There's been a lot of buzz in the last few days about the following WSJ article:
The TL;DR of it is United execs are upset at Chase because they believe the CSR is competing directly with United’s cards and siphoning off customer spending.
Here’s the r/churning discussion about the article:
Lucky at OMAAT expands on some of the background, and explains why United is in this predicament while AA and Delta seem to be doing just fine with their deals.
https://onemileatatime.com/united-sapphire-reserve/
United has a valid point. The CSR has better (3x UR) spending categories on travel (including on United purchases!) and dining for rewards in a more flexible currency (UR points vs. UA miles) than United's own cards (2x UA on United, dining, and hotels). Aside from the free checked bag, which requires you to purchase the flight on the United card, there's really no reason to
spend on United's cards since other benefits like Club passes and XN award availability come with just
holding the card. And it's not like you can earn status like with Delta by spending on United's cards. United gets a cut of the swipe fees, so their execs are understandably upset if their cards aren't getting spend. But really, instead of blaming Chase for offering a superior product, United should be thinking up ways of increasing the value proposition of their cards and frequent flyer program.
United wants a better deal, but apparently they're locked into the current agreement for another 6 years. There's some speculation that if United can't get more from Chase for their miles, then that’s why they’re reducing their cost of redemptions by scraping their award chart and going dynamic. But that makes their miles even less attractive and just makes me (and I'm sure a lot of other longtime United flyers) not want their spend to be locked into earning United miles.
Now, VFTW has a peek at the new premium United MileagePlus card under consideration at Chase.
https://viewfromthewing.boardingare...-card-value-proposition-chase-is-considering/