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American Express launches a new credit card for jet-setters — with a $450 annual fee

American Express has a new idea for retaining the jet set glad.

The company AXP, +Zero.61%  introduced a new card Monday, the Starwood Preferred Guest (SPG) American Express Luxury Card. The card is aimed at American Express’s “maximum top class and often-traveling, globetrotting” shoppers, stated Courtney Kelso, senior vp of U.S. business playing cards at American Express. It also comes with a hefty annual price of $450.

The new card arrives as American Express has faced some drive from competitors, together with the Chase Sapphire Reserve card JPM, -Zero.08%   and the Citi Prestige Card C, -1.32%

In 2016, American Express had 23% of the U.S. marketplace share by way of credit-card purchase volume, according to The Wall Street Journal, down from 26% in 2011. It has lost several co-branded playing cards in its portfolio in recent times, together with playing cards with Costco COST, +three.00%  and JetBlue JBLU, +1.33%

One unfastened hotel stay every year

The new card debuts in August and is derived with an annual perk designed to make shoppers dependable: One unfastened hotel stay at collaborating SPG and Marriott Rewards MAR, +1.84% accommodations at the anniversary of the day the client opened their account. That one night time can be at or underneath the price of 50,000 issues.

It also comes with a $300 remark credit each 12 months, which cardholders can use for any purchases at collaborating SPG and Marriott Rewards accommodations, equivalent to eating, spa remedies and products sold at those houses.

Cardholders routinely get American Express “Gold Elite” status and can earn “Platinum Elite” status if they spend $75,000 at the card in a calendar 12 months.

Global entry or TSA Precheck fees are also incorporated, which cost $100 and $85 respectively. It has no international transaction price.

For every greenback spent, cardholders will get:

• 6X issues at collaborating SPG and Marriott Rewards accommodations

• 3X issues at U.S. eating places and on flights booked at once with airways

• 2X issues on other eligible purchases

The new card “underscores how standard the top class card house continues to be,” stated Kim Palmer, a credit card professional on the personal-finance company NerdWallet. “For visitors who are already dependable to Marriott, the brand new card generally is a just right option that includes what are now usual luxury card perks, like Global Entry credit and a $300 remark credit for spending at Marriott houses.”

There are several drawbacks to the brand new Amex card

For starters, there are not any sign-up issues bonus, Palmer stated. Plus, hotel playing cards can be restricting when it comes to shifting the issues to purchase things outdoor of those hotel chains. Starwood does have airline partners, but a basic travel card might be higher for somebody who desires extra flexibility, she stated.

The card also comes with a hefty annual APR of 17.24% to 26.24%, which is able to upload up for cardholders who don’t pay their invoice in its entirety. The reasonable variable rate of interest on all credit cards is these days 16.87%, according to personal-finance company Bankrate.

New benefits for Starwood Preferred Guest playing cards

American Express also introduced new benefits for its SPG client and trade playing cards, which will even premiere in August.

The SPG client credit card, which has a $95 annual price, will even give one unfastened annual night time for the cardmember’s anniversary, but it surely will have to be value 35,000 issues or fewer. It gives 6X issues at collaborating SPG and Marriott Rewards accommodations and 2X issues on other eligible purchases.

The SPG trade card also comes with a $95 annual price and gives an annual night time award of 35,000 issues or fewer.

The SPG trade card also gives the following issues:

• 4X issues on on a regular basis trade purchases at U.S. eating places, U.S. gasoline stations, on wireless telephone services and products bought at once from U.S. provider providers and on U.S. transport purchases

• 6X issues at collaborating SPG and Marriott Rewards accommodations

• 2X issues on other eligible purchases