Over the last few weeks, we’ve seen a lot of churn in the premium credit card space. Chase relaunched the Chase Sapphire Reserve and launched a brand new Sapphire Reserve for Business credit card. While the refreshed card was being launched, Amex suddenly announced that they’ll also be making changes to their coveted American Express Platinum Card – both business and consumers versions. In their latest earnings call, Amex’s CEO gave a glimpse of what is to come later this Fall.
American Express Platinum Card Refresh
If you look at the transcript of the latest earnings call, you’ll see Amex’s executives wax eloquent about how the higher fees and new benefits have actually added more revenue and kept attrition numbers low, for now.
As we look ahead to our U. S. Platinum launches, you can expect to see the same formula, providing the best premium experience to card members with more differentiated benefits and more world class partners joining us to offer card members more value that substantially exceeds the annual fee. Longer term, when you combine our proven product refresh strategy with our global premium customer base at scale, our network of world class partners, our lifestyle oriented membership defined brand and addressable market that is growing at a healthy annual rate globally, especially in key areas we’re focused on the premium sector and younger consumers. These are all the reasons why we believe we have a long runway for growth and can sustain our momentum and our leadership in the premium space going forward.
If you dive deeper into the transcript, you will get a glimpse of some of the benefits that will come with the higher fees. You can read the entire transcript here on Investing.com.
If I were a betting man, I’d say that we a Resy credit could well be added to the American Express Platinum card this Fall.
Our refresh strategy focuses on enriching our value propositions with more benefits and offerings in areas of our customers the areas that our customers value most at a price point that delivers outstanding value. A key element of this strategy is our ability to attract a growing number of premier partners who fund offerings to gain access to our large scale high spending customer base. Beyond the individual product value propositions, we’re also constantly evolving our suite of experiences and benefits that set the competitive standard, giving our card member access to over 27,000 of the most sought after restaurants, wineries and other venues through Resy and Top, the largest airport lounge network in the industry, which includes 30 proprietary Centurion lounges today with more on the way as well as access to all Delco lounges, exclusive experiences across sports, fashion and entertainment and a wide range of benefits at over 2,600 premium hotels and resorts worldwide. This strategy has worked especially well for us.
Moreover, I won’t be surprised if we see more of lifestyle and shopping credits as opposed to travel related credits.
As we look ahead to our U. S. Platinum launches, you can expect to see the same formula, providing the best premium experience to card members with more differentiated benefits and more world class partners joining us to offer card members more value that substantially exceeds the annual fee. Longer term, when you combine our proven product refresh strategy with our global premium customer base at scale, our network of world class partners, our lifestyle oriented membership defined brand and addressable market that is growing at a healthy annual rate globally, especially in key areas we’re focused on the premium sector and younger consumers. These are all the reasons why we believe we have a long runway for growth and can sustain our momentum and our leadership in the premium space going forward.
Also, this statement by Amex’s CEO confirms one thing. You’ll likely see a wide variety of benefits and coupons. You’re more likely to find only a few of them useful though.
And we make it such that it’s a wide range of value. And so while not every consumer will use 100% of the value, Getting back to your second point, we have enough disparity in the price and the value that you don’t need to use all the value to get the value out of the product.
The Pundit’s Mantra
If you read through the full transcript, you’ll see a few themes. Firstly, the premium credit card space is doing pretty well across the board for issuers and competition is only heating up. Secondly, Amex plans to do another design refresh and add a variety of credits, with a higher annual fee. So, expect to see a new look on your Platinum cards soon. Thirdly, you can see a focus on expanding the lounge network and focusing more on dining partnerships. Precisely why I see that a Resy credit could be on the cards soon. Also, there’s a clear cognizance of the fact that lounge overcrowding is an issue and that expansion is needed.
What do you think about these insights and how do you perceive the upcoming changes this Fall? Tell us in the comments section.
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New Credit Card Offers
American Express Business Credit Cards
- Earn 200,000 Membership Rewards points with the Business Platinum Card
- Earn 150,000 Membership Rewards and enjoy a 0% intro APR on the Business Gold Card
Chase Sapphire Cards
- Earn 100,000 bonus points and a $500 statement credit with the Chase Sapphire Reserve Card
- Earn 200,000 bonus points with the Chase Sapphire Reserve Card for Business
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- Earn 100,000 bonus points and a $100 statement credit with the Hilton Honors American Express card
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- Earn 175,000 bonus points with the Hilton Aspire card, in addition to 1 free night certificate each year
- Earn 175,000 bonus points with the Hilton Business Card
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What other cards do people feel add better value and why? What particular benefits add more?
