HSBC Star Alliance Credit Card: Fast-Track to Star Alliance Gold Status

Fast track to Star Alliance Gold status with the HSBC Star Alliance credit card​

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What are the main benefits of this card?

1. Signup bonus: Fast Track to Star Alliance Gold Status, when you spend $4,000 or more on eligible purchases in the first 90 days from account opening
2. Keep your Star Alliance Gold status each subsequent year that you spend at least $60,000 on your card
3. Earn 1 Star Alliance Point per $1 on eligible purchases, up to $3,000 per statement period and 0.5 Star Alliance Points per $1 spent on eligible purchases thereafter, uncapped
4. No annual fee in the first year and $499 p.a. thereafter

Why we like the HSBC Star Alliance credit card

Launched in 2022, the HSBC Star Alliance credit card is the first of its kind anywhere in the world. You'll earn Star Alliance Points which are transferable to a choice of seven Star Alliance member airlines at a time of your choosing. You can also earn Star Alliance Silver or Gold status just by spending on the card, with no flying required!

Once you qualify for the welcome offer and are fast tracked to Star Alliance Gold status with any of the seven participating carriers, you’ll soon be enjoying perks like airport priority lanes and lounge access when flying across the whole Star Alliance network. It is the largest airline alliance in the world with 25 member airlines, including Air New Zealand, Singapore Airlines, United and Turkish Airlines.

Please note that the welcome offer is not available to existing HSBC customers transferring from another HSBC credit card, or if you have previously held a HSBC Star Alliance credit card within the last 18 months. Refer to the full T&C’s for more information.

AFF members are welcome to discuss this card in this thread.

 

[levelnine]

The card has only been in the market for a little over a week; probably a little too soon to judge it a flop - especially on the strength of discussions in the echo chamber of AFF.

Of course it is too early to definitively tell, but consider what this forum, full of people who know a thing or two about ff programs, have discovered in just a week or two:
1. It won't appeal to churners because there's no points sign up bonus.
2. It won't appeal to *A frequent flyers because they will get Gold from flights.
3. It won't appeal to big spenders due to the spend caps and superior earn rate on other products (eg St George).
4. It won't appeal to oneworld frequent flyers because there are easier ways to get *A Gold if they're thinking of trying out the competition (status matches).

Its niche, as Mr H notes, is someone who takes a couple of *A flights per year and wants some extra points from their credit card spend towards redemptions on *A. And they need to be willing to pay $450 pa & divert $60K onto the card at inferior earn rates for the privilege!

I tend to agree. It's hard to see the card launching here if VA had been intending on joining Star in the near future/

On what basis?

As *A has said, its target market is international travellers based in Australia. VA doesn't fly internationally (for the most part) and that wouldn't change if it joined *A.

To my mind, the launch of the card represents a (feeble) attempt to steal customers away from Qantas because oneworld is really the main game in town for international travellers in Australia.

VA isn't joining *A anytime soon, but for reasons unconnected to the launch of this card.

 

[oz_mark]

VA isn't joining *A anytime soon, but for reasons unconnected to the launch of this card.

Correct,but if they were, you wouldn't be seeing this card being released here now.

 

[Mr H]

For those playing along at home.... this card launching oz is the nail in the coffin for VA joining Star.

Can anyone explain to a bear of very little brain why that would be the case?

 

[Viridis]

………, full of people who know a thing or two about ff programs, have discovered in just a week or two:

Perhaps.

But I still think it’s a mistake to view the comments on this forum as in any way representative of the views, opinions and financial product choices of the wider market.

As has been noted elsewhere, the likes of Air Canada have become hostile to churners and this card offers a product with no appeal to that segment of the market; coincidence? Who knows, and as I said, I know nothing about this kind of stuff; I just think it’s too simplistic to write it off on the strength of a few opinions voiced on this and similar forums.

Most people don’t think like this

 

[levelnine]

I know nothing about this kind of stuff;

This is such a curious reply.

You are on a forum about airline and credit card products.

It is entirely appropriate to make predictions about the success of airline and credit card products.

