MW Some premium travel perks are losing their luster. Here's which ones are still worth it.

By Genna Contino

Upgraded travel is more accessible than ever. But are frequent-flier programs and rewards credit cards victims of their own success?

When Trace Cohen had time to kill before his flight from New York's John F. Kennedy International Airport earlier this month, he headed to the Amex Centurion Lounge to grab a bite to eat and get some work done.

However, when he reached the entrance, he was greeted by a sign that said: "We are currently at capacity. Join the virtual waitlist." The Chase $(JPM)$ Sapphire lounge beside it was also full.

Cohen, who lives in New York, ended up waiting 20 minutes to get into the Amex lounge, which is a perk that comes with his Platinum American Express $(AXP)$ card that has a $695 annual fee. He thought it was worth the wait, and said the lounge especially comes in handy when he's traveling with his children, a 1-year-old and a 4-year-old.

"Being able to stay in a lounge for a little before the flight really helps before getting crammed into a few tiny seats for hours," he said.

Cohen's experience with the overcrowded lounge is emblematic of a broader shift. Airlines and other companies have democratized some aspects of premium travel, allowing middle-income Americans to buy their way to amenities once considered elite. But as more travelers take advantage of these upgrades, they've started to lose their luster. TSA PreCheck lines are now sometimes longer than standard security lines, and hotel reward points have waned in value.

Over time, perks that were once seen as an entry point to a luxury-travel lifestyle have become a standard expectation for the average traveler, experts say.

"Tourists today are expecting much more from their stay than they did five years ago. While visible luxury is still important, what truly stands out now is the demand for exceptional, personalized service," said Alfredo Santamaria, general manager of Live Aqua hotel in Cancun, Mexico. "They want meaningful experiences, attention to detail and a feeling of being genuinely cared for."

As the travel landscape evolves, MarketWatch spoke with industry experts, a hotel manager and travel bloggers to get a sense of which premium perks are still worth it - and which ones you can skip.

Airport lounges are 'victims of their own success'

The U.S. airport-lounge market is expected to nearly triple by 2033 to reach $14 billion, according to a Global Growth Insights report.

The lounges - private areas where travelers are supposed to be able to kick back in comfy seats and enjoy complimentary food and drinks - are typically reserved for certain credit-card holders or airline loyalty-program members. The majority of travelers accessing them, 60%, are personal travelers not flying in premium or business class, the Global Growth Insights report said.

It's unclear exactly how fast membership is growing for rewards cards that offer lounge access, but American Express Chief Executive Stephen Squeri told analysts during a January call that the company is investing in new lounges and expanding existing spaces.

American Express has also added more staff and food-and-beverage stations at its lounges to assist cardholders and minimize buffet and bar wait times, said Emily Vicker, the company's vice president of corporate affairs and communications.

"Many eligible card members enter Centurion Lounges with no wait," Vicker said. "Since our lounges are in some of the busiest airports and Centurion Lounge access is one of the most popular benefits of American Express membership, during peak times or if there are flight delays, wait times can increase."

JPMorgan Chase declined to comment on its airport lounges.

While the Platinum Amex card that grants access to the Centurion Lounge costs nearly $700 a year, entry requirements for other lounges vary. The Sapphire lounge requires a Chase Sapphire Reserve Card that comes with a $550 annual fee, for instance, while the Delta $(DAL)$ Sky Club costs $695 or 69,500 miles for an annual membership.

From the archives (July 2024): Is this heavy-hitting American Express card worth the $695 fee? Yes, if you're in this group.

As more travelers take advantage of these dedicated spaces, they face the challenge of limited real estate in airports.

"They're victims of their own success," said Eric Rosen, director of content at the Points Guy travel website. "People are thinking, 'Why am I paying $695 a year and I can't even get into this lounge?'"

For those who are tired of bumping elbows with other travelers at the buffet but aren't ready to give up their preflight champagne flutes, Rosen suggests checking out Delta One lounges at JFK, Boston Logan International Airport and Los Angeles International Airport. They're outfitted with massage chairs and shower suites, and you can even order steak frites.

