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The AMEX Platinum Annual Fee Has Increased to $695, while adding some high breakage benefits. What do we mean by high breakage? Benefits that many cardholders will not end up using. While that might seem good for AMEX in the short term, since it means AMEX won't be paying out all these statement credits, it's likely not a good long term move if it translates into disengagement with otherwise good clients who drop their card and take their spend to competitors' credit cards, such as the Chase Sapphire Reserve. Here are the new benefits for the $695 AMEX Platinum:
- $200 hotel credit, but only for prepaid bookings with Fine Hotels & Resorts or The Hotel Collection (2 night minimum stay)
- $179 CLEAR credit: annual statement credit for CLEAR membership
- Private Jet: 20% discount on Wheels Up Connect and 40% discount on Wheels Up Core memberships
- $20 credit/month on eligible purchases or subscriptions with Peacock, Audible, SiriusXM, New York Times
- $25 credit/month on purchases of select Equinox Fitness Club monthly memberships or digital subscription to Equinox+
The above are in addition to core existing benefits, such as the $100 credit on Global Entry or TSA PreCheck every four years, 5X Membership Rewards points on flights booked directly with the airline or via AMEX Travel, $200 airline incidental fee credit (much harder to use than the Sapphire Reserve $300 travel credit), and $15 credit per month on Uber.
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Analysis
The AMEX Platinum fee increased in 2019 from $450 to $595, so the latest increase to $695 means a 54% fee increase in just two years, during a pandemic that has seen a significant drop in international travel, due to border closures. This is also why AMEX is emphasizing new credits for Audible etc. and Equinox, to position the AMEX Platinum as a lifestyle card as much as a travel card. But how many card holders, especially during/post-pandemic, will find the Equinox credit useful? Many (myself included) dropped their memberships during the pandemic, and aren't ready to return. Plus, only 9 states (soon 10, with Washington state) even have an Equinox club, leaving 40 states without a single Equinox.
While certainly there is a segment of the population that will get value from the card's new benefits, we've noticed an increased shift to Visa among TravelSort clients who update their credit cards. One of the key benefits of the AMEX Platinum used to be the Fine Hotels & Resorts program hotel benefits, but those benefits are easily replicated or even surpassed with luxury hotels' own preferred partner programs or Virtuoso. The $200 airline incidental credit is a pain to use, as you have to pre-select a single airline and the credit can't be used towards airfare, in contrast to the easy to use Chase Sapphire Reserve $300 travel credit, which can be used on airlines, hotels, trains, taxis, etc. AMEX used to be known for its superior customer service, but much of that has been outsourced and experiences are much more mixed. And for those renting cars, the Chase Sapphire Reserve offers primary auto rental coverage, while the AMEX Platinum (and all other AMEX cards) only offer coverage that is secondary to your existing auto insurance. And even for trip cancellation insurance, the Chase Sapphire Reserve is better than the AMEX Platinum. That said, those who still highly value AMEX Centurion Lounge access will likely find the card to be worth it.
We've never found AMEX Platinum cards to be great cards to put spend on, absent working to earn a signup bonus or a particularly good AMEX offer, since we don't have much airfare spend, the category that makes the most sense for AMEX spend. And given the once per lifetime limitation on earning an AMEX Platinum signup bonus (as well as for other cards) the new AMEX Platinum is a hard pass for us. We'll stick with our no annual fee AMEX Blue Business Plus card that earns 2X on all spend, which is our go-to card for all spend that isn't earning us another category bonus.
What are your thoughts on the new AMEX Platinum with its $695 annual fee and new benefits?
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I could not agree more! The card has turned into an expensive coupon book.I just renewed my card, but this time next year will be the end of Platinum for me.
It will be interesting to see how many others feel similarly and don’t renew at the $695 rate. Perhaps AMEX is counting on relatively price insensitive loyalists, but it’s always seemed odd to me that so many of these “benefits” and AMEX Offers are for small amounts each month, which might matter to those paying a much lower annual fee, but are just annoying to keep track of for many.
Totally agree with this analysis. Last year I cancelled my personal Amex Platinum, and earlier this year it was the business version. It’s just not worth it anymore. All those perks & benefits are not used by this very busy mom of two (now) homeschooled kids, so I’m sticking to Chase.
Yes, I reached a similar decision a few years ago for both cards and have no regrets. The use case for the AMEX Platinum seems to be narrowing with this recent fee hike and the particular benefits introduced.
So, I cancelled my personal Platinum Card last year during the pandemic. I wasn’t traveling and I couldn’t really use their streaming statement credits. Fast forward to 2021, and Amex offered me an upgrade offer on my Gold or Green card to Platinum and I pulled the trigger on it on Tuesday. I get 25K MR after 2k spend + 10x on gas and groceries for the first six months capped at an amount I will not reach. For me, it was worth it as I will pay the old annual fee of $550 but enjoy the enhanced benefits for… Read more »
There’s definitely a use case for some, and as I mentioned folks that value Centurion Lounge access will more highly value the AMEX Platinum; the lounges got too crowded for us to find them pleasant, particularly during a pandemic (and the LAX one hasn’t even reopened). For us, we value the easy to use $300 travel statement credit that has made the CSR effectively a $150 per year card for us (our annual fee hasn’t increased yet) with 3X points on our core spend categories of travel and dining, plus better travel insurance and primary car rental insurance. We’re able… Read more »
While I agree with you that overall the travel insurance advantage goes to the CSR, I would say the Platinum card has the better medical evacuation coverage. As for the American Express offers, some are only for Platinum members like the Best Buy and Home Depot offers American Express offered cardholders earlier this year from which you get $200 of free merchandise from stores which are not overpriced (unlike say Saks Fifth Avenue). Basically, CSR is better on face value, but the hidden/unadvertised offers that American Express offers its cardholders make it the better long term card.
It’s great that the AMEX Platinum works well for you, but for our family the CSR is by far the more lucrative card long term, due to the sheer volume of spend we make on it with the 3X bonus and our lack of spend/interest in what the Platinum offers. Different cards hold different appeal to different consumers.
Don’t forget the lounge usage is going to diminish in the future with no guests included as well… Amex definitely seems to be on an odd path at the moment!
Yes–they have very particular target markets in mind, which are not us.
Only for the Centurion lounges and not till 2023. With priority pass you will continue to get two free guests.