I know that people say you only read the parts of the newspaper that you personally agree with but I liked your analysis NM. This is one of the better debates I've read. Interesting for me to see the diversity of opinion out there. Do I agree with it all, no. Intrigued by it, yes. (Even better, I would love to see the actual P&L behind the Qantas Club, memberships and fares)
regards
Paul R Ronis
regards
Paul R Ronis
NM said:I don't blame cheap paid memberships for lounge crowding. In my view, paid memberships are not a major factor in the number of people in the lounge. Paid membership only entitles you to be in the lounge when flying with Qantas (or BA/AA). If such a member was flying regularly enough to be making lots of use of the lounge then they would qualify for lounge access based on FF status and not require the paid membership.
So it is my view that paying members use the lounge less frequently than status members. I expect the majority of people in the QF lounges at any time are there based on FF status rather than paid memberships. And I expect paid memberships, even the discounted ones, are a good source of revenue for Qantas, especially given the member can only use the lounge when flying with Qantas. And those companies that have the benefit of discounted club memberships are the ones more likely to be using flexible fares rather than BFOD or N/O/Q type fares. So the combination of paid membership and higher fares is likely to be a good revenue source for Qantas.
From QF's perspective, overcrowded lounges is a good problem to have - certainly a better problem than empty lounges. It means there are lots of high-value customers buying your products. The best solution for Qantas is not to restrict lounge access, but to build bigger lounges to meet the demand, and I understand that is what they have planned.