Airlines and credit card companies are making predictions about what will and will not appeal to consumers all the time. Indeed, they are primarily in the business of making bets on the future — when launching new routes, when purchasing new airplanes, when making investments in lounges, when running promotions, when launching new cards, when changing frequent flyer programs, when deciding whether to commit to handing out pyjamas to business class passengers or offer them pre-departure drinks, etc etc etc.

Should we simply make no comment and defer to their 'expertise' on these matters? Most airlines are unprofitable and most credit card products fail. It is, in fact, rare to succeed. That should help answer that question for you.

 

[ChrisMars]

My prediction is that IF this card doesn't have much success, after 3 months they will sweeten the deal with some bonus points to gain more traction. Why? Because it is a genuine new product backed by star alliance, in a trial market, and they will want to make it a success to understand how this product may change consumer behaviour, and to understand what it takes (cost) to make it happen.

 

[wsthong]

My prediction is that IF this card doesn't have much success, after 3 months they will sweeten the deal with some bonus points to gain more traction. Why? Because it is a genuine new product backed by star alliance, in a trial market, and they will want to make it a success to understand how this product may change consumer behaviour, and to understand what it takes (cost) to make it happen.

Would it beneficial not to apply the card now?

 

[Mr H]

Would it beneficial not to apply the card now?

I wouldn't hold off on an application in the hope of a better sign up deal in the future - but I also wouldn't apply in the first place because the offer looks unattractive to me.

 

[Danger]

I'm $600 into my $4000 minimum spend. I got it for a *A family holiday to Europe in May next year. I'll stop using the card when I hit $4001, and I'll cancel the card in June next year.

I'm normally a OW flyer, so I'm interested to see the lounges in MEL, SIN, FRA and KRK.

Can you offer any insight into the Gold benefit? Has HSBC asked you at this point to select a program that you'd like the Gold status in, should you meet the spend criteria?

 

[trippin_the_rift]

Can anyone explain to a bear of very little brain why that would be the case?

VA wouldn't allow this card to be in the market if they had any intention of joining Star. Just like we won't see Star launch a card in USA, or Singapore, or New Zealand.

Look at where HSBC has a strong presense and which of those markets do not have a local Star carrier - that's where future cards will launch (eg: Hong Kong, Malaysia, Indonesia...)

This is why the cards are ultra generous with elite status. It would crush the local domestic Star carrier if a credit card was giving up status so easily.

Fortunately - this means more status match opportunities for everyone! Get your SQ Gold from the credit card, then match it into the oneworld airline you really want status with. Happy days ahead!

 

[MARTINE]

They can’t see the value in a card that cost $1500pa. Nearly all have cards in the $200-$400 range

Second cards are often freebies such as the 28Degrees

Most travel widely for business & pleasure

Thanks
My AMEX Velocity Plat costs much less than that annually and I love it. Good for travel redemptions (obv used 2019BC more so), access to concert tix etc
I dont chase status
YMMV
I would not spend $1500 annually though for all of the above

 

[Mr H]

My AMEX Velocity Plat costs much less than that annually and I love it.

I think the $1500 card is the Amex Platinum Charge Card. This does have additional benefits over the credit cards, but for most people they are not going to get enough value from those benefits to cover the additional cost. But I guess most credit card users do not recoup the cost of their cards in benefits or the cards would not be commercially viable.

 

[exceladdict]

VA wouldn't allow this card to be in the market if they had any intention of joining Star. Just like we won't see Star launch a card in USA, or Singapore, or New Zealand.

Look at where HSBC has a strong presense and which of those markets do not have a local Star carrier - that's where future cards will launch (eg: Hong Kong, Malaysia, Indonesia...)

This is why the cards are ultra generous with elite status. It would crush the local domestic Star carrier if a credit card was giving up status so easily.

Fortunately - this means more status match opportunities for everyone! Get your SQ Gold from the credit card, then match it into the oneworld airline you really want status with. Happy days ahead!

Interesting; I was thinking that VA would make the money back when HSBC pay them for lounge access - but didn't consider the foregone revenue of the VA flights otherwise needed to gain said status.

 

[Mr H]

Interesting; I was thinking that VA would make the money back when HSBC pay them for lounge access - but didn't consider the foregone revenue of the VA flights otherwise needed to gain said status.

