American Express Adds Value to Pricey Charge Cards

There's an increasingly mad scramble among credit card issuers to get their cards into consumers' wallets, and to increase the spending of consumers who already use their cards. Luckily for travelers, that scramble has revolved most fiercely around travel-rewards cards.

The most visible activity has been focused on acquiring new cardholders, with average sign-up bonuses reaching historic highs. The 100,000-mile bonus from British Airways and the 110,000-mile bonus from Capital One are the most recent examples.

Such outsized bonuses are nice for nabbing a short-term windfall. But perhaps of more interest—and certainly of more value in the long term—have been the additional perks issuers have been bundling with their cards. Among them:

• Access to discounted awards for Citi AAdvantage MasterCard holders
• Waived foreign-transaction fees for a growing number of rewards cards
• Baggage-fee waivers from several airline cards
• Elite-qualifying miles for some Delta- and United-affiliated cards

Such perks not only add value to the cards themselves; they make the programs they're linked to more valuable as well.

New From American Express

The latest value-add is from American Express. Rather, the latest are from American Express. There are two new benefits, both linked to the Platinum and Centurion charge cards.

Priority Pass Select Membership

Priority Pass Select is a lounge program that affords members access to 600 airport lounges at around 325 airports.

Normal price for unlimited lounge visits: $399.

Priority Pass is in addition to cardholders' access to the airport lounges of American, Continental/United (but only through September 30), Delta, and US Airways.

Free Global Entry

The new Global Entry program "allows expedited clearance for pre-approved, low-risk travelers upon arrival in the United States." (The pre-approval process, it should be noted, is not insignificant, requiring a face-to-face interview with a U.S. Customs and Border Protection agent, in addition to the obligatory paperwork.)

The fee: $100, for five years.

Deal or No Deal

These are significant additions to cards that already feature solid benefits. But those benefits come at a price. The annual fee for the Platinum card is $450; and the invitation-only Centurion card costs $2,500 a year, plus a $5,000 initiation fee.

I've pointed out that the fee for the Platinum card can easily be justified by frequent travelers who are in a position to take advantage of the savings available from using the card. For example, cardholders are entitled to use the airport lounges of American, Continental/United, Delta, and US Airways. Purchasing those lounge memberships would normally cost $500, $475, $450, and $450, respectively.

But the perks only have real value if they will actually benefit you, given your real-world travel patterns. And the new benefits are decidedly oriented toward overseas travel.

Priority Pass lounges are disproportionately located at non-U.S. airports, and Global Entry is by definition a program for international travelers. So these new perks are of most interest, and value, to frequent international flyers. And even if you do travel overseas, if you already fly in business or first class, Priority Pass is probably redundant, since many airlines already extend lounge access to those flying on premium-fare tickets.

Still, even for domestic-only travelers, the Platinum card has plenty to offer, including:

• The above-mentioned airline lounge access
• $200 airline fee credit
• 20 percent bonus when using Membership Rewards' Pay with Points
• Free companion airfare when booking a first- or business-class flight on one of 22 airlines

Add it all up, and the value of the perks handily trumps the annual fee—but only if you take advantage of them.

Reader Reality Check

Could you justify paying $450 a year for the Platinum card?

Other Posts of Interest

• Foreign Transaction Fees Are an Endangered Species
• The World's Richest Credit Card Sign-Up Bonus: 110,000 Miles
• British Air Card Now Offers 50,000 Bonus Miles, No Foreign Transaction Fees
• Is Hyatt's New Credit Card a Game-Changer?

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Comments

[AMEX employee]

Mentioning the NEW Priority Pass benefit for Platinum / Centurion Cardmembers, The fee for sign up is waived as a NEW benefit of the Platinum Card. (I believe the fee is $299 NOT $399.00 as mentioned above) and access to the club is FREE for each Platinum / Centurion Card member, but $27.00 for each guest (at least for Platinum Cardmembers). Airline-branded Platinum Cards do not receive any of the benefits listed above. Cards such as the Delta Sky Miles American Express Card have benefits that only allow mileage accrual. ONLY Platinum / Centurion branded American Express cards receive ALL of the benefits listed above. Regarding the Global Entry program, If you are approved for this program (subject to TSA requirements), you just scan or swipe your passport at the kiosk in select US airports (most major Int'l airports) and skip the long lines at Customs & Immigration!!!

