be a concern for brand loyalists. Even while group A has more linked partners, the redemption limit is set at just 30,000 EDGE miles in a year. This could also be a concern for frequent travelers who regularly travel to specific locations like Japan, Singapore, etc, as they could redeem only limited rewards in a year across their preferred airlines for flight ticket bookings.

Besides, people having multiple brand preferences from Group A & B, could find it difficult to utilize varying benefits at once, since users can link only 1 partner program loyalty ID at a given point of time. Thereby, card users won’t be able to maximize the card benefits even with substantial points in hand, if they are too stringent of the brand preferences. To maximize benefits, users will have to compromise on their choice of brand, and stick to what offers the maximum return.

On the contrary, users will no brand loyalists are not impacted much, as even after the devaluation, the overall redemption limit stays the same at 1.5 Lakh reward points in a year.  Thus the grouping just makes the rewards maximization complex and not less for travellers. 

Similar to many other Axis Bank Credit cards, the issuer has also discontinued  the concierge service benefits for Axis ATLAS. W.e.f April 20, 2024, the following benefits are discontinued:

(i) Complimentary concierge service, 2 for Gold tier and 4 for Platinum tier
(ii) 2 complimentary airport pickup services for Platinum tier users

The card already faced criticism for not offering a low forex markup fee, now the discontinuation of the above benefits, has further hampered the cards’s position as a travel credit card. For a card that even rewards in miles instead of reward points, no travel concierge or airport transfer is a major con. Airport pickup services were earlier offered to only Platinum tier users, i.e. those who spend above Rs.15 Lakh a year. Thus bad light on the card, as users spending a high amount are also bereft of concierge services, which actually is not just justified, specifically when the card charges a high fee of Rs. 5,000.

Axis ATLAS credit card works on a complex structure of offering tier based benefits to users, where the  tier categorization keeps changing based on the spends done in the previous year. To make it clear, new users belong to the silver tier, however, users spending Rs. 7.5 Lakh and Rs. 15 Lakh in a year are upgraded to Gold and Platinum Tier, respectively. However, if one doesn’t achieve the tier threshold in an anniversary year, they are downgraded to the lower tier. This makes it complicated for some users to understand.

The recent devaluation, however, somehow adds more to the cards’ complexity via spend-based
rewards structure and grouping of partners in the miles transfer program. The spend-based capping on travel rewards, along with reduced milestones and annual benefits has also limited the overall savings potential on the card.

The previous features promised substantial savings on the card, which seem too-good-to-be-true now that the card is devalued. However, standalone, the card is still a good choice on certain parameters.  Some features that still make this card worth applying are:

(i) Airline agnostic card with no specific inclination towards any selected airline
(ii) Welcome benefits worth the joining fee
(iii) Accelerated rewards on travel spends up to Rs. 2 Lakh per month
(iii) High redemption value for EDGE miles, 1 EDGE mile = Rs. 1
(iv) Decent redemption limit on redemption against miles transfer program, 1 Edge mile = 2 partner points. So 1,50,000 Edge Miles can fetch users 3 Lakh partner points, substantial value for travel bookings
(v) Annual and milestone benefits worth Rs. 15,000

Some points to consider:
(i) Users will have to keep the monthly value of travel spend below Rs. 2 Lakh. If the travel spends are beyond this value, one can make multiple travel bookings in different months, to earn the accelerated rewards.

(ii) It is better to put maximum spends on the card as ‘you earn more, when you spend more’. Spending up to the threshold of Rs. 7.5 Lakh or Rs. 15 Lakh will help a user upgrade to a better Tier, automatically offering better benefits across lounge access, milestone benefits and annual benefits.

(iii) Even when the card does not offer any complimentary concierge service, it thankfully does not exclude such transactions from rewards earning. So users can still save on airport transfer and other concierge they avail.

(iv) The card charges a standard forex markup fee of 3.5%, which actually is high for a travel credit card offering partnered benefits with international travel brands. This also marks the card a suitable choice for domestic travel over international travel.