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American Express Platinum Card overhauled: With attractive new offers, it comes at a cost too

Submitted by admin on October 15th, 2024

The American Express has announced new benefits for its premium credit card users-the renewal offer will now be that attractive and there are more hotel partnerships-but rolled back a few privileges besides hiking the annual fee to Rs 77,800, including 18% GST.

It is season time for a revision of credit card benefits and features. And it’s the turn of American Express close on the heels of HDFC Bank and ICICI Bank.

The credit card issuer has publicly made announcements this month regarding a series of changes to its Platinum Card. There’s an annual fee increase, new benefits, and the discontinuation of certain offers. The new benefits offer additional value across the key categories in the form of travel, dining, and everyday conveniences.

With this latest refresh, we’re elevating the experience to match the aspirations of this new generation of card members, offering new elite-tier memberships, more rewarding and rich experiences that mark these dynamic lifestyles,” said Puneet Bhatia, Vice President, Acquisition and Product Management, American Express Banking Corp. India.

The American Express Platinum Card is a high-tier card with no spending limit. The services extended by this card include free entry to elite hotel loyalty schemes like Taj Group, Hilton, Marriott, Radisson, saving money on international flights, entry to airport lounges worldwide, golfing sessions, invitation to premium events and concierge services.

Here’s how the new features and the fee structure of the card feature.

Annual fee rises by 10 per cent.

Bank has raised the annual fee from Rs 60,000 to Rs 66,000 plus 18 per cent Goods and Services Tax, GST. Total of Rs 77,880 in revised total annual fee will be collected with the GST of Rs 11,880.

Enhanced Welcome Gift

New cardholders will get a welcome gift worth up to Rs 60,000-a level of value that’s more than double compared to its value at Rs 45,000-before. The same can be redeemed in the form of stay at Taj Hotels, Postcard Hotels, or Luxe Gift Cards.

More renewal benefits available

American Express, historically, has avoided fee waivers based on spending for its Platinum Card, unlike many lifestyle and super premium cards, according to Sumanta Mandal, founder, TechnoFino, a firm that tracks credit cards, trends.

It would soon offer vouchers worth up to Rs 35,000, redeemable at high-end partners like Taj Hotels, Postcard Hotels & Resorts, luxe gift card of Reliance Brands Limited among others, to cardholders spending Rs 20 lakh within their membership year, in a sharp reversal. Three new hotel memberships

Having expanded luxury travel benefits by introducing three elite-tier memberships that have been added to the existing portfolio of complimentary hotel memberships, the bank will be looking at related affiliations such as Accor Plus Traveller Membership, Lalit properties, the Postcard Hotel Sunshine Club-Platinum tier membership, and I Prefer-Titanium membership, among others, into The Leela Hotels & Resorts, Dusit Thani, and other properties.

While I Prefer-Titanium membership has an appeal for just a handful of the card members, it’s mainly because of the low number of affiliated hotels in India. The membership will probably be obtained through status matches from big hotel chains like Marriott and InterContinental Hotels Group, thereby losing its luxury appeal.

Savings on Apple products

It also offers permanent cashback of up to Rs 8,000 on the purchase of Apple products whether it’s online from apple.com or from a store.

Free subscription to OTT services

Cardmembers will receive free Times Ace membership, which gives access to a library of 40 plus over-the-top (OTT) services and publications worth up to Rs 45,000.

No guest privileges for add-on cards at airport lounges

AMEX cardmembers, primary and add-on, continue to get free access to Centurion Lounges in Delhi and Mumbai. However, the privilege of guest networking at these lounges has been taken away.

Birthday bonus benefit withdrawn

American Express has taken away one of the most popular additions to its Platinum Charge cardmembers-a Taj voucher, now worth Rs 10,000, which was previously handed out during their birthday months. Mandal says this feature had always remained a cashed-up benefit since the start but more so after the Covid-19 pandemic. So, in this move, the house has sadly taken away some big value from the entire benefits list.

Do you stay or go with this card?

Someone who spends a lot of money on high-end brands or has a lot of memberships in luxury hotels may love the Platinum Card. However, for someone who wants to accumulate his or her points to make some value or rewards in either travel or other relevant areas, this card would be of little use.

“While this card does earn one membership rewards point for every Rs 40 spent with the card, the maximum monetary value of one membership rewards point is Re 0.50—and so, effectively, a maximum reward rate of 1.25 per cent, which is definitely not a very good reward rate for a super-premium credit card that comes with a membership fee of Rs 66,000 per annum,” said Ankur Mittal, co-founder of credit card comparison website CardInsider. In reality, the card does provide very good welcome and travel rewards to offset this not-so-good reward rate, he noted.

According to Mandal, it will only be capitalized when the spending exceeds the threshold of Rs 20 lakh annually by which cardholders highly value its memberships and discounts. He further emphasized that while the card addresses the niche market, lifestyle benefits are not pertinent everywhere and hence is the right choice only for a set of people with similar preferences.