What Chase offers in travel rewards and benefits

Chase makes two main travel cards: the Sapphire Preferred and the Sapphire Reserve. Both earn points on travel and dining, both transfer points to airline and hotel partners, and both come with travel protections like trip cancellation insurance and emergency medical coverage abroad. The Reserve costs $550 per year and earns more points per dollar spent; the Preferred costs $95 per year and earns less but still covers the same partner transfers and protections.

The real difference is how much you spend on travel and dining each year. If you spend $20,000 or more annually on those categories combined, the Reserve's higher earning rate and annual travel credit usually pay for the annual fee. Below that threshold, the Preferred typically costs you less money overall, even though you earn fewer points per transaction.

Both cards earn 1 point per dollar on everything else you buy. Neither has a foreign transaction fee, which matters if you use the card abroad. Both let you transfer points to partners like United, Southwest, Hyatt, and the World of Hyatt program at a 1-to-1 ratio, or you can cash them out at a lower rate.

Key Takeaways

  • The Sapphire Preferred earns 3 points per dollar on travel and dining for a $95 annual fee, while the Reserve earns 3 points on dining and 10 points per dollar on travel for a $550 annual fee.
  • Both cards transfer points to the same airline and hotel partners, so your redemption options do not change between the two — only how fast you accumulate points.
  • The Reserve includes a $300 annual travel credit that offsets part of the annual fee; the Preferred has no annual credit.
  • If you spend less than $20,000 per year on travel and dining combined, the Preferred usually costs less money overall despite earning fewer points.
  • Neither card charges foreign transaction fees, and both include trip cancellation insurance and emergency medical coverage when you travel.

How earning rates compare to other travel cards

Chase's earning rates sit in the middle of the travel card market. The American Express Platinum earns 5 points per dollar on flights booked directly with airlines and 5 points on prepaid hotels, but it costs $695 per year and does not transfer to as many partners. The Capital One Venture X earns 10 points per dollar on all travel purchases for $395 per year, which beats the Sapphire Preferred on earning rate but costs more in annual fees.

Where Chase stands out is the breadth of transfer partners. The Sapphire cards transfer to over 40 airline and hotel programs, including Southwest, United, American, Delta, Hyatt, IHG, and Marriott. American Express Platinum transfers to fewer partners overall. This matters because a transfer partner you actually use is worth more than a higher earning rate on a card whose partners do not match your travel plans.

The Preferred's 3 points per dollar on dining is competitive but not the highest — the American Express Gold earns 4 points per dollar on restaurants for $250 per year. However, the Preferred also earns 3 points on travel booked through Chase's travel portal, which the Gold does not, and the Preferred's annual fee is lower.

What the annual travel credit actually covers

The Sapphire Reserve includes a $300 annual travel credit that reimburses purchases in the "travel" category. Chase defines travel broadly: it covers flights, hotels, rental cars, taxis, rideshare, parking, tolls, trains, buses, cruises, and travel booked through the Chase travel portal. It does not cover meals, entertainment, or shopping during a trip.

The credit posts automatically once per year on your card anniversary. You do not have to submit receipts or claim it — any purchase in the travel category straightforward reduces your statement balance by up to $300. If you spend $250 on flights in a year, the credit covers all of it. If you spend $400, the credit covers $300 and you pay $100 out of pocket.

For the Preferred, there is no annual travel credit. This is the main reason the Reserve makes financial sense only if you actually use the travel benefit. A $550 annual fee minus a $300 credit leaves $250 in net cost, which the higher earning rate needs to overcome through extra points you can redeem.

Transfer partners and how to use them

Both Sapphire cards transfer points to airline partners at a 1-to-1 ratio. If you have 50,000 points, you can transfer 50,000 to United and book a flight that United's website says is worth 50,000 miles. The value you get depends on which airline you choose and which route you book — some flights are priced generously in miles, others are not.

Hotel transfers work the same way. You can move points to Hyatt, IHG, Marriott, or other partners and book a night that costs that many points. Hyatt is often considered the best value because its award nights tend to be priced lower in points than competitors, but this varies by property and season.

You can also cash out points at 1 cent per point through the Chase website, which is the baseline redemption rate. Transfer redemptions are often worth more — a flight you book with transferred miles might be worth 1.5 or 2 cents per point, depending on the airline and route. This is why transfer partners matter: if you never fly United or stay at Hyatt, those partnerships do not help you, and you are better off cashing out or choosing a different card.

