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Wednesday, May 29, 2019

AmEx will cut one of the airport lounge benefits on its premium cards, giving Chase cardholders the advantage

AmEx will cut one of the airport lounge benefits on its premium cards, giving Chase cardholders the advantage

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  • American Express has announced that the Priority Pass membership that comes with some of its cards, like the Platinum Card® from American Express, can no longer be used for credits at Priority Pass-affiliated airport restaurants and bars.
  • Now, the Priority Pass membership can only be used for lounge access, subject to capacity controls.
  • The Chase Sapphire Reserve, which also offers a complimentary Priority Pass membership, does not have similar restrictions.

American Express is eliminating Priority Pass restaurant credits on all of its premium credit cards that offer a Priority Pass lounge membership.

Many premium US credit cards, including the Platinum Card from American Express and the Chase Sapphire Reserve, offer access to select airport lounges. There are a few different types of lounges, but most of these cards come with a membership in Priority Pass, a network of more than 1,000 airport lounges around the world.

As the Chase Sapphire Reserve popularized premium credit cards within the US, and the AmEx Platinum saw increasing membership, Priority Pass-affiliated lounges in the US have become increasingly crowded as the number of passengers with access has gone up.

To combat overcrowding, and offer value to members, Priority Pass has begun partnering with "non-lounge experiences" in airports, such as restaurants, and offering cardholders a credit of $25–$30 on their bill. This has largely been successful; While lounges can remain crowded, people are more likely to head to terminal restaurants before their flights instead.

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However, this benefit is typically more expensive to provide than lounge access. Consequently, American Express is no longer allowing cardholders with complimentary Priority Pass memberships to use those at non-lounge experiences.

According to a statement provided by American Express, starting August 1:

    • As our lounge access benefits are intended to provide Card Members with a premium lounge space to relax and unwind in while traveling the globe, the Priority Pass Membership benefit offered on American Express Platinum and Centurion Cards and Hilton Ascend, Hilton Aspire, and Marriott Bonvoy Brilliant™ Cards will no longer include complimentary access to non-lounge airport experiences
    • Non-lounge airport experiences and outlets include but are not limited to restaurants, cafés and bars where a food and beverage credit is offered as an alternative to entrance into a traditional airport lounge.
    • Eligible Card Members may continue to gain access to Priority Pass lounge locations as well as select sleeper suites via the Priority Pass Membership benefit provided on their Card.

The restaurant credit can be expensive for Priority Pass — or, by extension, the credit card provider funding a cardholder's Priority Pass membership. For each $28 credit that Priority Pass gives a restaurant, Priority Pass pays the restaurant $23–$24, which is billed back to the card issuer, according to reporting by blogger Gary Leff. This is significantly more expensive than what traditional lounges are reimbursed for each Priority Pass visit.

While the AmEx Platinum is generally more useful for lounge access, this gives the Priority Pass membership that comes with the Chase Sapphire Reserve a distinct advantage — Chase does not currently restrict the locations at which that membership can be used.

A spokesperson for Chase confirmed to Business Insider that there are no updates to the Sapphire Reserve's Priority Pass benefit planned at this time. However, she did not rule out future changes.

Click here to learn more about the Chase Sapphire Reserve from Business Insider's partner, The Points Guy.

SEE ALSO: The best credit card rewards, bonuses, and benefits of 2019

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May 28, 2019 at 06:56PM

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