AmEx Acquires LoungeBuddy
Mar 11, 2019, 10:31 am
#1
Original Poster
Join Date: Oct 2014
Location: New York
Programs: Delta Platinum, JetBlue Mosaic, Hilton Gold, Hertz PC
Posts: 68
AmEx Acquires LoungeBuddy
Amex announced today that they are acquiring the Loungebuddy app. They had already done a lot of integrations with LB for their 'find a lounge' service in the AmEx app, so it makes sense that they would go for a full acquisition: https://about.americanexpress.com/pr...re-loungebuddy
Mar 11, 2019, 12:03 pm
#2
Join Date: Mar 2011
Programs: Delta Skymiles
Posts: 1,982
Sounds like another enhancement. Proud to be a cardholder. Not sure where this will go quite yet, but I have no doubt good things. Amex is taking the lounge network very seriously, as they should. It helps keep me very loyal to them.
Mar 11, 2019, 1:18 pm
#3
Join Date: Sep 2008
Location: AUS
Programs: BAEC Gold, AA PPro, Hyatt Globalist, Amex Plat
Posts: 7,040
Regards
Mar 11, 2019, 2:18 pm
#4
Join Date: Mar 2011
Programs: Delta Skymiles
Posts: 1,982
I can see how you'd feel that way, but I do think AMEX and Delta both (the two networks I am most familiar with regarding lounges) have worked to limit lounge access to ensure the access for those who are members is becoming more peaceful and calm than say a year ago.
Of course next time there's a recession I'm sure day passes and less stringent access policies will return.
Of course next time there's a recession I'm sure day passes and less stringent access policies will return.
Mar 11, 2019, 2:39 pm
#5
Join Date: Dec 2000
Location: Philadelphia
Posts: 2,506
I'm wondering where AmEx is going with this. It could be as simple as LoungeBuddy was not surviving on its own and would have shut down if Amex didn't buy it for a song. I wonder if it has more to do with a combination of advertising and data - the people looking for lounges likely are in the AmEx target demographic of affluent upper-middle and lower-upper class and AmEx can now advertise to them for free, and the data could be as simple as seeing where people are looking for lounges the most, where they leave the poorest reviews, and generally find places to better target Centurion openings.
Mar 11, 2019, 4:34 pm
#6
Join Date: Nov 2017
Programs: AS 100K, HH Diamond, SPG/Marriott Gold
Posts: 189
I'm wondering where AmEx is going with this. It could be as simple as LoungeBuddy was not surviving on its own and would have shut down if Amex didn't buy it for a song. I wonder if it has more to do with a combination of advertising and data - the people looking for lounges likely are in the AmEx target demographic of affluent upper-middle and lower-upper class and AmEx can now advertise to them for free, and the data could be as simple as seeing where people are looking for lounges the most, where they leave the poorest reviews, and generally find places to better target Centurion openings.
Mar 13, 2019, 9:12 am
#9
Join Date: Sep 2008
Location: AUS
Programs: BAEC Gold, AA PPro, Hyatt Globalist, Amex Plat
Posts: 7,040
Regards
Mar 13, 2019, 1:18 pm
#10
Join Date: Nov 2013
Location: PHX, SEA
Programs: Avis President's Club, Global Entry, Hilton/Marriott Gold. No more DL/AA status.
Posts: 4,422
Perhaps the idea would be for cardholders to use the LoungeBuddy app instead of Priority Pass for entry, but if you have a Plat card on file it's $0 bill. This would still be a downside because even if every PP lounge was on Loungebuddy, PP includes restaurants.
Mar 13, 2019, 5:43 pm
#11
Join Date: Aug 2005
Location: Brooklyn
Programs: Delta Diamond, Bonvoy something good; sometimes other things too
Posts: 5,050
I hope the LoungeBuddy team got a decent payout out of the deal at least. I find their app useful even if I was never totally sure whether it could make enough money to survive. Though I wonder if Amex will see any reason to keep it functioning independently as it does, or if they'll just keep the information integrated into their own app on what lounges are Amex-accessible.
Mar 13, 2019, 8:58 pm
#12
Join Date: Feb 2011
Location: San Francisco, CA
Programs: Amex Platinum, Chase Sapphire Reserve
Posts: 811
If they get rid of the LoungeBuddy app and put it all inside the Amex app, it would suck for travelers based in parts of the world where Amex is not common/available.
Mar 13, 2019, 11:12 pm
#13
A FlyerTalk Posting Legend
Join Date: Feb 2001
Location: Berkeley, CA USA
Programs: Piggly Wiggly "Shop the Pig!" Preferred Shopper
Posts: 57,074
I like the LoungeBuddy app, but how hard would it be for a replacement to come along and do pretty much the same thing? It doesn't seem like much of a challenge to set up a comprehensive database of the world's airport lounges, and keep that database current. A team of six teenagers could do that job well.
Mar 14, 2019, 11:25 am
#14
Join Date: Nov 2013
Location: PHX, SEA
Programs: Avis President's Club, Global Entry, Hilton/Marriott Gold. No more DL/AA status.
Posts: 4,422
I hope the LoungeBuddy team got a decent payout out of the deal at least. I find their app useful even if I was never totally sure whether it could make enough money to survive. Though I wonder if Amex will see any reason to keep it functioning independently as it does, or if they'll just keep the information integrated into their own app on what lounges are Amex-accessible.
- "The terms of the deal haven’t been disclosed. However, LoungeBuddy was last valued at $US18 million ($25.4 million) in 2015 when it conducted a series A capital raising"
- "American Express went on to say that LoungeBuddy would be a wholly owned subsidiary and would continue to be led by its founders."
Mar 14, 2019, 11:34 am
#15
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
Let's suppose that LoungeBuddy's primary revenue stream has been sales of single visit lounge passes. Let's further suppose that surplus lounge capacity has been noticeably reduced since 2015 by a stream of new credit cards with bundled Priority Pass and similar memberships. This may have eroded that revenue stream, both because the travelers could use a membership rather than buying a pass, -and- because the lounges had less space to accommodate potential pass buyers.