Originally Posted by
RedSun
How can this $50 be revenue, not a cost? After you pay AF, "road warrior" gets unlimited access to AmEx lounges. AmEx never collects anything from this "road warrior". At $50/visit cost, or AmEx opportunity cost to admit other visitors, the $50 is AmEx cost, not revenue.
What I can say is that AmEx is not as dumb as the Platinum cardholders you see who charge everything on their Platinum cards that earn 1x MR from all the purchases. AmEx is happy to make money from those cardholders and cover the costs spent on those "road warriors" to hang out in AmEx lounges. It costs a fortune to have 8 alcohol drinks in any bar. At $12 a drink, it costs $96 alone on those cocktail drinks. How many ways that AmEx can influence our "lifestyles"?? Drinking is a huge problem.
If every drink ordered in a lounge costs Amex $12 then they’re absolute morons and I’m shocked they’re in business.