Axis Reserve Devaluation: Is the card still offering best travel benefits?

Previously, this card used to offer 50,000 Edge Reward Points on renewal. However, as of April 20, 2024, this renewal benefit has been removed.

Being a super-premium card that comes with an annual fee of Rs. 50,000, offering 50,000 reward points at the time of renewal compensates for the fee charged. So, on redeeming these 50,000 Edge Reward Points against the miles transfer program at a ratio of 5:2 (after September 2023), cardholders would receive 20,000 air miles annually, which was a significant value back, especially for frequent travellers. However, after the devaluation, consumers will not be able to earn any renewal benefits.

Earlier, there were no restrictions on this card, and consumers could earn 15 rewards for every Rs. 200 spent on all domestic transactions and 2X on international transactions, as per the below details:

• 15 Edge Reward Points for every Rs. 200 spent
• 30 Edge Reward Points for every Rs. 200 spent internationally

However, after these two rounds of devaluation, Insurance, Fuel, Gold/Jewellery, Wallet, Govt. Institutions & Utility spends were excluded from earning rewards. While this could affect users who have put high utility bills or high-end purchases on this card, Axis Reserve still features an excellent reward-earning rate of 7.5%, which is still better than most super-premium cards in the market.

Previously, through this card, consumers could transfer rewards to partner points/ miles at a 5:4 ratio, which has been devalued and changed according to the details given below.

Sep 2023 Devaluation

• Revision in redemption ratio to 5:2 (5 EDGE Reward Points = 2 Partner Points/Miles) from 5:4 across travel partners
• Cardholders can transfer a maximum of 5 Lakh points in a year

Apr 2024 Devaluation

• Division of Miles Transfer Program Partners into Group A & Group B
• Cardholders can transfer a maximum of 1 Lakh points in a year to Group A
• Cardholders can transfer a maximum of 4 Lakh points in a year to Group B

Combined with its excellent earning rate, a point-to-mile conversion ratio of 5:4 made this card quite a valuable option for travellers. However, in Sept 2023, Axis Bank halved the conversion ratio to 5:2. While users could previously earn 40,000 air miles for 50,000 Edge Reward Points, they can only earn 20,000 air miles after the devaluation. Additionally, users can now transfer a maximum of 5 Lakh Edge Reward Points to miles in a year. This comes as a major setback for high-spenders who want to accumulate substantial rewards and redeem them to save on their travel spends. To avail the same redemption ratio of 5:4, cardholders would have to open and maintain a burgundy private account (with a minimum TRV of Rs. 5 Crore) and take a burgundy private credit card, which may not be feasible for everyone.

Additionally, after the grouping of partners in Miles Transfer Program with a maximum redemption limit on each group, it will become difficult to maximize benefits of this card, especially for brand loyalists of an airline or hotel. In such cases, users will have to compromise on their preferred choices.

Previously, this card used to offer 4 free chauffeured luxury airport pick-ups/drops every year, which will be removed from April 20, 2024.

Along with other major devaluations, the spend-based condition to avail annual fee waiver of this card has also been increased. The annual fee waiver will be applicable upon meeting the minimum spend requirement of Rs. 35 Lakh in the previous year, which was Rs. 25 Lakh before September 2023. However, for customers onboarded before September 1, 2023, the fee waiver limit will remain the same at Rs. 25 Lakh. In addition to this, payments towards government institutions and utilities will not be counted for annual fee waiver calculation.

*These categories are not considered for earning Edge Reward Points and annual fee waiver calculation.

Axis Reserve is a super-premium card that caters to frequent travellers by offering numerous benefits. Even after two rounds of devaluation, this card can still be a good option for frequent travellers because of the following benefits:

• 50,000 Edge Reward Points on card activation worth 20,000 air miles
• Unlimited lounge access at international airports for primary and add-on members with Priority Pass memberships, along with 12 complimentary visits for guests
• Unlimited domestic lounge access for primary and add-on members, along with 12 complimentary visits for guests
• Complimentary hotel and dining memberships, including Club Marriott, Accor Plus, ITC Culinaire, and Eazy Diner Prime
• Edge Reward Points conversion into air miles or hotel loyalty programs at a ratio of 5:2 (5 EDGE Reward Points = 2 Partner Points/Miles)
• 8 free airport concierge services in a year for airport processes like check-in, security check, immigration processes, and porter services
• 2X rewards on international spends

Even after two rounds of devaluation, Axis Reserve still holds good value for frequent travellers. Though the drop in redemption ratio would reduce the overall savings for travellers, the value-back is still better than a lot of premium and even super-premium cards. Even with the maximum capping of 5 Lakh rewards on redemption and removal of airport transfer benefit, those who frequently travel and want to use this card primarily for its reward rate and travel benefits like unlimited lounge access or low forex markup fee, can maximize the benefits of this card.