- This topic has 0 replies, 1 voice, and was last updated 2 months, 2 weeks ago by
.
-
-
Credit, credit, on the card—how much in annual fees shall we charge? For American Express, the magic number is now $895.
The company unveiled its updated Platinum Card yesterday, rolling out a hefty price increase alongside a slate of new lifestyle and travel perks aimed squarely at wealthy millennials and Gen Zers.
That new fee is nearly 30% higher than the card’s previous annual cost of $695. To sweeten the deal, AmEx is dangling up to $3,500 in yearly rewards—more than double the value of the old Platinum. Highlights include:
Fresh credits for Resy, Lululemon, Uber One, Paramount+, YouTube, and Oura smart rings
Up to $600 in hotel credits (a jump from $200)
Howard Grosfield, president of AmEx’s US Consumer Services group, told The New York Times: “We are not trying to attract every millennial and Gen Z. We found a way to hit the heartstrings of the subset of truly premium millennial and Gen Z’s.”That strategy seems to be working—AmEx’s most recent annual report showed millennials and Gen Z as its fastest-growing customer base.
Not to be outdone, rivals are playing the same game. Chase refreshed its Sapphire Reserve card, hiking its annual fee by 45% to $795, while Citibank launched a travel-focused card priced at $595.
💰 The bigger picture: The top 10% of US earners currently drive nearly half of all consumer spending—a lucrative market that credit card giants are aggressively chasing.
-
- You must be logged in to reply to this topic.