I have been an AMEX Platinum Card holder over 25 years and the value has gone done, down, down. The free companion business international ticket was the peak – now long gone. The hotel bookings is a bad joke, bordering on a scam. I used it once a couple of months ago. I booked it through them, they booked it through Expedia at 15% less. The charged me right away; the Expedia rate didn’t charge until my arrival. Do that math! Then when I found the same Expedia rate myself a few hours later and tried to get the match they gave me a three week run around until I ended up cancelling the AMEX charge.
Lounges are totally over crowded and now you need to book $75K to get a companion in!!!
Wake up AMEX – it can disappear much more quickly than you grew it!!
@PWhite: I agree about the lounge part, overcrowding is indeed an issue!
Well, I guess it’s time to cancel the platinum card american express has no respect for their card holders,
I agree, I will be cancel AMEX platinum. I got the AMEX gold
American Express platinum card is not worth the $675 fee. I have eight american express guards time to start.Cancel
@JosephLouisRubino: Well, it’s $695 and it will liekly be higher this fall!
I have 8 American Express cards, and none of them are actually worth the annual fee. Especially six hundred and seventy five dollars a year for american express platinum card. There’s much better cards out there. With no annual fee
As a member who travels and the primary reason I joined was for the Centurion Lounge. These are now overran by influencers, not the business traveler, the fees to bring a guest (aka: a child) are ridiculous. Also as card holder for Marriott and Alaska Airlines, the travel credits don’t hold a value. In other words- hello gold card!
Hey. I work at American Express. Feel free to share your questions and I can answer them for you.
Why is the no O’Hare airport centurion lounge??????
I to agree, that I don’t see the value in my Amex card ,
I down graded from Platinum to Gold.
There is one “aspect of the Amex program” to nobody
seems to mention and overlook .
The Amex rate of redemption when cashing in the
points seems terribly, skewed or disproportioned
When compared to redeeming my Chase Sapphire Reserve
Points . Amex sometimes 1.5x more. On top of the excessive annual fee, it’s like I’m getting “banged twice”
Same. I’ve been a member since 1995..in event they hiked that much, maybe it’s time to explore other cards that offer better travel perks.
Fees increase not fair
I2 shall close my account all five of them
I agree and will cancel if they increase the fee. The benefits are really bs. I booked a hotel stay through fine hotel and resorts soley because the free breakfast for two. $100 resort credit and early and late checkout were supposed to be part of the deal. When I got to the hotel they did not offer the free breakfast and offered something like a $30 credit and required you sign saying you were told. I called AE upon my return and they said I signed and shouldn’t have…and should
have waked away! As if I could have traveled to NYC with my niece on a Friday for the weekend and walk away?? They don’t even give you what they advertise and we pay for . The lounges are over crowded. Food substandard. And you can only get in a lounge 3 hours before departure-not boarding. Rip off
I have been with AE for 26 years. This is my last
@MaureenPineau: That is really disappointing to see. Something that I haven’t experienced with FHR in years.for sure, but this is really cheap on the hotel’s part to do that.
If you already paid your yearly fee. Why would Amex double dip?
Which card to hop to next?
@CT: You can always downgrade to Gold or Green
We all need to cancel our card we the consumer have the power
I won’t accept these almost yearly annual fee increases. I won’t be paying more for a card that everyone can get but no one really needs. I’ll close my account and move to lower annual fee card. American Express has lost its exclusivity the brand was once known for.
I agree.
I’ve been with American Express for the past 15 years. The amount that I’ve been spending lately really doesn’t justify my keeping this card as I am up there in age. My Wife and I no longer do the traveling we used to nor do we dine out as much anymore. At this juncture of my life, I cannot justify spending approximately $1000 per year just to be a member of American Express. Most likely, I will downgrade to the gold card.
@HowardFox: Yes, this seems like the trend if they raise the AF to as high as 1k
Los beneficios cada vez son menores, El beneficio es solo, para ellos. Prefiero usar otra tarjeta mucho más barata. Estoy muy descontento con los beneficios. Yo viajo x el mundo y la Amex platinum ya no es lo mismo .Aparte soy platinum de por vida en AA y Amex no tiene ningún beneficio con AA.
