Every wallet needs a default card to use when in doubt, ideally one with strong benefits and valuable point earning. While many will find great benefit by combining a Visa or Mastercard product with the earning powerhouse Amex Cobalt, some may want more flexibility than Aeroplan or Avion, while still having more potential than a Cash Back card. The Amex Platinum comes with a hefty price tag but for the avid traveller seeking luxury and ultimate flexibility, it may prove to be the best choice.
In this article I will be exploring the value proposition of the Amex platinum and comparing and contrasting it to the alternatives at a similar price point. Referrals and disclaimers at the bottom.
Amex Basics
I encourage you to read my Why Amex article if you're new to Amex cards in general, but in brief Amex cards generate points they call Membership Rewards points. These are the most flexible and powerful travel points currently available in Canada.
Some programs have fixed point values like Scene+ which are worth 1 cent per point giving you guaranteed value, but no upside. Other programs like Avion let you book through their travel portals for variable values capping out around 2 cents per point. Others still like Aeroplan or Avion's transfer partner Avios allow for widely ranging redemptions from well below 1 cent to well over 4 cents per point, rewarding those who put in the extra effort and are seeking the most luxurious travel.
Amex MRs manage the to best of all of these, with fixed 1 cent per point cash back option, an easy to use travel portal for midranged value, and the ability to easily transfer not only to Aeroplan and Avios, but also can transfer to Air France/KLM, Cathay Pacific, Delta, and Etihad travel points. This allows you to chase aspirational redemptions, while still having reliable value and flexibility, unlike an Aeroplan card which has no guaranteed minimum point value and locks you into Aeroplan's partners. I personally value Amex MR at a 2 cents per point and only redeem them when I'm securing a higher return (my current average is around 3.5cpp).
The Elephant in the Room
The Amex Platinum has always been an expensive card, and a recent rework has made that even more dramatic. It now has positioned itself as the most expensive card widely available in Canada with an eye watering annual fee of $799. Clearly this isn't going to be for everyone, but lets talk about what value you get for that price.
Sign up Bonus
Most card issuers provide sign up bonuses (SUBs) to help offset the cost of the card while you try them out for the first year. Amex in particular has incredibly impressive SUBs, at the time of writing offering 70k MR worth $700 in cash back or easily twice that in travel after a spend of $10k in 3 months (check out the latest offer here). For many people that spend may seem quite high, but if you're only a bit short or on the fence, reach out for a consult and we can discuss if a manufactured spend or timed spending strategy would be effective for you. Assuming you plan to use this card for travel, this sign up bonus easily justifies the cost for the first year, and you can always re evaluate it after that first year. To demonstrate it's value, lets look at some flights through Flying Blue (FB), a 1:0.75 transfer partner ie. those 70k MR could be converted to 52.5k FB points.
An overnight from Toronto (YYZ) to Paris (CDG) could be had for 22k points in economy plus $115.30 USD in taxes/fees.
Meanwhile those tickets purchased in cash:
On the economy end those 22k FB (30k MR transfered 1:0.75) saved you over $650 USD balancing out your annual fee while still leaving 40k MR for the return flight (note that since the time of writing this article the point pricing has increased to 25k for economy, but your SUB would still cover a round trip). The eagle eyed reader will note that the business class ticket offers even more incredible value over 5.6 cents per point and offsetting years of this cards hefty price tag unlocking an otherwise unimaginable flight... but you'd have to save up a few points for the return! The middle ground premium economy option is also worth considering as international premium economy is akin to domestic business class with wider seats, drinks and meals, and the round trip would be much faster to obtain.
While not a first year benefit, the current SUB also includes an additional 30k points for making any purchase between 14 and 17 months of cardmembership. This total 100k points if reasonably well redeemed would balance out 3 years of annual fees, so you could easily decide by the second year if the ongoing benefits are worth it, and if not you can cancel and you'd still be ahead.
Note: current terms and conditions are such that one can not receive the SUB for the personal Gold Amex if they have already received the SUB for the personal platinum. The personal gold offers 5k MR for each month you spend at least $1000 for the first year. You'll have to consider if you want to work through that year long sign up bonus before applying for the Platinum if you want both.
Earn Rate
While the MR system is powerful, valuable, and flexible, the Platinum card is not the strongest earner, earning only 2x on food and travel, 1x on everything else. The far cheaper Amex Cobalt earns 5x on food, 3x on subscriptions, 2x on gas and transit, and 1x on everything else for hundreds less in annual fees. So after the SUB has run out, why would you want to hold onto the Platinum, surely the 2x on travel alone isn't enough? The strongest reason for many is the luxury travel benefits it comes with.
Premium/Luxury Travel Benefits
Continuing the example of the Air France economy flight Toronto to Paris, the experience would be extensively enhances from departure to return for a Platinum card holder.
When you first arrive at Pearson, the card provides free Valet for your parking, and 15% back for parking itself. You then can access priority security line to skip past some of the wait. Then on the other end of security you can access one of the headlining features of the Platinum card, its extensive lounge collection. Free food, drink, and a comfortable place to sit down while you wait for your flight. From rolling up in your car to taxiing on the runway, the Platinum upgrades the experience.
You may have also run into issues making reservations at restaurants overseas before your departure, perhaps due to timezone differences or your work schedule. Amex Platinum provides a concierge service for you that can arrange reservations and more on your behalf.
