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Platinum Card
Yesterday we posted a rumor (that we were almost certain that was correct) that American Express would be making changes to their Platinum & Centurion cards in 2017. American Express just had their earnings report and in the earnings call they mentioned their Platinum card multiple times. For those interested in the direction American Express are going, the full transcript is worth a read. I’ve highlighted the references to the Platinum products and incoming changes below (all emphasis is mine):
“Looking ahead to Q4, the financial performance we have had year-to-date gives us confidence to move ahead more aggressively with the series of initiatives that we have been working on for some time. In particular, we plan to accelerate and leverage the combined progress we have made in several areas. First, providing increased marketing support for the tremendous Platinum card franchise that we have in the U.S., we are excited about the changes announced earlier this month, which will provide expanded travel benefits for our U.S. consumer and small business Platinum products. These new benefits are just one step in a series of further enhancements that we plan to make to the Platinum product over the course of the next year.”
Our Verdict
There is also some information regarding how American Express see their Platinum brand:
“I would point out that when you look at our Platinum franchise, in many ways is built upon a group of people who stay with us for decades, not for short periods of times.”
They also make mention that they will be more specific in regards to 2017 changes after Q4 has finished. They don’t make any mention of any new cards or product launches, and I haven’t been able to find any information supporting a new card launch in early 2017. That makes sense for American Express as the Platinum products already have a lot of brand capital and prestige surrounding them.
As mentioned in the previous post, the most natural change to make in early 2017 would be a change to the way that travel credits work. I suspect we will see an easing of the rules on those credits and an increase on the $200 offered annually. You can read more about our thoughts here.
Hat tip to /u/The_Scalia_Playbook on /r/churning
TLDR; Long time user of Amex Platinum (both personal & biz) … tired/fed-up of Amex BS/Wag-the-dog … loving Chase’s Reserve and InkPlus … and see tremendous value beyond the first year and will keep both!!!
1. Amex Platinum has been systematically whittling down the benefits with nuanced terms, e.g., the $200 airline credit limited to1 airline and that too does NOT cover common expenses on that 1 airline! Chase’s Reserve $300 & Citi’s Prestige $250 out class hands down.
2. Amex does NOT seem to understand that its card is not accepted as it used to be both within US and definitely overseas. Plus does seem to realize that Costco was the tipping point – they don’t even begin to compare with Visa & Master network inside US and worldwide!
3. Instead of taking the message from Costo & CSR & Citi Prestige, they continue onwards like IBM did in the 80’s … anyone remember the original IBM PC – exactly! Think of it as Chase = HP in 2016 (see the creativity), Citi = Dell (comeback kid).
4. While Amex focuses on advertising, trickling enhancements, and plays wag-the-dog …
>> Chase Sapphire Reserve gives the value to its consumers and has already outclassed Amex Platinum personal
>> Chase Ink Plus (Preferred) already bests Amex Gold
>> Chase Ink Reserve for Business [fingers crossed] with say a 6X category + some other benefits would easily knockout Amex Platinum Business OPEN!
5. We would not need to look beyond Chase … especially since its UR is family-friendly (transfers) and they don’t nickel-n-dime their customers, e.g., transferring miles to domestic airlines (unlike Amex)
But to be fair the one-up that Amex has is its Centurion lounges -BUT- Chase can add more than Priority Pass Select lounges to make a point … (hint hint for Ink Reserve)
*** CORRECTION: Plus Amex does NOT seem to realize that Costco was the tipping point – and their network does NOT even begin to compare with Visa & Master network inside US and worldwide!
Chase has no class. They’d screw everyone over given the chance. Amex has saved my butt so many times, not to mention was a gravy train with OBC. You’ll see it sooner or later.
As a consumer with no ties to either, I really appreciate the heads up ed!
Costco wasn’t really a tipping point. It indeed hurt AMEX, but according to the recent quarterly results by AMEX it beat the analysts estimates. It’s actually not bleeding as much as expected.
I do agree though that the Platinum card isn’t my card of choice for spending but the benefits it awards are better than the CSR. The “unlimited guests” to PP is not better than the expanded lounge package that AMEX offers (Delta, PP, and Centurion).
Expand the travel credit, expand the Priority Pass to include guests, and add a dining and/or grocery bonus category, and I think they’ll have a winner. Simple requests that I think they should be able to accommodate.
Yes on all accounts. So at least it’s worth keeping and using
To be honest, in this year, I am really disappointed about AMEX, so many times! So many big news have been proved nothing. Now I just got prestige and wait for CSR. And just hold Chase cards and prestige in the future, no amex!
There haven’t been any big news except for the drunk AMEX girl rumor, which was just that a rumor blown out of proportion. And if you do any travel spending, the 5x on airfare for platinum with 50% MR redemption is amazing.
the biggest story i want to see is not from AMEX. its from Chase. Next year, I want to see what happens to their CSR and what people do starting from AUG 2017… will see how the loss leader is handled…
What do you mean? What happen to CSR?
It’s pretty obvious he is referring to the 1st anniversary of the CSR when the annual fee kicks in for the second year.
I have this question because except prestige, I don’t think there’s a better choice at this level credit card, also based on 524 rules, I don’t think close it is a smart decision