I've got a real love-hate relationship with my Amex Platinum card

Core Insights - American Express (Amex) is enhancing its Platinum card by adding new benefits valued at up to $3,500, while increasing the annual fee from $695 to $895, representing a 29% hike [1][5][12] - The company is targeting a younger demographic, with Millennials and Gen Z making up about 60% of new customers, as it shifts from a travel-focused card to a lifestyle card [2][4] - Amex's strategy includes retaining existing benefits while introducing new credits for various merchants, aiming to attract affluent customers and maintain a high retention rate of 98% for the Platinum card [1][7][10] Company Strategy - Amex is positioning the Platinum card as a luxury product, appealing to a high-end market while also attempting to reshape consumer spending habits around its merchant partners [11][12] - The company is investing in expanding its lounge offerings, including new locations and a smaller lounge concept, to enhance the customer experience [14] - Amex's partnerships with merchants are designed to offset the costs of rewards, with merchants contributing over a quarter of the overall rewards cost [10] Market Dynamics - The credit card market is becoming increasingly stratified, with premium rewards cards serving as status symbols, which may alienate some consumers who feel overwhelmed by the complexity of benefits [3][16] - Despite the fee increase, many customers express a willingness to pay for the perceived value of the benefits, indicating a strong brand loyalty among existing users [9][12] - The competitive landscape includes other premium cards like Chase Sapphire Reserve, which also cater to affluent consumers, highlighting the ongoing battle for market share in the luxury credit card segment [4][10]