American Express US has substantially increased the cost of adding authorized users on the American Express US Platinum Card.
The intention behind the fee hike is likely to alleviate lounge overcrowding, which has become an issue at its Centurion Lounges, amongst others.
Increased Authorized User Fees on the American Express US Platinum Card
As of today, there are higher fees for adding authorized users on the American Express US Platinum Card.
In the past, cardholders could add up to three authorized users for a flat fee of $175 (all figures in USD). This worked out to be just around $58 per person.
Now, the cost has been raised to $195 per authorized user.
Therefore, if you were to now add three authorized users to your account, the total cost would be $585, which is indeed a substantial increase of $410 compared to before.
It’s worth noting that the fee increase only affects new cardholders who add authorized users as of August 17, 2023.
Existing cardholders won’t be affected by the authorized user fee increased until after their next cardholder anniversary date.
Furthermore, this change is only happening to the American Express US Platinum Card, and not the American Express US Business Platinum Card, which already costs $350 per authorized user.
Will Increased Authorized User Fees Affect Lounge Overcrowding?
One of the best ways to maximize the American Express US Platinum Card was to add three authorized users for the flat fee of $175.
This is because authorized users enjoy the same lounge access benefits as the primary cardholder.
In addition to lounge access, authorized users also get access to the American Express Fine Hotels & Resorts Program, as well as Marriott Bonvoy Gold and Hilton Honors Gold status.
Rather than having four people pay the $695 annual fee each to enjoy the above benefits, authorized users cost just $58 each, which was an incredible way to get lounge access and hotel status for a bargain.
However, many lounges in the United States and elsewhere have been experiencing overcrowding issues. Centurion Lounges in the United States have been particularly susceptible to overcrowding, and guests often experience long wait times to enter.
With this drastic increase in authorized user fees, it’ll likely dissuade some cardholders from having three authorized users just for the sake of getting lounge access.
Going forward, it’s likely that fewer cardholders will continue to have three (or more) authorized users on their accounts, given the significantly greater cost. If this is the case, then fewer travellers will have access to lounges, which could reduce overcrowding issues.
It’s important to note that this impact won’t be seen immediately, because the rate hike will only impact users on their next cardholder anniversary date.
One year from now, after all existing cardholders have decided whether to keep authorized users at the elevated price, we’ll have a better gauge as to the effectiveness of the price increase.
Conclusion
It’ll now cost substantially more to add authorized users to an American Express US Platinum Card account. The cost has increased from a flat fee $175 for up to three authorized users to $195 per authorized user.
This measure was likely put in place to dissuade cardholders from having multiple authorized users for the sake of getting lounge access.
While there likely won’t be an immediate reduction in overcrowding at lounges, we’ll find out over the coming year if raising the cost of adding authorized users has a tangible impact on crowded lounges or not.
