Reduced AMEX earn rates from April 2019

[amaroo]

hmm, might have to change tack on my cunning plan of dropping QF status and flying other airlines via MR. IMO status is a critical key for converting points into premium seats.

In my case it certainly looks like QFF with be a direct beneficiary from this AMEX enhancement. There is also the current 45% bonus offer for transferring points to QF before end Nov .... much thinking to do.

 

[rock86]

It's not as bad as you think. Earn rates with Plat Charge have now increased to 2.25 points/dollar, which is a significant boost to the original 1 point/dollar. So technically, 1 dollar = 2.25 amex = 1.5 marriott, which is the same earn rate as previous. 1 amex = 0.5 spg = 1.5 marriott!

Happy to be corrected, but I believe the Platinum charge card hasn't increased from 1 to 2.25 per dollar, it's only gone from 1 to 1.125 per dollar.

 

[Pumbaa]

Happy to be corrected, but I believe the Platinum charge card hasn't increased from 1 to 2.25 per dollar, it's only gone from 1 to 1.125 per dollar.

Oh but it has ...

"(You’ll earn 2.25 Membership Rewards points per $1 spent, equal to 1.125 frequent flyer points per $1 spent in your airline program of choice, following a 2:1 conversion.)"

$40K spend = 90K AMEX Points = 45K Singapore/Cathay/Qantas points or 60K Marriott = 25K points in more airline currencies

 

[shane2603]

After cancelling my Centurion a few months ago and being a member since 1992 I will stick with my fee free Citibank Signature card at half points rather than paying Amex Platinum $1450 for the same points and less service!!
Absolutely disgusted and hope that we dont even remember the name American Express in a few years as they vanish into the Ether!

 

[unfunkable]

yeah, its the conversion rate from MR ---> airlines . that is pretty much the massive killer here for the ascent + and ascent programs.

 

[rock86]

Oh but it has ...

"(You’ll earn 2.25 Membership Rewards points per $1 spent, equal to 1.125 frequent flyer points per $1 spent in your airline program of choice, following a 2:1 conversion.)"

$40K spend = 90K AMEX Points = 45K Singapore/Cathay/Qantas points or 60K Marriott = 25K points in more airline currencies

Yes you are correct, I was looking at the effective airline transfer rate, my bad!

 

[psi999]

This has to be the end for the Explorer card. I'm not sure who would bother to keep it around given airline earn from 1.5 PPD (or 2.0 for those linked to acent) down to 1 PPD. I'll be making the most of mine (linked to accent) and cancelling in January upon renewal. Just not worth it.

Probably hang onto Platinum edge but looks like the rest of my spend will find its way back onto my ANZ black. Funny thing is AMEX acceptance will be up (reduction in terminal swipe fees) but physical cardholders will be few and far between. I guess thats the game.

Now what to do with my hefty MR balance with no big redemptions on the horizon. Makes me sick knowing im most probably going to dump into velocity where i already have a nervously high balance. But do i do it now and take advantage of 15% November promo or hang out to next year and hope for a better deal... Anyone else have a plan?

 

[Pumbaa]

Maybe I'm missing something, while the changes are significant, Amex FF earn rates are still better than any Visa card on the market. Granted the Platinum charge card is expensive, but there are significant benefits: travel credit, free night with Accor, status with Hilton, Virgin lounge access that more than equal the annual fee.

1.125 points/dollar uncapped for Qantas/Singapore/Cathay is still best in the market

Devaluations are inevitable, we had a good run for a long time, but it was always going to end this way. The last Amex devaluation was just as significant. We went from 1.5 points/dollar to 1 point/dollar + bonuses for restaurant and overseas spend. It's a game at the end of the day, and as long as you can earn and redeem for more than you are spending (annual fee), you are ahead.

 

[kermatu]

Bugger.

 

[Doctore1003]

Will be interesting to see if Amex offer bonuses to people who ring up and cancel. Sure need to!

 

[Doctore1003]

Now what to do with my hefty MR balance with no big redemptions on the horizon. Makes me sick knowing im most probably going to dump into velocity where i already have a nervously high balance. But do i do it now and take advantage of 15% November promo or hang out to next year and hope for a better deal... Anyone else have a plan?

Same boat. Would prefer to put points into KrisFlyer but the three year expiry is a huge problem.

I’ll be using the November promos to transfer some points to Virgin and Qantas.

