Airlines invest millions in upgrading their lounges to compete on global platform - Economic Times

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Airlines invest millions in upgrading their lounges to compete on global platform - Economic Times

Having weathered the 2008 downturn in the global economy, many airlines have begun investing millions of dollars in upgrading their lounges, installing special armchairs and offering premium liquors, new food selections and, in the case of one carrier, free hairdressing services.

One impetus for the improvements, said Henry Harteveldt, co-founder of Atmosphere Research Group, a travel research company, is that most of the carriers based in the United States are now part of global airline alliances.

"The airlines have to make sure their clubs are offering something close to what their partners are offering," Harteveldt said.

In addition, he said, the airlines have been looking over their shoulders and seeing new competitors.

"The Air France hub in Paris is no longer just competing with Lufthansa and British Airways," he said. "It's competing against carriers in the gulf and Asia."

Harteveldt called airport lounges "one of the most important branding elements for an airline." He added: "Even though some airlines have begun to improve their planes' passenger cabins, there's only so much they can do. They have much more flexibility in how they design their lounges."

At the same time, he said, airlines based in the United States "know their lounges must be tempting enough to justify spending from $50 for a day pass up to several hundred dollars a year for an annual membership."

Peter Vlitas, senior vice president for airline sales and marketing for Protravel International, a travel management company based in New York, said the improvements were also an outgrowth of efforts to woo top-paying travelers.

"Airlines understand that in order to service high-yield, first- and business-class clients they need to offer a complete airport-to-airport experience, not only in the


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