MP and FT costs Amex dearly?

Discussion in 'American Express | Membership Rewards' started by Bluto, Oct 22, 2011.  |  Print Topic

  1. Bluto
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    Bluto Silver Member

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    Perhaps our travel community might have contributed to making Amex pay dearly for all their bonus ID promos this past quarter. I wish they'd break out the line item expense attributable to Milepoint users :) Who wants to "help" Amex get reward expenses up to 50% of discount revenue next quarter?

    From an analyst report on Amex's quarterly results announced this week:

    "Growth in spending is partially driven by the costly rewards Amex offers to its cardholders. While total operating expenses were up 13% from last year, cardholder rewards and services were up 25% from last year, reaching 42% of discount revenue compared with 37% in the prior-year quarter. We think higher rewards are inevitable, especially since the level of competition in rewards is rising."
     
  2. Gaucho
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    Gaucho Gold Member

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    So the question is.... will these numbers mean that Amex will begin diluting benefits and promos to make them less costly....?
     
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  3. uggboy
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    uggboy Gold Member

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    I presume, they will!;)
     
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  4. Lighthouse
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    Lighthouse Gold Member

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    If they do it would be a dilution of points on top of the continuing dilution of points by airlines and hotels..... A double dilution.
     
  5. rwoman
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    rwoman Gold Member

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    It makes me think of the recent changes on SkyMiles Marketplace where purchasing AMEX giftcards (or even others) has become faaaar less attractive...
     
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  6. Gaucho
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    Gaucho Gold Member

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    bad news then.... :(
     
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  7. Gaucho
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    Gaucho Gold Member

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    sounds like what has been going on in the ff game over the past decade...

    :(
     
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  8. Gaucho
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    Gaucho Gold Member

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    it all boils down to the same.... devaluation of points, miles, kilometers......

    the game aint what it used to be.... folks have more currency but its worth far less than 8-10 years ago.... and most of it is hidden devaluation like inventory management and capacity controls, and other small print related issues....

    :mad:
     
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  9. uggboy
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    uggboy Gold Member

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    Because too many do it and AMEX has to control this!:(
     
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  10. uggboy
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    uggboy Gold Member

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    Very bad indeed, as we see this across the board from miles to points, at least for now!:(
     
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  11. uggboy
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    uggboy Gold Member

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    Indeed, the small print seems to be longer these days incl. exclusions, devaluations and more and more hidden infos we shall not overlook, they want to control a much tighter inventory and make it more difficult to earn and burn miles // points etc. at least for now that's what we feel!:(
     
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  12. uggboy
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    uggboy Gold Member

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    That sounds not too promising!:(
     
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  13. NYBanker
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    NYBanker Gold Member

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    Can anyone cite a recent example of AXP playing games like this? The portion of the program that most of us care the most about is 1-1 transfers to airlines, that's a tough ratio to play around with. 1.1 to 1 would be very obvious, and 2 to 1 is too extreme...
     
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  14. milchap
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    milchap Gold Member

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    I hate Amex.
     
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  15. Scottrick
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    Scottrick Gold Member

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    People are easily deceived by large numbers. Amex could offer 3:2 instead of 1.5:1, and the result would be the same. They could also offer larger multipliers for earning at the same time they increase the rewards by a slightly larger factor. It reminds me of looking for a blackjack table in Vegas. You have to be careful sometimes about picking one with the most favorable odds because of the transition from 3-2 tables to 6-5 tables. Some people just see a six and think a big number is better.
     
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  16. Kalboz
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    Kalboz Gold Member

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    ... then why they still advertise on both?
     
  17. ACMM
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    ACMM Gold Member

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    The only cards I use :D

    [From my milePoint enabled iPhone]
     
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  18. NYBanker
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    NYBanker Gold Member

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    Those are all possibilities...and yes, they're good to trick people. Just like the Big6/Big8 at Craps.

    I don't think an Amex point transfer devaluation is likely.
     
  19. NYBanker
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    NYBanker Gold Member

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    Me, too. Amex cards are my principal cards.
     
  20. alohastephen

    alohastephen Gold Member

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    Like anything else, it's a love-hate relationship.
     
  21. miles and smiles
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    miles and smiles Gold Member

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    AMEX just gave me 15K DL miles for 1-2 minutes of my time (upgrading a card that I will cancel in 2-3 months before the fee comes due).
    Free is free and I will take it with appreciation. I have a lot of free flights to look forward to thanks to this mile & point game.
     
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  22. ceieoc

    ceieoc Silver Member

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    AMEX offered a free upgrade to the Delta Platinum card from Delta Gold. I have until October 31st to decide. I was planning on cancelling the AMEX Gold card due to lack of significant benefits for me.
     
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  23. miles and smiles
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    miles and smiles Gold Member

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    We got the same offer. I will cancel it when the annual fee comes up in Dec.or Jan. as I never use the card. A different AMEX is my primary card, and I have had a very good relationship with AMEX for a long time. So, if they want to give me more miles, I am happy to receive them.
     
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  24. DLroads
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    DLroads Gold Member

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    I am cancelling AMEX delta plat. because enough is enough. Almost 8 years with the card, but I can't take the devaluation anymore. I asked if I can "convert" the card to a different one and get the welcome points (i.e. hotel program, or something...) will have to get a new card and not just transfer ###. That's the annoying part- my credit history has few long standing cards, and this is one of them.
     
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  25. rajuabju
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    rajuabju Gold Member

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    But isnt the devaluation you are speaking of the result of actions by Delta, not AMEX?

    Personally, I cancelled my Amex SPG Card earlier this year, and going to cancel my Premier Gold early next year. Still keeping my no fee Hilton and Blue cards.
     

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