12th October 2020

 American Express Platinum Review (Australia)

The Amex Platinum serves a dual purpose. It’s an excellent travel card, and with its sleek metal card, adds a certain statement when you whisk it out to pay your tab. But is it an overkill for you and me? Especially this year, with a pandemic raging and every country shutting its borders to everyone else.

The Platinum card certainly puts you on the backfoot initially. The annual fee used to be $1200 in 2019, and just before the world ground to a halt, it was revised to $1450. Costs a leg and a hand then, but having spent a year with it, in an age where we haven’t travelled enough, we look at whether we have managed to break even.

Before we continue, I would like to add a disclaimer that we are not sponsored by American Express, or any of its competitors, and the views specified below are strictly our own, and the value we place to each benefit is based on our own understanding.

Stating this card is a credit card is slightly misleading since it is a charge card. A charge card has no pre-set spending limit. This is not however a free for all. American Express has internally set a limit to spending based on the user’s spending habits, and may increase the limits based on the user’s relationship with the bank, spending habits, payment history etc. You will also need to pay off the entire amount stated in the monthly statement. Our guiding principle is always to pay off the entire statement amount irrespective of whether it’s a credit or a charge card.

AMEX in Australia provides a host of benefits which heavily lean towards travel and hospitality. We have tried to place a monetary value to each benefit. We also highlight the adhoc benefits which Amex introduced this year to cater to their customers who are not able to reap the travel benefits due to the pandemic and travel restrictions.

A year with the Metal card

We applied and were approved for the card in October 2019. The plan was to travel domestic within Australia, visit home in India and go across the ditch to New Zealand in 2019-2020 and we were confident that we could break even and then some. However, with plans turned on its head, and the annual fee already paid off, we decided to review this card after a year to see how AMEX manages to hold on to its customer base.

EARN RATE

The Platinum card offers one of the highest earn rates in Australia at 2.25 AMEX Membership points excluding government transactions. These points can be then transferred at a conversion rate of 2:1 to many major airline partners like Qantas, Virgin Australia, Singapore airlines, etc.

welcome bonus

Not a good start then, since we didn’t receive the welcome bonus. Already having head an AMEX Explorer card and merely upgrading to a Platinum card does that to you. We were still confident of breaking even. More on this later. However, if one is a new customer to AMEX, or a returning customer after an 18-month hiatus, then you are eligible for the bonus points. In October 2019, and even today, AMEX offers an 80,000 bonus to sign up.

To put that into context, today a Sydney-Melbourne business class round trip costs a little over $1430 on Qantas. The same ticket can be purchased by paying with points and buying a Business Classic Reward for 36,800 points with an additional $75 to be paid by cash. This gives an approximate valuation of 3.885 cents per Qantas point.

Now for the bonus points

• 80,000 bonus points = 40,000 Qantas points (2:1 transfer ratio)

• 40,000 Qantas points = approximately $1554

If we used points for a travel in the next year, we can recoup the entirety of the $1450 annual fee this way.

Yearly travel credit

The Platinum charge card on its own provides the user with a $450 travel credit every year once the annual fee is paid off.

Platinum Reserve credit card

As an added benefit the user can opt to apply for a platinum reserve credit card (not a charge card). While this credit card allows you the flexibility of a true credit card, we are more attracted to the additional $400 travel credit every year. The Platinum reserve credit card is free for Platinum card users.

*Platinum Reserve travel credit not offered for new customers

american express travel website

The travel credit can be used on the American Express travel website to book airline tickets, hotels and car bookings along with packaged holidays if available. American Express provides additional benefits in the form of the International Airline Program which provides discounts on first and business class flights on select airlines and on select routes. American Express claims savings up to 20% using this benefit.

As an example, we checked the Sydney-Melbourne business class round trip tickets on the travel website, and we see that the lowest price is $760 on Virgin Airlines. The cheapest ticket on the same flight in the Virgin Airlines website is $998, a whopping saving of over $200. There is a flipside, however. On routes and airlines where there are no benefits, often, the flight tickets are more expensive, and the AMEX membership points redemption values aren’t too great either.

The travel website also offers added benefits of staying at select hotels via it’s Fine Hotels and Resorts and the Hotel Collection. These benefits are exclusive to the Platinum card and provide benefits like guaranteed 4PM check out, room upgrades, daily breakfast for two , and at some facilities a US$100 credit to use for food, beverages, spa treatments etc. at the hotel.

Hotel Benefits

The Platinum card offers up a plethora of tie ups with the common large hotel chains around the world. The user is automatically upgraded to the higher tiers of loyalty membership without having to earn the required number of qualifying nights. The higher tiers open avenues towards a greater point earn bonus with the hotel’s loyalty program, one class upgrades, free breakfast, complimentary gifts on arrival etc.