Trip protections and insurance coverage

Both Sapphire cards include trip cancellation insurance, which reimburses prepaid, non-refundable trip costs if you have to cancel for a covered reason — illness, injury, or death of a family member. The coverage limit is $10,000 per person and $20,000 per trip. You must have booked the trip on the card for the insurance to explore.

Both cards also include trip delay reimbursement (covers meals and lodging if your flight is delayed more than 12 hours), lost luggage reimbursement, emergency medical coverage abroad, and emergency dental coverage abroad. The Reserve adds emergency evacuation and transportation coverage, which the Preferred does not include.

These protections are secondary, meaning your homeowner's or travel insurance pays first if you have it. They are most useful if you do not carry a separate travel insurance policy or if your policy has gaps. Read the full terms on Chase's website before you travel — coverage limits and exclusions matter, and some situations (like cancellations due to pandemics or government warnings) may not be covered.

Annual fee and when it makes sense to keep the card

The Sapphire Preferred's $95 annual fee is charged on your card anniversary each year. You can downgrade to a no-annual-fee Chase card before that date if you decide not to keep it. The Sapphire Reserve's $550 annual fee is also charged on your anniversary, and the $300 travel credit posts around the same time.

The Preferred makes sense if you spend at least $3,000 to $5,000 per year on travel and dining combined. At that spending level, the extra points you earn (compared to a no-annual-fee card) roughly cover the $95 fee. Below that, you are paying for a benefit you do not use enough to justify.

The Reserve makes sense if you spend $20,000 or more per year on travel and dining, or if you value the $300 travel credit and other perks enough to justify the net $250 cost after the credit. If you travel frequently and book hotels or flights regularly, the higher earning rate and the travel credit together usually make the fee worthwhile. If you travel once or twice a year, the Preferred is likely the better choice.

How to decide between Sapphire Preferred and Reserve

Start by estimating your annual spending on travel and dining. Travel includes flights, hotels, rental cars, taxis, and rideshare. Dining includes restaurants and bars. If your total is under $15,000 per year, the Preferred costs less money overall. If it is $20,000 or more, the Reserve usually pays for itself through the combination of higher earning rates and the $300 travel credit.

Next, think about how you redeem points. If you plan to transfer to airline or hotel partners, both cards work the same way — your choice does not affect your redemption options. If you plan to cash out points, the Preferred is simpler because you do not have to justify a high annual fee through redemption value.

Finally, consider the travel protections and perks. The Reserve includes emergency evacuation coverage and a few other benefits the Preferred does not. If you travel internationally or take high-risk trips, that coverage might justify the higher fee on its own. If you travel domestically and have separate travel insurance, the protections are less valuable.

Frequently Asked Questions

Can I use the $300 travel credit on anything I buy during a trip?

No. The credit only covers purchases in Chase's "travel" category: flights, hotels, rental cars, taxis, rideshare, parking, tolls, trains, buses, and cruises. Meals, shopping, and entertainment during your trip do not may have access to. The credit is for getting to your destination, not for spending once you are there.

What happens if I transfer points to an airline and then the flight price drops?

Once you transfer points to an airline, they are the airline's miles, not Chase points. You cannot transfer them back. If the flight price drops in miles, you would need to cancel and rebook at the lower price, which some airlines allow and others do not. Check the airline's policy before you transfer.

Do I have to use the travel portal to earn the bonus points?

No. Both cards earn 3 points per dollar on travel booked anywhere — directly with airlines, through hotel websites, or through third-party booking sites. The Chase travel portal is just one option. You earn the same points whether you book through Chase or book directly.

Is the trip cancellation insurance worth paying the annual fee for?

Only if you do not have travel insurance through your employer or a separate policy. The coverage limit is $10,000 per person, which covers most trips but not luxury vacations. If you already have travel insurance, the Sapphire's trip protection is redundant. If you do not, it is a useful backup but should not be your only reason to keep the card.

Can I get the sign-up bonus on both the Preferred and the Reserve?

Chase typically allows you to earn a sign-up bonus on one Sapphire card every 24 months. If you currently hold the Preferred, you would need to close it or downgrade it before you can earn a bonus on the Reserve. Check Chase's current rules before you explore, as these policies change.