Decision made - Where to from Amex Plat Reserve

[NM]

Well, its been a while in the thinking process, but I have made my decision on what to do following the changes to the American Express Platinum Reserve Credit Card. I received this card as an "upgrade" from the Rewards Maximiser Gold Credit Card and has retained the previous annual fee of $189, but was not eligible for the annual free flight while retaining the reduced annual fee. I have very little spend at restaurants or travel-related spend on this card (must use Corporate Diners Club for all work related spend including business travel), so the changes to the MR points earning rates was going to mean a significant reduction with from the previous 1.5 points/$. About 50% of our monthly spend has been on Amex and the rest on a CBA Mastercard with no FF affiliation.

For the past 8 years or so, all Amex MR points have been laundered through SPG to AAdvantage and I have not had any credit card points transferred to my Qantas FF account for about 10 years. I have over 1MM AAdvantage miles in the account and just over 100K QFF point.

So the Amex changes prompted me to apply for the Woolworth Qantas Credit Card for the 16,000 bonus points and 1:1 QFF earn rate and planned to move the majority of spend over this card and start to rebuild the QFF balance to use for upgrades, JASA etc. All the CBA Mastercard spend goes to Woollies card, now earning QFF points. Now what to do with the Amex spend.

I was ready to cancel the Amex card (annual fee due next month) but thought I would have a last look at their offerings. Eventually I decided to change from Amex Platinum Reserve Credit Card to Amex Platinum Edge Credit Card. The lower annual fee ($149) includes a return Virgin domestic flight that I need to book for Mrs NM next year anyway (current DJ Saver Fare incl checked bag is about $250) so I am about $100 in front just by making the change to the Edge card.

The Amex Platinum Edge card offers 3 MR points/$ spend at major supermarkets and 2 MR points/$ at petrol stations. Looking at last month's statements we would have earned about 4600 MR points just on those two categories. Laundered through SPG to AAdvantage, that 2760 AA miles (when send in blocks of 40,000 from Amex). The same spend on the Woolies card would have been 1600 QFF points.

So the new Platinum Edge card will be used exclusively for supermarket and petrol spend, keeping the AAdvantage miles ticking over, and most other spend will go to the Woolworths Qantas Master Card to keep the QFF account accumulating. The CBA Mastercard will be retained as a spare/backup as I don't pay any annual fee on that card. And of course 28 Degrees Master Card is used for all foreign transactions.

I think that should work out ok for me at least. Though other people's spending and circumstances will be different to mine, so this combination won't be best for everyone.

Other people feel free to post what actions/changes (if any) you are making in response to the MR points earning changes that take affect shortly.

 

[k3nnis]

Thanks NM for your opinion. I actually wanted your opinion on, is it worth transferring AMEX MR to SPG and then to AA? I always thought about it but not sure if it's a good earn/burn ratio?? Say mainly I will fly SYD-LAX or SYD-HKG or SYD-SIN. I know that AMEX MR to SPG is 0.5 SPG for 1 MR....

 

[NM]

Thanks NM for your opinion. I actually wanted your opinion on, is it worth transferring AMEX MR to SPG and then to AA? I always thought about it but not sure if it's a good earn/burn ratio?? Say mainly I will fly SYD-LAX or SYD-HKG or SYD-SIN. I know that AMEX MR to SPG is 0.5 SPG for 1 MR....

Previously, with the 1.5 MR points/$, and 1000 MR points --> 330 SPG points, and then 20,000 SPG points --> 25,000 AA miles, the rate was 0.619 AAdvantage miles per A$ spend on Amex card.

Now the MR --> SPG rate has increased to 1000 MR points --> 500 SPG points.

So for supermarket spending with Amex Platinum Edge, its 1.875 AAdvantage miles per A$ spend.

and for petrol station spending with Amex Platinum Edge, its 1.25 AAdvantage miles per A$ spend.

So quite a lot better than before. At the old rate the benefits over a 1:1 earn to QFF were marginal at best. It really only worked for people who were using AAdvantage as their primary FF program and wanted to "top up" from Amex MR points. Now it quite attractive for someone in my situation where I want to share earning between AAdvantage miles and QFF points. But its limited to supermarkets and petrol stations, so not going to help people making huge spends for business purchases and ATO bills etc, but I have never been one for such credit card spending. Mine is all personal household spending.

