Late last week, Amex released their most recent earnings report and their senior leadership kept waxing eloquent about the success of one product – The Amex Platinum Card. There seemed to be an overwhelming consensus, based on initial numbers, that the refresh was a massive win for American Express.
1. Amex Platinum Card Refresh Mentioned Multiple Times
“Within our U.S. Platinum portfolio, we are seeing accelerated spend growth following the refresh while maintaining high retention rates after the fee increases went into effect.”
The fact that Squeri name-checked the Platinum card this early tells you everything about how central it is to Amex’s business thesis right now. The two things he highlighted, accelerated spending AND high retention despite the fee hike, are exactly the two things the market was watching after last year’s refresh. Both are moving in the right direction. For cardholders, high retention means Amex is unlikely to feel pressure to walk back any of the new benefits they added during the refresh. The card is earning its keep.
2. The CFO Chimes In
“That momentum reflects an acceleration in U.S. Platinum spend following the refresh last year and the benefit of our global footprint, with tailwinds from FX and high growth in international markets.”
When the CFO is attributing the company’s best spend growth quarter in three years partly to a single card’s refresh, that’s remarkable. Le Caillec essentially said: Platinum cardholders are putting more on their cards than they were before. That’s not new account growth, that’s existing members spending more, which is a far more durable and profitable signal. For points nerds: this means Amex has strong financial incentive to keep Platinum benefits rich and valuable. A card that drives spend growth this visibly is one they’ll continue to invest in.
3. Popular Benefits
“The refresh is also driving high levels of engagement with our membership assets by U.S. consumer Card Members. Lodging spend on our Fine Hotels + Resorts and The Hotel Collection programs is up 50% year over year, and in dining, spend at U.S. restaurants is up 20%.”
This is the number that jumped off the page for me. A 50% increase in Fine Hotels + Resorts and Hotel Collection spending year-over-year is staggering. However, it was expected, given that Amex recently increased the hotel credit benefit from $200 to $600 annually.
The fact that Platinum members are booking through this program at half again the rate they were a year ago tells me two things: Amex added compelling new properties (they just announced 300 new additions) and members are discovering and using these benefits in a way they weren’t before. The 20% dining jump on Resy is similarly telling, the Resy integration is sticking.
4. High Retention Rates In Spite Of Higher Fees
“In the U.S., we continue to see strong demand and engagement on Platinum following the refresh last year, with accelerated spend growth on the portfolio, high retention rates, and continued strong new customer acquisition.”
Amex raised the Platinum annual fee as part of the refresh. The conventional wisdom in our hobby is that fee hikes trigger cancellations, but the data here says otherwise. High retention plus accelerated spend plus strong new acquisition is essentially a clean sweep. Amex didn’t just retain members after the fee hike; it kept them engaged enough that they’re spending more. This is the best possible outcome Amex could have hoped for and it validates the strategy of loading cards with high-value benefits rather than competing on fee price alone.
5.Who Is Doing The Spending
“I guess you are looking at the slide that shows U.S. consumer Platinum accelerating by six percentage points. The majority of that, given the size of the portfolio, is coming from tenured Card Members. Although we are very pleased with new account acquisition, the majority of that 6% lift is coming from the back book, and that is a very strong sign.”
The spend acceleration isn’t being manufactured by signing up tons of new cardholders. It’s coming from people who already have the card, who are now putting more spend on it. In the credit card industry, this is called “back book” engagement and it’s much harder to achieve and much more valuable than acquisition growth. It means the refresh genuinely changed behavior for existing members.
6. Growing Card Fee Revenue
“Net card fees continue to be our fastest-growing line, up 16% FX adjusted, in line with Q4. We expect card fee growth to pick up as the year progresses as we see the impact from Platinum refresh exiting the year in the high teens.”
Net card fees are already Amex’s fastest-growing revenue line (up 16%) and they’re projecting acceleration toward “high teens” growth as the Platinum refresh fully flows through the numbers. Remember, Amex now collects a higher annual fee from every Platinum cardholder who renewed after the refresh. That revenue compounds over time as more of the base cycles through renewal. This is a machine that’s still building momentum. For cardholders who are wondering whether Amex will keep investing in the card: the answer is almost certainly yes. It’s now a core engine of their fee revenue growth story.
7. The Amex Platinum Card: Driving Higher Engagement Levels
“We’re seeing great engagement from our Platinum refresh. I feel pretty confident about the rest of the year.”
This line came near the end of the call, when an analyst asked Squeri directly about his confidence given global macro uncertainty. His response cited record billings, luxury spending up 18%, front-of-cabin (business class) flights up 12% and then landed on Platinum engagement as one of the anchors of his conviction.
The Pundit’s Mantra
Every mention of the Platinum card on this call told a consistent story: the refresh is working better than Amex expected. Spending is up. Retention is high. Benefits are being used. The fee revenue is accelerating.
What does this mean practically? First, Amex is not going to nerf the Platinum’s benefits anytime soon. A card that’s driving this kind of spend and retention is one you protect and invest in, not one you hollow out. Second, expect Fine Hotels + Resorts to continue expanding, the 300 new properties just added came from 1,400 applicants, which tells you demand from the hotel side is enormous. Third, the Resy integration is becoming a genuine differentiator.
However, if you’ve carried the Amex Platinum Card in your wallet for many years, how do you view this? Do you plan to keep the card in the long run even after the latest fee increase and benefit refresh? Tell us in the comments section.
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