The short answer
Premium perks got expensive (lounges, partner reimbursements, richer credits), the “perk arms race” escalated, inflation raised every input cost, and enough cardholders happily pay for status and convenience to make higher annual fees stick. Result: headline prices climbed—and will keep testing the ceiling.
What changed since the last cycle
Lounges: record crowds, higher costs, tighter rules
Airports are busier than ever; lounge build-outs, leases, and staffing aren’t cheap. Networks also tightened access (visit caps, time windows), which tells you demand > capacity. Example: Delta Sky Club moved to a visit-based system and time limits, and Amex/Delta access rules now throttle unlimited drop-ins.
The perk arms race (and why it’s pricey)
Amex, Chase, and Capital One keep stacking credits and experiences to differentiate—think dining platforms, hotel credits, portal boosts, and new lounge footprints. Amex’s refresh leans hard into dining via Resy/Tock and bigger hotel credits; those benefits aren’t free to run.
Rewards cost more to fund
To acquire and keep high-spend customers, issuers have raised earn rates, portal multipliers, and retention value. When inflation pushes prices up 20%+ since 2021, loyalty economics follow—richer earn/burn and higher fulfillment costs show up in annual fees.
2025 reality check: the headline fee moves
- Amex Platinum: U.S. annual fee increased to $895 (effective now for new applicants; early 2026 for many existing cardholders), packaged with expanded dining and hotel credits and more lounge development
- Chase Sapphire Reserve: annual fee increased to $795 for new applications (June 23, 2025) and on/after Oct 26, 2025 for existing cardholders at renewal; launched alongside a broader perk refresh.
Translation: issuers aren’t shy about pricing power when the perk stack and brand still “feel” premium—and when travel-active customers can do the break-even math and stay.
Why issuers feel fine raising prices
A specific slice of cardholders maximizes perks and redeems through bank portals/partners at above-average value. They drive big swipe volume and brand stickiness. Everyone else? Many keep the card anyway—for FOMO, the metal flex, or the hope they’ll “use it more next year.” That willingness-to-pay props up the model. (The lounge caps and dynamic terms are the tell: demand remains strong.)
How to evaluate a 2025-era premium card (no-nonsense checklist)
- Start with lounges. If you fly <6–8 roundtrips a year or your home airport lacks your card’s lounges, the perk stack probably won’t pencil out. Also factor visit/time limits.
- Value the travel credits at your real usage. Can you fully use dining/hotel/ride credits without contortions? If not, haircut them—50–70% is more honest for most people.
- Redemption math > earn rates. Compare bank-portal uplift vs. partner transfers for your trips; issuer refreshes can tilt value toward their portals.
- Expect rule drift. Guest limits, visit caps, dynamic pricing spillovers—assume terms will tighten, not loosen. Build cushion into your break-even.
- Add inflation reality. Higher hotel/air prices can make credits easier to use—but also raise the baseline cost of travel you’re subsidizing.
Quick break-even example (sanity check)
- Annual fee: $795–$895
- Useable value (conservative): $300 travel credit (you’d pay this anyway) + $250 realistic dining usage + $150 lounge value (3–4 visits you’d otherwise buy) + $200 net from points redemptions uplift = ~$900
If your realistic total < fee, you’re subsidizing someone else’s status game.
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Bottom line
Rising fees are a logical outcome of pricier perks, crowded lounges, and a competitive rewards market. If you don’t consistently extract value from lounges, travel credits you’d actually use, and elevated redemptions, you’re paying tuition for somebody else’s first-class selfie.
