Over the last month, I’ve covered the refresh of the Amex Platinum Card quite extensively. After the card was refreshed, the general perception was positive. However, if you look at some of the comments, you’ll see long time cardholders of the card complain about how the card has essentially become a coupon book and isn’t necessarily the ‘premium’ travel credit card they signed up for back in the day. Well, it seems like at least one person seems to agree with that analysis – Amex’s CEO.
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Amex Platinum Card – Key Target Market Shifts
During their most recent earnings call, Amex’s CEO Steve Squeri was pretty clear on who the target customer is for the Amex Platinum Card. If you look at the way Amex has repurposed their products over the last few years, especially post Covid-19, this comes as no surprise. The spend data confirms it.
Overall spend growth continues to be driven by transaction growth, up 10% in Q3, a good indicator of engagement from our customer base. I will note that we see strong engagement from Millennial and Gen Z card members, with the average number of transactions per U.S. customer about 25% higher than older cohorts.
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This was the second time Amex refreshed the Amex Platinum Card in the last four years. As per Amex’s own numbers, it seems like their core demo is engaged with the card, with the focus moving from just premium travel to more of lifestyle, shopping, dining and entertainment.
With the value enhancements we’ve made over the past decade, the Platinum Card has evolved into the leading premium lifestyle card that it is today, with a wider range of benefits and experiences that appeal broadly across generations, including millennial and Gen Z consumers who are very comfortable paying for its exceptional value and are highly engaged in the product. A good example of these value enhancements is the previous U.S. Platinum refresh we did in 2021, coming out of the COVID pandemic. We learned that our card members, particularly the younger cohorts, love the benefits we’ve added in categories like digital entertainment, wellness, and delivery services, in addition to our travel offerings, which we also continue to enrich with investments in new Centurion lounges and the expansion of our hotel programs.
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The last part of the statement clearly proves that Amex sees their younger cohorts more engaged and willing to pay an even higher annual fee, in lieu of lifestyle benefits that cater to their needs. This is again confirmed by the fact that the transaction volume of this group if 25% higher than their older cohorts.
The momentum we’ve seen from younger customers also continued. Millennials and Gen Z now account for 36% of total spend, making up the same share as Gen X. International had another strong quarter.
The Pundit’s Mantra
Many of us signed up for the Amex Platinum Card for the first time (I got it in 2014) when it was ‘the’ premium travel credit card in the market. However, this statement by Amex’s CEO clearly signifies the shift in focus from a premium travel focused much older target market to a much younger target market looking to enjoy ‘premium’ lifestyle perks.
In a nutshell, if you’re looking for something that’s laser focused on premium travel, then the Amex Platinum Card may still be an option. However, it definitely isn’t ‘the’ option to go for as it was for all these years.
Which is your favorite premium travel credit card? Tell us in the comments section.
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