For years, I have found myself in a position of defending American Express’ Membership Rewards points. In retrospect, this may be because of my personal relationship with the flexible points program: my very first points earning card as an adult was the Gold Card from American Express, before upgrading up the ranks to The Platinum Card from American Express.
For the past five years, I was happy to pay the annual fee for the Platinum Card, despite the loss of select benefits, transfer partners and the ability to use my card at Costco. I always felt that the opportunity to utilize the $200 airline credit, combined with other benefits justified the annual fee. However, the most recent change has made it even more difficult to stomach the high price of the Platinum card: a raise to $550 per year and adding Uber credits does not allow me to maximize my value from this card.
Despite my happiness with my American Express card, is it time to reconsider my relationship with the Centurion? Is it time to finally downgrade my card to the Premier Rewards Gold Card from American Express? As with any financial decision, it comes down to a matter of analysis.
An argument of value for the Platinum Card from American Express
With a wealth of statuses and exclusive opportunities, the Platinum Card from American Express offers an all-in-one solution for the traveler who wants recognition, but does not have the time or interest in earning it through organic means. Through holding the card alone with no other activity, travelers can earn elite status at three hotel chains and most of the major car rental companies.
In addition to the status, there are a number of benefits that many of us look past by simply holding the Platinum Card. A smart traveler who uses the Platinum Card to the full benefit can replace their AAA membership with the Platinum Card roadside assistance benefits and cut a out-of-home Wi-Fi subscription thanks to Boingo access, or even book restaurant reservations through the concierge.
On top of that comes the airline benefits. Travelers receive the $200 airline credit on one airline every year, along with the option to transfer points to 16 airline partners, including Delta Air Lines’ SkyMiles, or Hawaiian Airlines. This is in addition to the ability to earn quintuple points on flights purchased directly from an airline.
With the pros come all the cons, and the $550 annual fee may be considered one of the biggest cons out there. In addition, other cards offer a larger credit across all airlines, as well as more domestic transfer partners as well. The annual fee, the limited transfer options and restrictive terms on the airline credit can reduce the ultimate value of this card in the long run.
An argument of discount for the Premier Rewards Gold Card from American Express
At a lower annual price, those who still want the opportunity to earn Membership Rewards points on everyday purchases can turn to the Platinum card’s cousin, the Premier Rewards Gold card. Where the Platinum card floods the individual with benefits, many of those are stripped in the name of value.
For the $195 annual fee, travelers do not receive any of the upgraded statuses or additional luxury benefits, but gain potentially more opportunities to earn Membership Rewards points. Individuals can receive triple points for airfare booked directly with the airline, double points at restaurants, gas stations and supermarkets, as well as one point everywhere else. With the potential of utilizing gift cards from the supermarket for travel, the opportunities to earn points is seemingly endless.
Furthermore, the $195 credit can also be lowered every year with a $100 credit aboard the cardholder’s airline of choice. Once again, the credit is only available for one airline only and covers incidental fees incurred aboard the carrier.
Which card holds more value for the average traveler?
When both are weighed against each other, which card offers the most value for the average traveler? For those who don’t mind paying for all their status in similar fashion of other luxury programs like FoundersCard, then the Platinum Card from American Express may still offer superior value beyond the $550 annual fee. For those who can earn status naturally, or do not value loyalty status as much as the ability to travel for cheap, the Premier Rewards Gold card may be the better value.
After some consideration, I will be changing my personal card to the Premier Rewards Gold card when my annual renewal fee comes into place. However, everyone’s experiences may be different – and I look forward to reading your justifications for either keeping the Platinum, or moving towards the Premier Rewards Gold.
Written by Frugal Travel Guy @ http://www.frugaltravelguy.com
Written by Frugal Travel Guy @ http://www.frugaltravelguy.com