Qantas plans to close one its four lounges overseas.
Qantas closes Hong Kong lounge
Qantas created a lovely lounge at Hong Kong International Airport in 2014. It had seating for approximately 300 people and covered an area of 2,000 meters (more than 21,000 square feet).
Due to strict travel restrictions in Australia and Hong Kong, the lounge was closed just before the outbreak of the pandemic. This lounge closure has been made permanent. Executive Traveller reported that the Qantas lounge Hong Kong will not be reopening. Qantas customers will be directed to Cathay Pacific's lounges, since the Hong Kong-based airline has a large lounge footprint at the airport.
The Qantas Lounge Hong Kong is closing permanently
This is Qantas' only international lounge that will not be reopened. Qantas plans on reopening its lounges in London and Los Angeles as soon as the demand recovers.
Qantas First Lounge Singapore is expected to reopen soon
Airport lounges and their economics
It was not surprising to see the Qantas lounge Hong Kong close. I also didn't fully understand the purpose of this lounge. There are two options for airlines at outstations. They can either operate their own lounge or use a contract lounge or partner airline.
There are several things to consider when opening a lounge.
Do they care about providing a unique experience at the ground? Emirates has a reputation for having lounges at outstations, even if it offers limited service. This is because Emirates cares about providing a consistent experience.
Do you think it is cheaper to run a lounge than to send passengers somewhere else? The fixed costs associated with operating a lounge can be high. However, the alternative is to pay for every passenger who uses a partner lounge. This could add up quickly in busy outstations.
What is the revenue that can be earned by admitting other passengers? While airlines have different ways of doing this, in certain cases, an airline may be able to operate a lounge profitably by taking part in Priority Pass.
A few things spring to mind when we think of Qantas Lounge Hong Kong.
All Qantas premium passengers and eligible elite members were eligible to access Cathay Pacific lounges. Both airlines are part of oneworld and the lounges are largely superior.
Although Qantas did have some agreements for selling access to its lounges it wasn't maximizing revenue in the sense that Priority Pass didn't partner with the lounge.
The lounge was not a significant differentiator and cost the airline a lot. With questions about whether Hong Kong will ever recover in demand, it is easy to see why the airline wanted to close the lounge.
Cathay Pacific offers some amazing lounges in Hong Kong
According to my view, the only loss from this change is the decrease in the number of oneworld lounges at the airport. Although I didn't frequent this lounge often, I was glad that others did. It kept other oneworld lounges fuller.
Bottom line
Qantas Hong Kong's lounge will close permanently. Qantas passengers will be directed to Cathay Pacific lounges, which they have had access to since the beginning. This decision is probably sensible, but it also reflects the possibility that Hong Kong might never recover to its former self, or, at the very least, it will take a long time.
What do you think about Qantas closing its Hong Kong Lounge?
