American Express Company (AXP) is adding numerous new perks to its Platinum product, from $200 in annual hotel credits to deals for chartering private jets as a broad move to revamp the popular premium card. The credit card giant has increased the annual Platinum fee to $695 from $550.
“We’re going to keep all the benefits that cardmembers love today — we’re not taking anything away, and we’re going to enhance them. That really is the litmus test: Are we in a position to deliver far more value — well, well in excess of the annual fee? And we believe we delivered on that front.” stated Howard Grosfield, AmEx’s executive vice president of U.S. consumer and global premium services.
As the U.S gears up to open after months of pandemic shutdowns, credit-card companies are leaving no stone unturned to add new rewards, luring customers with the spending to their cards. The company spent much of the past year adding temporary benefits to the Platinum card, like perks tied to spending on streaming and wireless services and credits for purchases made with PayPal Holdings Inc. The inclusions seem to have worked and AmEx has seen Platinum card retention and satisfaction levels increase to a record during the pandemic, Grosfield informed.
AmEx is shifting from its longtime focus on travel and dining perks. The card giant, for instance, will now offer Platinum cardholders $20 a month to use for certain digital entertainment products, such as SiriusXM or Audible subscriptions. Customers will also receive $25 a month toward membership with Equinox, known for its high-end fitness clubs and eucalyptus-scented towels.
“It feels right that we’re partnering with AmEx on this. If you’ve ever been to a Centurion Lounge, it’s very nice in a way you never want to leave. So to find another brand that feels similarly obsessive about the experience you create and how your brand comes to life for your members is really important.” stated Peter Giorgi, chief marketing officer for Equinox, in an interview.
While existing cardholders will have instant access to the new perks and won’t be charged the $695 annual fee until their card renews after Jan. 1, AmEx said in a statement.
Dow 30 component American Express Company (AXP), and its subsidiaries provide customers and businesses globally with charge and credit payment card products and travel-related services. They look to enrich the lives of their customers and build business success. To learn more about American Express Company (AXP) and to continue to track its progress please visit the Vista Partners American Express Coverage Page.
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