American Express® Updates U.S. Consumer Gold Card with New Benefits and Limited-Edition White Gold Card Design

Rhea-AI Summary

American Express (NYSE: AXP) has updated its U.S. Consumer Gold Card with new benefits and a -edition White Gold Card design. The refresh includes:

1. A new $100 Resy Credit for eligible U.S. Resy restaurant purchases
2. An $84 annual Dunkin'® Credit
3. An updated $120 Dining Credit now including Five Guys
4. Expansion of The Hotel Collection to over 1,000 properties globally

These additions complement existing benefits like $120 Uber Cash, 4X points at restaurants worldwide, and 4X points at U.S. supermarkets. The annual fee will increase to $325 from $250, effective October 1, 2024, for existing members. A -time welcome offer of 60,000 Membership Rewards points is available for new eligible Card Members until November 6, 2024.

Positive

• Introduction of new credits: $100 Resy Credit and $84 Dunkin'® Credit annually
• Expansion of $120 Dining Credit to include Five Guys
• Increase in The Hotel Collection properties from 700 to over 1,000 globally
• -time welcome offer of 60,000 Membership Rewards points for new eligible Card Members

Negative

• Annual fee increase from $250 to $325, effective October 1, 2024, for existing members

Insights

Financial Analyst

The refreshed American Express Gold Card represents a strategic move to enhance customer value and retention in a competitive credit card market. While the new benefits are attractive, the increased annual fee from $250 to $325 is a significant change that warrants attention.

The addition of the $100 Resy credit and $84 Dunkin' credit, along with the expansion of the existing $120 dining credit, aligns with American Express's observation of strong restaurant spending among Millennials and Gen Z. This targeted approach could potentially increase card usage and loyalty among these key demographics.

However, the 30% increase in the annual fee may offset some of the added value for consumers. It's important to note that the fee hike for existing cardholders won't take effect until October 1, 2024, giving American Express time to demonstrate the enhanced value proposition.

The expansion of The Hotel Collection to over 1,000 properties globally could boost travel-related spending on the card, potentially increasing American Express's revenue from merchant fees and partnerships.

While these changes are noteworthy, they are unlikely to have a significant immediate impact on American Express's stock price. The company's overall financial health, broader market conditions and long-term performance of this product refresh will be more influential factors for investors to consider.

Market Research Analyst

American Express's decision to refresh the Gold Card is a calculated response to evolving consumer behaviors and preferences. The focus on dining and travel benefits aligns with post-pandemic trends, where consumers are eager to dine out and explore new destinations.

The addition of popular brands like Dunkin' and Five Guys to the card's benefits roster is a smart move. These widely accessible chains appeal to a broad demographic, potentially increasing daily card usage and top-of-wallet status among cardholders.

The -edition White Gold Card design is an intriguing marketing tactic. Such exclusive offerings can create buzz and drive new sign-ups, especially among younger consumers who value unique experiences and aesthetics.

However, the increased annual fee could be a double-edged sword. While it may be justified by the added benefits, it also risks pricing out some current and potential customers, especially in an inflationary environment where consumers are becoming more cost-conscious.

The expanded Hotel Collection offerings cater to the growing desire for experiential travel, potentially positioning American Express to capture a larger share of the rebounding travel market.

Overall, this refresh demonstrates American Express's agility in adapting to market trends and consumer preferences. The success of these changes will largely depend on how effectively they're communicated to both existing and potential customers and whether the perceived value outweighs the increased cost.

NEW YORK--(BUSINESS WIRE)-- American Express (NYSE: AXP) today announced it has refreshed the U.S. Consumer Gold Card with new credits for spending at U.S. Resy restaurants and Dunkin’®, an updated dining credit, and an expanded number of properties that Card Members can choose from when using the Card to book stays through The Hotel Collection. These are on top of the existing travel and everyday benefits that give Card Members access to more than $400 in annual value. New U.S. Consumer and U.S. Business Gold Card Members can choose a new limited-edition White Gold Card design available while supplies last, in addition to Gold and Rose Gold Card designs.

American Express® Updates U.S. Consumer Gold Card with New Benefits and Limited-Edition White Gold Card Design (Photo: Courtesy of American Express)

“We’re seeing particularly strong restaurant spend with Millennial and Gen Z consumers, which is our fastest growing customer segment,” said Howard Grosfield, President, U.S. Consumer Services at American Express. “The new Gold Card delivers more value to Card Members for doing what they love to do like grabbing their morning coffee at Dunkin’, dining at U.S. Resy restaurants and traveling with friends.”

