KSA Airline Miles Card Deep Dive

Saudi Arabia’s airline miles credit card market has become increasingly competitive, with multiple issuers competing to capture high‐value customers—particularly frequent travelers. The data reveals American Express, Alinma, and Al Rajhi Bank as standout players in terms of reward rates, welcome bonuses, and overall cost efficiency. Other issuers, including Riyad Bank, and SAB, adopt varied strategies that balance annual fees, reward earn rates, and one‐time welcome bonuses.

The following sections analyze the marketplace using six key graphs, each highlighting a different angle of the competition.

1. Reward Rates per SAR (Domestic vs. International)

This graph benchmarks reward rates for domestic and international transactions:

• Market Averages:

  • Domestic: ~0.38 miles/SAR

  • International: ~0.60 miles/SAR

• Top Competitor: American Express AlFursan American Express® Credit Card

  • Domestic: 0.80 miles/SAR (111% above average)

  • International: 1.60 miles/SAR (167% above average)

  • Note: These elevated earn rates apply only in the first year. Afterward, they revert to 0.20 (domestic) / 0.40 (international).

• Lowest Performer: SAB Emirates Signature Credit Card

  • Domestic: 0.20 miles/SAR (53% below average)

  • International: 0.30 miles/SAR (50% below average)

Strategic Insight for Executives

• High reward rates can be an immediate differentiator, but sustainability is key. AMEX’s first‐year promotional rates drive strong acquisition but may face attrition later.

• Low reward rates (e.g., SAB Emirates Signature) can be offset if combined with other perks or lower fees, but risk losing market share among rate‐sensitive travelers.

2. Annual Fee vs. Rewards: Cost Efficiency Score

This chart plots each credit card’s annual fee (in SAR) alongside a cost efficiency score that factors both fees and earning potential:

• Al Rajhi Bank – AlFursan Infinite Credit Card

  • Highest cost efficiency (score of 51).

  • Above‐average welcome bonus (50,000 miles) and competitive reward rates (0.40 domestic, 0.66 international).

  • Strikes a favorable balance between annual cost and long‐term value.

Strategic Insight for Executives

• Cost efficiency scores can be improved via either lower fees or higher reward rates—or, ideally, both.

• Welcome bonuses also significantly affect perceived value; larger welcome bonuses can offset higher annual fees in the short‐term, improving customer acquisition.

3. Welcome Bonus vs. Ongoing Reward Rate

Here, the cards are evaluated by welcome bonus (total miles) and everyday reward rate (miles per SAR). A high welcome bonus jump‐starts a cardholder’s mileage balance, while ongoing rewards determine long‐term value.

• Leaders in Welcome Bonus

  • Al Rajhi Bank – AlFursan Infinite Credit Card: 50,000 miles (158% over average).

  • Alinma AlFursan Infinite & Riyad Bank AlFursan Visa Infinite: 45,000 miles (132% over average).

• High Reward Rates but Lower Welcome Bonus

  • American Express AlFursan American Express®: Tops out at 1.60 miles/SAR internationally (first‐year promo), though only 10,000 welcome miles. This is an interesting strategy acting as a welcome bonus in the form of first year bonus rewards rate.

Strategic Insight for Executives

• Large welcome bonuses can spur initial uptake. However, retention often hinges on the ongoing reward rate.

• A balanced approach—robust sign‐up bonus plus consistent per‐SAR rewards—is the most compelling long‐term.

• Take note of American Express’s strategy of replacing a higher welcome bonus with a first-year promotional reward rate.

4. Spending Example: Domestic & International Split

The chart simulates a monthly spend of 2,500 SAR domestically and 2,500 SAR internationally. It compares:

1. Paying off the balance (max rewards, no interest).

2. Retaining a 5,000 SAR balance (incurring monthly profit rates).

Highlights

• Best If Carrying a Balance:

  • Al Rajhi Bank – AlFursan Infinite Credit Card (35.26 miles/SAR).

• Best If Paying in Full:

  • Al Rajhi Bank – AlFursan Platinum Credit Card (92.33 miles/SAR).

• Strong Runner‐Up:

  • American Express – AlFursan AMEX® (30.06 miles/SAR if revolving, 76.07 if clearing).

Strategic Insight for Executives

• Cards that deliver consistent value across multiple spend categories can capture larger wallet share.

5. Spending Examples: All‐Domestic vs. All‐International

5.1 Domestic Spender (5,000 SAR/month)

Refer to “Airline Miles Credit Card – Domestic Spender – Value per SAR.” (Graph 5)

• Carrying a Balance:

  • Al Rajhi Bank – AlFursan Infinite Credit Card ranks highest (31.90 miles/SAR).

• Paying in Full:

  • Al Rajhi Bank – AlFursan Platinum Credit Card leads (85.33 miles/SAR).

5.2 International Spender (5,000 SAR/month)

• Paying in Full:

  • Al Rajhi Bank – AlFursan Infinite Credit Card, 99.33 miles/SAR (top performer).

• Strong All‐Rounder (Including Revolvers):

  • American Express – AlFursan AMEX® stands at 98.33 miles/SAR (pay in full) and 38.86 (carry a balance).

Strategic Insight for Executives

• Banks seeking to capture high‐value international travelers should focus on elevated foreign transaction earn rates.

• For the domestic mass market, controlling annual fees and offering moderate to high reward rates can secure a broad user base.

6. Overall Market Implications & Competitive Takeaways

1. Al Rajhi Bank – AlFursan Infinite

   • Strong in cost efficiency and offers the largest welcome bonus, positioning it well for both heavy spenders and those who revolve balances.

   • Gains significant market share due to balanced fees, strong AlFursan brand synergy, and perceived high value.

2. American Express – AlFursan AMEX®

   • Leads on reward rates for international transactions in the first year—an aggressive acquisition tactic.

   • Relatively modest welcome bonus could be a limiting factor, but high short‐term earn rates attract frequent flyers.

3. Alinma and Riyad Bank

   • Competitive middle ground: high (but not top) welcome bonuses and respectable reward rates.

   • Could refine their offerings to better differentiate from Al Rajhi’s strong cost efficiency or AMEX’s high short‐term rewards.

4. SAB

   • May need to emphasize other features (e.g., airport lounge access, travel insurance perks) or adjust pricing structures.

Conclusion: Key Action Points

• Enhance or Reposition Reward Structures If aiming for a leadership position, consider promotional rates or bigger sign‐up bonuses, while monitoring long‐term sustainability.

• Balance Acquisition and Retention A large welcome bonus or introductory high earn rate can drive new signups, but competitive ongoing rewards—and the right perks—are crucial for retention.

• Diversify Product Line‐Up Offer specific traveler segments (domestic, international, mixed) distinct card options to maximize share of wallet.