I am not quite buying this. I presume the airline whose gold status is acquired would be paid an agreed sum and when that card is used to access lounges, the lounge operator is paid an agreed sum. That's how it works at the moment. I don't think this card is going to appeal top anyone who would have got status from flying so I doubt it would have any impact on revenue. If anything, having status with an airline is more likely to tempt you to use them and their alliance rather than to use their competitors (which is why they offer status matches, trial status, status challenges, etc). This looks to me to be a win-win for the airlines.

 

[exceladdict]

I am not quite buying this. I presume the airline whose gold status is acquired would be paid an agreed sum and when that card is used to access lounges, the lounge operator is paid an agreed sum. That's how it works at the moment. I don't think this card is going to appeal top anyone who would have got status from flying so I doubt it would have any impact on revenue. If anything, having status with an airline is more likely to tempt you to use them and their alliance rather than to use their competitors (which is why they offer status matches, trial status, status challenges, etc). This looks to me to be a win-win for the airlines.

Perhaps a good analogy is why did Qantas grant lounge access - but not gold status - to points club plus members? Maybe it devalues the status from a perception POV; maybe the revenue earned on 350k points is different to 700scs, maybe it's just too hard to account for internally.

 

[Viridis]

This is such a curious reply.

I like to be curious

You are on a forum about airline and credit card products.

Indeed I am

I guess we are here for different reasons. I don’t presume to imagine that anyone here would be even vaguely interested in my opinion. But they be informed by my experiences.

There is 100+ pages on how to obtain a U.S. Amex on this site made up almost exclusively of people’s experiences. I found that extremely useful in guiding my own application

It is entirely appropriate to make predictions about the success of airline and credit card products.

I didn’t say it was inappropriate, but merely intimated that, having regard to the data available, it was probably a bit daft. The one vital piece of information we don’t have is by what criteria success will be judged by Star & HSBC and over what timeframe.

Airlines and credit card companies are making predictions about what will and will not appeal to consumers all the time. Indeed, they are primarily in the business of making bets on the future — when launching new routes, when purchasing new airplanes, when making investments in lounges, when running promotions, when launching new cards, when changing frequent flyer programs, when deciding whether to commit to handing out pyjamas to business class passengers or offer them pre-departure drinks, etc etc etc.

Airlines buying new aeroplanes and credit card companies introducing new products have whole departments of experts trawling data to produce an informed recommendation to management. Frequent Flyer programmes are a whole separate department if not entity. My area of employment expertise is in none of these fields and I therefore happily admit “I know nothing about this stuff”. But I am a user of all three and am happy to share my experiences

Should we simply make no comment and defer to their 'expertise' on these matters?

That is entirely a matter for you

That should help answer that question for you.

I actually can’t even remember asking a question

 

[trippin_the_rift]

Interesting; I was thinking that VA would make the money back when HSBC pay them for lounge access - but didn't consider the foregone revenue of the VA flights otherwise needed to gain said status.

Observations...

• Fundamentally, HSBC is selling Star Gold for $450.
• To make real use of the elite status, you must fly internationally.
• SQ is likely to pick up the bulk of the elites, and they have their own lounges in most places, so costs are likely within a tolerable range.
• If VA joined Star (they won't), the HSBC Star card would destroy the proposition on VA's own card portfolio in AU, and put 10,000's of new Gold members onto VA's planes, destroying their lounges and benefits all around.
• Elite status upfront on a credit card comes with significant financial risks to airlines and I suspect Australia is the test case.
• Airlines are facing a 'status cliff' whereby nearly 50% of elites are due for a status downgrade over the coming months, and giving out Star Silver/Gold via credit card in a market like Australia where the elite volumes are low, is probably justifiable by number of elites since so many will drop out in the coming months.
• Generally, status upfront on credit cards drives split useage, whereby the airline will gain more business from a broader range of people, and lose the long tail as people stop chasing status. Overall it's a bad thing for airlines since folks who earn status on merit are worth bucketloads more than those who take a couple flights year. Hotel status is good example of this strategy. Everyone and their dog has hotel gold status and it drives a few nights from some folks, but devalues the heck out of it for folks who can give more than a few nights a year to one brand. It works for hotel brands because they pass most costs on to property owners, airline are totally different econmics.

