lastplace

I need to understand American Express's thoughts and i am hoping someone smarter than me could help shed some light.
Let me start by saying I have a Cent card, but I think most of what I am trying to understand also applies to the Plat card.
I now only use my Amex to pay for airline incidentals on American Airlines (as they are the Airline of choice for me for the $200 credit), car rentals (as i have the additional insurance), an FHR stay, and if i buy a high end item i want the extended warranty on. That is it. We are talking maybe 15K a year.
But if Amex incentivized (is that a word?) me, i would use the card so much more. I still charge about another 200K a year on the personal use side. My travel spend and restaurant purchases go on a Sapphire, I pay my health insurance with a Citi card, and every other charge goes on the Barclay Arrival.
I don't understand why AMEX does not provide its "higher-end" customers with all the bonuses afforded to its other card holders. Give me triple points for travel purchases and double points for gas and groceries like your gold card members. Give me bonuses for more use like you seem to be (soon) offering your everyday card holders. Give me a reason to use the card regularly.
To be fair, i do need to disclose that i use a business AMEX to pay my property taxes for a building i have in NYC. AMEX is the only card that will let me charge 80K and not balk.
Now i know the question would by why would you pay $XXX to keep your card, but for multiple reasons, i feel like i get the value for what i pay.

AMEX, I want to use my card. Help me help you.

That is all.

mia

This is a recurring question. The short answer is that American Express markets Centurion and Platinum based on benefits, and other cards (e.g. Premier Rewards Gold) based on rewards.

American Express knows that there are individuals who care about both, but the success of the Platinum Card in the USA market suggests that there is a substantial market of people who will pay for a benefits card.

American Express' immediate problem is that too many of the benefits were outsourced, and have been withdrawn or diminished simultaneously. They have reacted to this by throwing money at existing cardholders, but that's not a viable long term solution. Enhancing rewards could be, but I will be surprised if they choose that course because it is contrary to the DNA of the high end cards.

Centurion

You are not alone and many people just get the card and put it in a drawer or back of the wallet.

WheelsFirst

I use the Plat overseas for the no FTF and no DCC issues. The Cent is marketed towards cardholders who spend way more than a Barclay Arrival's credit limit.

But I agree overall, MRs are worth less than most other reward currencies and earning at 1x is pretty uninspiring.

AFAM-DFW

The Centurion card matches the mfg warranty up to three years vrs the one year of other cards. I use my Cent card for all electronic and appliance purchases.

nestafaria

Only time I use my platinum is for electronic purchases or something I might lose or break(cell phone).

Daveyb101

I also generally use other cards for routine purchases, leaving the Plat for things like electronics and other situations where I can envision wanting the option of Amex customer service on my side somewhere down the road. Otherwise, I feel like I usually have a more valuable reward option in my wallet via another card.

I suspect, however, that the majority of plat/cent users just don't put as much thought into it. They have their card and they're perfectly content earning just 1 MR point per dollar. I've just barely been able to convince my wife to use two different cards (CSP & SPG), and I still get questioned pretty regularly about whether dining indeed belongs on the "heavy card." I'd bet that many other people similarly just can't be bothered to have to think about which card to use for which purchases. Then add into the equation having to juggle multiple awards programs, multiple online accounts, multiple monthly payments, etc. I'd bet a lot of people see each different card as an additional hassle, rather than opportunity.

I don't think you're wrong in realizing that the card isn't the most lucrative for everyday purchases (hence, perhaps, the "everyday" card coming next month). If Amex gave Cent cardholders the same benefits as the PRG card, then what would become of those people who pay for both cards? I'm sure somebody at Amex has realized that it's just not worth it. You acknowledge that you're willing to pay your Cent AF for the benefits alone, and you're willing to pay an AF on a second (and third) card for the rewards offered by those cards.

If Amex really wanted to play hardball, they should give double points on all travel and dining, to lure your spend away from the CSP. There's no reason for them to cannibalize their PRG product. In fact, I think think the biggest impact of the everyday cards will be felt by the PRG and SPG cards, rather than any offerings by the other banks, which doesn't make a whole lot of sense to me.

