Is The Sapphire Reserve Still Worth It?

We have had a few weeks now to digest Chase dropping Priority Pass restaurants from the Sapphire Reserve card now. Unsurprisingly, people were pretty hot when the news first broke out. There were claims of mass card closures coming, and Facebook posts right and left saying the card is worthless now. It is human nature to react to negative changes like the world is ending initially, but what about after a little time has passed? I'm talking about the point when people get a chance to bring their blood pressure down, and allow room for rational thought to creep in. That is when you want to make your long term decisions, including long term credit card considerations. So, now that you have had some time to digest we need to answer this question, is the Sapphire Reserve still worth it?

Was Priority Pass Restaurant Access Overvalued By The Masses?

Some people came to the realization that Priority Pass restaurant access was overvalued pretty quickly. I remember one comment on my post about the Chase Sapphire Reserve losing Priority Pass restaurant access that displayed this perfectly. The ToP Facebook member said they were initially pretty upset about the loss, and then they realized they had never actually used the membership at a restaurant. I bet there are more than a few of you out there that realized the same thing.

Were we actually mad about the loss of something we used frequently? Or, was it more likely that we were mad about losing the possibility to use such a perk? There is no doubt that losing options can have a negative effect on our psyche. We mourn the potential that we always had available to us, even if its usefulness was always a bit out of reach.

How many people fall into this bucket? How many cardholders used the Priority Pass restaurant access less than 3 or 4 times a year? I would bet a good majority of them have their hands up right now. Did this change realistically change whether the Sapphire Reserve card was still worth it to you long term then?

That Isn't To Say This Loss Wasn't Real For Some

While some cardholders were busy mourning the loss of potential value they could have had, there was another group of people mourning the actual loss of value. These were the people that had a Priority Pass restaurant at their home airport, or at an airport they frequently connected through etc. I am referencing the serial Priority Pass restaurant users out there. The ones that may actually feel a hit to their wallet.

If you are nodding your head in agreement here, then there is no doubt that it changes the value proposition for carrying the Sapphire Reserve long term for you.

Deciding On Whether To Keep, Cancel Or Downgrade The Sapphire Reserve

Even though most people will fall into one of the two groups above, we still need to do some number crunching.

Total Restaurant Visits Last Year

I want you to look at your travel over the past year, and then I want you to remember when you actually used a Priority Pass restaurant credit. Was that two, three, seven, twenty etc. times? The first step is to get that number and keep it handy.

How Many Of Those Visits Were Actually Useful Visits?

Now I need you to be honest with yourself, a tall order, I know. How many times did the Priority Pass restaurant actually save you money, and how many times did you use it because you simply could? We are a group of people that hate to leave value on the table after all! Subtract the because you could number from your total visits.

Figuring Out Our True Value Per Visit

Now that we have our useful visits number, I want you to come up with an average value number per visit. Here is where we need to realize that we ordered that side of fries just to burn the credit, and not because we actually wanted or needed it. How many times did you grab a beer before a flight just because you could, versus you really needed to? Did you really need to get to the airport early to get that “free” lunch or could you have gotten the same thing before getting there for $10 or $15 instead? Think on that a bit and put an average value for each visit.

Final Calculation

Now we need to take our total visits (-) the times we didn't really actually need to go in and (x) multiply that by the average value YOU received on each visit. That number may be the $28 – $56 allotted, but it likely shouldn't be. Once you have that total, that is the value you are losing with this change.

Is It Worth Getting Another Card For Priority Pass Restaurant Access?

Now that we have that total value in our hands we can use it to make some decisions. Side note, I will be curious to hear how many people are surprised by how small, or large, that number is.

We have a couple of guides worth reading when it is decision time. In the first one we discuss all of the credit cards that still have Priority Pass Restaurant access for easy reference. In the second one we also ranked all cards with Priority Pass memberships from best to worst, which includes cards without restaurant access.

If your total value number is large then you may want to strategically grab one of the cards that still offer it. Doing so will likely be worthwhile for you if it saves you hundreds of dollars each year. What if your number is smaller though?

Should You Downgrade / Close Your Sapphire Reserve Card?

Whether that value number is small, or large, you will need to decide if you should keep, cancel or downgrade your Sapphire Reserve card.

• If you have no other cards that allow for Ultimate Rewards transfers, which would be the Sapphire Preferred or Ink Business Preferred, then downgrade or keep are your only choices.
• If you have one of those other cards, that unlock transferability, then closing your Sapphire Reserve is still on the table.

The decision at this point comes down to the other perks of the Reserve card. The card has a net effective annual fee of $250 after the $300 travel credit ($550 – $300). That is $155 more than the Sapphire Preferred or Ink Preferred. For that additional $155 you receive the following notable perks:

• Priority Pass membership (without restaurant access)
• The best trip delay and cancellation insurance out there
  • Only requires a 6 hour delay versus 12 hours for other cards
  • Also works when just taxes and fees are paid and on one ways. Some cards require round trip bookings etc.
• Up to a $100 credit every 4 years for Global Entry or TSA Precheck
• Earns 3x on travel versus 2x for the Sapphire Preferred
  • Travel is one of the Ink Preferred's 3x earning options on up to the first $150,000 in spend each year.

Let's run through a couple of different scenarios for people making this decision.

Your Number Was Big & You Plan On Getting Another Card For Priority Pass Restaurant Access

If your value number we figured out above was a big one, then you will probably be tracking down another card for restaurant access. You all know which one is my favorite! If that is the case then the decision on whether or not to keep the Sapphire Reserve falls solely on the better travel insurance benefits. You have to decide if that shorten timeframe is worth the extra $155. For some that alone is worth it since one claim can cover the difference for a few years alone.

If the insurance benefits are not worth it to you then you need to decide which card to downgrade your Reserve to. If you don't have a Sapphire Preferred or Ink Preferred then downgrade to the Sapphire Preferred so you can still transfer points. On the other hand, if you already have one of those then downgrade to an original Freedom card for some 5x earning!

Your Number Was Small & You Don't Have Another Card With Priority Pass Access Or Global Entry Credits

Let's say your number figured out above was on the smaller side. Then the decision will hinge on if you already have Priority Pass access, with or without the restaurants, with another card. If you don't have another card with Priority Pass access, and don't plan on getting one for restaurant access, then keep on keeping on. The access, plus the beefed up insurance coverage, will likely make this card still a keeper.

If Your Number Was Small & You Have Other Non Restaurant Access Priority Pass Cards

Let's say your number was small but you have Priority Pass from an Amex Platinum card etc. If you plan on keeping the other card long term then the decision comes down the insurance benefits once again. Are they good enough for you to pay $155 a year for them? If your answer is yes, then keep the card open.

Let's say your answer was no, then you need to consider a downgrade or closure. If you don't have a Sapphire Preferred or Ink Preferred then downgrade to the Sapphire Preferred so you can still transfer points. On the other hand, if you already have one of those then downgrade to an original Freedom card for some 5x earning!

Is The Sapphire Reserve Still Worth It: ToP Thoughts

Hopefully this has helped you work through your grief and come up with a decision that works best for you. I imagine many people overvalued the Priority Pass restaurant access and just didn't realize it. Hey, I get it, the loss of potential value sometimes hits as hard as actual value. Fear of missing out, and going along with the masses, no doubt plays a role here as well.

Even if you did get a ton of value from the restaurant perk you still have a decision to make. Most of that will hinge on how you value the increased travel insurance benefits of the Sapphire Reserve. The rest of it will depend on what cards you already have, or don't.

Do you think the Sapphire Reserve is still worth it? Let me know your thoughts in the ToP Facebook Group after you have crunched your numbers!