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Will Amex ever change airline incidental fee credit to just an airline fee credit?

New Member

Will Amex ever change airline incidental fee credit to just an airline fee credit?

To stiffen up competition with Chase and since many are aready doing the gift card work around what are your thoughts on American Express ever just changing their airline incidental fee credit to just an airline free credit and allow ticket purchases with it?

 

 

As of November 2018 and auto-pay full balance each month - Discover it 7 years 1 month $15,200; Chase Freedom 5 years 3 months $7,200; BofA Cash 4 years 6 months $6,500; FNBO 2 years 10 months $4,200; Citi Double Cash $11,000; Barclay Uber $15,000; AMEX Platinum new; Hyatt new $18,700; AMEX Gold new
Message 1 of 17
16 REPLIES
Moderator

Re: Will Amex ever change airline incidental fee credit to just an airline fee credit?


@duroc wrote:

To stiffen up competition with Chase and since many are aready doing the gift card work around what are your thoughts on American Express ever just changing their airline incidental fee credit to just an airline free credit and allow ticket purchases with it?

 

 


 Not likely and there are already existing methods of buying gift cards that you can use for several airlines to buy tickets as you mention.  I think they are happy with the status quo.

Message 2 of 17
Valued Contributor

Re: Will Amex ever change airline incidental fee credit to just an airline fee credit?

American Express revamped the gold card in order to be more competitive with chase. If Amex was going to change how the credit worked, it would have been during that recent revamp. The platinum was also refreshed not that long ago.

They expect breakage in using the credits and don’t really see much reason to change it.



FICO 8 scores 10/2018
EX-776
TU-708
EQ-706
Message 3 of 17
Valued Member

Re: Will Amex ever change airline incidental fee credit to just an airline fee credit?

I have no inside information but if there were a related change my guess would be that it would be to more strictly enforce the current terms and conditions.

Message 4 of 17
Valued Contributor

Re: Will Amex ever change airline incidental fee credit to just an airline fee credit?


@Shadowfactor wrote:
American Express revamped the gold card in order to be more competitive with chase. If Amex was going to change how the credit worked, it would have been during that recent revamp. The platinum was also refreshed not that long ago.

They expect breakage in using the credits and don’t really see much reason to change it.

Breakage is the key.  Amex has structured the credit so there will be lots of breakage, whereas Chase and Citi have structured their credits so there is almost no breakage.  Don’t expect Amex to change.  They’re the one making money on this feature.

Chase Sapphire Reserve • PenFed Power Cash Rewards • and five cards in the sock drawer

No CC debt • No bonus chasing • No app sprees • No gift cards • No AZEO • No airline incidentals • No hotel cards • No store cards • No business cards • No authorized users
Message 5 of 17
Super Contributor

Re: Will Amex ever change airline incidental fee credit to just an airline fee credit?

I also think it unlikely AMEX will change this. There are many cards it applies to, Gold, Platinum, and Aspire are ones I am aware of. Requires changing the T&C for those and other cards.

The airline fee credit is also one of several credits on those cards. So if they change Airline fee they have to drop things like Uber monthly credit, $10 monthly dining credit, $250 Hilton Resort Credit. Each of those credits likely has partner contracts to help absorb the costs.

The SPG Lux card is an example of skipping the airline fee credit to go for a simpler Marriott $300 credit, a larger share of the AF with almost no restrictions.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812

Delta Reserve and CSP Jan 2018, no more 5/24 worries... unless new Chase Marriott/SPG replacement is enticing...meh, turns out not. [unless a 100k points SPG Luxury Upgrade appears... well lookie here...]
Message 6 of 17
Mega Contributor

Re: Will Amex ever change airline incidental fee credit to just an airline fee credit?

While I agree with the others that is it is unlikely to change, I don't think the forum record on "What to expect from Amex" is particular stellar.   AFAIK, no-one here predicted anything like the changes on the PRG/Gold.  Or even the 5x airfare on the Plat.   Let me know if that's doing someone a disservice!

Message 7 of 17
Contributor

Re: Will Amex ever change airline incidental fee credit to just an airline fee credit?


@TheRationalConsumer wrote:

I have no inside information but if there were a related change my guess would be that it would be to more strictly enforce the current terms and conditions.


I agree. I can see them working to keep us from actually purchasing gift cards in some fashion.

 

 






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TOTAL: $107k | EX: 790 TU: 792 | 27 yo
Message 8 of 17
Valued Member

Re: Will Amex ever change airline incidental fee credit to just an airline fee credit?

My major spending is ~8k on airfare. I do love the design of Amex card, but neither gold, nor platinum make any financial sense to my situation. That "credit" being "accidental fee" is a major part of it.

 

I do imagine different people may find it useful, its just not fit my situation.

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Message 9 of 17
New Member

Re: Will Amex ever change airline incidental fee credit to just an airline fee credit?

That's exactly my point I don't think it will hurt their P&L since everyone savy enough to get the card is savy enough to read any credit card website and learn about how to use it on gift cards and there are people out there that might chose a different company since when they read the product description they can't see the value for the card under the stated description. 

As of November 2018 and auto-pay full balance each month - Discover it 7 years 1 month $15,200; Chase Freedom 5 years 3 months $7,200; BofA Cash 4 years 6 months $6,500; FNBO 2 years 10 months $4,200; Citi Double Cash $11,000; Barclay Uber $15,000; AMEX Platinum new; Hyatt new $18,700; AMEX Gold new
Message 10 of 17