Chase has an ad campaign out that a refresh of their Sapphire Reserve product is coming, and that they will be introducing a business version of the card. Not to be left behind in the media buzz, American Express put out a release saying they, too, will refresh their personal and business Platinum cards “later this year.”
They did not tell us much though so it’s unclear what the point of the release was, other than to piggyback on Chase’s media (cheeky – but smart!). Here’s what we know from the release:
- Benefits refresh
- Card design refresh
- 3 new Centurion lounges – Newark, Salt Lake City, and Tokyo – ‘in the next year’
What we can be fairly certain of, but not clearly noted,
- Expect a higher annual fee
- And more statement credits
- Probably more fundamental, though? It’s going to be their “largest investment ever in a card refresh”
While American Express absolutely pioneered the card issuer lounge, which drove airlines to improve their offerings and other banks to launch their own lounge network, I believe that the Amex lounge product has become stale and I rarely visit even when I happen to be in an airport with one of their lounges and I have the time. I tend not to use their Priority Pass. I don’t need their Marriott Gold status as a lifetime Platinum.
So the only real benefits I use are Delta club lounge access on the occasional Delta trips I take – though Delta just caught up to American as the second largest carrier in Austin by passengers carried in April, their route network isn’t especially helpful to me most of the time – and Hilton Gold for a once or twice a year Hilton stay. For that I’m going through the effort of maximizing their statement credits to cover the cost of the annual fee. Probably not worth it!
Now, if they’d open a Centurion lounge in Austin or if Delta really does grow its footprint massively taking the bulk of the midfield concourse in Austin that’s supposed to deliver in the early-2030s (and for which they’re considering not just a behemoth lounge but possible that as an addition to their current one) the calculation could change.
But if it takes even more effort to stretch to an even higher fee, I wonder if the Entertainment Book-style couponing model has been stretched too far? After all, I’m one of the consumers most likely to chase such a gamified system!
Since I’m a glutton for punishment, I say, hit me harder, Dadd(ies) Amex (and Chase). Why not go AF $1,000+!
Unless Amex makes a drastic turnaround and suddenly offers more value for the same price I’m likely to do the same thing I did with my and my wife’s Delta and personal Amex Platinum cards and shut them down. I’m sick to death of having to jump through a lot of hoops to justify ever-increasing annual fees with less benefits.
1990,
fear the 4 digits.
why not $990?
I don’t mind paying higher fees for better services. Thanks for the heads up.
I had, for a long time, overestimated the intelligence of people with my over-confidence that they would refuse to pay for the American Express Platinum as it has gone from a good deal, to a middling deal, then a poor deal, and now a total ripoff, over the course of a decade or so. At this point I’ll give Amex the benefit of the doubt and accept the adage that there is a sucker born every minute . . . particularly those who own Amex stock and bonds thinking that it is a creditor to smart people rather than a creditor for not so smart people who continue to hold its cards – the former being much better credits than the latter who are much more likely to stiff Amex during the next recession.
I know people will postulate hypotheticals about how the card is actually a great deal under certain rare scenarios, but while that might be true for a tiny percentage of people, it is a waste of money for the vast majority of card holders who remain desperate to think of themselves as “Platinum Card holders.” I’ve saved roughly $3K in annual fees since giving my Platinum Card up during Covid – when they were still refusing to budge on the annual fee – and I know I will find better uses for that money.
@Tim Dunn — Reminds me of the late Herman Cain’s “9-9-9” tax plan… (RIP). So, sure, why not $990 or $999 AF. Crikey!
*I meant to say: Aww, shucky ducky!
I stopped waiting in line at the AMEX USO Lounges…..errr Centurion Lounges a while ago. Just joined the lounges by holding their top tier cards.
I’ll whack AMEX one more time for their coupons right after the first of the year then sayonara before the annual fee hits the last week of January.
I used to have the Platinum card 20 years ago when the annual fee was $300 a year. The benefits were mediocre and the most benefit I could have received at the time was a free 2nd business class ticket. I upgraded my Gold card to Platinum about 10 years ago and have been happy with the benefits. Although some don’t apply to me, I’ll still get most of my annual fee back in credits. I used to be able to arrive at a lounge without having to wait. The lines started a few years ago and now Amex is a victim of their own success. As a frequent traveler I don’t mind paying extra, but the $695 fee is not more than a few years old. I’ll have to reassess the card when more details are published.
i did not reup on AmEx Plat in May for $700. I don’t see any reason to get a (likely $1,000) card with no guest benefits. I gave up on Delta, cannot get into the AmEx lounges, hate the coupon concept. Simply too much work to keep them straight between Chase and AmEx. How much streaming and Instacart can you possible do?
Maybe 250, 000 point sign up bonus might entire me for a year?
