You are advising a consumer bank that has a strong mass market credit card business and wants to grow share among affluent customers. Leadership is considering launching a premium travel card with a high annual fee, rich rewards, airport lounge access, and travel credits to compete with established premium cards. The opportunity is attractive because premium cardholders spend more, revolve less, and can deepen relationships across deposits, travel booking, and digital servicing. At the same time, acquisition costs are high, rewards economics can get expensive quickly, and incumbents already have strong brand position and partner ecosystems.
How would you evaluate whether Capital One should launch a premium travel credit card to compete with established high-end competitors?