Priority Pass Parent Company Invests In Grab -- What This Means For Members

Grab is also the largest rideshare app in SE Asia. Confusing.

So impressed by Priority Pass’s lates moves. Now if only they would partner with a restaurant in the Little Rock airport I’d be set!

I don't see how the economics of this work for Priority Pass obtained through credit cards. Example - CSR fee is $450 which includes PP membership. They give you back $300 in travel credits. Ignoring the bonus points and Global Entry Fee credit sicne they are 1x events, I don't see how even a caul user of priority pass clubs or retautants can be profitable. I use my priority ass 1 - 2x a month at a minimum- often with a guest. At $25 a pop, that's $600 a year just for me. I've used my PP card 2x in a day sometimes. The money has t come from somewhere.

Grab is what trump does when he sees what he likes. You know "grab em by the ....".

The question is how much credit will we get to spend on food?

@keitherson That was my first thought as well. I thought they were going to start up some sort of food delivery service at first.

My issue with restaurants at most US airports and many airports overseas is the quality of food they offer. Priority Pass can offer 20 restaurants in each airport but if their food is inedible, we have something like a Hyatt Place breakfast - it's there but of no use to me.

PP has nothing really to gain by enhancing its value to credit card memberships. They are already getting the fixed fee from the credit card companies. This press release begins to allude to the differentiation between those who pay on their own versus credit card associations. They are looking to drive in more revenue and this is a way to do that. Just as they had a "Select" product differentiation, you may see something along those lines for those that sign up directly and that may provide additional benefits such as Grab.

I too thought this would be a post about Grab (the ride service). I'm UK based and have never heard of this other Grab - which confusingly uses the same green colour scheme! Cease and desist letter on the way surely..

Was thinking this would mean free rides to/from the airport in SE Asia. i guess not. Sad.

@Debit reminds me of things that are really hard to get rid of - like your original set of luggage or herpies.

I read the post and came up with my own thoughts. And they were exactly RGB's.

How do the financials continue to work if there is any meaningful value to a Priority Pass holder at Grab restaustants? What Citi or Chase pay PP for a cardmembers is no doubt highly proprietary, but there is surely a limit, perhaps $150/yr. That seems to be enough to pay for cardmembers' use of janky lounges that serve little more than beer and peanuts which have low costs. Prepared meals, especially ones at secure airports, are another thing altogether. And, no doubt, they rely upon memberships of folks who never use those memberships, but if the offerings get better, this breakage has to decline.

So the more robust the offerings get, the quicker the goose that lays the golden egg gets slaughtered. This may be good in the short term, but long term, perhaps not so much.

Free rides to the airport with Grab in Asia would’ve been better 😉

Previous posters correct- that name is taken and the owner won’t accept this - this lot are doomed to a new name, assuming this odd business model succeeds , why call ahead ? If you are late- it’s a tepid meal or a microwave touch up( a la a certain fast food rest in Auckland airport in the eighties that zapped it in front of you). If early it still isn’t ready and you might change your choice when you look at other diners plates! Many places are also culturally well known in some countries or regions and unknown elsewhere and you can miss a great opportunity to eat a new type of food if you just call ahead to well known names and don’t risk it on something you don’t know and can’t see or assess( clean kitchen and/or serve area, clean well turned out staff, busy or quiet, appealing looking meal etc.
If the place can’t serve when your there- go elsewhere . The most inefficient will get help perhaps from this but places that are well run won’t need it.
Grab( the real one) isn’t just S E Asia’s biggest ride share- it chased Uber out and bought it over completely in some Asian countries though now they don’t have the same competition they aren’t doing as many discounts and the gap with regular taxis is now almost gone. I guess call it disruption if you like but subsidising to keep prices low doesn’t generate profit- no matter how hip your start up is and when that subsidy is removed- economic and societal fundamentals are again dominant . And in grand case in most markets that means the return of the taxi as main choice.

It makes sense that they diversify. I no longer bother with the Alaska Airlines lounge at LAX. Their “priority pass not available” sign is almost a permanent fixture in Terminal 6, just like they are at every Alaska lounge in SEA.

To the question of economics via Priority Pass Select (credit card membership), some of us pay for that repeatedly.

For example, I have this via Amex Plat, Chase Sapphire Reserve, and SPG Luxury Amex. So whatever the program gets paid, they receive it three times from me. I doubt I’m an outlier for the target audience of these cards.

I really find the complaining about PP from those who get the benefit as part of their premium credit card petty. I’ve had PP for many years, initially the paid program but for the past many years as part of my Amex Platinum benefit package (and before that from my Diners card). To be generous I’d say the PP portion of my Amex annual fee is less than $100 which works out to 3-4 entries a year. I’ve never been turned away from either the SEA or LAX AS Clubs and figure I have an annual lounge use of a dozen entries a year on my travels. As I have both OneWorld and STAR status for lounge entry when flying member carriers, and of course Centurion lounges at several US airports I transit through, I get plenty of value from the PP program and have no complaints. I’d expect most of your readers are in a similar situation so complaining is really petty to the Nth degree.

@Andrew

That is why I try to be fair with all the banks, I try to spread it out among all cards. Otherwise one bank would get 1-300 visits per year. And be careful of # of guests for each card.

@RJB, I wonder if the economics work like gym memeberships. Maybe they are losing money you and your 2x monthly uses but they are making a killing on the 100s of others that never visit a lounge or airport restaurant (for which the card issuers are still paying them something).

Interesting to read comments, as I have another usage. I get my PP thru AMEX living in MIA. I never use the Centurion Lounge since its always over-crowded and there is a new and spacious Admirals Club 50' away, but I use three of the PP restaurants at MIA at North Terminal (American). There are times where I use PP twice a day.
If it were not for the PP access, I would definitely cancel AMEX in a heartbeat.