Amex, Chase credit card lounge battle moves beyond the airport

An airport lounge — without the security screening or boarding pass.

Credit card companies American Express and Chase are increasingly waging their luxury lounge wars outside the airport. From an air-conditioned retreat in the middle of the desert at Coachella to an exclusive athlete meet-and-greet at the Paris Olympics, these companies are investing big in premium hospitality spaces to win over affluent cardholders. 

“It’s very expensive, but I think what’s happening is that the issuers are finding that this is a premium differentiator,” said Donald Fandetti, managing director of consumer finance equity research at Wells Fargo. “It’s all about providing these services and experiences that make it worth it to the cardholder to pay those annual fees.”

American Express’ Platinum and Chase’s Sapphire Reserve cards — the leading premium cards in the market — both upped their annual fees last year. The Amex Platinum now carries a fee of $895 a year, and the Sapphire Reserve has a fee of $795. 

The perks associated with these cards, like dining credits, hotel upgrades and digital partnerships, help offset the cost. It’s all an effort to capture and retain the highest spenders. Amex and Chase have jockeyed for years to be the preferred card for the American elite.

More and more, access is making the difference.

“Credit cards [with] higher fees, it’s going to send a certain signal. But what we really need to be making sure is that we’re understanding the psychology of exclusivity” said Dan Bennett, head of behavioral science at Ogilvy Consulting. “It’s easy to say, ‘I have lots of resources.’ It’s harder to say, ‘I have enough social capital to earn my way into spaces.'”