American Express unveiled long-awaited upgrades to its US Platinum cards on Thursday, adding new perks worth over $3,500 annually while raising the annual fee by $200.
The card refresh reflects a strategy AmEx has leaned on for years. Banking on the affluence of its customer base, the credit card giant routinely adds premium perks to justify its fee hikes.
The move also comes as financial giants such as Citigroup are seeking inroads into the premium credit card space. AmEx executives, however, said in July that its deep roots in the segment will allow it to outpace rivals.
“We believe the refresh should serve as a long-term tailwind for financial results,” brokerage William Blair wrote in a note, ahead of the upgrade.
AmEx’s Platinum cards will now offer credits for dining via restaurant reservation service Resy, purchases at lululemon and taking Uber One memberships, as well as expanded hotel and entertainment perks.
“We are giving our customers more than $3,500 of value that’s easy to access and far exceeds the annual fee,” Howard Grosfield, AmEx’s group president of US consumer services, said in an interview.
Analysts say younger generations, which make up a significant share of AmEx cardholders, are more comfortable paying credit card fees, viewing them as subscription-like products that deliver value through travel, dining and entertainment experiences.
Platinum Business cardholders will also gain new credits for Dell and Adobe purchases, a $600 hotel credit and up to $3,600 in additional statement credits for high spenders, AmEx said.
“We’ve seen strong demand for travel-related benefits like hotel upgrades, late checkout and airport lounge access and know card members will be excited,” said Raymond Joabar, group president of global commercial services.
The cards will now cost $895 annually, compared with $695 earlier.
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