DrivingRain

Amex probably had many problems with this program (and all these things overlap a bit):
1) They like standards at Amex. Though lounges can be all over the map, at least they belonged to the category of lounges. And if lounges can vary in quality, oof, restaurants can be totally all over the map too (if not more so). That doesnt tickle the people at AXP.

2) Speaking of standards, Amex seems to be consolidating its lounge portfolio growth in the US into Escape more and more with the smaller markets and Cent with the bigger and I assume they like that approach more than the hodge podge of mom & pop-ish restaurants that PP contracts with. Though the food varies market to market, the quality of Escape food is usually the same(ish) lounge-to-lounge; same with Centurion. I can see them wanting to go in that direction. More lounges, more standards.

3) Im guessing Amex saw this entire strategy from PP as one of a money making scheme to push up the volume for PP that didnt deliver the sort of value they want to give to card holders. Amex probably didnt properly budget for the impact and, importantly, doesnt view free meals as a substitute for airport lounges. They view it as a different beast (and Im sure they'd admit sometimes the restaurant is actually better than a lounge in certain markets, but that's not the issue; it's that they are a different animal altogether). I dont know the ins and outs of the contract, but I am guessing PPs margins are higher on these restaurant deals than lounges and that the volume is high too. Plus, of course, PP avoids any capex (as they often do outside of their PP branded lounges). So Amex probably said to PP, "Hey, this program doesnt suit us very well, but we'll keep it around if you lower our costs to X-- and then they couldnt come to an agreement" Just a wild guess.

Eastbay1K

I'd imagine that anyone with the "Select" product will be canned, as it would otherwise be difficult for restaurants to differentiate. (Or, there will be another named membership level, such as ours, which may become the PP Screwed Card.)

4sallypat

This stinks!

At my home airport, LAX has always lacked lounges compared to other airports, except for Delta Skylounge which is always crowded when I fly domestically.

Internationally, I love the PF Chang's restaurant allowance using PP while in TBIT.

So now it looks like I will have to wait for the opening of the Centurion lounge at LAX - hoping it's soon...

mia

I think not. The appeal to Priority Pass is that they can add restaurant locations much faster than lounges, because they are near saturation on independent and contract lounges.

Not if they swipe the membership card and the terminal responds Approved or Declined.

DrivingRain

Yes, and they can put a bid out among dozens of restaurants in each airport and they surely receive multiple bids from these restaurants to be a part of the program. If your restaurant in DCA was located in a back hallway with little traffic of course you'd bid for this aggressively. Not every airport restaurant prints money; many do not. With lounges they have no such leverage and thus lower margins.

scubadu

I agree this can be done from a technical perspective, but what a hot steaming mess of confusion and pain for both end users as well the wait staff that will often be stuck delivering the "Declined" message and having to argue with uninformed PP users...

Honestly, I'm going to be shocked if Chase/Citi don't take this opportunity to follow Amex on this decision very quickly (if it wasn't already in the works).

My wife and I were eating dinner in Bobby Van's @ JFK T8 last night using PP before catching our flight and I literally looked at her and brought up that I didn't think this gig could continue much longer, the economics just don't make sense.

Regards

mia

It was messy when The Red Carpet Clubs had to turn away Priority Pass Select memberships, but people are alive to tell the tale. Priority Pass can provide some nice signs politely blaming American Express if they are the sole defector, or they can downgrade American Express memberships to Lounge Club, or invent a new membership level. This said, the 8.1.2019 transition date doesn't provide much time for a polished solution.

BearX220

PP lounges in CONUS are certainly not at saturation point (zero options @ ORD T1/2/3, zero at LGA, only one lounge in all of DFW at Terminal D, etc., etc.) and recruiting restaurants was one way to provide some benefit where there is no lounge coverage. All PP has at DCA, for example, is two restaurant deals -- no lounges. One restaurant @ DEN, no lounges. After this goes through the PP value proposition degenerates hard for US travelers accessing PP via Amex.

mia

I think you misunderstand what I mean. Are there independent lounges at those airports that Priority Pass could enroll? AA, DL and UA and not going to re-join. If there are no lounges to enroll they have reached enrollment saturation. Priority Pass can build its own, but it must compete with American Express and Escape for space, and then it takes a year or more to open. They can add an existing restaurant in a few weeks.

wesheltonj

AMEX is denying that this is occurring. We will see.

tmiw

I think it depends on the restaurant. A lot of them in airports are run by hospitality groups (such as SSP America) and thus might not be available for PP to recruit in the first place.

scubadu

Source?

Regards

wesheltonj

The Points Guy Comments and Facebook Platinum Card Comments several posts where folks are calling CS and getting not true. Of course, it could be the reps are not up to speed too.

I just call AMEX, they say Priority Pass is ending the benefit effective Aug 1.

scubadu

Yea, I wouldn't put much weight on front line CS reps at this point. This likely hasn't trickled down to that level.

I'm not always a fan of some of the "usual suspect" bloggers, but I think the couple that have said Amex confirmed to them don't really have any reason to misreport this one.

Regards

eddiehuang97

If PP is ending the benefit, does it mean Chase/Citi cards will lose this benefit too?