My renewal comes in August and hopefully they won’t jack up the price before then. Until they sort out their lounge cluster (and Priority Pass is often not worth the bother) and add some other baseline benefits I’m likely better off switching to an AA card that gets me Admiral’s Club. DFW is my home base and I’m basically stuck in their ecosystem. I’ve liked having the card because of their customer service, but this is quickly reaching the point of diminishing returns.
I’ve had the Morgan Stanley Amex plat for a decade or so. I get the AF reimbursed as long as I keep an average of $25K in a MS cash account. When money market yields were around 3%, the card benefits made up for the slight difference, and I get a free AU card for my daughter who flies often on Delta and enjoys the Delta lounges. I’ll see what the revamp looks like and decide again at renewal. Might need a retention bonus.
Between my Amex Platinum and CSR I expect both to have a $795 AF later this year. I get value from both currently and likely will at the higher AF. Frankly even if I don’t the money for AF doesn’t really impact me and I like the convenience both offer for lounges and other benefits so will likely keep them.
I can understand many not likely the “coupon book” but I find ways to use it. However I’m retired so have more time than most. I keep a spreadsheet with credits offered by all my cards (include Amex Gold, Citi Strata and, recently, United Explorer to the list). Personally I find ways to use things like the 2 United hotel credits, the Citi Starts annual hotel credit and the quarterly Hilton Surpass hotel credit but I can see how many consider this too much work. Also many travel in OPM so don’t care as much about some credits or are chasing hotel/airline status which impacts their decisions (I’m lifetime elite on most US airlines and hotel groups).
I’d find value even if they raise both to $995 a year. In fact I wish they would since that may encourage many to drop the cards and cut crowds at Centurion and Chase lounges
@Kirk, I just got the Charles Schwab Amex Platinum, same benefits as Morgan Stanley. I haven’t had an Amex for years, but they were running a 125K miles option so I thought, why not? What with the $200 Hotel credit, $200 Airline credit, and a $200 Schwab credit (if some investments are held at Schwab – which mine are) plus the usual Uber, Walmart+, etc etc. all for $695, it’s a good deal – for now.
“Now, if they’d open a Centurion lounge in Austin…”
How does this change the equation? Who goes to the airport just to visit a lounge? Aren’t you the same guy that says, “if you’ve never missed a flight, you’re getting to the airport too early”?
A couple of years ago, I closed the card, got a free Everyday to keep the points alive, and got a Hilton surpass (also free if you have 3 stays/year) for Gold status. Never looked back.
Disclosure: I’m an AA hub captive, and so their lounges work better for me.
Rarely get to use an AMEX lounge. The only real benefit I get is the 5x points when I purchase airline tickets. Maybe $8,000/year. I have cards that would give me 3x so I am paying this annual fee for two extra points or around 16,000 MR points/year. I’ve been with AMEX for over 50 years, from Green to Gold to Platinum to Centurion and now back to Platinum. My wife has a Gold and I’m an AU and we use this for restaurants and groceries. Is it really worth paying the feel for maybe an extra 16,000 points per year?
“Who goes to the airport just to visit a lounge?” *Homer Simpson bushes meme*
@Mike P – I fly American out of Austin a lot, which means I suffer flight delays!
To back-up just a bit, I hold the AMEX (personal) Gold card (4x on dining worldwide; 4x on US groceries; 3x on flights). It has never made sense to me to “upgrade” to AMEX Platinum (5x on airfare; 5x on PREPAID hotels thru Amextravel). Yes, there are statement credits to offset the AF, but aside from lounge access, I don’t see any advantage to the Platinum card. (I get 5x on airfare purchased directly from the airlines with another card as it is.) There had BETTER BE increased benefits for a higher AF, but something tells me the American Express will continue sending me invitations to “upgrade” to Platinum for no apparent reason…
So, Gary, you just got done telling us how little value you get from the card – “So the only real benefits I use are Delta club lounge access on the occasional Delta trips I take…” – and now you’re going to pay a higher fee to access a lounge that supposedly “I believe that the Amex lounge product has become stale and I rarely visit even when I happen to be in an airport…”
Okay, gotcha!
@Mike P – am I? My suggestion was that I may *not* pay that higher fee. Obviously I will look at the specific value proposition presented in making a decision. But paying more for occasional Delta access doesn’t make sense, and for rare use of Hilton Gold.
@kimmiea, Just like @Kirk, I have the MS Platinum and also have a Schwab account but not their Platinum card. There’s currently a big difference between the two cards. MS reimburses the entire fee, not just $200. MS provides a free AU card whereas Schwab does not – so we can both get into a Centurion lounge without paying for the 2nd person.
These 2 factors are why I keep it. I will reassess when the refresh happens, which I hope is after my renewal in mid-Sept.
Higher AF, more coupons, the affiliate link simps will scream about “muh value”.