When Does Using American Express Travel Make Sense?
One important consideration for points and miles enthusiasts is figuring out where to purchase travel in order to maximize rewards. Today, TPG Contributor Richard Kerr looks at Amex Travel to help you decide whether it's a good option for booking your next trip.
Amex has made some changes to its travel portal over the past year, as well as to related benefits on American Express cards that earn Membership Rewards points. In this post, I'll take into account all the recent program updates, ancillary services, benefits and costs to help you decipher when using American Express Travel makes sense.
Cost
The most fundamental consideration is the cost of travel. In March I wrote about how American Express Travel generally does not offer the lowest prices. Furthermore, Amex tacks on booking fees, though these are now waived for anyone with The Platinum Card from American Express. Airfare and package deals (flight + hotel) booked online incur a fee of $6.99 per domestic ticket and $10.99 per international ticket. Hotel and cruise bookings don’t come with booking fees when booked separately from airfare.
If all that matters to you is the bottom line, then you probably already shop around for your flights, prepaid hotels, cruises and vacation packages. Amex Travel could surprise you, but I'd say it's unlikely to offer the best rate.
Service
If you're willing to pay a bit more for great service, then the value proposition changes. I've called American Express Travel many times, and it comes out on top by a wide margin when compared with other travel services, online travel agencies and other credit card travel portals. You can count on quickly reaching a live human who is capable of solving a problem, and that alone can be a lifesaver. I appreciate empowered customer service agents, and I hope American Express doesn't alter this feature moving forward.
Added Hotel/Cruise Benefits
Like many cruise booking sites, American Express Travel frequently offers added perks to attract potential cruise-goers to the site. If Amex offers the most onboard credit, a free specialty dinner or other gratuities that you won't get elsewhere, then the value may be enough to overcome any disparity in price.
Likewise, booking through American Express Fine Hotels and Resorts will give you early check-in, late check-out, breakfast, Wi-Fi, room upgrades (when available) and a unique property amenity. The prices are on par with normal rates, and in practice I have still earned hotel points and elite status credit!
Limited Options
If the airline or hotel that you want to book is not offered by American Express (e.g., Southwest), then obviously it doesn't make much sense to come to the site.
With these basics scenarios covered, let's look at American Express Travel from a points-strategy perspective.
American Express Cardholders
The general public does have access to book through Amex Travel, but American Express cardholders can get significantly more from the service. Membership Rewards cards earn one extra point per dollar spent when booking travel with American Express. Amex bills this as double points, but it really means double base points, so you don't earn double on any spending category bonuses. That extra point is nice, but probably not enough to sway your decision of where to book.
Taking category bonuses into account, American Express Premier Rewards Gold cardholders can earn a total of 4 points per dollar when booking through Amex Travel, since the card earns 3x points per dollar on flights booked directly with airlines to begin with. That's still just one point more than you would earn by booking elsewhere, but the overall return remains impressive.
It's not easy to beat 4x points on travel in one transaction; the question is whether that earning rate makes using the Amex travel portal worthwhile. Obviously if prices are comparable elsewhere, then you may as well book through Amex to get the extra point. Even if you're paying a small premium, it could still be worthwhile. For example, you might pick a flight that costs $1,010 on Amex Travel over the same flight for $1,000 on Orbitz, because the extra 1,000 points you earn are worth more than $10, as shown by TPG's June valuations. If the premium is any higher than about 1.5%, then you're better off saving your cash and using your Membership Rewards card where the price is lowest.
Meeting Goals
I'm a firm believer that when it comes to earning points, you should always be chasing a specific goal. Points make a terrible long-term investment, as you have no guarantee of what they'll be worth tomorrow. If my current award-travel goal (for, say, a transcontinental flight in JetBlue Mint) can be reached more quickly by collecting Membership Rewards points, then I'm more likely to use Amex Travel to earn bonus points. Even if the price offered by Amex is higher, the cost may be offset by the value of the award.
Extenuating Circumstances
Sometimes outside influences may force your hand. If you use American Express for business expenses, or if your small business utilizes the American Express Small Business travel tool, then Amex Travel is the obvious choice. Similarly, if you're forced to fly Delta for all business travel, booking through the American Express travel portal to earn bonus points and then transferring your MR balance to your Delta account can make good sense.
Bottom Line
If you're not a Membership Rewards cardholder and the Amex Travel portal doesn't offer the cheapest price, I don't recommend using it. Otherwise, ask yourself the following questions (in order of importance):
- Am I willing to pay marginally more for better service?
- Am I getting added perks/benefits on my hotel or cruise?
- Are the bonus points I earn by using Amex better than other bonus points I would earn by booking elsewhere?
- Do the points earned by booking through Amex allow me to reach my current award travel goal faster?
- Can I pool the Membership Rewards points I earn together with my current points or miles?
If your answer to one or more of the above questions is yes, then the American Express Travel portal can work for you. If not, then you can be confident that there's a better deal for you elsewhere.
What factors do you consider when using the American Express Travel portal?
[card card-name='Premier Rewards Gold Card from American Express' card-id='22035076' type='javascript' bullet-id='1']
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.