Reduced AMEX earn rates from April 2019

[SeaWolf]

I think the Platinum Charge card has been a bit borderline for a while. I'm going to wait for the changes to kick in and then I'm going to simplify. The Explorer card will get 1 airline point per dollar, which is slightly below the 1.125 of the Platinum Charge, but the Explorer has a much lower annual fee and so it'll leave a lot more money in my pocket.
I've got a Platinum Edge, but since I don't own a car the bump in petrol points isn't useful for me and I don't think it's worth keeping around for the extra .5 points at the supermarket.

 

[fkcn]

If Amex double only some card category balances they will shoot themselves in the foot. BIG time.

I have had an Amex card for near 40 years and spend over $100,000 a year on it.

And it is not a Centurion Card.

Have over 1,250,000 in here now and even IF they doubled that to 2.5m in April can't see there is any real benefit to me if they halve airline transfer rates!

I completely agree that they cannot justify doubling only Centurion card points, especially if held for a year or 2, compared to those who have lesser cards, potentially for much longer periods.

But I disagree that doubling the points for all would not be a benefit. To me, that can justify keeping the card/s with ongoing warehousing, as opposed to transferring everything to KF and dumping the card/s.

I think most can stomach a prospective rate cut with 5 months notice, unpleasant as it is. It’s the devaluing of points earned over many years that sticks in the craw.

 

[Lynda2475]

I have the Qantas Amex Ultimate, which appears to be the card with the smallest reduction in Point earn. I will keep it as, the $450 annual fee is 100% offset by the travel credit which is easy to use when I mainly fly Qantas and the QFF/$ is stil the highest of any of the Australian issued cards.

I only fly enough (mostly domestic) to maintain status with one airline which is Qantas, so all my card earn QFF points directly.

I find Amex is pretty widely accepted without surcharge these days, and often you can pay by Paypal to avoid a charge (but link the Amex card to your Paypal account).

Unless a superior QFF earning Amex becomes available, I will hold the Ultimate for Domestic spend and just continue to churn Visa and Mastercards where the sign-up bonuses are good and the point earn decent for the few places that charge a surcharge for Amex or dont take it at all.

 

[yoyo]

I think we should all commit to contacting them to express our disappointment and plans to cancel. Maybe if enough people speak up they will reconsider.

 

[kearvaigskewer]

This is a very large devaluation, on top of other recent 'enhancements' and rule changes. I've done some rough calculations and the three key changes that impact me are:

- This devaluation
- No long being able to buy discounted Only1 Visa cards at WOW (for places that don't accept AMEX and extra points earn)
- AsiaMiles devaluation

I have been earning about 300,000 points per year with about $10k per month of spending. My most flown route was 80,000 AsiaMiles return.

With the same level of spending, less the places that don't accept AMEX I should be able to earn around 220,000 points per year. This will now convert to 110,000 AsiaMiles. It now costs 100,000 AsiaMiles for a return business class redemption on that route.

So my earn has/will decline from 3.6 flights per year to just 1.1 - a massive 70% decline in the benefit I ultimately receive.

So I have to work out whether AMEX is still the best place for my spend in terms of surcharges and effort. Or even whether to bother earning points on spending at all.

 

[trippin_the_rift]

I think we should all commit to contacting them to express our disappointment and plans to cancel. Maybe if enough people speak up they will reconsider.

Wild guess in that the measurement of how well the card base accepts the changes:

1) The volume of complaints to call centre on this topic versus historical
2) Actual card cancellation volume and projected impact on overall network spend attrition

Fluffy "I'm thinking of cancelling the amex because...." calls are likely tagged differently, and thus won't have much impact on reporting at management level. Management will only care about the numbers.

To speak the numbers language - you actually need to cancel the card or have a marked drop in spending.

Also, I can assure you that not all airline transfer partners were told of the upcoming devaluation. That - in my opinion, is not how to do business. When neither the cardholders, or partners come first - you need to ask the question - who does Amex really care about?

 

[Saltywings]

Also, I can assure you that not all airline transfer partners were told of the upcoming devaluation. That - in my opinion, is not how to do business. When neither the cardholders, or partners come first - you need to ask the question - who does Amex really care about?

Not disagreeing with you, but do you have a source to back up this claim?

 

[turtlemichael]

To speak the numbers language - you actually need to cancel the card or have a marked drop in spending.

Having a marked drop in spending doesn't make a lot of sense to me. You are still paying the fees for the particular card and getting less value. And of course if you get rid of the card and Amex have a road to Damascus moment you won't benefit. Only real option I can see is cop it or get rid of the cards and move on.

 

[kpc]

Not disagreeing with you, but do you have a source to back up this claim?

TtR is the source for MH

 

[theblank]

I think we should all commit to contacting them to express our disappointment and plans to cancel. Maybe if enough people speak up they will reconsider.

If they were to permit social outrage to make them revert a decision it would never end. They have made a business decision, they know that some will complain.

