Airport Clubs Get an Upgrade --- To Cement Loyalty, Carriers
Add Spa-Like Showers, Wireless Networks, Playrooms
10 November 2005
The Wall Street Journal
D1
AIRLINES ARE aggressively cutting everything from meals to pillows. But they are spending money in one place: the tony airport clubs for their most coveted passengers.
Long used as private oases for travelers who have either paid to sit in business or first class or shelled out money for memberships, airport clubs are getting face-lifts. American Airlines' new 30,000-square-foot-club at Dallas/Fort Worth International Airport has floor-to-ceiling windows overlooking the runway, a cyber-cafe and pulsating shower heads in the bathroom. At Northwest Airlines' recently renovated clubs in Detroit, Minneapolis and Chicago, amenities range from sleek marble and stone decor to fireplaces. At Continental's new three-story club in a recently opened international terminal in Houston, passengers can leave their suits to be pressed while they shower.
The launch of spruced-up clubs is being spurred by increased competition in the airline industry -- especially from discounters such as JetBlue and AirTran. In the new budget-conscious travel environment, these clubs are one of the few remaining advantages that the traditional airlines have over growing discounters. The clubs can also breed customer loyalty and influence which traditional airline a passenger flies. If a traveler belongs to the club of just one airline, for example, they might be more prone to buy a ticket on that carrier.
The improvements come amid record passenger demand for air travel. Major U.S. airlines have collectively filled an average 79% of their seats so far this year, according to the Air Transport Association, which means more planes are flying at full capacity. That surge is spilling over to airport corridors and food courts, making travel increasingly uncomfortable for the masses.
Some airlines have started selling day passes to clubs for about $50 to anyone who will pay. American Airlines said the passes spur purchases of longer-term memberships, and it recently reintroduced lifetime memberships after nearly a decade. The cost for lifetime entry: As much as $5,500, more than 10 times the approximate $500 that an annual membership can run depending on a passengers' mileage status with the airline.
"We are taking care of our best customers," said Continental Airlines' Director of Product Marketing Eric Kleinman.
Mortimer Feinberg, an organizational psychologist, has been a lifetime member of American Airlines' clubs since 1964, and says it's "one of the best investments I've ever made." Flying more than 50,000 miles a year from New York to give lectures in the U.S. and overseas, Mr. Feinberg says he appreciates the improvements. "I like the Internet access. And I like the fact that in Chicago and Dallas I can order a meal," he says.
While many airlines are trying to boost membership to their clubs with day passes, Delta -- which is restructuring its operations under bankruptcy-court protection -- is actually paring back access to its clubs. Delta had been one of the few airlines to give free memberships to its airport clubs to its top frequent fliers. But the airline said it plans to cut off the free memberships and raise access fees for other members.
Airlines are also sweetening their club deals by making alliances with other carriers and with credit-card companies. The upshot for travelers is that they can often use one membership to gain access to many airlines' clubs. Continental, for example, has 27 of its own private clubs in airports around the world but, because of partnerships, its members also have access to more than 40 affiliated lounges world-wide. Continental also has a partnership with American Express in which Amex platinum members have access to the airline's clubs.
Travelers who have bought a first-class or business-class ticket can usually gain access to the clubs. But that isn't always the case: Some domestic first-class travelers on American, for example, don't automatically get free access. Another way to get in on most airlines is to buy either a yearly or a lifetime membership, usually with cash, but sometimes with miles. American's annual memberships for one person run up to $450, or 70,000 miles if bought with frequent-flier miles. Delta allows membership payment with miles too. . A membership generally allows a traveler to entertain up to two friends or business associates, or immediate family, in the clubs.
Airlines don't disclose how much revenue they derive from the clubs. But, United said that, in general, memberships don't affect profits. American said its clubs are profitable.
At Continental's new Houston club, the airline is starting to offer English muffins in the mornings after customers asked for healthier alternatives to doughnuts and bagels. And by the end of last year, all of Continental's 27 clubs worldwide had introduced wireless Internet access. Outsiders sometimes sit outside the doors trying to pick up the signal, according to Continental.
At American, once-rare children's playrooms are becoming standard in newer clubs as the carrier sees more families traveling with kids. At American's just-opened club at Dallas/Fort Worth Airport's new international terminal, parents can watch through glass windows as children watch videos or play on Plexiglas-covered PCs. Also at American's new DFW club: pulsating shower heads and a quiet zone where cellphones are banned.
Some passengers complain that the clubs are getting too crowded, making it trickier to get access to magazines and newspapers or even seats during peak hours. American has seen its membership increase 10% during the past year -- it's sold more than 1,000 lifetime memberships since Aug. 15 -- though it says its club capacity has grown, too, with newer openings. Continental said it's considering expanding some clubs due to increased membership and traffic.
Perks at the clubs can vary widely, even those run by the same airline. Some are much bigger and more modern than others, depending on location. Others have closed because of cost cutting. While Continental offers free wireless Internet in all its clubs, American charges for such access domestically. And while American two years ago began offering meals for sale in addition to its free snacks, Continental shuns that approach. "We're not a restaurant," said Continental's product marketing director Mr. Kleinman.
Continental offers free cocktails in its clubs. But, United charges $5 for drinks, though liquor is free in its international lounges. American gives free cocktails only in its international clubs or to certain international passengers flying through U.S. airports. While some clubs are stingy with their perks, most are staffed by seasoned service agents that offer quick re-booking of flights when travelers are in a jam and can sometimes offer preferential seating and upgrades.
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The Airport Clubhouse
Airlines are sprucing up their on-the-ground clubs for frequent fliers.
Here are a few of the offerings:
American
-- Light meals for sale at most domestic clubs (in addition to free snacks)
-- Music listening rooms with Bose headsets in some clubs in Dallas, LA and
Miami
-- Children's playrooms in select locations including LA, Dallas, Miami,
JFK
-- Day passes for $50
Continental
-- Free wireless Internet access in all clubs
-- Free cocktails
-- Suit-pressing service at club in Houston's George Bush Intercontinental
Airport's international terminal E
-- Kids/family rooms
-- Day passes for $45
-- Lifetime memberships available
United
-- Direct TV in 70% of domestic clubs
-- $5 cocktails (free in international lounges)
-- Ventilated smoking lounge in Chicago O'Hare's Terminal One, C concourse
-- Day passes for $50
Northwest
-- Free wireless Internet access in Chicago, Detroit, Honolulu,
Minneapolis, Portland
-- Free cocktails Smoking lounges in Detroit and Minneapolis
-- Day passes for $45 at domestic clubs, $65 at international clubs
-- Lifetime memberships available
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