ACCOR Live Limitless

The Platinum card offers a complimentary Silver membership valued at $399 which offers a free night’s accommodation each year and 50% off dining bill at Accor restaurants. With multiple hotels like Novotel, Sofitel, Pullman etc. to choose from, the choices are endless. While the Silver membership itself doesn’t offer a great deal of benefits apart from the complimentary night, the dining discount is well worth the price, and we have been able to make more than $200 of savings while staying at Accor properties. This benefit is also available even if the user is just dining in without staying at the property.

We value this benefit at 100% of its face value due to the easily accessible dining credit and the complimentary night’s stay. We also use AMEX’s valuation of $399 as such to arrive at a value of $399.

hilton honors

With multiple luxury and attainable brands alike, the Hilton chain is one of the most famous with properties spread far and wide and makes a fair case as a benefit of choice.

The Elite Gold status offered as a benefit here offers Late Check out, complimentary breakfast, 5th night free towards rewards booking and a higher point earn rate.

You would normally require accruing 40 nights in a year to jump to Gold status, and for the sake of valuation we consider an average rate of $100 at a 25% valuation.

We value this benefit at 25% of (40 nights * $200) = $1000

MARRIOTT BONVOY

Another robust worldwide chain giving you access to multiple luxury brands like Ritz-Carlton, JW Marriott, Sheraton and at the same time allowing you to start small with brands like Courtyard, Four points etc. The AMEX Platinum offers Gold Elite as the default membership tier which works similar to the Hilton Honors membership. Members get late check out, reservation guarantee and one class upgrade limited to availability.

25 nights are required normally to graduate to Gold Elite status and for the sake of valuation we consider an average rate of $100 at a 25% valuation.

We value this benefit at 25% of (25 nights * $100) = $625

RADISSON REWARDS

Yet another chain which offers properties around the world, though limited in the palette of brands on offer. Gold Status offered has the same standard benefits of early check in, late check out, one class complimentary upgrade. Free breakfast, however, is reserved only on the Platinum tier.

30 nights are required normally to graduate to Gold status and for the sake of valuation we consider an average rate of $100 at a 25% valuation.

We value this benefit at 25% of (30 nights * $100) = $750

SHANGRI-LA GOLDEN CIRCLE

The Shangri-la hotel chain does not have the breadth of properties as the others mentioned above. Multiple properties in mainland China, a few strewn around across tourist hotspots around the world more or less cover it. Australia has only two properties with a third one coming up in Melbourne at the end of 2020. It is to be noted that they do not have any properties in the USA.

20 nights are required normally to graduate to Gold Elite status and for the sake of valuation we consider an average rate of $200 at a 25% valuation.

We value this benefit at 25% of (20 nights * $200) = $1000.

We value the Jade membership at the Shangri-la Golden Circle higher due to its partnership with the Taj InnerCircle in India. Now, even though the AMEX Platinum in Australia does not offer Taj InnerCircle status, through the Shangri-la Golden Circle Jade tier, one can activate Gold Status on InnerCircle. With benefits like 15% off on redemptions, early check in, and room upgrades, the Gold status starts to pull its weight.

A spend of ₹400,000 or $7563 is required normally to graduate to Gold status. At a 25% valuation, the value of this additional benefit should be tacked on to the value of the Shangri-la Golden Circle benefit.

We value this benefit at 25% of $7563 = $1890

However, a far more substantial benefit which the Golden Circle Jade membership offers is the status match to Singapore Airlines KrisFlyer Silver status. The Silver status offers 25% bonus miles on miles flown with Singapore Airlines, complimentary seat selection and priority reservation waitlist. Though the benefits list isn’t substantial, there exists an easy way to upgrade to Gold Status for the first year. All you must do, is to take 3 more flights on Singapore airlines within four months of status match. This can be different sectors as well. Therefore, a round trip Sydney - Bali flight which has a stopover at Singapore also works to fulfill the criteria.

The KrisFlyer Gold status offers benefits like Priority Security and Immigration, Priority Boarding, Lounge Access, and extra baggage allowance. Once the year is up, standard Krisflyer criteria are required to maintain Gold status.

To estimate a value for the Krisflyer Silver Status we will need to evaluate this in terms of Krisflyer Airmiles.

