Fellow CENT holders, AMEX is the KING of diminishing returns in a program...start out w/ a bang...get a group signed up...and then allow the program to constantly and chronically erode and dwindle...to see how far they can take it as they perform the classic business maneuver "profit optimization", not unlike "yield management" in airline terms.
Case in point - the moribund and essentially worthless Membership Rewards.
WOW...how that program has lost partner after partner (both airlines and now hotels also) over the years...never being replaced (ok...I aadmit - I don't count JetBlue).....since MR's inception, AMEX has failed to sign up not one, but the two world's largest airlines as affinity partners (United and AA) which to me is the most-visible sign MR's weakness....and yet AMEX never seems to notice.
As long as the "greater fool theory" works for AMEX (there's a sucker born every minute and presumably MR rolls are still strong) they will allow CENT perks...MR perks...any perk to erode and die...until the pain (loss of income from cancels) exceeds the replenishing income from the greater fools still signing up.
Simple math...classic Harvard MBA case study response. AMEX is merely optimizing their ROI after a given program starts out w/ a bang. As business-persons ourselves, can we blame them ?
I think we all know if AMEX would ante up whatever starwood was charging, we would still have the PLAT perk. In simple math, starwood pulled the perk *because AMEX didn't make it worth their while*. We all intuitively know this. Thus, it is disingenious for AMEX to now be blaming starwood. In fact, its a little stupid methinks for AMEX to ever be passing the blame onto a partner. Penny-wise, pound-foolish. Instead, AMEX has no doubt calculated the cancels to be less than the cost of the perk and and no, they will never take responsibility for losing starwood (after losing Hyatt Diamond the year before). Guess Hilton and Marriott told AMEX to get lost.
Too bad, so sad for we lemmings who never cancel the card and walk away.
Last edited by ILUVCITIBANK; Oct 10, 2006 at 12:33 am