Do badly chosen American Express promotions cheapen their brand?

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I accidentally started a mini-debate at Flyertalk yesterday when I criticised a new American Express promotional offer.

If I take a look at my American Express Platinum account online, two new cashback deals have appeared:

£20 cashback when you spend £100 at Premier Inn (expires 16 December, 5000 cardholders only)

£50 cashback when you spend £100 at Thistle or Guoman Hotels (expires 16 December, 10000 cardholders only)

These offers follow on from the classic:

£10 cashback when you make any transaction with Ryanair (expires 31 October)

Whilst I have these offers on my Platinum card, you may well find them showing under your BA or SPG Amex account. The Thistle / Guoman deal would probably work on a large bar bill or a restaurant meal, depending on how it is processed by the hotel, and for one of their regional hotels represents a pretty decent deal.

The issue I raised at Flyertalk was this – ‘Is Amex diluting the Platinum card brand with offers like these?’

Or, looked at another way, is offering someone a discount at Premier Inn really a good way of convincing them that Amex understands their Platinum customers and that their £450 fee is well spent?

I booked two nights in an upmarket hotel yesterday using the American Express Platinum ‘Fine Hotels & Resorts’ programme. That is the sort of benefit that I expect and appreciate from Platinum – it got me free breakfast and a guaranteed 4pm check-out, which I needed.

Let’s be clear. I don’t have anything against Premier Inn (I stayed in one last year and was very positive about it) or Ryanair, who I flew many times when they used the airport nearest my parents in law. I stayed in enough dingy B&B’s when I was younger to appreciate the revolution in low-cost lodging that Premier Inn, Travelodge, Holiday Inn Express etc have brought about. I also grew up in an era when flying was too expensive for the average family, and I admire Ryanair’s part in changing that.

What I don’t understand is why American Express fails to understand how deals like this distort the Platinum brand. You could argue that ‘the more the merrier’ – Amex should throw out as many deals as it can negotiate and if the majority are irrelevant to your lifestyle then so be it. However, you can also argue that Amex should be presenting me with a carefully curated set of offers.

(Here is another way of looking at it. If Ryanair or Premier Inn attempted to advertise in Vogue or GQ, they would be told to go away. Publications like that understand that their advertisers help the set the tone for the whole package and need to be curated in the same way as the editorial.)

The irony, of course, is that – as a card company – Amex knows exactly where its Platinum cardholders shop and is better placed than any other luxury brand to serve up promotions which hit the spot perfectly. But they don’t ….

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This article is closed to new posts. Discussion continues in the HfP Forums.

callum says:

14 Oct14 October 13:53

Seems incredibly snobby to me. You’re a platinum card holder and you’ve stayed in Premier Inn hotels. What makes you think you’re unique in that respect? I’m sure many have stayed in Premier Inn’s and many will in the future.

Conversely, I can’t imagine many people existing who would be so insulted at the suggestion by Amex that they might stay in a Premier Inn they’d get rid of the card.
- Rob says:
  
  14 Oct14 October 15:46
  
  It isn’t snobby at all. The discussion – as per the headline – is effectively about branding and whether Amex is messing it up. They have, after all, spent huge amounts of money in the past to ‘position’ Platinum through their advertising.
  - oyster says:
    
    14 Oct14 October 16:02
    
    There’s certainly a dichotomy between the appearance they like to portay from the magazine that gets sent out to Plat holders, versus some of the offers.
    
    Actually I think it’s the magazine that’s out of sync rather than the offers.
    
    Most of the people I’ve known with Amex plats are not wealthy enough to buy £10k watches or second homes in Bermuda. But do stay in premier inns and travel places occasionally on budget carriers.
    - Alan says:
      
      14 Oct14 October 17:28
      
      Agreed, they portray it as a luxury brand in the magazine yep have offers that certainly aren’t! They should obtain and advertise decent offers (like the MASH one) that fit with their brand and reward those paying a large annual fee, but allow everyone to register for these more routine offers, perhaps making use of the 4sq setup again.
      
      I’m still peeved that paying 3x the fee of the PRG card provides you with *less* MR points – 1 per GBP is pretty poor.
      - Polly says:
        
        14 Oct14 October 18:07
        
        I agree, it is a strange anomaly. The agents almost seem to value the PRG customers better than the Plat members. I have found better service when calling about the former. Anyway, keep the offers rolling in.
        
        BTW the comments below are not in the spirit of the blog. Bet you benefit from the advice in this blog. Once again, it is his personal opinion expressed in his blog, keep the snipes to yourselves. Keep on highlighting the offers Raffles, it’s much appreciated by the majority.
      - callum says:
        
        14 Oct14 October 19:25
        
        I don’t really benefit from the blog no, as I’m sufficiently experienced to already know this stuff already, or find out before it’s published here. I do enjoy reading it,(otherwise why would I be here!) but that doesn’t mean I need to bow down to them and agree with everything they say.
        
        As to the protest against this being snobbery, I simply do not accept that (not that I’m saying it makes you a snob!). Worrying about how you look because of an association with something seemingly down-market is the very definition of snobbery!
        
        The Premier Inn isn’t some down-market hovel, it’s a basic reasonably priced hotel chain and I’m sure numerous Platinum holders either have, or would consider, a stay in one. You yourself have said you have…
grex9101 says:

14 Oct14 October 16:02

It is snobbery I’m afraid.

You can argue until you’re blue in the face that it’s just poor targeting for Amex, but you’d be the first to squeal when the platinum card was barred from a half price deal at Poundland when you had been planning to get some oh – so – ironic poor people’s food for your fancy dress party. Heaven forfend the proletariat have a platinum Amex! Don’t they know their place?!
- Jason says:
  
  14 Oct14 October 20:13
  
  Have you been thinking of that one all day 🙂
Rob says:

14 Oct14 October 17:22

Don’t bet on it!
sandgrounder says:

14 Oct14 October 19:41

Didn’t the Ryanair offer tie in with the new flex tickets? Seems like a good strategy to get business travellers to give it a go. Who pays for these offers anyway? If you want to reach out to Plat holders, you should be free to have a go.

I don’t think it is particularly exclusive now- 40k between a couple is poverty wages in London. It’s mainly for the savvy who use the travel benefits to the max, and the classy people who love something shiny to flash about. I bet they don’t get the reaction my red card did in the States though! 🙂
squills says:

14 Oct14 October 20:29

O/T Hmm Sainsbury’s to halve Nectar reward points for shoppers
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11161938/Sainsburys-to-halve-Nectar-reward-points-for-shoppers.html
- Mr Bridge says:
  
  14 Oct14 October 22:32
  
  there was me worrying about world war 3, and it seems sainsburys will thrust the world into poverty.
  Will tesco follow, or will it go mad and double cc points?
  - squills says:
    
    14 Oct14 October 22:43
    
    Exactly, I posted it with Mr T in mind, Mr B.
    
    ? Quo vadis?
    
    Best we can hope for is the fabled Tesco bonus conversion to Avios, is my considered opinion. This time a paltry 750?
C77 says:

14 Oct14 October 21:28

I used to work for them – bet on it!
- Andrew says:
  
  15 Oct15 October 18:44
  
  I did just this, and got a credit applied 🙂
  
  Customer service is first rate btw…
Mark says:

15 Oct15 October 00:10

Does it really “expire 16 December 5000 “? Do you expect to live that long?!
Tt says:

15 Oct15 October 00:34

Money can’t buy taste. Who is to say that the £450/yr subscribers are actually any classier than anyone else – especially with the likes of me using it on your advice!