 

[k3nnis]

Thanks for the explanation NM. Are the taxes/surcharges if booking an AA award on QF Metal a lot lower than booking a QF award on QF metal?

Am I right in saying for an AA Award in J flying on QF metal SYD-LAX return that will be 125000 AA miles?

 

[NM]

Thanks for the explanation NM. Are the taxes/surcharges if booking an AA award on QF Metal a lot lower than booking a QF award on QF metal?

In most cases, yes. In some cases there is a huge difference. I have not found many cases where the taxes/charges are more with AAdvantage, but there could be some examples such as BA flights where AA does add a fuel surcharge (most AAdvantage awards do not have any fuel surcharges).

Am I right in saying for an AA Award in J flying on QF metal SYD-LAX return that will be 125000 AA miles?

Yes. and the same miles cost will also get you from Perth to New York as its the same miles requirement from anywhere in South Pacific region (basically Australia/NZ) to anywhere in North America. And note that any travel on AA domestic 2-class services is in the F cabin when using AAdvantage awards but would be in the economy/coach cabin if using QFF points redemption.

But 125,000 AAdvantage miles would take an awful lot of supermarket and petrol station spending!

 

[k3nnis]

In most cases, yes. In some cases there is a huge difference. I have not found many cases where the taxes/charges are more with AAdvantage, but there could be some examples such as BA flights where AA does add a fuel surcharge (most AAdvantage awards do not have any fuel surcharges).

Yes. and the same miles cost will also get you from Perth to New York as its the same miles requirement from anywhere in South Pacific region (basically Australia/NZ) to anywhere in North America. And note that any travel on AA domestic 2-class services is in the F cabin when using AAdvantage awards but would be in the economy/coach cabin if using QFF points redemption.

But 125,000 AAdvantage miles would take an awful lot of supermarket and petrol station spending!

Yeah that was what I was thinking, 125000 is a lot of shopping lol. I don't think I will ever get that much. Also J awards for SYD-LAX direct flight is too difficult for me to get. I was thinking CX metal (SYD-HKG return) using AA miles for 70000 points for AA but I reckon much easier for me to get 80000 asiamiles for that! I guess AA is only good for me if I stayed a lot in SPG hotels...which I don't as I stay at Hiltons usually.

 

[NM]

Yeah that was what I was thinking, 125000 is a lot of shopping lol. I don't think I will ever get that much. Also J awards for SYD-LAX direct flight is too difficult for me to get. I was thinking CX metal (SYD-HKG return) using AA miles for 70000 points for AA but I reckon much easier for me to get 80000 asiamiles for that! I guess AA is only good for me if I stayed a lot in SPG hotels...which I don't as I stay at Hiltons usually.

AAdvantage does not generally work for people whose primary points earning is from Aussie credit cards. It works best for people flying regularly on fares that earn miles enough to earn AAdvantage Platinum or better status. Then cards like Amex Platinum Edge provide a means to top-up the AAdvantage miles from everyday spending in Aus. The vast majority of my AAdvantage miles have come from flying. Credit card points laundering through SPG probably rates as less than 20% of my lifetime AAdvantage miles earning. If purely looking at best FF program for credit card spending then I suggest that AAdvantage is not best for Aussies.

 

[k3nnis]

Thanks. I will stick to transferring to CX,MH,SQ,VS from AMEX MR I think I've never transferred to QF via AMEX Ascent Premium before as I can't see it as a great burn/earn rate....

 

[Flashback]

I wish my UK AMEX would do something better than 1:1 (and that's on a Plat Charge!). I've worked out that I'm actually worse off here as SPG is also 1000:500, but we only earn 1 MR per £1 as well as the fact that things cost less here (in comparison). Doh.

 

[NM]

Platinum Edge card arrived today. $20 credit for annual fee refund on old card already processed. Supermarket and Petrol spend for the last few days (with old card of course) are already showing 3X and 2X bonus points. Old card credit limit was transferred to new card. Letter says Sup card will also be automatic, so expect I should see that arriving soon.

So the Amex card change process was pretty much painless. Unlike trying to get the Sup card from Wollies Qantas card. 3 weeks later, 4 phone calls, 5 visits to the local Woollies store and still can't get it arranged correctly.

 

[Danger UXB]

Still getting 1.5 here. Amex plat reserve association branded so happy to continue for now

 

[NM]

Mrs NM's Sup card arrived today. I am impressed with the efficiency of the change from Reserve to Edge. Still no action on Sup card from Woollies ...