Traveling giveth perks, and traveling take perks away.
In an effort to get customers to choose their airline over the competitors, and to get them to sign up their loyalty program (which helps ensure repeat business), airlines are always looking for new perks and bonuses to give their customers, or potential new customers.
Often, the perks are bonus miles, but sometimes you get things like free coffee or loyalty points towards various Starbucks purchases. But one of the most popular perks are premium lounges.
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Though some people find them exclusionary (and Delta has a whole viral tweet situation last summer), people who travel constantly for work find lounges to be bubbles of comfort. Depending on the lounge and location, they can offer free wi-fi, free drinks and food and even in some situations showers.
But the problem with lounges is that they've grown too popular, and now everyone wants to use them.
The Lounge Boom Is Here
Most of the major airlines either have their own credit card or they’ve partnered with a company like American Express (AXP) or Capital One (COF).
During the pandemic, airlines allowed customers that had credit cards that earned them bonus miles or that helped them earn frequent flier status or other loyalty rewards to continue to earn those benefits, while discarding the usual annual thresholds, as airlines needed the income that these partnerships provided.
During the pandemic, people were able to save money, and when things eased up post-vaccine, they didn’t just want to travel, they wanted to travel in style to make up for not going anywhere for a year. This pent-up demand, combined with bonus miles and elevated frequent flier status and other perks, meant that more travelers than ever wanted fancy travel comforts than ever before. Some people had earned the status to use the lounges, or were willing to pay because they had the money.
Airports weren’t quite equipped to handle this level of demand, especially when it came to premium airport lounges, as there’s been reports of over-crowding and people waiting in long lines to avail themselves of the lounges.
As we’ve noted, this puts airlines and credit card companies that also offer lounges in an awkward position. “If they move too harshly to limit access to these services, they risk a blow back from customers that legitimately earned these perks, and accusations that the airlines are unfairly catering to wealthy travelers that can pay high prices for luxury services.”
But now American Express has made a move in one of its premium lounges that some will cheer, and others won’t like at all.
American Express Cracks Down On Its Lounges
As of this month, American Express lounges will no longer let most travelers with its premium credit cards bring two free guests. Adults will pay $50, and it will cost $30 to bring children between the ages 2 to 17, $30.
American Express’s platinum card includes access to the Centurion Lounges and to Delta Sky Clubs when cardholders fly Delta, and the company has raised its annual cost to $695, up from $550 in 2021.
But it’s unclear if this move will actually dissuade people or prevent overcrowding, as card members can still bring family members for free by adding them as an authorized user on the card, as three additional users ages 13 years and older can be added for a one-time fee of $175 a year.
