AMEX Platinum Edge replaces Free Domestic Flight with $200 Travel Credit

illumination on 10/11/2016 - 17:37
Last edited 10/11/2016 - 17:40

This is an interesting change.

  • Existing cardholders unaffected
  • Applicable to new applicants as of today (I think?)

For a lot of us Ozbargainers who sell the flight, it's not good news as we can usually sell it for ~$250. However, if you already hold the card then this change will not affect you. It's also not good for PER based people who actually use the flight themselves on their own card between Perth and the East Coast, as it would be effectively paying $195 (the annual fee) for a PER-East Coast return.

It's also not good for PER based "buyers" of the flight, as this is probably likely to result in a drop in supply and thus increase in prices. Mind you, I have noticed the market rate of the flight seems to have dropped from ~$300 to ~$250 over the last year, which I assume is due to an increase in supply (i.e. more Ozbargainers obtaining this card).

If it's anything like the new AMEX Explorer's $400 credit, then the key info for the credit is as follows:

  • Non-refundable credit
  • If your total charge is less than the credit, you forfeit the balance (i.e. does not carry over)
  • Can be booked on behalf of someone else
  • Can be used on Car Hire, Flights, Hotels via AMEX Travel

I believe this change is actually a benefit to those on the East Coast who use it "legitimately" (i.e. don't sell the flight), as technically speaking it is better to have the flexibility of using the $200 on anything you want out of car hire, flights and hotels. Being given the choice of how to use it is good. You're now no longer locked in to a particular "product" (the flight).

For East Coast flyers, it is still probably arguably negative as I have noticed the prices of domestic flights during peak periods seems to have increased to ~$250-300 return (SYD-MEL in particular). A year or more back, domestic flights during peak periods were still hovering at about $200-250, thus reducing the relative advantage of the free flight.

Credit to my mate who linked me to the Point Hacks article announcing the change.

All in all, the Platinum Edge is still an awesome card and I still think it is well worth the annual fee of $195.

The Explorer card is, to be honest, also not far off.

There's still the Velocity Platinum AMEX and ANZ Travel Adventures which includes the free flight though!

TLDR:

  • AMEX Platinum Edge doesn't come with a free flight anymore for new applicants
  • Existing cardholders unaffected (at the moment)
  • Replaced with $200 Travel Credit
  • Bad for those who actually used the flight themselves and didn't sell it
  • Good for those who didn't sell the flight and/or never used it themselves as it is now probably easier to use (Car Hire, Hotels, Flights on any airline)
  • Still a bloody good card due to awesome earn rates and included complimentary insurances
  • There's still the Velocity Platinum AMEX that still comes with a free flight.. and the ANZ Travel Adventures Card
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Comments

  • yupyup on 10/11/2016 - 18:31
    +6

    thanks for the info, good to know existing cardholders keep the free flight :)

  • aussie1 on 04/12/2016 - 19:57

    where did everyone sell their free flight?

  • iRMonkey on 05/12/2016 - 09:39

    Good to know we keep the free flight if we currently hold a card, but wondering when Amex will change this.

    • illumination on 05/12/2016 - 09:41
      +1

      Me too. And I think when they do I'll most likely change to another card

  • alchew on 09/12/2016 - 00:21
    +4

    I have a platinum reserve credit card which gets complimentary free flight, but got a brochure that arrived with my supplementary cards today that from 30 March 2017, the free flight will be replaced with a $400 travel credit. However, existing cardholders will have the option of continuing to choose a free flight from 30 March 2017 to 30 September 2017, after which only the $400 travel credit will be applied to the account each year. This is bad news for me living on the west coast, but I suppose $400 travel credit isn't too bad (i pay annual fee of $295/yr). I will probably still keep the card since i like transferring all my points to Qantas direct.

    • illumination on 09/12/2016 - 00:22

      Ah, interesting news. Thanks for sharing! Will let my friend know (who also has the card)

      • alchew on 09/12/2016 - 00:23

        I wonder if anyone with platinum edge has heard anything similar for that card (I also have platinum edge)

        • illumination on 09/12/2016 - 00:26

          I got a Platinum Edge supplementary card a few weeks ago and wasn't informed about anything similar, but I wouldn't be surprised to see them go down a similar path.

    • Peck on 09/12/2016 - 11:28

      Wow! This is BIG. It could stuff up my plans for November 2017 flights. I assume this will also be the case for the Free Platinum Reserve Credit Card that I hold attached to my Amex Platinum Charge Card. I think that this deserves to go into a discussion forum. Alchew,is there any chance that you could scan and attach the brochure??

    • plasmapuff on 09/12/2016 - 13:35

      Hmm I got the same brochure today.

      Only joined a month or so ago so will not qualify for the free flight as technically as of 30/9/17 I would not have had 12 months of membership.

      As the annual fee is only $195, my brochure says only $200 credit.

      Hmmm…should I cancel the card? My main goal was to try to sell the annual free flight to break even with the annual fee and use the card for its high reward rate (~2.2% at Supermarkets). Otherwise the fallback would be the Westpac Altitude black at ~1.5%.