EXPLAT

While it's not triple points, we do receive 20% back when using points to book travel on the Amex site. A ticket that costs $1,000.00 USD would require 100,000 points less a 20,000 point rebate. So 80,000 points for a $1,000 ticket.

mia

How recently have you done this? This benefit was removed from personal Platinum cards in 2012, but I don't recall any specific discussion of personal Centurion cards.

http://www.flyertalk.com/forum/ameri...ay-points.html

It is still a benefit of USA-issued Business Platinum cards.

linuxmachine

You're not necessarily getting value from a financial standpoint as much as value from an experience standpoint. FHR is a great example. You are probably not paying the lowest rates, but in exchange, you get room upgrades, 4pm checkout (fantastic for me and the family), a small stipend (for say a nice breakfast or massage), maybe a free night for an extended stay, etc. These things may not make up for the price you paid, but they're little things that make the trip just a little bit nicer.

It's the same with the companion ticket. You probably paid an arm and a leg on that F ticket, but you get one for free. It probably would've cost you 1/4 of that ticket in points to get those 2 seats, but maybe you don't care for points? Maybe you're an old 60+ 1%er who lets their kids or grandkids use them up.

The more you spend, the more Amex will give you. It's not for people who want bang for buck. It's for people who are generous with their spend and rather not play the points game. It's like an automatic reward system were you may not get as much value, but they are doing something to show they appreciate your business.

patrick.barnes

Plat = no FTF, big ticket purchase protection, etc.
PRG = domestic bonus earning spend
SPG = everything else

PWMTrav

I get a ton of financial value out of my Platinum card. Often, FHR is the same as the lowest flexible rate at a hotel - often more than the non-refundable, but I don't book those. So apples to apples, I'll always take the FHR rate. I have a Park Hyatt stay for 9 nights coming up, of which 3 will be free with the Amex promotion - plus all of the perks. The rate was no higher than the Hyatt website. That alone justifies another year, considering I originally got the card for lounges that I'll no longer be able to use (US Airways primarily).

Ah, yes and no. I personally think MR are the most valuable of the currencies, more than SPG. SPG has more transfer partners, but MR has more than UR, and MR almost all transfer instantly. Today, almost no airlines allow you to hold an award, so the speed of the transfer matters. I know that if MR didn't transfer to DL instantly, I would not have just gone to Europe in business class with 3 people.

You might be talking about Platinum/Centurion, and that would be true, but Amex overall allows you to earn at a decent rate provided that you carry the PRG in combination. It could be better, though, sure.

That said, I'm giving Chase a spin right now. They're throwing UR at people on business and personal cards, so why not - worst case, I end up with a free trip somewhere.

scubadu

I generally agree with pretty much everything you've stated with one exception; Amex Cent/Platinum certainly did provide at least one mechanism for better MR earning and that was via http://www.bonuspointsmall.com and giving Plt/Cent cardholders the opportunity for increased MR earning via their online purchases, with participating vendors. This was a documented benefit for a number of years. The benefit seemed to be removed in a "stealth" fashion. Rather than Amex just "owning" it there was lot's of "we're working on it" but "it's hard" and we hope to have it back "in a few weeks" etc. and then eventually it was just sort of gone and I guess they just hoped people would stop asking about it.

Honestly, I really did not use that feature much, but I still think Amex handled the messaging of that very poorly and no denying they did have, and could have continued having, a method for Cent/Plts to earn at least a bit more MR to drive some potential spend through those cards.

Regards

bubu-SNA

Agreed with OP 100%...I moved 7 figure annual spend away from amex nearly 18 months ago now. Not even a call from my personal account manager to check in

Here is where I still find value in directing spend to the cent...

1. 2 for 1 F and J fares...it actually makes financial sense sometimes
2. Double extended warranty on expensive electronics
3. Primary collision insurance on car rental
4. FHR..again it sometimes makes financial sense.

eajusa

I understand what you all are saying. I use other cards for specific rewards I insist upon receiving in return for my business. I just don't earn enough money not to take this approach. However, there is one recurring item I buy with my PLAT not mentioned yet by anyone. I purchase my tickets to concerts, the theatre, sporting events, etc. with my Plat because it is the only card I have that provides ticket insurance. People get sick, have accidents, other unforeseen circumstances. I like the comfort of knowing if I miss an event due to circumstances beyond my control, I get reimbursed. Amex credit cards are usually associated with people of wealth. Nevertheless, this is another example where a man who needs to practice frugality finds Amex the wisest choice. In other words, I use Amex, in part, as a means for budgeting more wisely. Also, let me say how much I enjoy reading your posts and blogs. I have learned a lot about getting the most out of travel.