mia

And yet you keep the card, because ?

sdix

I keep hearing from the airlines that over 80% of their passengers fly with them only once per year. If this is true then I wonder how many Amex users actually use the credit? Since Amex ties you into 1 airline unlike Chase where you can use any travel provider I suspect there's a of wasted credits

bigbuy

This is a really big understatement, but so true. I have talked to folks with the Platinum card who have no clue about all the benefits they have wasted. The fact is that Amex does not have to give generous point bonuses on stuff like dining, travel (except airfare) because the vast majority of folks don't take the time to learn the benefits of having multiple cards for each spend category. Folks on this board can dream all they want to (I do to) about Amex upping their game on points earning and air credits, but according to the latest stats that "mia" posted recently, Amex is doing more card transactions than ever before, so I think Amex is pricing their annual fee/cost/earn ratio accordingly. FT members are a tiny sliver of Amex's business.

acarney

Exactly, once SPG/Marriott essentially becomes a "silver" status (yes I know it's gold, but it's watered down a lot from the gold of right now) I think Amex is going to need to do something else, either bring in a new benefit, a new hotel partner, or up it's Hilton status... (or maybe this will all be for not and the Amex won't actually dump us into the "new" Marriott gold...)

Uber is just... it doesn't feel like a benefit, it feels like a marketing partnership. Like a discount on a rental car or something, kinda like the Silver Car VISA Infinite benefit. It might get people using Uber and kicks a little off the cost, but it isn't really getting you anything special. Want a real "Ground Transportation" benefit or something, let me charge a private sedan airport transfer and get up to $200 off like a normal travel credit. Let me rent a Silver Car and get up to $200 off. Let me us Uber, Lyft, taxi, etc and credit back up to $200. That is a perk and benefit that these level cards should have, not a little monthly discount.

It'll be very very interesting to see what Amex does in the next 6 months to a year. The annual fee will really be solid with people by that time and the benefits for Marriott will be washed down the drain. However, they might not do a dang thing since the Chinese market will jump all over the high end Amex cards and they'll probably see strong growth from that...

kennycrudup

I know someone who frequently flies out of PDX (where Priority Pass has the $28 credit at several restaurants, to make up for the capacity-controlled AS lounge) and has yet to sign up for PP, every time I ask them about it.

acarney

So PP and where it works and where it doesn't is something where lack of use makes a little more sense to me. However, when paying $550/year for a credit card I would think the user would at least have one or two big perks that they keep track of, either the hotel status, travel credit, or lounge access. Are people really paying Amex $550 just to say "look, I have this metal Amex card!" ? Or are they doing it because they like the Hilton and Marriott status and just don't fuss with the other stuff?

I totally can see something drawing them in and the rest just being background noise, but when you increase the price $150 a year and DON'T increase the benefits then people might pay attention a little to the $550 fee and wonder what extra value they're getting. If these guys like the lounge access then that just became $150 more expensive; are the lounges nicer, less packed, higher shelf booze? Or are they the same and just more expensive to access now? If they use the travel credit but not really anything else, they're now paying $150 more for the same $200 and same points earning ability, worth it to them or not? If they like the hotel status because they bounce back and forth between the two, or travel enough to make use of it but not 40+ nights a year, well now it's $150 more expensive AND they're getting worse perks at one of those hotel brands.

I highly doubt the Uber credit is a make it or break it for a lot of people, especially with Uber coming out with their own rewards earning card at a much less (or free?) fee...

So yes, they're probably not massive power users like us trying to figure out if we're breaking even at least or making money off the deal, but I would hope they notice a $550 fee for something that isn't giving them anything new compared to last year (other then Uber), or worst case, actually worse hotel perks.

So while I don't think the card will get amazing overnight, I could at least see them re-work the hotel perks, either Diamond on Hilton and drop Marriott, work with Marriott to get Platinum (basically the current gold status), or drop Marriott and add someone else. I don't think Uber will go anywhere because I'm sure that's a cost sharing plan with Uber and not 100% out of Amex's pocket; they're essentially driving business to Uber. I doubt the travel credit will change because they probably do have a lot of people that leave some or all that on the table yet it looks like a nice $ for $ benefit.

