Are pay-as-you-go airport lounges better value for infrequent flyers?
A private airport lounge operator has opened more facilities as it ramps up the challenge to major airlines whose annual memberships cost up to $540.
An airport lounge designed for “infrequent flyers” is expanding its Australian footprint with the opening of an Adelaide lounge and plans for another in Perth.
Plaza Premium already has pay-as-you-go lounges in Brisbane, Sydney and Melbourne international airports along with another 250-plus worldwide.
In Adelaide to open the latest facility, Plaza Premium founder and chief executive Song Hoi See said he saw Australia as a huge market, given the widely held passion for travel and desire for good value.
The Hong Kong-based Mr Song said he was inspired to start a pay-as-you-go lounge 25 years ago after quitting a high-level bank job where he always flew business class, and starting his own company where every dollar counted.
“I had to steal electricity in the public area (of airports) to charge my laptop, which was very embarrassing, and I thought ‘hey this is not right’,” Mr Song said.
“Then I looked at the plane and 15 per cent were in business and 85 per cent were in economy. The 15 per cent are taken care of by the airline but what about the rest?”
He decided that even if just a small proportion of that 85 per cent was willing to pay, the Plaza Premium concept would succeed – and his hunch proved correct.
In July, Plaza Premium was named the best independent lounge operator for the seventh year in a row at the annual Skytrax awards based on surveys filled out by thousands of travellers.
About 15 per cent of Plaza Premium guests were “walk-ups” and the remainder accessed the lounge through arrangements with airlines and financial institutions.
Mr Song said many people in Australia were unaware of the option of pay-as-you-go lounges which represented significant savings compared with airport alternatives.
“People pay about $30 (an hour) to come into my lounges. It’s nothing – when you buy sandwiches and a drink in the airport it costs maybe $50,” he said.
In the case of Sydney, Brisbane and Melbourne’s Plaza Premium lounges, the fee for two hours’ access was $63.24 a person. Adelaide offered one hour of access for $39.
The charges compared with an annual fee for a Qantas Club membership of $540, or $399 for Virgin Australia.
Virgin Australia also offered single entry passes for $65 but they were only available at domestic lounges two hours before boarding.
Point Hacks managing editor Daniel Sciberras said the question of whether to pay as you go or buy an airline membership came down to travel frequency and loyalty.
He said in the case of Virgin Australia, a very frequent flyer could obtain gold status which entitled them to lounge access.
Qantas lounge access was also “free” to gold status frequent flyers and above, while Qantas Club membership entitled the holder to access not only domestic but many international lounges.
“Where the annual memberships for lounges fall over is if you’re a twice or three times a year traveller. Then it doesn’t make economic sense at all,” said Mr Sciberras.
“With Plaza Premium, you would have to weigh up what you want from a lounge. If it’s just a cup of coffee and somewhere to sit, I would suggest you stay in the terminal. If it’s a shower, somewhere quiet to work and a meal, then the pay-per-use lounge can be good value.”
Executive Traveller editor in chief David Flynn said independent lounges like Plaza Premium appealed to “infrequent flyers” and those who flew with many different airlines.
“While frequent flyers rarely have to worry about lounge access because it’s a prized perk of their airline status, infrequent flyers find lounge access can be a welcome respite from a crowded terminal,” Mr Flynn said.
“Pay-in lounges can also be a godsend for parents travelling with an infant or younglings.”
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