Telling them that you are disappointed or plan to cancel, will have no benefit to you at all. Everything you say wont get passed upline to any decision maker.

They will have already estimated how many customers they will lose, so every person that cancels is just a number to meet the target. By all means, If you want to have an impact, just ring up and cancel the account. You might get a retention offer or you might not.

If after some time has passsed, and they estimate they have lost market share, they will offer sign up bonuses to get on board. Happy days !

 

[melbourne rebel]

As a long term Centurion card holder, the changes have been beneficial to me, on the basis that the bulk of my spending is in the "other spend" category. Additionally, given the size of my spend, the 750k threshold kicked in during month two, resulting in all points being earnt on a 1:1 basis, excluding government etc.

Redemption rates are the same as quoted by others.

See below for Centurion earning rates:


New Membership Rewards point earn rate from 15 April 2019

Government
Old 0.5
New 1

Utilities, insurance and telecommunications
0.5
2.5

Restaurants
3
2.5

Travel and overseas spend
2
2.5

All other spend
1
2.5

 

[unfunkable]

I'm sure the redemption rates are being pretty much 1/2'ed .

 

[Saltywings]

As a long term Centurion card holder, the changes have been beneficial to me, on the basis that the bulk of my spending is in the "other spend" category. Additionally, given the size of my spend, the 750k threshold kicked in during month two, resulting in all points being earnt on a 1:1 basis, excluding government etc.

Redemption rates are the same as quoted by others.

See below for Centurion earning rates:


New Membership Rewards point earn rate from 15 April 2019

Government
Old 0.5
New 1

Utilities, insurance and telecommunications
0.5
2.5

Restaurants
3
2.5

Travel and overseas spend
2
2.5

All other spend
1
2.5

Oh wow, some of those will go up quite a bit. Makes me want to reconsider getting a cent again...

 

[Chicken]

The difference is not that much for the cards I have?

Reserve to SQ KF miles per $1

Restaurants
from 3 to 1
Travel and overseas spend
from 2 to 1
Utilities, insurance and telecommunications
from 0.5 to 1
Government
from 0.5 to 0.5 (same)
All other
from 1 to 1

Edge to SQ KF miles per $1

Supermarkets
from 3 to 1.5
Petrol
from 2 to 1.5
Overseas spend
from 1 to 1
Government, utilities, insurance and telecommunications
from 0.5 to 0.5 (same)
All other spend
from 1 to 0.5

It is a devalue, but not THAT bad?

And with QF? I just don't bother with QF. You can't get a seat even if you have the money for fuel fine. I have had 300k QF points sitting there for years and could never get a seat.

 

[calgarychris]

And with QF? I just don't bother with QF. You can't get a seat even if you have the money for fuel fine. I have had 300k QF points sitting there for years and could never get a seat.

I don't disagree on the fuel fine, but getting seats on QF isn't *that* bad, even as a lowly silver like me. I just booked a US-Oz ticket for the week after Christmas in F. Admittedly it will require a slightly more expensive positioning flight (that's because AA's availability is...poor) and it's F rather than J as I was hoping...but It's under 60 days away...at Christmas...

 

[burmans]

When neither the cardholders, or partners come first - you need to ask the question - who does Amex really care about?

Why ask the question if you already know the answer, they are a business so the answer is that they care about making a profit for their shareholders.

 

[turtlemichael]

And with QF? I just don't bother with QF. You can't get a seat even if you have the money for fuel fine. I have had 300k QF points sitting there for years and could never get a seat.

I have had no difficulty getting QF award seats being able to book well in advance. Points are also usable on OW partners of course

 

[SOPOOR]

If they were to permit social outrage to make them revert a decision it would never end. They have made a business decision, they know that some will complain.

Telling them that you are disappointed or plan to cancel, will have no benefit to you at all. Everything you say wont get passed upline to any decision maker.

They will have already estimated how many customers they will lose, so every person that cancels is just a number to meet the target. By all means, If you want to have an impact, just ring up and cancel the account. You might get a retention offer or you might not.

If after some time has passsed, and they estimate they have lost market share, they will offer sign up bonuses to get on board. Happy days !

True. But like when the public were outraged when arnotts changed the shapes recipe and then put it back.

Anything is possible

 

[StevePER]

My spreadsheet says that if I can't keep my existing points warehoused, there is no value in keeping the Platinum Edge once the changes kick in. I'll earn more by cancelling the card, waiting 18 months, and then getting a signup bonus.

After the changes kick in, the Westpac Black is far more rewarding for me than the Platinum Edge (at least until the free first year runs out), and even the Citibank Signature would earn 90% of what the Platinum Edge would.

 

[lovetravellingoz]

My spreadsheet says that if I can't keep my existing points warehoused, there is no value in keeping the Platinum Edge once the changes kick in. I'll earn more by cancelling the card, waiting 18 months, and then getting a signup bonus.

.

Remember though that the Amex sign-on bonus will be worth 50% less too.