      • alchew on 09/12/2016 - 14:05
        +1

        You can obtain the free flight in your first year of membership you know, so you can at least get the free flight for this membership year, you don't have to wait 12months

        • plasmapuff on 09/12/2016 - 14:45

          Thx for heads up :)

  • JohnHowardsEyebrows on 09/12/2016 - 16:47
    +2

    Bugger….given the cost for Platinum Edge is $149 (with affiliation), this card is now a lot less valuable, as the flights can be worth $300+. I guess it'll still retain its value so long as you were going to travel anyway, and book the kinds of stuff Amex offers through its travel engine (though it's not as cheap as you can get through Expedia etc, and no Cashrewards).

    So effectively Platinum Edge is line ball, and only worth what you get in terms of bonus points at supermarkets and servos.

    • alchew on 09/12/2016 - 17:37
      +2

      Agree - my greatest concern is if the amex travel booking portal will be anywhere near as competitive as what you might be able to find elsewhere online, so that the $200 credit (edge card) is really actually a lot less in real terms.

  • bargin424 on 09/12/2016 - 19:36
    +3

    Just got a letter for Amex saying there will no longer have free flights and I will be converted to the $200 credit scheme.

    • forumninja on 12/12/2016 - 18:53
      +1

      Yes, I just got that letter too.

      Here's the details:

      6th December 2016

      Dear FirstName,

      Want more flexibility to choose where you go and what you do? That's exactly what you'll get when a $200 Travel Credit[1] replaces the complimentary annual domestic flight[2] on your American Express® Platinum Edge Credit Card.

      From 30 March 2017, instead of choosing from selected destinations in Australia. you'll be able to redeem your $200 Travel Credit towards flights, hotels[3], car hire[4], or experiences booked and paid online at americanexpress.com.au/travel.

      Your current complimentary domestic flight[2] can be redeemed until 29 March 2017. after which. this benefit will be replaced by the $200 Travel Credit[1].

      And to further boost your Travel Credit, you can also use your Membership Rewards points[5], your Platinum Edge Credit Card or a combination of both to pay for the rest of your adventure.

      So the next time adventure calls, answer with your $200 Travel Credit at americanexpress.com.au/travel.

      Happy travels.

      Kent Tai
      Head of Product
      American Express Australia Limited

      Terms and Conditions
      1. The $200 Travel Credit can be redeemed against any single online travel booking made through americanexpress.com.au/travel. Any unused amount will be forfeited. The Travel Credit can be used for 365 days from date of issue and cannot be carried forward to any subsequent year. You may make one redemption each anniversary year so long as you have paid your annual Card fee and your account is in good standing. Terms and conditions apply and are available at www.americanexpress.com/australia/edge-travelcredit-terms
      2. All flights are restricted to selected classes within the Saver Fare family and are subject to availability The complimentary flight is offered on selected destinations only and not valid for flights with Virgin Australia partner airlines or any codeshare flights. Virgin Australia and American Express cannot guarantee that seats or tickets will be available on the dates or at the times you may wish to fly. Seat availability may be limited to certain dates and/or flights and it may be more difficult to book seats around public holidays, school holidays or special events. Some flights may not have any seats available for this promotion. Route availability is subject to change without notice. Baggage in excess to the 23kgs included in the promotion will attract additional fees, see virginaustralia.com for more information. The offer is subject to the American Express Flight Offer Conditions and air travel is subject to Virgin Australia Terms and Conditions of Carriage.
      3. The Travel Credit may not be used towards hotel and car hire bookings where payment is not made at the time of booking (ie FINE HOTELS & RESORTS or The Hotel Collection).
      4. Car hire is available only from airport locations with the same pick-up and drop off location, where payment is made in advance via American Express Travel Online (not made directly to the supplier).
      5. Subject to the Terms and Conditions of the Membership Rewards program available at membershiprewards.com.au

      • kev98 on 12/12/2016 - 22:52

        Is 29 March your anniversary for account? Just wondering if this date is for everyone or just when your renewal comes up

        • nickomac on 13/12/2016 - 17:33
          +1

          Just received the same letter, my anniversary is in Feb so it's definitely standard

  • Peck on 12/12/2016 - 22:51
    +1

    I contacted AMEX re loss of free Virgin Flight (Included Sydney to Auckland return) on my Free Platinum Reserve Credit Card that I hold attached to my Amex Platinum Charge Card ($1200 annual fee).
    Their reply
    "Yes, it is true that effective March 30, 2017, we are replacing the Complimentary Virgin flight/hotel with the $400 Travel Credit benefit.
    Card Members who have not redeemed their existing benefit by March 29, 2017 will have their flight/hotel benefit replaced with a Travel Credit that expires at their next Card anniversary date.
    Card Members who have redeemed their existing flight benefit by March 29, 2017 will become eligible for their first Travel Credit at their next Card anniversary date.
    Only 1 benefit may be redeemed within any 12-month anniversary period."

  • Boba on 14/12/2016 - 20:45
    +2

    Yes I also got a letter saying that my free flight has been replaced by $200 travel credit, though the complimentary domestic flight can be redeemed until 29 March 2017.

    Complete rubbish if you ask me. I deliberately signed up to this AMEX (with the higher annual fee) and cancelled my other one because of this complimentary flight. To have it removed so soon after sign up, it feels like a bait and switch to me.

    • shuss2 on 14/12/2016 - 22:42

      Same reason why I signed up.

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