How we got here: Issuers and airlines are jockeying to provide the best lounge experiences to keep their premium members satisfied—and reach younger consumers who prioritize experiential rewards.

• Chase-backed Southwest is planning lounges in Austin, Baltimore, Honolulu, and Nashville ahead of its premium card debut.
• Revolut is opening a network of airport lounges across Europe.
• And Capital One recently opened a lounge at LaGuardia Airport, with plans to roll out a new location in Charlotte.

Why this matters: Quality lounge experiences are becoming a differentiator, especially as concerns about overcrowding grow. Opening more lounge space with bigger capacity can help issuers improve the member experience. 

The difference in consumer satisfaction ratings between a crowded versus uncrowded lounge is stark: Customer satisfaction falls nearly 250 points for lounges that are extremely crowded, per JD Power.

Implications for issuers: Lounge experience is a driving factor of customer satisfaction, but aiming for less crowded lounges should be the floor, not the ceiling. 

Investing in a craft food and beverage program can also help move the needle: 39% of guests say that they go to lounges to avoid high-priced food and drink selections in airport terminals, per JD Power.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.