Southwest Airlines is officially getting into the lounge game. The airline now has an actual, approved lease for lounge space at the Honolulu airport.
Southwest Airlines Honolulu
Lounges Are A Crucial Part Of Southwest’s New Strategy
Airlines make far more money from credit card deals than they do from flying passengers. But Southwest Airlines has a disadvantage here. They don’t have partnerships that help customers redeem points for travel all over the world. And they don’t have the premium services like lounges that drive card acquisition by affluent, high spending customers.
At the same time, Southwest has been making changes to its business model that causes the airline to be like others. They’re charging for seat assignments and checked bags. They’re expiring travel credits and selling basic economy fares.
But that makes Southwest just like everyone else only less so. They don’t have high speed internet or seat back entertainment. They don’t have first class or galley ovens. They don’t have lounges. So premium customers don’t have a reason to pick Southwest beyond schedule and price – a race to the bottom.
Southwest Has Been Hinting At Lounges
Southwest’s business model, its customers, and co-brand card revenue now all point to Southwest needing premium products, including airport lounges. It’s been clear that they’re going to do just that.
- We know they’re talking with Chase, their cobrand card issuer (who also has lounges), about this. JetBlue is adding lounges, effectively paid for by their card issuer Barclays.
- They tested lounge access for cardmembers even two years ago.
- Southwest’s CEO teased lounges this summer and again last month.
- Dallas Love Field, an airport that’s virtually exclusive to Southwest, will get lounges for the first time.
- Southwest surveyed customers about lounges with premium credit card access saying clearly “Southwest Airlines Will Open Several Airport Lounges.”
There’s Now A Southwest Airlines Lounge Lease At Honolulu Airport
Entrance into the lounge space has hardly even been an open secret for the airline. Now, via Enilria we learn that Southwest has actually applied for a lease of 12,000 square feet of lounge space at the Honolulu airport. And the lease has been approved.
The lounge is in Building 342 at the airport, the former Garden Conference Center on the ground level and an adjacent Waiting Lobby on the second level, identified as Rooms 342‑155 (9,577 sf) and 342‑220H (2,664 sf), for a total of 12,241 square feet.
This is the area where the American Airlines/Japan Airlines; Korean; Qantas; IASS and Ko Olina/LeaLea lounges cluster today.
American Airlines Admirals Club-Japan Airlines Sakura Lounge, Honolulu
The 5 year lease is priced at $156.14 per square foot per year (the current lease signatory rate at the airport), so about $1.91 million per year with minimum buildout spend of $20 million.
Details on access aren’t yet available, or even if there would be any cobranding of the lounge. Construction takes time, so opening can be timed to the introduction of a new premium credit card.
Update: the original find here goes to @AviationStl
I just don’t get it.
How much time will have to pass before we consider Southwest a legacy airline?
This will be a test of an airline with no premium cabin having lounges.
Hopefully Southwest will fly you and the family out there opening week to check it out and give us a preview, Gary!
Maybe they will block the middle seat in their business class.
My college dormitory was nicer than this. No thanks.
This is almost completely useless without a bona fide domestic first class cabin.
they can convert a bathroom closet in HNL airport and call it a lounge and it would be better than the other lounges that are already there….. the bar is pretty low
Fantastic and smart. HNL needs more lounges and this would be a big plus esp for the higher value customers not to mention WN has so many connections. Also it is needed to compete with AS and UA.
And here I was lead to believe that ‘Mike Hunt would be hot and bothered.’ (Say it aloud.)
Gary Leff writes that “Southwest aims to attract premium customers.” According to some readers of VFTW, Delta Air Lines is the only airline in the United States specifically targeting premium customers with its premium services. It’s noteworthy that Southwest Airlines has leased 12,241 square feet of space for its new lounge in Honolulu. This new lounge should provide enough space for Southwest to prepare and serve gourmet hot dogs, peanuts, POG juice, and other delicious snacks to passengers before they depart from the Aloha State.
@Ken A — As long as they have guava juice, I’d say it’s worth it. Hawaiian (sorry, now Alaska) may sue them for stealing trade-secrets, but I guess the secret is out. The stuff’s delicious!
Honolulu??? #random