 

[NM]

Hmm, this plus the previous devaluation of the MR->SPG->AA laundering process looks like being the end of my 25 year relationship with Amex.

 

[Doctore1003]

I've preached before about not 'overpaying' (in a relative) sense to earn more points, but this is an exception to the rule. Guess I'll put the final BASes through RP/B2BP and go out with a multimillion bang.

*sigh*.

Ditto! Might even prepay some future tax liabilties!

 

[downloadingdata]

Maybe I'm missing something, while the changes are significant, Amex FF earn rates are still better than any Visa card on the market. Granted the Platinum charge card is expensive, but there are significant benefits: travel credit, free night with Accor, status with Hilton, Virgin lounge access that more than equal the annual fee.

1.125 points/dollar uncapped for Qantas/Singapore/Cathay is still best in the market

Devaluations are inevitable, we had a good run for a long time, but it was always going to end this way. The last Amex devaluation was just as significant. We went from 1.5 points/dollar to 1 point/dollar + bonuses for restaurant and overseas spend. It's a game at the end of the day, and as long as you can earn and redeem for more than you are spending (annual fee), you are ahead.

A comparison to Visa is not complete without mentioning that visa is accepted everywhere and often at a lesser surchage than Amex. You do not NEED an Amex to accompany your visa but you definitely NEED a visa/mc to go with your Amex.

Amex has always been a differetiated product but the problem is the devaluation is so severe such that it will become just an inconvenient Visa with ever so slighly better earn rates. Even if your annual spend is $250k, you are only earning 30k more airline pts per year than a Visa - far less than a typical sign on bonus for a new card.

On other travel benefits, it is only worthwhile if you do not already have airline status. The Citi prestige visa arguably offers much more value than the plat charge.

 

[Saltywings]

Now what to do with my hefty MR balance with no big redemptions on the horizon. Makes me sick knowing im most probably going to dump into velocity where i already have a nervously high balance. But do i do it now and take advantage of 15% November promo or hang out to next year and hope for a better deal... Anyone else have a plan?

Same quandry. Got a massive VA balance but what I note is that VA effectively = SQ anyway. Thus, I may transfer most of my points to CX (though they also have expiry). That way, I'd have CX (= QF), VA (= SQ), and be covered on 4 bases.

Obviously not even going to consider NZ, EY or EK.

 

[ozjuice]

This really sucks.......

 

[Demonoid]

While these changes suck, the vast bulk of my points haul comes by churning through (mostly non AMEX) credit cards with hefty sign on bonuses, as opposed to massively spending. Agree the Explorer is a goner - Will go back to Velocity Platinum for 1.25 points per dollar teamed with a 1 QFF point per dollar Master Card.

The only thing I liked about the Explorer was ability to send it to Krisflyer. I can still do that by converting Velocity points- but there is a now a devaluation in that also. So what I really want is for Virgin to join Star Alliance!

 

[Pumbaa]

A comparison to Visa is not complete without mentioning that visa is accepted everywhere and often at a lesser surchage than Amex. You do not NEED an Amex to accompany your visa but you definitely NEED a visa/mc to go with your Amex.

Amex has always been a differetiated product but the problem is the devaluation is so severe such that it will become just an inconvenient Visa with ever so slighly better earn rates. Even if your annual spend is $250k, you are only earning 30k more airline pts per year than a Visa - far less than a typical sign on bonus for a new card.

On other travel benefits, it is only worthwhile if you do not already have airline status. The Citi prestige visa arguably offers much more value than the plat charge.

Accept the point about Visa/Mastercard being accepted everywhere, but Amex isn't.

But the earn rate comparison is not correct. Citibank everyday spend only yields 0.5 point / dollar, whereas Amex plat charge earns 1.125 which is more than double. Granted, if you spend at supermarkets/travel/fuel then you get closer/more than Amex, but that's not the largest spend category for most people. Everyones spend proportions are different, but on a 250k annual spend, most people would be getting a lot more points with a plat charge vs a visa prestige, but as everything YMMV.

I don't agree that Citibank prestige has more benefits than Amex Plat, but like everyone YMMV.

 

[Doctore1003]

Platinum Card is the only “winner” here with the effective increase in the earn rate on everyday spend. 1.125 airline points per dollar with 15%+ bonuses to Velocity and Qantas seems like the way to go now.

 

[opusman]

The loss of bonus points for restaurant and travel takes the shine off it somewhat though.