My guess is that HSBC is paying a lot of money to SQ (the primary beneficiary of the new card), using elite status as the key to breaking into the travel card space.

 

[MARTINE]

I find this all really interesting
Airlines used to sell flights when I took my first flight in grade 4… now points/cards and status are equally critical (airlines and passengers alike) as is taking to the skys …
Bit like a gourmet bakery having as much scrutiny about quality and profitability of its breadcrumbs and less interest in the actual bread

 

[Mr H]

Observations...

• Fundamentally, HSBC is selling Star Gold for $450.
• To make real use of the elite status, you must fly internationally.
• SQ is likely to pick up the bulk of the elites, and they have their own lounges in most places, so costs are likely within a tolerable range.
• If VA joined Star (they won't), the HSBC Star card would destroy the proposition on VA's own card portfolio in AU, and put 10,000's of new Gold members onto VA's planes, destroying their lounges and benefits all around.
• Elite status upfront on a credit card comes with significant financial risks to airlines and I suspect Australia is the test case.
• Airlines are facing a 'status cliff' whereby nearly 50% of elites are due for a status downgrade over the coming months, and giving out Star Silver/Gold via credit card in a market like Australia where the elite volumes are low, is probably justifiable by number of elites since so many will drop out in the coming months.
• Generally, status upfront on credit cards drives split useage, whereby the airline will gain more business from a broader range of people, and lose the long tail as people stop chasing status. Overall it's a bad thing for airlines since folks who earn status on merit are worth bucketloads more than those who take a couple flights year. Hotel status is good example of this strategy. Everyone and their dog has hotel gold status and it drives a few nights from some folks, but devalues the heck out of it for folks who can give more than a few nights a year to one brand. It works for hotel brands because they pass most costs on to property owners, airline are totally different econmics.

My guess is that HSBC is paying a lot of money to SQ (the primary beneficiary of the new card), using elite status as the key to breaking into the travel card space.

Many points here, but...

I suspect more card holders will opt for NZ than SQ just by virtue of the number of Kiwis in Australia and the fact that the most popular overseas destination for Australians is Aotearoa.

I do not believe this was done purely by HSBC - I suspect Star Alliance had a big part in the design of the scheme. They would not have done this if it were likely to be to the detriment of their members. They see this as a good opportunity, although only time will tell whether it works out for them.

Airlines seem to like having elites - as evidenced by SQ handing out status like smarties a year ago. So I don't see why VA would object to card holders claiming status with them - especially since they are likely to be infrequent flyers.

I don't believe many airline status holders chase status - I think it operates more as a golden handcuff to persuade existing status holders to use a particular airline based on the perks they will get when travelling. And for those who might nearly make it and squeeze in an extra flight to get over the line, I suspect they would still do that rather than take on the onerous challenge of attaining/retaining status through the HSBC card.

I do not believe this will open the floodgates to 10,000s of new golds. I think the number of people willing to pay $450 a year and channel $60,000 through a single credit card would be small. I know there are a handful of members here who put through hundreds of thousands or millions a year, but they are quite the exception.

VA sells membership to its own lounge network already. The fee of $400 is presumably not a million miles away from what HSBC would pay for a year of Star Gold.

Finally - yes, it is true that HSBC card holders would probably not be putting all their spend through the existing VA cards. But the HSBC card does still earn miles (albeit at a disappointing rate) and VA status holders would be likely to put their miles into Velocity if that's the airline they have status with. Most folk do not maintain a portfolio of points stashes across multiple airlines - and if HSBC tempts a points collector away from QF then this would be a win for VA.

I really cannot see how a Star Alliance card could be beneficial for existing Star Alliance airlines but be detrimental to VA were they to join.

 

[antycbr]

I suspect more card holders will opt for NZ than SQ just by virtue of the number of Kiwis in Australia and the fact that the most popular overseas destination for Australians is Aotearoa.

Only those who haven't spent any time hanging out with Airpoints $. That program is *bad*