FlyerTalk Forums - View Single Post - Amex Premier Rewards Gold new benefits and higher annual fee, 6.1.2015
Old Feb 28, 2015, 10:29 am
  #58  
TMM1982
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Join Date: Dec 2014
Posts: 8,460
Originally Posted by VegasGambler
It's not a price drop. Many people don't use the airline fee credit. A price drop to $95 would be much more expensive to them.

Clearly, cash (which you can spend on anything, at any time you want) is worth more than a credit which you must spend on a very limited selection of items, in a very limited amount of time. So, to call the net cost $95 is misleading.
It is a price drop and it's not misleading in the least.

In exchange for the $20 fee increase, you get a variety of benefits. But let's just stick with the $100 airline credit. Even if you don't use it, you can simply buy a gift card and sell the gift card back to a variety of websites for 75% of face. So at the very least you're getting $75. That brings the AF down to $120, a $55 price drop from the current AF.
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