While abroad you will presumably need a hotel to stay at - the Platinum comes with instant gold status at Hilton and Marriott properties leading to potential late check outs, upgrades and more (Tip: Hilton gold comes with breakfast in many hotels internationally). And if you'd like something even more elevated or use a hotel outside of Hilton and Marriott, their Fine Hotels and Resorts benefit offers a way to get high status level treatment at luxury properties internationally. This includes things like early/late check in, room upgrades, free breakfast, and property credits.
There are also other experience based benefits like priority lines at concerts and theatres (ex. Budwieser stage and Mirvish), early access to tickets, and rebates for concessions.
If thats not enough to justify the ongoing cost, you should also factor in the value of the credits and offers that the card provides.
Credits and Offers
The Amex Platinum comes with a series of annual credits to help offset its ongoing costs. The first is a $200 annual travel credit which can be used through the Amex travel portal to book a flight or hotel for example.
Second is a $200 annual dining credit that can be redeemed against a single dining experience costing over $200 at one list of extremely premium restaurants. This is a perfect example of a premium experience perk that is hard to value for everyone. I'm very unlikely to go to one of these restaurants and and treat myself/spouse/friends to an incredible meal with a high price tag, but I will using this credit to offset the cost. So I'm not really saving $200, but I'm gaining an experience. Interestingly this benefit resets January 1st, so you could potentially double dip on it for your first year.
Third is $100 towards Nexus registration or renewal every 4 years.
Amex offers are harder to predict and value as they vary highly but some examples currently on my card include $20 back on $100 Crave purchase, $6 back on $19.99 with TSN up to 3 times, $10 back with instacart once per month x12, and $120 statement credit back on $600+ Burberry purchase. The value here comes primarily if they happen to line up with things you would already have bought, particularly because they can still be used in conjunction with any sale/coupon or with shopping portals like the Aeroplan eStore to amplify rewards. This shouldn't be the reason you get/keep the card, but after the first year or two of the card you should have a sense of how much additional value you're getting here.
As mentioned above you also receive complimentary valet parking at Toronto Pearson Terminal 1, and 15% credit back for Pearon express park and daily park rates.
Insurances
A primary card should also have strong insurances to conveniently protect you, your family, and your posessions. The Amex Platinum performs well in this category providing similar coverages to competitor Aeroplan or Avion cards with slight variations in terms of terms (eg. Aeroplan has longer medical insurance coverage, but Amex has Travel accident insurance). Given these insurances and the increased earn rate on travel purchases, the Platinum is a good primary card to cover your travel expenses.
Emergency Medical - $5M for 15d if under 65
Cancellation - up to $2500 per person
Interruption -up to $2500 per person
Delay - up to $1000 per person
Baggage delay - up to $1000
Baggage lost or stolen - up to $1000
Travel Accident insurance - up to $500k
Car rental - msrp up to 85k up to 48 days
Hotel Burglary - up to $1000
While the default earn rate is only 1x, you will likely also want to use this card for your expensive semi durable item purchases like electronics given its purchase protections
Purchase seurity - coverage for 120d if stolen or damaged
Warranty - double the base warranty up to 1yr additional
A Little Less Luxury
For those who are attracted to the valuable MR points and travel benefits but cant justify the high annual fee or are unlikely to hit the minimum spend required for the SUB, consider the Amex Gold. It has slightly different earn categories with 2x on gas, grocery, drugstores (a relatively unique category), flights, hotels, car rentals and more, and 1x base. At a $250 annual fee it comes with a $100 travel credit, 4 lounge visits at Plaza Premium lounges, $50 towards a Nexus, and strong insurances. The SUB is 5k points per month with a minimum spend of $1000 for the first year, giving a total of 60k points.
A Note on Acceptance
If you've gotten this far and think its worth giving the Platinum a try knowing that its SUB and annual credits will offset its cost for several years while you experience the luxury benefits... You may or may not be wondering how to manage the fact that this places your primary card in the Amex camp. No longer can you run the simple 2 card approach of "if its food try the Cobalt, if its not food or amex is refused then use my visa/mastercard primary". Instead I would recommend having a third card to fall back on when Amex is refused. That could be one of the aforemention Aeroplan or Avion cards, but I would recommend going for one of the cheaper versions given the higher annual fee on the Platinum. Another option would be a Cash Back card, or perhaps the Scotia Passport Visa Infinite for its no foreign exchange fees and other perks.
Conclusion
The Amex Platinum is certainly worth picking up for a year or two provided you can hit the minimum spend requirement for its SUB. During that time you can experience its luxury benefits and determine the ongoing value from its credits and offers. That 1-2 year period will help you determine if this ends up being a Keeper Card, or if its just one of many in you SUB Hunting Journey. If you're a business owner you should instead consider the Business Platinum, it's earning structure is better suited to most businesses and comes with a higher sign up bonus, while retaining the same luxury perks, lets have a chat to discuss the best business card offers for you.
Referrals
You can find the latest offer for the Platinum card here. to compare all the cards I can refer to, check out my card comparison tool.
If you're considering your first business card, or if you're on the fence and wondering about other cards reach out to me for a free consult. If you sign up for a card through my link, let me know and I will walk you through advanced tricks and personalized advice to help you get the maximum benefit both from earning and redeeming points - getting your travel journey going faster than you ever thought possible.
Check out my Keeper Cards series to see other cards worth exploring
Disclaimer
This should not be taken as financial advice and details are subject to change. I have made good intentioned efforts to be accurate but ultimately consult card terms and conditions