An economy Sydney - Singapore round trip ticket costs $985. Business and First-class tickets have a higher point earn ratio, but we will look at the most common case here. For the flight above, elite miles earned are 2934 which equates to $0.33 per mile. Silver status on Krisflyer requires 25,000 miles which by the current valuation of miles equates to a whopping $8250 . Assuming a 12.5% probability of flying anywhere in one year with specifically Singapore airlines, we will again need to add on this value to the Shangri-la Golden Circle benefit’s valuation.

We value this benefit at 12.5% of $8250 = $1031

If the customer can do a round trip and convert the Singapore Airlines membership to a Gold membership, the value of this benefit increases even further. Considering that 50,000 miles are required to achieve Gold status, the benefit can be valued at a minimum of $2060.

AIRPORT LOUNGE ACCESS

We value the host of airport lounge access privileges on this card quite highly. Whether it is at arrival, departure, layover, or during flight delays airport lounges give you access to a place to refresh and rejuvenate. Airport Lounges also provide access to fresh showers, free food and beverages, coffee and a place to work with free premium wifi. They also have access to a printer if you are person who needs to get something printed…… at an airport.

The AMEX platinum card provides you complimentary access to priority pass lounges and American Express and Centurion lounges and Plaza Premium lounges. Delta and Virgin lounges are also included for good measure if you do fly with these airlines a lot.

The priority pass membership for unlimited complimentary visits retails at USD 429 which works out to a valuation at 25% of around $148. The American Express and Centurion lounges are more exclusive and though we really struggle to put a monetary value of these, we narrowed down to USD 50 per visit which is the charge for an additional guest. Assuming 10 visits in a year, and at a 25% valuation we value this benefit at $172. The other lounges can be valued differently if required which we have ignored.

other travel benefits

To smooth out the stress of traveling the AMEX Platinum offers further fringe benefits during travel. It provides Avis Preferred and Hertz Gold Plus memberships which both offer a one class upgrade, easy drop off and members rates. The Platinum card also offers complimentary Loss Damage cover for rental vehicles up to $125,000 which guarantees that you needn’t take another insurance cover at the rental car agency again.

The AMEX platinum card also offers benefits on cruises and luxury rail services with a US$300 and US$100 onboard credit respectively.

Other benefits

The list of benefits offered grows longer than my arm at this point. Having barely scratched the surface, let’s look at a few other benefits on offer.

1. Subscription to the Australian Financial Review - 10% of $628 = $63

2. Complimentary do-anything Premium concierge (we used them to get flowers and a hotel reservation)

3. Multiple Insurance covers and Support Benefits like

   • Travel Insurance

   • Travel Inconvenience cover including hotel accommodation, essential clothing and meals

   • Medical expenses cover during Travel

   • Baggage, Money and Documents cover

   • Travel Cancellation cover

   • Purchase protection cover (up to $3,500 per event, and $30,000 in a year)

   • Refund protection cover (up to $1,000 per item)

   • Buyer’s advantage - extended warranty of item by a year

   • Smartphone screen damage cover (up to $500)

   • Rental car damage cover

   • Legal assistance cover

   • Roadside assistance cover

4. Dining reservations at top restaurants via the Global dining collection

5. Spa discounts

the year so far

AMEX offers cashback and multiple other offers from time to time on its app like Shop Small which encourages the customer to spend at local mom and pop stores where you receive $5 back on a minimum spend of $10 (up to 5 times). AMEX introduced the same offer again during the latter half of the year to get back $5 up to 10 times. Another offer which came through was up to $400 cash back when spending at major supermarkets for everyday groceries. Apart from these, we were also able to use targeted cash back offers encouraging the user to spend at stores like Myer, Iconic, Platypus Shoes, Hype etc.

We were able to take advantage of the double points offer served up AMEX on the platinum card and were able to receive points worth 171,000 over the course of the year. We also used travel credits both on the platinum card and the platinum reserve card on domestic visits.

We also used the hotel benefits to get one class upgrades, late check out, and breakfast at Shangri-La and Taj Group of hotels in India. We used the Fine Hotels collection benefit at Hyatt which also offers up the same benefits along with the US$100 credit to use at the hotel. We have also used the one complimentary night offered by the Accor membership, and received at-least $200 in discounts using the dining benefit.

We also use the Australian Financial Review membership and find it useful for market trading.

Final verdict

To tally up the scores we shall view the benefits as they are offered to see the potential of the card. We can then have a double take at our year so far considering covid to see if we were able to break even.

*Platinum Reserve travel credit not offered for new customers

Our real and tangible savings over a year below. Welcome bonus, and hotel chains where the loyalty memberships have not been used have been zeroed out. We’ve added savings due to AMEX offers, and potential savings due to the points earned.

And as we can see, we value this card astronomically above the annual fee it rightfully demands. The card, if used right can be a real asset.