Axis Magnus Devaluation: Is the card losing its ‘Premium’ Status?

Prior to the initial devolution the card excluded only Wallet, rent, Priority Pass fee and EMI transactions, and offered rewards as follows:

• 12 EDGE rewards per Rs. 200
• 60 EDGE rewards per Rs. 200 spent via Travel EDGE portal

Changes in September 2023       
Spend based accelerated rewards on monthly spends as follows:

Further, utilities & government institution transactions were added to the list of exclusions for rewards earning.

Changes in April 2024
While there are no further changes to the rewards structure in the latest phase of devaluation, new exclusions have been added. In addition to the previous exclusions insurance, fuel, gold & jewellery spends will not earn any reward points.

In the former stage of devaluation, Axis Bank made changes to the rewards structure on the card, giving high-spenders more opportunities to earn rewards across categories other than the travel EDGE spends.

To be able to maximize benefits on the card, users will have to put  most of their spends here, to meet the spend threshold of Rs. 1.5 Lakh, this could be slightly difficult for moderate spenders. Additionally, users owning multiple credit cards might also struggle meeting this threshold, as the spends are most likely divided.

The revised list of exclusions for rewards, has also limited the savings potential as everyday spends like fuel, utilities and big-ticket spends like insurance and jewelry won’t fetch any rewards.

Previously the card offered a redemption ratio of 5:2 for Miles Transfer program, with no limit on the number of rewards that could be redeemed in a year.

Changes in September 2023
The redemption ratio was revised to 5:2 with reward redemption limit set to 5 Lakh rewards in a year.

Changes in April 2024
While the redemption ratio remains the same at 5:2, existing partners on the Miles Transfer Program are divided in two groups – Group A & Group B, with a maximum capping of 1 Lakh and 4 Lakh respectively for reward points redemption.

Even after the sep’23 devaluation, Burgundy cardholders continue to redeem the same redemption ratio against partner airlines of 5:4. However, effective April 2024, the redemption for miles transfer program is set as maximum of 2 Lakh rewards for redemption across Group A and maximum of 8 Lakh rewards for redemption across Group B partners.

The revision of the redemption ratio to 5:2, came as a major blow for travelers. 50,000 points that could earlier offer 40,000 air miles, now offer only 20,000 air miles. The capping of reward points to 5 Lakh is still a decent revision, considering users can still earn 2 Lakh airmiles for the 5 Lakh rewards. However, considering the revised rewards structure, users will have to spend a huge amount each month to earn this value.

Additionally, the grouping of travel partners in group A & B with varying redemption limit is a major drawback for travelers with brand preferences, especially for group A partner loyalists like Accor Hotels, Marriott International, Qatar Airways, etc. This could also be worrisome for those who prefer different brands from Group A & B, as they won’t be able maximize redemption even with substantial points. In such cases, users will have to compromise on their brand choices.

The card offers unlimited domestic and international lounge access. However, there will be some changes effective April 2024, as followS:

• Domestic lounge access benefit will be spend-based, subject to spending Rs. 50,000 in the previous three months
• Instead of 8 complimentary guest visits, now there will be 4 guest visits allowed every year

Axis Bank has imposed the spend-based condition on majority of its cards, whether entry-level or premium. However, considering that Axis Magnus is targeted towards heavy spenders and high income groups, the spend-limit of Rs. 50,000 is not a concern. The complimentary guest visits have also been revised from 8 to 4 per year, though devalued this still is a decent add-on to the travel benefits the card offers.

As welcome benefit, Axis Magnus will offer any of the following from 1st September 2023:

• Luxe gift card worth Rs. 12,500
• The Postcard Hotels Voucher worth Rs. 12,500
• Yatra voucher worth Rs. 12,500

The domestic flight ticket or Tata CLiQ voucher option were discontinued. However, the good part is that even after devaluation, the card offers activation benefits worth the joining fee. Also, users have a choice to opt for any of the brand vouchers amongst available options.

• Annual  benefit of complimentary voucher worth Rs. 10,000
• Monthly milestone benefit of 25,000 reward points worth Rs. 5,000 on spending Rs. 1 Lakh

The monthly milestone benefit was the major USP of this card as high-spenders could accumulate 3 Lakh additional reward points. By transferring the earned reward points to air miles in 5:4 ratio, cardholders could save a substantial amount on their travel spends. However, now if a user continues to spend Rs. 1 Lakh per month on domestic spends, they will only be able to earn up to 72,000 reward points on the regular earn rate.

• B1G1 offer on BookMyShow
• 24*7 complimentary concierge services
• 8 complimentary airport meet & assist services

All revisions announced on Axis Magnus will also be applicable on Axis Magnus for Burgundy, except the following three points:

• Burgundy Magnus cardholders will continue to avail a point-to-mile conversion ratio of 5:4
• Maximum 10 Lakh EDGE Reward Points can be transferred to miles in a year
• Maximum of 2 Lakh and 8 Lakh EDGE Reward Points can be transferred under Group A and Group B respectively
• Number of complimentary airport meet and assist service in a year has been reduced from 8 visits to 4 visits

In addition to feature changes, Axis Bank also revised the card’s annual fee to Rs. 12,500 from Rs. 10,000 in Sep 2023. Even the spend based waiver condition was revised from Rs. 15 Lakh to Rs. 25 Lakh, which definitely is a big jump for many users. Considering the feature devaluation and discontinuation of some majorly rewarding benefits like bonus 25,000 reward points; annual benefit of Rs. 10,000; B1G1 on BookMyShow with savings up to Rs. 2500 per month, etc a hike in the fee is clearly not justified. Users can definitely find better alternatives than Axis Magus with similar or even lower fee. Some examples would be IDFC FIRST Wealth, HDFC Regalia Gold, HDFC Diners Club Black etc.

In comparison to now, Axis Magnus held great value for frequent travelers mainly because of three reasons:

• Opportunities to earn substantial reward points under the monthly milestone program
• Excellent conversion rate of 5:4 under the Miles Transfer Program with no brand restrictions
• Free flight ticket as welcome/renewal benefit

Post the devaluations, high-spenders will miss 3 Lakh additional reward points as the monthly milestone program has been discontinued. Now users who continue to spend the same amount every month will only be able to accumulate 72,000 reward points in a year (at the base rate of 12 RP per Rs. 200 spent).

Also, the value of 72,000 reward points which would have given 57,600 Air Miles or Hotel Loyalty Points (at 5:4 ratio), will now give only 28,800 Air Miles/Points (at the new 5:2 ratio). Cardholders will also lose the complimentary domestic flight ticket as a welcome benefit. Further, the grouping of travel partners also added more to the dismay of travelers who had multiple brand preferences for travel bookings. Even the lounge access was made spend-based, but thankfully it is an achievable limit of just Rs. 50,000 per quarter. The revisions of lounge access to 4 in a year from 8, is also a drawback for those who like sharing travel benefits on their card with family and friends. There were also additions to the list of excluded categories which hampers the overall rewards earning potential of users.

Thus, the feature devaluation has pushed Axis Magnus further back in the Premium Card queue. However, those using this card primarily for its reward rate, unlimited lounge access and travel benefits like low forex markup fee, may continue using it.