Capital One Launching Venture X Premium Travel Credit Card

Capital One is getting into the luxury travel credit card market with the launch of Capital One Venture X, a $395-annual-fee card that could easily offset its yearly cost.

The key to extracting the most value from the new and pricier card will be taking advantage of added travel perks and using the issuer’s travel-booking portal, Capital One Travel.

New cardholders can earn 100,000 bonus miles after spending $10,000 on purchases in the first six months.

• 2 miles per dollar spent on purchases.

• 10 miles per dollar on hotels and rental cars booked through Capital One Travel.

• 5 miles per dollar on flights booked through Capital One Travel.

• Up to a $300 annual credit for bookings made on Capital One Travel.

• 10,000 bonus miles every account anniversary (equal to $100 toward travel).

• Unlimited access to Capital One Lounges and more than 1,300 Priority Pass lounges internationally.

• Up to $200 in statement credits for vacation rental purchases like Airbnb and Vrbo. (For a limited time.)

• Access to entertainment, sports and dining events through the Capital One Experiences program.

• Complimentary Hertz President’s Circle status.

In part, the card’s value hinges on how good the new Capital One Travel booking experience is.

Capital One says the booking portal will include predictive pricing models and tools to ensure customers get the best deals. In addition, it offers access to thousands of flights, hotels and rental cars, and features free price-drop protection, 24/7 alert technology and the option to freeze a price and come back 14 days later to book it, Capital One says.

And the airport lounge access could be a big benefit if the new Capital One Lounges are as good as the company says. Notably, Capital One Venture X cardholders and authorized users receive unlimited access with two complimentary guest visits. Often credit cards restrict lounge access to the primary cardholder only. (Note: Capital One also announced that cardholders of the Capital One Venture Rewards Credit Card and the Capital One Spark Miles for Business will get two complimentary visits annually and have access to a special entry rate of $45 per visit after that. Everyone else, cardholders and noncardholders, can enter the lounge for $65 per visit.)

Both cards are general travel credit cards, meaning you’re not tied to a single airline or hotel chain, which offers flexibility. But they don’t reap some perks offered by co-branded credit cards, like free checked bags on an airline or a free hotel night annually at a particular hotel chain.

They come with the same base rewards rate of 2 miles per dollar spent. You redeem miles at 1 cent apiece for credit on your statement against a recent travel purchase (or use them at Capital One Travel or transfer to more than 15 travel loyalty programs.) And both offer the same credit for applying for TSA PreCheck or Global Entry.

So, the question is whether you can use the additional benefits of the Capital One Venture X and whether you can hit the higher required spending to get the sign-up bonus.

Side by side:

Perks and rewards aside, you can offset the annual fee each year if you take advantage of just two of the credits, the annual credit for bookings with Capital One Travel and the anniversary miles, which together have a value of $400.

If you can, it’s like getting the excellent rewards rate and the other perks, such as airport lounge access, for free.