jediwho

Does anyone have any idea on what it costs per year to operate the Centurion lounge. So, take in rental cost at a large airport like SFO and then add operating cost.

Colin

Love Field would be a smart new location. Wealthy Highland Park fliers would drive new AMEX Platinum memberships.

Love is a one terminal airport, with no other lounges.

mia

There is some relevant data in this thread:

http://www.flyertalk.com/forum/22677177-post2.html

Up front construction cost $5-6 million. Annual rent $1 million.

40-50 employees. Most part time, I expect. Anyone with the appropriate background care to estimate annual payroll?

Add insurance, utilities, food, beverages, alcohol, licenses, etc.

jediwho

Thanks! Looks like it's about $7 million total cost per year:
1 million amortized cost per year
1 million rent
1.5 million for employee
0.5 million for insurance, utility, etc.
3+ million for food/wine

The big variable is food/wine. I am assuming around 3 million based on an annual foot traffic of around half 400K......so take a large airport like LAX or SFO with around 40 million passengers. Best case: 2 million or have Platinum. But only half can practically use the lounge based on location, so that brings that number down to 1 million. And of that, 40% actually make use of it (I use a lounge once every three times when available as I am almost always short on time. So the best case we have is 400,000 passengers a year and the cost of food/wine is no more than $7 per person......in a restaurant, cost of food/produce is usually between 25% and 30% of the price on the menu.

jediwho

I was talking to the front desk at AA lounge in terminal 4 at LAX. He mentioned that very recently, AA opened a smaller lounge at terminal 4 just a few gates away. My thinking is Amex wanted that space (as terminal 4 is connected to terminal 6) for a Centurion lounge but AA decided to take that available space instead to block Amex. You are going to see this kind of tactics which will make it harder for Amex to open lounges in desired locations.

I am not super familiar with LAX layout but if I was Amex, I would open a lounge somewhere in Terminal 3 and pre security check that way, it would be easily accessible to people who are flying from Terminal 1, 2, 3, 4, 5 and 6. Amex cardholders have access to lounge at the International Terminal through Priority Pass.

cerealmarketer

LAX is a tough situation.

The customers they want to reach are flying AA or UA domestically. No room in T7 unless some of the office space in the concourse gets freed up by building the new 3rd level for the United Club. And it didn't appear in the plans for T7 renovation.

T4 no luck as you noted.

Maybe something in Bradley once the T4 connector is open but rent there is at a premium.

bldr1k

I would give anything to have one in DEN terminal B

jediwho

LUV and MDW would be a great idea. Even Terminal 1 at LAX.

GlobalServiced

I couldn't echo that sentiment enough.

WheelsFirst

LAX would be amazing but there's really nowhere good to put it. T6 is the only real "mixed" terminal for the major airlines, but there's no room. T1 makes no sense as it's a bus station (WN flights only). T2 or T3 are a hodgepodge of airlines with no legacies so that wouldn't make sense either. I think they stay out of LAX unless they can somehow takeover the AS boardroom in T6, which would most likely never happen.

christopherdc

I just got off the phone with an AMEX agent while trying to negotiate my annual fee. They offered me $100 to keep the Platinum card for another year.

But, that wasn't all she said. Bonnie, a manager in Membership Consulting Services, also shared that new lounges would be coming to PHL and ORD in the next year. She said it wasn't announced but that those were the next target airports after MIA opens.

Now I'm just waiting for DCA and I'll be covered!

steveman518

did the agent actually say that plans were set, or that they were just "target airports"?

cmd320

These would both be great options. Both are almost all connected post-security, and both are filled with marginal at best Admirals Clubs, United Clubs, and former Cactus Clubs. Some innovation and class would be much welcome at either airport.

christopherdc

She said those were the next airports. I asked if that had been announced publicly and she seemed confused as to why I didn't know already and said they would be sending out notices to cardholders soon.

nall

Considering their focus on major AA/UA hubs, ORD would not be a surprise, but I would have expected IAH before PHL.