Originally Posted by
krazykanuck
Unless Amex is turning away people who would otherwise pay $50 because this "road warrior" is taking up a table, it's not an actual cost. Yes there is opportunity cost but only to the extent that Amex is turning away paying customers because they don't have the capacity. I can tell you from personal experience in the Centurion Lounge lobby that when people are told that their nth kid or guest is $50, they usually turn around and walk away. I don't believe that there is much demand at a $50 price point. I mean I like the Centurion Lounges and have been to them countless times, and I wouldn't pay $50 to enter most of the time if I actually had to pay it. I maintain my Platinum card in large part for the CL access, but I also utilize it enough that my cost per visit is much lower than $50. ETA: cost =/= revenue. Just because a company charges X doesn't mean that's what it costs. I feel ridiculous that I even need to type this but in response to your comment about drink prices. A bar that charges $10 for a Bulliet and diet coke, one of my usual drinks in a CL, costs them what, $1-2, before overhead? I mean a whole bottle of that bourbon is $22 at Total Wine.
The only part of your statement that I agree with is the last bolded sentence. Anybody that's putting the majority of their spending on a Plat at 1x, yes, Amex is smarter than they are. haha
Originally Posted by
sethMCOflyer
If every drink ordered in a lounge costs Amex $12 then they’re absolute morons and I’m shocked they’re in business.
Originally Posted by
jamesteroh
If someone has eight drinks they probably have a binge drinking problem and would be surprised if they would be sober enough to even get on a plane.
I don't think the road warriors would be the one drinking up the free booze as much as the kettles or someone who is bringing family members for the once a year trip to go to disney or see grandma where flying is a treat and they are probably sitting in coach with no free comps.
When I travel for work a lot of times I have to be meeting someone after and won't drink at all. If I'm flying home I have to drive so will limit it to one or two drinks if that. Road warriors who fly all the time want the lounge for stuff like a work space. Most road warriors get upgraded a lot and will have free booze on the plane anyway.
Vegas is the only Centurion lounge I use and I would take advantage of the free food on a redeye since Delta provides no food service but would normally skip eating anything if my upgrade went through. Now that they have no meal service I plan on taking advantage of the free food Sunday even if my upgrade goes through.
The calculations I stated above do not lie.
"Amex makes way more money on the road warrior frequent traveler who is in the lounge weekly (or more) because that cardmember puts tens of thousands in airline spend on their card every year on close-in business travel bookings and F/J fares, unlike the family that travels together once or twice a year on Southwest."
Just do not say that AmEx makes more money from those "road warriors" who charge a lot of air tickets on the Platinum vs the casual family travelers who only travel twice a year.
The families with kids probably will never stay in the lounges for 3 hours. But those single "road warriors" certainly have the tendency to stay there longer.
Over-crowding? Certainly. Frequent and longer stays.....