American Express has recently reimagined its Platinum Card. What was once intended for high-powered business execs in the 1980s is today one of the company’s hottest selling products. Millions of Americans will be eager to pursue their airline and hotel status through the card’s premium perks. So, these most recent changes should not come as a surprise. With The Platinum Card, the annual fee has soared to $695. That’s a huge increase from $550 five years ago, close to $2,000 now for those that wave several premium cards.
The Platinum Card has changed this year. This modification tracks a larger trend within the credit card sector, which has become highly loyalty program focused. Today, 70% – 80% of all credit cards are rewards cards. These appealing choices encourage cardholders to continue seeking points for trips and high-end deals. American Express recently announced some welcome new benefits to The Platinum Card, including expanded perks. This strategic shift is intended to help support increasing fees and to deepen its lead in the emerging premium credit card market.
Ryan Smith, news managing editor of UpgradedPoints, who was given a preview of the changes before their official release. He added that some of the new offerings might help cardholders get more value out of their spending. “If nothing else, going to lounges and using the $600 hotel credit will essentially justify the cost each year, and the other items are a bonus,” Smith remarked.
Grosfield, an American Express spokesperson, stressed that delivering value to its cardmembers has always been central to the company’s mission. We have a lot of experience in this premium space. In our minds, Platinum is one of a kind,” he said our cardmembers view to the Platinum Card as being totally different and apart. The new operating company has pledged $3,500 worth of benefits. These benefits far exceed the card’s new $895 annual fee.
The Platinum Card has been getting some pretty nifty new stuff. Major credit card issuers have been kicked into high gear in their competition to capture the most high-spending, desirable consumers by beefing up their own offerings. As these fees continue to increase, cardholders should be proactive and take action. They are the ones who choose The Platinum Card over other high-fee options such as Chase’s Sapphire Reserve Card.
This is a notable fee increase that’s a harbinger of more to come in a changing environment where competitive premium cards are getting costlier by the day. This will require millions of consumers to reconsider their brand loyalty and estimated value from their credit cards. American Express has begun introducing some really cool new benefits! Instead, they are focused on providing unmatched value to retain their existing customers and woo new members looking to pay a little bit more for better financial products.
As consumers make their way through the labyrinth of premium credit cards, they should be aware of the ways this new normal affects their financial choices. For example, the higher annual fee is likely to put off many aspirants altogether. Countless others continue to be lured by the promise of luxury travel experiences and exclusive premium-class amenities.