The points earning... welllllll, I could see maybe earning bonus on direct hotel booking... maybe

kennycrudup

Yeah, they should most def drop Marriott (whom I didn't even realize AX gave status for) and move it to HH Diamond (as I'm going to be LTPP on Mariwood on 8/1)

kennycrudup

Yes, please- I'm doing 5 figures/yr on Mariwood spend.

RumPatrol

I think you hit the nail on the head here. A lot of the benefits discussed in this very thread are barely even advertised by American Express so many people have no idea they exist, never mind how to use them. I also agree that Amex's target demo for Platinum users are likely people who wanted a "prestige" card, could benefit from some of the lounge access and maybe want to take advantage of the hotel status for their once or twice a year family vacation.

I know quite a few people just like that who had no clue some of the benefits ever existed until I brought it up and others who had never even used their airline credit. I don't think Amex really even needs to advertise some of those fringe, secondary benefits because I think they're getting the customers regardless. Unfortunately those of us more in tune with the credit card game likely suffer a bit because it also means Amex (and even Chase) have no real need to make improvements year to year.

I know many people who never even used their airline credit until I basically held them hostage until they bought gift cards. The airline credit really is mostly a gimmick, but as someone who flies Delta 99.9% of the time domestically, I'm at least able to utilize it via gift card purchases. I wish I didn't have to do it that way, but at least I get use out of it. Someone else who might not be loyal to a single airline or whose travel is arranged by their company may not get that use.

Unfortunately, like I said above, I just don't think American Express is all that compelled to do any improvement because their bottom line seems to be doing just fine. They'll get customers on name alone.

kennycrudup

Yeah, and let's hope that loophole doesn't go away- I'm comped on drinks and WiFi on WN due to status, so it's GCs or I lose it (haven't been on anyone else in years, thanks to a fat intra-CA schedule and good availability anywhere else I've had to go recently).

notquiteaff

Indirectly via SPG Gold, which is matched to Marriott Gold.

Majuki

Even with my single charge per year, my use of the card's benefits puts me at a net neutral / slight positive, even with the higher annual fee. Let's say I use the Uber and airline fee credits, taking the annual fee down to a net $150. Now, I do use the airline fee credit on my Admirals Club membership, so you could say I would go to the Admirals Club or Priority Pass lounge - which I currently get through AmEx Plat but could switch to Hilton Aspire or CSR - instead of the Centurion Lounge, but I think there is some value that one could attach to a Centurion Lounge visit. The same goes for the Sky Clubs the few times I'm traveling on Delta annually versus sitting in the terminal. I wouldn't place the value at $50 for a day pass for either option (which you can't even do for Centurion Lounges anymore), but I'd certainly pay between $15-20 for an entry given the food and beverage options.

RumPatrol

Yep, I've never needed to pay a fee of any kind of DL in years so if for some reason this loophole went away, I'd never recoup enough value from the Platinum to make the AF worth it. Maybe a couple $29 SkyClub guest charges here and there for Mrs. RumPatrol but definitely not $200 worth. I also have the PRG so there's another $100 in airline credits.

I'm still holding out hope they eventually go to a universal travel credit like Chase but even if they don't, I can make do as is.

bigbuy

Your last sentence pretty much says it all.
Example, just this past week, I know a married couple who charged an $8,000 cruise and then at the last minute, they had to cancel because of a medical situation. They bought no extra cruise insurance. And guess what card they used to pay for the 8k cruise???? Yep, it was the Amex Platinum with no insurance and one point per dollar instead of using the Chase Reserve with insurance and 3 points per dollar.

Gig103

OMG No joke - I flew into SJC once and Uber was surge-city and long waits. Of course, the tumbleweeds in the taxi area you mentioned also meant there was a lack of taxis too, but it wasn't too long a wait to get in a car. Ended up being cheaper than the surge price from Uber for a short trip.