[AMEX employee]

Thanks for posting this great article. Not only do Platinum Card members have access to all of these benefits and more; they have 24/7 access to agents who have an average 20-30 years travel industry experience. When you get stuck somewhere, we're ALWAYS HERE to help.
With the Platinum Card, you also get access to 3 major car rental companies express rental programs, get discounts on car rentals, have EXCLUSIVE access to our Fine Hotels & Resorts (more than 600 hotels & resorts worldwide), EXCLUSIVE cruise privileges that offer up to $300.00 per stateroom shipboard credit - plus a one time $100.00 credit for booking with American Express, Platinum Villas, Private Jet Access, up to 25,000 Membership Rewards bonus points for booking with American Express Vacations, as well as all of the benefits listed above. It is WELL WORTH the price for the trusted experience that American Express provides. By the way, one article mentioned you can use Continental/United lounge - That's incorrect. You can use the Continental President's Clubs only (through 9/30/11)when Continental leaves the program. United is NOT part of the Airline Club Access. AND US Airways lets ANYONE use their airport clubs - regardless of which airline you are flying on. Another post states that the International Air Program is not worth it - True, most carriers to Europe this year offer NON REFUNDABLE Business Class airfares, the IAP program is a REFUNDABLE ticket and changes can be made for no fee. So that's already a $300 - $500 savings per person since the non refundable fees are that much. Also, If you are traveling on the IAP, buying one (for example) $16,000 ticket to Australia, Asia, the Middle East or South Africa (to name a few locations) and saving $16,000 for a second ticket - is WELL WORTH the price of Card membership!

[Bob]

I have been a Amex Platinum card holder for several decades. The travel perks are swell, but so are the concierge services, the rental car upgrade benefits, and more notably their dispute solving solutions when I have a problem with a vendor. My point: it is not the travel perks alone that justify the $475.00 annual fee, it is the entire bundle of card features, which are considerable.

[Rosanne Skopp]

I must admit to some suspicion that American Express is paying you for this! After years of using the Platinum Card we reverted to Gold and there has been nary a ripple. We now use, in addition, the Ameriprise Mastercard which, for no annual fee, gives us the wonderful Priority Pass which costs us nothing each time we use a participating airport club. As for the $100. Global Entry, it hardly merits a $475 fee. And, if I'm not mistaken, the relationship with Continental using Membership Rewards is in its final few months. Lastly, the so called perk of a complimentary Business or First accompanying fare, it's fine if you're paying full price but if there's any discount you get nothing. And it's just about always cheaper to buy two discounted Business or First class fares than to buy the 1 & 1.

[D Bain]

I don't find the Priority Pass membership worthwhile due to the high per-visit charges, which I'd never pay short of being stuck so long that a hotel room would be better anyway.

[John]

Amex Express yearly fee is $475!

[Eric de Haan]

Delta now gives free lounge entry to those in their gold and platinum FF programs who are traveling internationally that day. This is a terrific perk and I did not have to pay $500 per year for it.

I too take advantage of the AMEX Delta bonus Medallion miles.

[Chris Cooke]

While I've had my challenges with American Express since becoming a cardmember in 1989, I continue to use two of their cards as much as possible. I use the American Express Delta SkyMiles Platinum card for the first $50,000 of spending each year (in order to get 20,000 Medallion Qualifying Miles each year) and then I switch to the American Express Platinum card. While I only travel internationally once a year, I intend on taking advantage of the Global Express program. Airline club membership alone makes the American Express Platinum card worth the $395 annual fee (discounted because I have multiple AMEX cards).

Chris Cooke
San Diego, CA