"In a world where third spaces are dying, and consumers are being segregated between haves and have-nots at every turn, the airport bar has quietly endured. But the airport bar is not-so-quietly under siege. Airport concessions took a hit during the pandemic, and while they benefited from the subsequent revenge travel, the rebound has stalled."
"When a new lounge opens near a restaurant or bar, the established businesses say sales often drop, sometimes by double digits. They also say they're not in a fair fight: airport bars have to turn a profit despite their high operational costs. Lounges, on the other hand, are largely marketing tools for airlines and banks - they are designed as perks to sell status and loyalty rather than to make a ton of money."
"You're paying for the 'free' stuff in the lounge in some way, shape, or form - say, with that $895-a-year Amex Platinum card - but you don't feel it in the immediate way you do a $25 glass of wine at the bar. Plus, in our increasingly tiered consumer economy, the lounge seems fancy."
Airport bars represent rare egalitarian spaces where diverse travelers connect without judgment or social hierarchy. However, these establishments face significant financial pressure from multiple sources. Consumer spending has declined as travelers become more budget-conscious following pandemic disruptions. Airport lounges present formidable competition, drawing customers away from traditional bars and restaurants. Lounges operate fundamentally differently than bars—they function as marketing tools for airlines and credit card companies rather than profit-focused businesses. While lounge access requires payment through premium credit cards or airline status, this cost feels less immediate than direct purchases. This creates an unfair competitive dynamic where bars must maintain profitability despite high operational costs while lounges prioritize customer acquisition and brand loyalty over revenue generation.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]