Why does priority pass have such a struggle breaking into our market?

5 replies

lind26

Member since 24 Apr 2014

Total posts 230

Why does priority pass have such a struggle breaking into our market?

moa999

Qantas - Qantas Frequent Flyer

Member since 02 Jul 2011

Total posts 835

I assume you mean why don't they have more lounges?

Suspect mostly on cost - almost all our airports are privately owned so commercial rents, and our labour costs are massive compared to other countries, then you have Australians general inclination to overindulge in free beverages -- makes it hard to work in a model of a fixed fee entry (think its US$27 once over any free entries)

Finally if you look at our airports, domestically both QF and VA already have lounges in our domestic ports, and internationally so do the major carriers (QF, EK, SQ, NZ, EY etc) so there wouldn't be as much demand for PP lounges.

rowwdy

Qantas - Qantas Frequent Flyer

Member since 21 Mar 2013

Total posts 11

If you mean for cardholders, Lack of options for local use I imagine. The lack of lounge participation may have to do with pushing users into their own loyalty schemes and lack of independent lounges. 

AlexT

Member since 14 Apr 2014

Total posts 22

I think its because aside from Sydney, Melbourne, Brisbane and Perth the lounge choices you really have are with QF and VA who are both either unwilling to partner with Priority Pass or are willing to partner with a ridiculous, unsustainable price tag to Priority Pass.

As to the Big 4, if you look at the network of lounges Priority Pass offers, you will see the the vast majority of lounges are privately operated (not operated by airlines or alliances).

Aside from Sydney, most if not all the lounges are operated by airlines that don't have lounges elsewhere in the PP network.

In Sydney, the two privately operated lounges are the AMEX and Skyteam lounges, but I think AMEX and Skyteam aren't willing to partner with Priority Pass.

Correct me if I'm wrong but I think the only privately operated lounge in Australia might just be the Reef Lounge in Cairns, which is in Priority Pass.

Andrew Barkery

Qantas - Qantas Frequent Flyer

Member since 21 Mar 2011

Total posts 427

They used to use VA lounges in all Aust airports for a number of years, but thats now gone.

lind26

Member since 24 Apr 2014

Total posts 230

Thanks good comments

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