The airline credit doesn’t mean much if you have status. We fly mainly JetBlue and my wife and I are both Mosaic, so everything is free except for a blanket and a cheese tray. When we fly international we usually fly first class thus being able to select only one airline annually really doesn’t add much. Tried to get in to the Centurion lounge at JFK last week. After a short 20 minute wait we were able to enter. The food on the buffet looked like dog food and I’m not a picky eater. I’ll eat at a roadside bbq and have many times. It was disgusting. On my review I also asked why 53% of the beer consumed in the US is a Lite beer. Why are all their beer selections beers that are not lite such as Miller Lite, Coors lite etc? I happen to be a type 1.5 diabetic, insulin resistance. If I drink 1 or 2 Stella’s my number goes thru the roof. They don’t understand their customer base. Not saying that I’m leaving, but they have many things to fix or many people will leave.
@MikeParker: I also don’t find great use of the airline fee credit. Most of my travel is on non-US carriers and I end up just stcking United credits and then using them in one go.
I will cancel my card before dropping a grand.
No BUENO amigos
As i live in Europe,every time I try to get into a priority lounge it’s either packed or I have to wait outside…..for a grand fee.
Ladies & Gents I don’t think so….I’ll be exiting stage left on this one.
No BUENO amigos
As i live in Europe,every time I try to get into a priority lounge it’s either packed or I have to wait outside…..for a grand fee.
Ladies & Gents I don’t think so….I’ll be exiting stage left on this one.
I have had Amex for over 40 years starting with the green card and all the way to platinum. I have had personal and business cards.
Chase has a Sapphire lounge in Philadelphia at the terminal we generally fly out of. We dropped in there last week and Wow! It blows away the Centurion Lounge which is 15 minutes away in another terminal. Which, on our last 2 visits, we couldn’t get in.
Our current Platinum statement is for over $15,000 in one months charges. If Amex doesn’t do something dramatic, we’ll convert one of our Marriott Bonvoy cards for the Ritz Carlton card and our 40 year run with Amex will simply be a fond memory.
Wow, 40 years is a long time.
Will see what is what when it’s time for my renewal. I’ve been with AmEx since the 90s and even if I have to downgrade to gold I don’t think I’ll ever leave. The experience and service are second to none. And regardless of how much I charge in a month it never counts as credit card utilization as there is no limit posted anywhere. That alone is worth tons to me. I strive for zero utilization every month and I can charge thousands on my AmEx “charge” card and that never counts. Love it.
@Cmc: Glad it works so well for you!
I just got the card lol and now they are raising the annual fee! They should raise the airline incidental credit, raise the Uber credit add a dining credit and do10X Flights, 10X Hotels, 10X Rental & 2X points for every dollar spent.
@Dannybouil82: That would be great, but LOL I don’t think Amex will be able to afford those sort of points multipliers!
I have various amex accounts my san diego never had a centurion lounge. I flew standby one way to pick up kid across country in Atlanta and I found out they had a lounge I was denied access. Yep, totally pissed this will be my last year with them as well especially with this price hike.
@Kam: indeed, they’ve only had the Aspire lounge and that can also get very busy at time.
Eu tenho uma conta, mas até agora não consigo aceder o cartão devido a sigla de CSC.
That reminds me, I need to make sure to cancel my card. I’ll put it in my calendar
Same here
I’m sure the fee will be close to 1K, and that’s more profit for the company, as the benefits don’t keep up with the price, regardless of what you may read as far as benefits being expanded . Too much for benefits that long range I doubt I would use and many of the so-called upper scale restaurants are not within an honest, our drive of where I live in my remote community..
I’ll have cancel on my calender.
@ThomasPICI:: The rumor mill is saying $900 or $895 to be more precise but I won’t be surprised if the AF touches 4 figures this time.
Had a business Platinum for 19 years. This is total BS. I’ll cancel when it’s time to renew. The value simply isn’t there compared to other cards.
@Maitin: wow, 19 years is a long time!
The value isn’t there. Covering a quarter of the tip at a Resy restaurant isn’t much of a benefit. Same with Uber. Nickel and dime benefits for a $1000 a year. I still have to pay $50 for my wife at Delta lounges. And listen, when a supposed “benefit” is a redesign of the card, you know you’re being had. Yep, time to cancel.
Forget about the $1000, it’s not ward 675.