Plus: Are your loyalty and rewards programs really worth it?
This Week In Your Wallet: Could This Zoom Have Been A Call?
I’m a social person, yet there are days when I just can't handle more video calls. That's why I've instructed my assistant to consider whether a meeting truly needs to be a video call or if we can just chat over the phone.
As highlighted by a recent article, there's a running joke about video calls that should have simply been emails. Personally, I prefer phone conversations; they allow for a better understanding of the other person's mood and enable real-time follow-up questions.
The key question posed by a reporter is whether the past 18 months of limited travel will leave a lasting effect on business travel. Currently, a mere 9% of companies report they are back to traveling fully. When travel resumes, many firms indicate they will prioritize client meetings over internal gatherings. In other words, if it boosts revenue, it’s a go; if not, it’s a no. I’d love to hear how this is playing out in your life. Feel free to reach out at info@savinghunt.com. I’ll share insights next week.
Current Travel Trends
Another factor influencing business travel is the ongoing fear surrounding new variants. After a vibrant summer, the fall looks uncertain as the pandemic remains unpredictable. Some companies have even reconsidered bringing staff back to the office. Additionally, stimulus support that bolstered the economy is fading.
The eviction moratorium ended last Saturday, leaving 3.6 million people at risk of eviction in the coming months. Some states still have protections in place, but for others, there are $47 billion in federal funds available for rent assistance. You can find state-specific instructions here.
Moreover, the pause on student loan payments is set to end on September 30. Currently, that pause remains in effect, but there's a push to extend it. If you’re concerned about resuming payments, I’ve discussed strategies here. Many colleges have tapped into the $14 billion allocated for student support to help alleviate debt, particularly at historically Black Colleges and Universities. Some institutions have used these funds to eliminate student debt.
The Allure of Loyalty Programs
I’ve marked on my calendar to reassess my use of the Amex Platinum card, which I obtained for business travel that has dwindled. The card previously offered benefits like Delta lounge access and automatic gold status at hotel chains. Now, it includes a $200 airline fee credit and up to $200 a year on Uber, but the new $695 annual fee raises questions about its value.
This leads me to a fascinating piece about why we fall for loyalty programs. It turns out it's not just about the rewards—it's also about the perception of status among peers. Companies often entice us with significant upfront rewards, but require us to meet spending thresholds to access them. Eventually, using the card becomes habitual, and switching seems burdensome. Interestingly, all loyalty programs are largely similar. “Over time, businesses have found that competing on rewards often leads to diminishing returns,” notes a reporter. “The perks can cost companies, and if the competition gets too fierce, it could negatively impact profits.” As for my card, I’m still calculating its worth.
Stay tuned.
