I’ve had to bite my tongue for a while now, since I got word of the embargoed news: The Amex Platinum Card’s annual fee just increased to $895. The change applies to both the business and personal version. But don’t worry folks! The card now includes even more credits than before, so you can “justify” the annual fee spike and get even more “value” from your card. Will you though?
I was chatting with my friend Katherine this morning and she made a good point: Why are we paying $900 to be marketed to? Once dubbed a “coupon book”, the Amex Platinum Card is now becoming more of a billboard. And I don’t know about you, but the ads are becoming increasingly irrelevant.
Why is Amex doing this?
When the Amex Platinum card launched in 1984, the annual fee was $250, which is the equivalent of $795 today. Amex is merely adjusting for inflation. I’m sure in a few years, we’ll see a $1,000 annual fee subsidized by even more lifestyle credits to keep the card snug in our pockets.
But I think there might be an ulterior motive: What if Amex is trying to thin the herd? The ideal Amex Platinum customer is not just an ardent “maximizer” of the card; they’re actually profitable. They’re using the card for spending beyond the occasional airfare or hotel booking, helping Amex generate thousands in transaction fees.
By increasing the Amex Platinum card’s annual fee to $895, Amex will undoubtedly lose customers who weren’t profitable in the first place. The type of customers (like me) who use the card only occasionally and mainly keep it for the recurring statement credits and lounge access. By thinning the herd, so to speak, Amex is getting rid of undesirable customers who probably weren’t going to keep the car long term anyway and for whom a $200 annual fee spike is a great excuse to cancel the card.
Plus, the card looks even more exclusive and prestigious – something its ideal customer will continue to pay $895 for. Lastly, with fewer cardmembers paying moer in annual fees, hopefully Amex Centurion lounges will be less crowded.
What’s changing
You probably don’t wanna hear me yap about a $200 annual fee increase, so let’s get to the important part: What’s actually changing with the Amex Platinum fee increase. It’s actually not bad – over $3,500 in lifestyle credits that frequent travelers and conspicuous consumers will appreciate.
Plus, cardholders get to pick from a pretty new mirror design – frankly, this is the part I’m most excited about. It is really pretty and if you get this design, you won’t need to carry a mirror in your travel bag. This card is pretty and practical.
For the rest of us, there are now more credits to keep track of, hence “maximizing value” might become more challenging. Both the personal and business cards are getting the following perks:
- $600 hotel credit: Up to $300 semi-annually towards Fine Hotels + Resorts and The Hotel Collection bookings.
- Hotel Elite Status: Leaders Club Sterling elite status.
Changes to the Amex Platinum Card (personal)
In exchange for a $200 annual fee hike, the personal Amex Platinum Card is getting the following extra perks amounting to over $1,300
- $400 Resy dining credit: Up to $100 per quarter.
- $300 digital entertainment credit: Up to $25 per month. Amex is expanding qualifying partners to include Paramount+, YouTube Premium, YouTube TV. Existing partners include Disney+, Disney+ Bundle, ESPN+, Hulu, New York Times, Peacock, and The Wall Street Journal.
- $300 Lululemon credit: Up to $75 per quarter at Lululemon stores within the U.S. (in-store or online).
- $120 Uber One membership credit: Up to $120 per calendar year toward Uber One membership.
- $200 Oura Credit: Up to $200 per calendar year toward Oura Ring purchasses through the website.
Changes to the Amex Platinum Business Card
If you’re an Amex Business Platinum cardholder, you’ll receive $5,000 worth of perks in addition to your existing benefits:
- Earn 2X points on eligible business categories and on purchases of $5,000 or more
- $1,150 Dell Technologies credit: Up to $150 in credits, plus another $1,000 when you spend $5,000 at Dell per calendar year.
- $250 Adobe credit: Receive $250 back after spending $600 per calendar year.
- $1,200 flight credit: Up to $1,200 in Amex Travel flight credits for the next calendar year.
- $2,400 AP statement credits: Up to $2,400 in credits toward Amex One AP (accounts payable) for the next calendar year.
- 35% Pay with Points Bonus: Receive 35% points back when using Pay with Points for flights booked through Amex Travel with your designated airline.
Is the Amex Platinum worth the $895 annual fee?
Now if we’re going purely on math, the Amex Platinum’s $895 annual fee is still worth it. You’re getting upwards of $5,000 in annual perks and we all know $5,000 > $895. But this is all more math and tracking than most people like to do. The economy sucks, people are traveling less, and not everyone will remember to use the Resy credit every quarter or buy a new pair of overpriced leggings every year.
How many Oura rings do you need and how often will you stay at a Leading Hotels of the World property?
The Amex Platinum can be worth the annual fee, but I won’t renew mine when it comes due next year. In fact, I tried to cancel my card this year but was told I would lose my upgrade bonus if I didn’t wait at least 30 days after the annual fee posted. And if I did wait, I would no longer be eligible for a refund of the annul fee. I ended up keeping it and am glad I did, because I now have more statement credits for the lower price.
But that being said, I think the Amex Platinum card is often overprescribed. Not everyone needs to pay $900 a year for lounge access and there are more rewarding cards out there. My go-to premium card recommendation is the Capital One Venture X Card, which not only offers a massive welcome bonus but includes access to a solid lounge network at a much more reasonable $395 annual fee. But then again, the Venture X doesn’t come with a cool mirror design, so what do I know?
One thing I do know is this won’t be the last fee increase we’ll see from the Amex Platinum cards. The company has historically kept pace with inflation, adjusting the fee every few years.
Are you keeping the Amex Platinum ard with the $895 annual fee? Which of the new perks are you excited about?
