New USA Centurion Fees - Just confirmed on the phone
#1
Original Poster
Join Date: Jan 2005
Location: San Francisco, California
Programs: Amex Centurion, United Global Services
Posts: 847
New USA Centurion Fees - Just confirmed on the phone
After seeing some people talking about raising the annual fees for Centurion card holders, I hopped on the phone to customer service and the first person claimed to have no knowledge of any changes, but the second one knew exactly what the deal is:
Starting May 1st, *new* Centurion Card members will be charged a US$5000 initiation fee - a one time charge - then the annual fee after that will be $2500.
Holy godzooks. She confirmed that *existing* members will not have any change of fees, including those of us that were grandfathered in at the original $1000 fee.
It is an interesting change in the way they are doing memberships - rather than bury it in the annual fee they are charging you a "friendship" fee of $5k, as well as the $2500 a year.
When I asked why the unusual pricing model, she said it was because of a lot of the benefits are expensive to them up front, and this helps absorb the costs.
I wonder how this is going to change new cardholders? I suppose it will be more of a status thing, basically saying "I have $5k of totally expendable income." This has to be a deep cut into new card members, as seen in postings on the forums, the $2500 took some serious rationalization.
Thoughts?
--Doug
Starting May 1st, *new* Centurion Card members will be charged a US$5000 initiation fee - a one time charge - then the annual fee after that will be $2500.
Holy godzooks. She confirmed that *existing* members will not have any change of fees, including those of us that were grandfathered in at the original $1000 fee.
It is an interesting change in the way they are doing memberships - rather than bury it in the annual fee they are charging you a "friendship" fee of $5k, as well as the $2500 a year.
When I asked why the unusual pricing model, she said it was because of a lot of the benefits are expensive to them up front, and this helps absorb the costs.
I wonder how this is going to change new cardholders? I suppose it will be more of a status thing, basically saying "I have $5k of totally expendable income." This has to be a deep cut into new card members, as seen in postings on the forums, the $2500 took some serious rationalization.
Thoughts?
--Doug
#2
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#3
Join Date: Oct 2004
Posts: 1,542
My guess is that this has to do with the fact that more and more people are requesting the Centurion card, rather than waiting for an invite. Amex feels they will be willing to pay this fee. Let's face it, if you're charging $250K a year and paying $2500 annually, another 5K really isn't a big amount.
I worked at the Amex Members Lounge at the Short Hills Mall this holiday season. The number one question I was asked was, "How do I get the black card?" Interesting note as well: the signage that Amex provided to the front desk had pictures of all the cards that could be used to gain entrance into the lounge, including the Centurion. It was the first time I'd seen any sort of "admission" by Amex that the card even exists.
I worked at the Amex Members Lounge at the Short Hills Mall this holiday season. The number one question I was asked was, "How do I get the black card?" Interesting note as well: the signage that Amex provided to the front desk had pictures of all the cards that could be used to gain entrance into the lounge, including the Centurion. It was the first time I'd seen any sort of "admission" by Amex that the card even exists.
#4
Join Date: Dec 2006
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#5
Join Date: Feb 2005
Location: BNE
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FWIW - In Australia, the Centurion has jumped from AU2800pa to AU4300pa.
Best part is, according to the lack of information accompanying the new card (the metal one) the benefits seem to have decreased...
Best part is, according to the lack of information accompanying the new card (the metal one) the benefits seem to have decreased...
#7
Original Poster
Join Date: Jan 2005
Location: San Francisco, California
Programs: Amex Centurion, United Global Services
Posts: 847
I was rather surprised that the first person I called had absolutely no knowledge of it and I asked the question several different ways.
I hung up and called back and the second person knew it so well it was as if she had the memo in front of her.
The other thing I wondered after I hung up was if this fee would be charged to new additional cardholders on your account (ie: spouse) if you were an existing holder, like if I've had the card for years and after May add my daughter, does she have to pay $5k?
Also, for new members, does the $5k cover you and any additional cards, or is it $5k per card? I'd guess the $5k is for the primary cardholder, and additional cards could be added at $1500 per person, like it is now for the non-grandfathered.
#8
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#9
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#10
Original Poster
Join Date: Jan 2005
Location: San Francisco, California
Programs: Amex Centurion, United Global Services
Posts: 847
I worked at the Amex Members Lounge at the Short Hills Mall this holiday season. The number one question I was asked was, "How do I get the black card?" Interesting note as well: the signage that Amex provided to the front desk had pictures of all the cards that could be used to gain entrance into the lounge, including the Centurion. It was the first time I'd seen any sort of "admission" by Amex that the card even exists.
#11
FlyerTalk Evangelist
Join Date: Jun 2006
Location: IAD/DCA
Posts: 31,797
initiation fees are not that big of a deal IMHO.
sure itd be nice not to have it, but its only a one time fee.
i presume this means theyll be starting to do it in more countries. i believe its asia that theyve had it so far, now USA, probably EU to follow..
sure itd be nice not to have it, but its only a one time fee.
i presume this means theyll be starting to do it in more countries. i believe its asia that theyve had it so far, now USA, probably EU to follow..
#12
Join Date: Feb 2005
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Feel its a bit slash and burn. I remember getting Plat thinking part of the attraction was it was "invite only" (that's what they told me). Within weeks it was available to all comers subject to a routine credit check.
Just a ratchet job.
#14
Join Date: Oct 2004
Posts: 1,542
We usually had 6 or 7 each day, out of a few thousand total cards. The funniest part was that there would always be someone who would throw it down on the counter and say, "I'll bet you've never seen one of these before!" ("Yeah, other than the one in my wallet" was what I wanted to say...) The platinum cardholders, however, were usually the most obnoxious.
#15
Join Date: May 2006
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We usually had 6 or 7 each day, out of a few thousand total cards. The funniest part was that there would always be someone who would throw it down on the counter and say, "I'll bet you've never seen one of these before!" ("Yeah, other than the one in my wallet" was what I wanted to say...) The platinum cardholders, however, were usually the most obnoxious.
Anyway, eveeeryone in NY Metro who wants one has one, they're a dime a dozen, nothing to be impressed by and I'm surprised people would do that.