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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.
Also Read: Wow! 500,000 requests in a month for the ‘mirror finish’ design on the Amex Platinum Card!
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.
Will Amex launch an ultra premium card one level above the Amex Platinum Card?
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.
Don’t make this mistake with the Digital Entertainment Credit on the Amex Platinum Card
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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Yeah and it’s sooo much fun having the self important weenie Gen Zs in the lounge now…pushy, rude , obnoxious but hey they are just like their parents.
I think my days with AmEx platinum are going to come to an end at renewal in May. It is easy to get $895 value out of the coupon book, but it is too much work every month/quarter/year to get that value. I will miss Centurion Lounges, but won’t miss the lines.
Same here in April…
We’ve had the card for 6 months! I’ve tried on 4 separate occasions to use it at airport lounges with “no’ being answer. LAX Centurion was not open, Delta Sky lounge not usable on Basic fares(economy) at Delta’s lounges. Went to Sydney. Aust Centurion and discover the card for Centurion lounges is only good at 3 locations, LAX, Tokyo and London. Tried using it at an associate lounge in Nadi and they looked at me as if I was nuts. So I’m 4 for 4!!! I am determined though!!! LoL
Yes, lounge overcrowding is a big issue. Needs to be addressed very quicky.
I’m finding that the Plat refresh just isn’t for me. Because, in addition to my needs remaining mostly travel and dining focused, I prefer a card to work for me instead of the other way around (who has time for endless coupon clipping?). So I’m planning to narrow down my card repertoire to a vanilla Capital One Venture, a Capital One Savor, and the new Citi/AA Globe card. As an AA EP who uses the hotel platform, the Globe will provide enough value via extra LP, extra miles, and MC World Legend benefits to more or less pay for itself without any effort, while the others will cover everything else. The Plat, meanwhile, will probably end up getting canceled at my next renewal after I transfer the MR points to an airline or hotel.
Yes, for a lot of people, the card works well if it’s their only credit card, if you have multiple options, then it’s a different game altogether.
Amex Platinum is a terrible option. I have had three disputes over travel options purchased on the Amex Rewards site and via Concierge Phone agent. One involved scam hotel offer in Porto the other to cancellation credits and reversing use of points. Final straw was re-booking after being told could use e-credits for new flight. In each case service rep provided false information costing great cost and aggravation. Amex refused any responsibility! After 35 years as card holder can no longer trust them. Also virtually unuseable in Europe. NO ONE accepts AMEX ! Also many many airports do not have lounges for Platinum or Centurian card holders 8-( Waste of money especially with new higher annual fee.
The lounge network is expanding and overcrowding is still an issue at major airports.
I have the Amex Platinum and Gold cards, Chase Sapphire Reserve and Citi Strata Prestige cards along with 15 or so other hotel, airline, cruise line and casino cards. All have a purpose and I get value from the $3500-$4000 a year in annual fees. Retired, travel extensively and am set financially. No one card is my “go to” travel card as I adapt based on credits, benefits, earning rate and other considerations. Amex Platinum is basically airfare, FHR stays and credits like Saks/Lululemon. Gold is dining and CSR is main international card since many places don’t take Amex. Rest fill other niches
Nice! that’s a massive collection of cards.