I’ve been in the miles and points space for 14 years now. You’d remember the good old days when the Amex Platinum Card had an annual fee of just $450? Yes, that seems paltry compared to the current $895. The space has changed a lot. There are a lot more players, a lot more people participating and issuers have constantly made changes to their benefits and product offerings. Over the years, many travel credit cards, especially the premium ones have always touted one key aspect about their products: exclusivity. If you look over the last ten years, you’ll see plenty of blog posts or vlogs diving into premium experiences in first or business class or at a luxury hotel. One such premium experience marketed on travel credit cards has been the lounge access benefit. However, given all the changes going on over the last few years, is the benefit way past its prime?
Lounge Access – No longer exclusive or premium?
What really defines premium or exclusive? In simple parlance, it’s a product, benefit or a service that very few people have access to. When airline and co-brand credit card lounges were new, there was a sense of exclusivity. The offerings were fresh and the lounges were a great option to wind down or get work done before a flight.
However, like other things in this space, things kept changing.
- Competition: More issuers joined the fray, offering products at price points that were affordable to more customers
- Priority Pass Proliferation: More issuers offered Priority Pass lounge access with guest access, which mean more people, especially in lounges operated within the Priority Pass network
- More issuer branded lounges popped up. In addition to Amex, Capital One and Chase also entered the arena with their own lounges.
- Credit Requirements: Progressively, we saw people with slightly lower credit scores also getting approved for premium credit card products, which meant that the numbers kept adding up.
Issuers’ Response
For issuers investing a ton of money into lounges, the last thing they’d want is to see a product offering go from being exclusive to becoming a mere commodity. So, issuers responded with their own restrictions:
- Most recently, the Ritz Carlton Card by Chase curtailed guest visit via Priority Pass
- Amex requires you to spend $75,000 in a year on the card to unlock guest access to their Centurion Lounge now
- Delta Sky Club access via the Amex Platinum Card is now restricted to 10 visits per calendar year, unless you spend $75,000
Enjoy access to the Delta Sky Club® as part of the Global Lounge Collection benefit‡. Platinum Card® Members receive 10 Visits each year to the Delta Sky Club when flying eligible Delta flights, to be used from February 1 until January 31 of the next calendar year. Platinum Card® Members can unlock Unlimited Delta Sky Club Access after spending $75,000 in eligible purchases in a calendar year. Unlimited Delta Sky Club Access will be available for the remainder of the calendar year in which it was earned as well as the following calendar year and through January 31 of the next calendar year.‡
When Everyone’s Elite, Nobody Really Is
As someone who has been using his miles and points to fly premium cabins for years, I’ve seen a clear distinction appear between airline operated lounges for premium passengers (especially outside the US), compared to lounges operated by card issuers, shared lounges at the airports or via the Priority Pass network. For example, as someone who frequently loves to fly to or connect in Singapore, I still find Singapore’s lounges at Changi airport to be top notch. The same goes for lounges in the UAE when you fly premium cabins with Emirates or Etihad.
The Pundit’s Mantra
When I’m flying premium cabins, I like to reach the airport early to get access to the lounge. However, when I’m flying coach, I’m not as keen, unless I have lounge access due to airline status. In general, we’ve seen a dilution of benefits, going from exclusive to commoditized. This can always happen as any industry matures, but the allure or getting early to the airport to access the lounge has surely faded. What was once meant to be a calm sanctuary has been replaced by serpentine queues, just to enter them. While I still love many of the benefits on the premium credit cards that I carry, I’d still think that lounge access benefits via credits cards have lost their charm.
What do you think? Do you still visit lounges with the same level of excitement or feel the same level of exclusivity when you’re at one? Tell us in the comments section.
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