Airlines Enhance, Upgrade Lounge Facilities At Airports

May 30, 2013
U.S. airlines have long trailed their international counterparts in providing premium places for passengers to workand relax.

Airlines are competing for the ever-lucrative business traveler market by spending millions to build new lounges or upgrade existing ones at U.S. airports.

Delta Air Lines last week opened a 24,000-square-foot lounge at New York's JFK airport with a 2,000-square-foot outdoor Sky Deck, an unusual outdoor space for a U.S. airport. The lounge at its Atlanta hub will also get an outdoor terrace.

United Airlines is spending $50 million this year to renovate several of its 49 United Club locations. The lounge at its Chicago club got a face lift in December, with an expansive bar and lounge area, new furniture and additional work stations and power outlets. A new club will open at San Diego International Airport later this summer.

US Airways opened a new club at Washington's Reagan National Airport and renovated another in Philadelphia.

U.S. airlines have long trailed their international counterparts in providing premium places for passengers to work and relax while waiting for flights.

But foreign airlines such as Virgin Atlantic and Etihad Airways are investing even more in their lounges. Think gourmet meals, hip bars, showers, pool tables, family areas and spas.

U.S. airlines are playing catch-up. Because of long security lines, travelers are now spending much more time in airports, and business travelers, in particular, have come to expect Wi-Fi, power outlets and other amenities.

The airlines are also catering to their high-paying first- and business-class clientele.

"U.S. airlines, which have multiple domestic lounges ... were behind the newer international lounges," says Adam Weissenberg, vice chairman and U.S. leader of Deloitte's travel, hospitality and leisure sector. "But that is starting to change as new terminals are opened, lounges are renovated and airlines merge."

When Etihad started direct flights from Washington Dulles to Abu Dhabi in March, the airline opened a 5,200-square-foot split-level lounge for first- and business-class passengers with fine dining areas, showers, prayer rooms and direct access to the aircraft for boarding.

The airline plans to open a lounge in New York.

"In creating our guest experience, we derive our inspiration not by looking at other airlines, but by benchmarking ourselves against some of the world's leading hotels and restaurants," says Etihad President and CEO James Hogan.

Virgin Atlantic in December opened a 5,000-square-foot Upper Class lounge at Newark Liberty with a Liquid Lounge for socializing, a "Passion Pit" with private working areas, a movie screening room and a brasserie serving locally sourced foods.

It joined its sister lounge at New York's JFK, which has a spa and hair-cutting services.

"Being able to have a massage, manicure and pedicure, and haircut are things you typically do not find in an airline lounge in the U.S.," says Chris Rossi, head of Virgin Atlantic North America. "Lounges can be a great expression of your company's brand and the style and design of your brand."

Even though lounges are typically reserved for those who buy a business- or first-class ticket, some travelers can gain access through airline loyalty programs. Some airlines offer annual memberships and day passes for a fee.

Hugh Tousey, a consultant in Autryville, N.C., appreciates a nice lounge with a comfortable place to sit and work.

But he doesn't choose an airline based on the club facilities.

"More important is if I will get hit with luggage fees," he says.

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