Alaska Airlines is survey some of its lounge members about changes they’re considering. They’re looking at whether to raise the price for lounge membership, and what additional amenities customers are looking for if they do.
They benchmark customer attitudes against other airline lounges and against American Express Centurion lounges (but not against Chase or Capital One lounges). And they want to know whether members are especially price sensitive, and whether they’d pay for more more food:
They also want to know whether customers would pay more for showers, nap areas and spa treatments. Alaska doesn’t currently operate long haul flights, but with their pending acquisition of Hawaiian Airlines and its Pacific route network, rest and showers become more relevant.
Continuing with the theme of price versus amenities, Alaska asks about price sensitivity a number of additional ways and also asks members to consider whether a lounge membership that offers more locations would be worth paying more for as well. They separately ask for location suggestions, and I’d note that Hawaiian Airlines operates lounges at five airports already.
Finally they want to know what the most important amenities to add would be.
Alaska just raised the cost of basic lounge access by $50, and inclusive of partner lounge access by $100, on February 1. It’s interesting to see them consider another price increase so soon, though presumably they’ll promote it in conjunction with a plan for more lounges, amenities, and food and beverage offerings – though many things they’d add will take time to roll out or won’t be available in all locations.
Alaska’s lounges are pretty basic, and not impressive.
They see the lounge access-granting credit card companies and other airlines raising the fees or likely looking to raise the fees (directly or indirectly) and so they want in on the same game of increasing their revenues and profits too.
Perhaps ironically, even as I have more lounge access and lounge choices than ever before and have just as many trips on where I could possibly use lounges, I am more interested in not having to use them than ever before. And yet I use them anyway.
Whoever the Product Manager over there is trying to figure out how to maximize revenue *and* customer loyalty, which- as you can imagine- is pretty hard and somewhat more art than science.
As a former Product Manager myself for a large software company, we would devise all of these surveys to find the right price, and in my experience very little of it matters.
Why? Because Customers lie. Lol.
In my experience, the only way to find out what customers like is to actually test it and see how they react. There is a saying, “Don’t trust customers what they say, but how they *behave*”.
So it will be interesting to see the data on customer’s reaction to the $50/$100 increase, and if the lounge’s become less crowded. I think that is the biggest problem right now… they are no longer exclusive and have lost their value over time, IMO.
-Jon
if they raise their prices I will not renew. They limited the lounge to such a degree that it’s not worth any more money.
Was a member for a year but their concept didn’t work for me. They invested in beautiful decor, nice ambience, good seating, baristas, made to order premium coffee and drinks, but neglected the food offerings. I kid you not it was yogurt for breakfast and soup and salad for lunch and dinner when I was a member in 2022. That was it for food! And that was in their flagship lounge in Seattle. An odd, unequal approach that made me dump both the lounge and the airline.
Lounge access should remain a premium experience. To the airline it is about loyalty and perks for premium customers. Unfortunately customers who are price sensitive are likely not the ones the airline is seeking to please with the lounge.
I’m all for paying a bit more and shrinking the crowd.
It is highly unlikely that airlines generate a profit from lounges. They operate at a loss. They generate loyalty with premium.
I support higher prices for a more premium experience
This summer the lounges have become daycares. The price has increased 100% since before covid but you don’t get anymore. I won’t pay more and am really considering not being a loyal 75k anymore.
Hello Alaska Airlines!
Step your Food, Relaxation Amenities + then you have a competitive lounge product.
The Lounges are NOT at the level you think they are.
Design wise, the renovated + newly opened SEA lounges are on Target, but for $600 / year use… NOPE!
Great Food + Drinks, Showers, Reclining Chairs w Leg Rests, Electrical Outlets near chairs, Desks, Views, Sleep Rooms, Personal Conference Kiosks, Design Aesthetics is what AA should focus on to match their needs Chairs in 1st + Main Cabin Select.
I’m sure they wish they kept the Virgin America Chairs!
Huge Mistake.
Over the past few years, the lounge has substantially decreased its offerings. Sad.
Honestly I paid $60/pp last time for the Alaska Lounge at LAX. For a “hub” of the airline I would have expected a larger space and offerings. It is the size of a legacy carrier lounge at third-tier domestic destinations. If I was to use the Alaska Lounge, the only one worth the cost at $60 is SEA but the Centurion Lounge is still a better offering there.
Was at the AS lounge at JFK. It had some basics (snacks, soup, salad), but wasn’t service hot meals like you would find in AA’s Greenwich or UA’s Polaris Lounge. Wouldn’t spend much of a premium to stay there. Although the bathroom outside the general gate area I appreciated.
Lounges are not that much of a luxury if you are stuck overnight and have a 5:00 a.m. flight in the morning.
I recently stayed at the overnight lounge at Quito airport and it was $40, and a bit crowded, but at least you got a recliner in a dimmed area, and there were some snacks.
On the other hand, you could stay at a hotel just off the airport for $30 per night, with the bonus that they had llamas and alpacas grazing on the hotel grounds, which you could see if you were there during hours of daylight. However it probably wasn’t worth it for 5 hours once you added on $5 each way for a taxi at night rates and they had no food in that time period.
Never been to an expensive lounges at any airports and probably wouldn’t, especially if they are asking travellers to fork over more money-Not worth it