But it's exclusive for a reason. Access is only available to passengers with a same-day flight in a Delta One cabin, a premium version of business class that Delta offers on certain international flights. It includes lie-flat seats, elevated dining service and can cost more than $10,000 for a round trip.

TSA PreCheck remains a valuable travel perk

It can be frustrating to stand in the TSA PreCheck line at the airport and watch passengers who didn't pay for the perk breeze through the standard security line. Rosen has noticed PreCheck lines stretching longer than regular security checkpoints during recent trips through LaGuardia Airport in New York.

But more often than not, this isn't the case. Wait times are less than 10 minutes for about 99% of PreCheck passengers, according to the TSA, so coughing up the $85 for five years of access might be worth it for frequent fliers. After a background check, travelers with PreCheck can go to an expedited security checkpoint where they don't have to remove shoes or belts and can keep laptops in their bags.

The number of active members using the expedited security service has doubled over the past five years, surpassing 20 million members in 2024.

Still, "the vast majority of fliers don't have TSA PreCheck, so if you have it, you have a leg up," Rosen said.

Clear Plus $(YOU)$ is another service available to get through security faster at many airports, he said. For about $200 per year, you can use your face, eyes or fingers to verify your identity at the airport rather than an ID. More than 50 airports offer Clear Plus and there are options to bundle it with TSA PreCheck.

Travel reward points and miles don't stretch as far as they used to

Another way travelers can score travel perks is by signing up for credit cards that reward spending in the form of points or miles that can be redeemed for first- or business-class airfare, luxury hotel stays and elite status with hotel chains.

But in many cases, these points aren't as valuable as they once were. This month, Hilton Honors $(HLT)$ raised the price of a stay in its highest-end properties to up to 200,000 points per night - 50,000 more than its previous maximum. The number of reward points needed to book a stay at Marriott Bonvoy $(MAR)$ properties also went up in January.

Another frustration for reward-points holders: It can be difficult to determine when their points are devalued, because hotels don't always make an announcement or explain how the decision was made.

"Similar to how our hotels adjust their room rates based on supply and demand, we routinely monitor and occasionally adjust Hilton Honors reward pricing to more closely correlate to market demand," said Lauren DeBettencourt, Hilton Honors brand communications director.

Marriott did not respond to a request for comment.

The devaluation of travel rewards is representative of a larger trend, according to Rosen.

"Points and miles are a wonderful currency to help you save money on travel, but they're not a long-term investment," he said. "They are always changing, so hanging on to a stash of miles is not a good idea."

Rewards cards can still be a smart financial choice for people who travel frequently. It's important to identify the type of travel perks you're seeking and then tailor your choice based on that, Rosen said.

Sometimes, an airline's rewards card isn't necessary if you fly enough with the carrier. But if you fly just a couple of times a year and like the perks that come with the card, then it could be worth the annual fee. Southwest Airlines $(LUV)$ cardholders and elite-status members get to opt out of the airline's new $35 checked bag fee, for instance.

See more: Southwest's new baggage fees to boost profits by more than $400 million, analyst says

Hotel rewards cards are more likely to come with automatic elite status, Rosen noted, and they can also offer savings on dining and gas.

"People often overlook hotel credit cards, but they can be very lucrative," he said.

But since individual programs can change overnight, Rosen added that it's a good strategy to consider a card with a transferable point system that gives you the flexibility to transfer to the airline or hotel that makes the most sense.

Resort day passes offer a premium experience without the cost of an overnight stay

For those who are looking for all the luxury amenities of a resort but can't swing the price of an overnight stay, day passes can be a solution. Some hotels sell day passes directly, but third-party sites such as ResortPass also offer them.

"If you're one of the 3 million people checking out of an Airbnb $(ABNB)$ every day, instead of sitting at the airport way after you check out at 11 a.m., you get a bonus day of vacation where you can enjoy a luxury hotel," ResortPass CEO Michael Wolf said.

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