This seems like a win-win for the lounge operator and customers, though I can’t imagine that Priority Pass has given its blessing…
Priority Pass lounge finds creative way to generate revenue
Priority Pass lounge crowding has become a huge problem in recent years, probably coinciding with the popularity of premium credit cards, which is how many people in the United States get such a membership. Nowadays, many people are happy if they can simply get into a lounge, regardless of the quality, since being turned away due to capacity controls has become common.
Along those lines, one Priority Pass lounge in the United States seems to be getting creative, as shared by a reader. I won’t name the lounge, because I don’t necessarily want them to get in trouble, and I personally like the idea.
The concept is that the lounge turns away guests due to capacity controls over certain hours, but it’ll offer Priority Pass members a bag with goodies (in exchange for registering you as having visited). This includes a bottle of water, a can of soda, a couple of whole fruit, a bag of chips, a small package of cheese and crackers, and cookies.
It’s certainly nothing to get excited about, but if you’re not paying anything incrementally for accessing Priority Pass lounges, then I think just about anyone would take something over nothing. Besides, with the cost of drinks at airports, you’ll save at least several dollars.
I can’t imagine Priority Pass would be happy about this
I’ve gotta say, this lounge is running a smart side hustle. If it can’t accommodate Priority Pass guests, it simply gives them a bag with a few dollars worth of stuff, and gets a Priority Pass swipe out of it, which probably gets the lounge operator somewhere around $25 in revenue.
Since those with unlimited Priority Pass visits aren’t paying per lounge visit, consumers are probably also happy about this, since they’re getting something rather than nothing.
That being said, I have to imagine that this isn’t a Priority Pass approved concept, or else we’d see a lot more of this. The economics of Priority Pass are a bit complicated, given that the company sells lounge memberships directly, and also works with credit card companies on lounge memberships.
For those who get a membership through credit cards, we’ve mostly seen them cut credits at Priority Pass restaurants. You’d think that it wouldn’t matter to a credit card company whether the cost of a visit goes toward a lounge or a restaurant, but presumably it’s about limiting incremental costs. That’s why I imagine that Priority Pass wouldn’t approve of this concept, because it’s just too easy.
If this were allowed, I have a great new lounge concept. I’m going to set up a global OMAAT Flagship Polaris One Lounge network, consisting of kiosks at high traffic airports where I’ll give out a few bucks worth of packaged food in exchange for some swipes. 😉
Bottom line
One Priority Pass lounge in the United States has found a sneaky way to generate some extra revenue when the lounge is at capacity. Rather than just outright turning away guests, the lounge is offering to swipe guests for entry, and then instead give them a grab & go selection of food and drinks, which they can take with them.
Assuming guests don’t pay per incremental visit, it’s a win-win for guests and the lounge, as they’re getting a few dollars worth of stuff for nothing, while the lounge is generating quite a bit of revenue. However, I can’t imagine Priority Pass would be down for this, if it knew.
What do you make of this sneaky Priority Pass scheme?
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