Since the last refresh in 2018, restaurants have emerged as a top spending category for Gold Card Members. Favorite benefits include the annual $120 Dining Credit and $120 Uber Cash credit benefits on the Gold Card. They are also looking for more value for what they already spend on their Cards, and they want it to be easy to get.

New and enhanced benefits include:

• New $100 Resy Credit: Get up to $100 in annual statement credits ($50 semi-annually) after using an enrolled American Express Gold Card on eligible purchases made at eligible U.S. Resy restaurants, Resy.com, and in the mobile Resy app.
• New $84 Dunkin’® Credit: Get up to $84 per year ($7 per month) in statement credits after using an enrolled American Express Gold Card to pay at more than 9,000 Dunkin’® locations nationwide.
• Updated $120 Dining Credit: Starting today, American Express is adding Five Guys, with over 1,500 locations nationwide, to the $120 Dining Credit that includes Grubhub, The Cheesecake Factory®, wine.com and Goldbelly, making this even easier to use with access to more locations.
• Hundreds of New Hotels in Top Destinations: The Hotel Collection, one of American Express Travel’s signature hotel programs, has expanded to over 1,000 properties globally, including more than 300 new properties added to the program this year in 50 new top destinations Card Members want to visit, like Tuscany, Italy; Moab, Utah; and Sapporo, Japan. When travelers book two or more nights at these hotels through American Express Travel, they are eligible to receive a room upgrade upon arrival, noon check-in, and late check-out, which are all subject to availability¹. These benefits are in addition to a complimentary credit valued at $100 to use towards eligible charges, which may include food and beverage, spa, or other on-property charges.²

These updates are in addition to the Card’s existing set of Membership benefits:

• $120 Uber Cash: Add the U.S. Consumer Gold Card to your Uber account to receive $10 in monthly Uber Cash credits (up to $120 annually) towards Uber Eats or Uber Rides in the U.S.
• 4X points at restaurants worldwide, plus takeout and delivery in the U.S. on up to $50,000 in purchases per year.
• 4X points at U.S. supermarkets on up to $25,000 in purchases per year.
• 3X points on flights booked directly with airlines or on amextravel.com.
• 2X points on prepaid hotels, car rentals and cruises booked on amextravel.com.
• 1X points on other eligible purchases.
• Amex Offers: Enroll to add offers and get rewarded on eligible purchases with select brands.
• No foreign transaction fees. See rates and fees here.

Starting July 25, the Gold Card fee will increase to $325 (from $250). For existing Card Members, the new annual fee will take effect on the Card Members’ annual renewal date starting October 1, 2024, on a rolling basis. See rates and fees here.

To celebrate the refreshed Gold Card, a limited time welcome offer of 60,000 Membership Rewards points plus 20% back on restaurant spending worldwide, up to $100, will be available for new eligible Card Members starting today through November 6, 2024. Terms and conditions apply.

To learn more about the refreshed U.S. Consumer Gold Card, visit here.

¹Certain room categories are not eligible for upgrade.

²Eligible charges vary by property.

ABOUT AMERICAN EXPRESS

American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, X.com/americanexpress, and youtube.com/americanexpress.

Key links to products, services and corporate sustainability information: personal cards, business cards and services, travel services, gift cards, prepaid cards, merchant services, Business Blueprint, Resy, corporate card, business travel, diversity and inclusion, corporate sustainability and Environmental, Social, and Governance reports.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725920943/en/

MEDIA

Elizabeth Crosta

elizabeth.crosta@aexp.com

Source: American Express

FAQ

What new benefits does the American Express Gold Card (AXP) offer in 2024?

The American Express Gold Card now offers a $100 annual Resy Credit, an $84 annual Dunkin'® Credit, an updated $120 Dining Credit including Five Guys, and expanded access to The Hotel Collection with over 1,000 properties globally.

How much will the American Express Gold Card (AXP) annual fee increase in 2024?

The American Express Gold Card annual fee will increase from $250 to $325, effective October 1, 2024, for existing members.

What is the welcome offer for new American Express Gold Card (AXP) members in 2024?

New eligible American Express Gold Card members can receive 60,000 Membership Rewards points plus 20% back on restaurant spending worldwide (up to $100) until November 6, 2024.

What are the point earning rates for the refreshed American Express Gold Card (AXP)?

The American Express Gold Card offers 4X points at restaurants worldwide and U.S. supermarkets (up to $25,000 per year), 3X points on flights booked directly with airlines or on amextravel.com, and 1X points on other eligible purchases.