Between the blaring boarding announcements and the cacophony of slot machines, the concourse at Las Vegas’ Harry Reid International Airport (LAS) is deafening. But things are much different upstairs at Capital One Lounge, which opened in February.
Here, lounge guests sip signature cocktails infused with desert botanicals, nibble on caviar-topped deviled eggs, peruse a gallery of local art, take calls in a private, soundproof workroom, and snooze in zero-gravity nap pods. As travelers relax in wide leather chairs overlooking the terminal, a bartender occasionally passes by with a mobile drink cart, whipping up made-to-order Café Shakeratos, a frothy Italian iced coffee drink made with shaken espresso, brown sugar syrup and nutmeg.
Staff will keep a grab-and-go area stocked with portable snacks such as homemade Pop-Tarts and deli sandwiches that guests can pack in their carry-on bags as they leave to catch their flights.
It’s a level of tranquility and luxury that makes you forget the chaos of the airport, at least for a moment. And that’s exactly the point. It is intended to be a very popular haven.
In recent years, airport lounges have become a high-stakes battleground. Airlines and credit card companies are investing millions of dollars in spaces with menus created by award-winning chefs, curated cocktail lists and, in some cases, showers and day spas. This is all to ensure customer loyalty.
Evolution of airport lounges
Ten years ago, lounges were quiet corners of airports where business travelers could sip drip coffee and catch up on emails. At the time, Henry Harteveldt, president and travel industry analyst at Atmosphere Research Group, said that as a marketing expert for four airlines, he helped launch airport lounges at various times, but the areas were typically converted office spaces and were the domain of “cheese cubes and second-growth wine.”
However, things changed in the mid-2010s.
“Delta Air Lines was investing in a lot of different areas to become a more upscale airline, and one of them was major improvements to their airport lounges,” Harteveldt says. “They were the first airlines to understand and appreciate that lounges can be a kind of competitive differentiation and have the potential to increase loyalty.”
The rest of the industry has taken notice, he says. Competitors have been racing to catch up with premium products in recent years. The airline has enhanced its lounge perks, from complimentary shoe shine (available at the Delta One Lounge at John F. Kennedy International Airport) and marble showers with Dyson hair dryers (at Capital One’s Denver Lounge) to location-specific treats like shaved ice machines at Hawaiian Airlines’ island lounges and local craft beer at lounges like Chase. Some examples include the Sapphire Lounge by the Club at Boston Logan International Airport, the Centurion Lounge at Hartsfield-Jackson Atlanta International Airport, and the United Polaris Lounge at Chicago O’Hare International Airport.
Credit cards now available in lounge chat
Also in the mid-2010s, credit card issuers like Capital One, Chase, and American Express began pouring resources into their own progressively designed spaces that promised comfort. and This strategy evolved into a multi-million dollar customer acquisition tool. One example is the Chase Sapphire Lounge at The Club at New York’s LaGuardia Airport. There’s a la carte dining, craft cocktails, an arcade room, and a mini spa offering facials.
As airports get more crowded and air travel becomes more stressful, these increasingly sophisticated lounges are becoming increasingly valuable to brands. The lounge became an oasis and a tangible promise of loyalty was delivered.
“It’s important for airlines to create spaces that better accommodate frequent flyers,” said Gary Leff, founder of the View from the Wing blog, adding that lounges are a key reason customers like the brand.
Credit card issuers are betting that great lounge experiences will continue to “motivate wealthy consumers to sign up for expensive and lucrative premium credit cards,” said Scott Keyes, founder and chief airline ticketing expert at Going, a travel app and airline newsletter. He said airlines hope that lounge exclusivity, often tied to status ranks and expensive international tickets, will keep customers loyal to their networks. Both industries are betting that even if annual fees for premium credit cards continue to balloon and airlines continue to raise the bar for elite status, travelers will rationalize their costs if the lounge experience is luxurious enough.
While airport lounges cost millions of dollars to build and operate, Harteveldt says, “There are a variety of metrics that brands use to measure a lounge’s effectiveness in driving brand affinity. Some are more subjective, others more quantitative.” But let me put it this way: If the data didn’t show that lounges were important, we wouldn’t be seeing as much competition among airlines and credit card companies to build and invest in more lounges. now. “
Harteveldt pointed to airlines investing in first-class lounges in second-tier cities, such as the far-flung popular Delta Lounge in Minneapolis, as another indicator that brands believe the space can earn a decent return.
“If that wasn’t true, they wouldn’t upgrade the food or offer free Wi-Fi. They wouldn’t invest in better furniture, decor and amenities,” Harteveldt says.
Have you arrived at “Peak Lounge”?
Ben Schlappig, founder of One Mile at a Time, a blog dedicated to maximizing elite travel status, said the lounge’s ultra-luxurious atmosphere reflects a broader trend in travel, with millennial and Gen Z travelers increasingly valuing experiences over material possessions.
“People go to lounges because they want to have fun,” Schlappig said. “We believe it is important for cardholders to have an experience that begins before they arrive at their destination.”
Looking ahead, the fight shows no signs of slowing down. Airlines plan to add more premium lounges, and credit card companies continue to look for real estate at major hubs, but there may be some hurdles.
The problem with making your lounge too nice is that everyone wants to be in it. During peak times, even the largest or most luxurious lounges can end up being the same as the original gate area. Schlappig expects lounges to continue to elevate their food and beverage offerings (like the cheese shop at the Capital One Lounge that opened in June at JFK Airport and the whiskey bar at Atlanta’s American Express Lounge), but he doesn’t expect future lounges to prioritize spas or other unique amenities over seating, as many outposts struggle with overcrowding.
Still, Kurt Adams, senior content marketing leader at Going, doesn’t think we’ve reached Peak Lounge.
“Almost every month we see news of new lounges opening or announcements of new lounges coming to different airports,” Adams says. “The lounge boom will continue as long as passengers continue to vote with their feet and demand access to premium airport space.”
