Are Credit Cards RUINING Airport Lounges for EVERYONE? (CNBC Reaction)

Are Credit Cards RUINING Airport Lounges for EVERYONE? (CNBC Reaction)

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Hey credit Warriors welcome to the show And it's Friday I got a bit of a Reaction video for you today because I'm Going to be reacting to this video that CNBC put out talking about why it is Getting harder to get into airport Lounges all right especially with credit Cards and I think a lot of people have Been talking about this with the MX Delta cards and the MX Platinum recently Rolling back their airport lounge access Or making you spend $75,000 a year to Get unlimited access to airport lounges Anyway the video goes through a load of Different aspects of this overcrowding In lounges talking about the difference Between credit card lounges and airport Lounges the direction of the industry is Pretty interesting so let's check it out Together airport lounges are popping up Everywhere and almost every major Airline and credit card company seems to Want to get in on it that's true they Are popping up everywhere and it seems That all the credit card companies now Are doing their own Lounge networks and I got a hypothesis as to why they're Doing this but let's let's keep going First they're spending millions of Dollars to attract customers and keep Them spending customers reward companies That take care of them and we feel Really strongly that the lounges are a Big part of that for us that's really

True actually I I find that like if you Feel that a credit card company really Takes care of you you will give them Your loyalty I think that's why AMX has Such good loyalty from people you know Because I know AMX they have the best Customer service although I have felt it From Chase too when I got uh you know my Flight got delayed in a storm and all That stuff and a claim on the insurance That went really well with Chase as well So it does give a lot of points when you Feel like you've been really taken care Of it really increases your loyalty to a Brand if you pay up and you're willing To commit to that Airline over the long Term and make it like a partner Basically for your travel experience and They're willing to reward you with with Better perks all right so this guy is Talking from the point of view of the Airline you see that his title was like Some Airline research or whatever so you Got the people the credit card people Talking from the point of view of a Credit card company and he's the airline Guy he's talking about loyalty to an Airline so you got two things all right That are kind of competing loyalty to Credit cards and loyalty to Airlines and In my kind of hypothesis they're kind of Clashing at the moment when it comes to Airport lounge access but as their Popularity increases so do the

Challenges of operating them like Overcrowding once again it is Hunger Games true Hunger Games Hunger Games I Don't think it's that bad but yeah it is True have you seen the lines at some AMX Centurion lounges there's people on Reddit posting photos of the lines I Remember going through Las Vegas seeing The line outside the Centurion Lounge There at that airport and I was like why Even bother I didn't even bother trying To get in it is true that airport Lounges are getting massively Overcrowded and kind of something had to Be done any wait is too long and we are Doing everything we can to minimize that As companies invest more money and Effort into improving travel loyalty Status and lounge access are becoming Increasingly harder to qualify for you Don't want to wait for 20 minutes to get Into a lounge and then you've only got 20 minutes there right I think that's a Little ridiculous I tried to go to the Virgin Clubhouse recently I had like 10 Minutes to spare I was just going to go And grab some food and go and the lady Said oh it's it's waight of service only Like you can come in but you're going to Have waiter service you have to wait for Your food ridiculous so any weight is Too long uh whether that's in the lounge Or in a line outside the lounge so they Do need to do something to decrease

There should never be a line basically In my opinion there are over 3,200 Airport lounges worldwide the United States has more than 300 of with Individual airports in New York Los Angeles and San Francisco home to the Most locations that's a lot of lounges You see how many Asia had it had like 1,400 I think it was funny oceanana That's like Australia and New Zealand Had like 23 or something but um yeah We've got 300 lounges sometimes you Wouldn't feel it's that many but um yeah It's pretty good and there's a lot of Ways you can qualify to get into them First and business class tickets will Typically come with lounge access for Most international travel but Airlines Like American United in Delta restrict Lounge entry for most domestic flights Yeah you know I hate that it's not just Domestic flights as well it's flights to The Caribbean too any flight that they Think is like a touristy flight like Short Hall flights down to I think where Was it I was going Cancun I went first Class on American airlines to Cancun and They didn't give us lounge access which Really really sucked and there wasn't I Think there wasn't a priority pass Lounge in the terminal that we could go To so we ended up just going and you Know going to some Cafe but uh if I buy A first class ticket I want lounge

Access many major airlines also have Branded credit cards that allow you to Earn frequent flyer miles from everyday Purchases to use toward free flights you Get to earn Elite status when you reach Certain spending thresholds status at an Airline comes with a host of benefits Like free seat upgrades and of course Lounge access let's it's not just Earning status with the card but some Cards just give you lounge access anyway Just by having the card Chase Capital 1 And American Express also have their own Lines of Premium travel credit cards That are not Airline specific what was That American Express card they taken Out the the Roman soldier I don't know I Don't know why they did that I mean Maybe they couldn't show the trademark Or something reminds me of that Lando Lakes thing they used to have a little Indian in the O and they took it out and They just kept the O it looks kind of Sad because of cultural appropriation or Something maybe this is like they're Afraid of offending Italians because They use an ancient Roman Centurion so Take it out of it just a joke but anyway Let's keep going and Capital One are Both in the early stages of creating a Lounge network of their own Capital One Launched its first in 2021 in Dallas and Chase opened its first US Lounge in Boston of May of 2023 Chase has

Announced the creation of five more Lounges continues to be the number one Reason why a lot of our customers get And keep the card yeah she knows it Right she knows how good their lounges Are to be honest and that lady was from Chase so like the Chase Sapphire Lounge The one in Boston I'm really excited to Check that one out I might even go up There just to take a trip just to check The lounge out cuz it looks absolutely Beautiful Capital One Lounge also looked Great I think the chase Lounge I just Love the decor the decor of it looked Just a little bit you know my kind of Vibe you know sort of hipstery kind of Like all that um kind of like my Airbnb Is going to be bit little bit rustic a Little bit um you know classy kind of Feel um oh by the way if you are Interested in staying at our Airbnb Follow us on Instagram all right mini Waska cabin I'll put it uh down on the Bottom of the screen if you're in sort Of like the tri-state area New York Connecticut Pennsylvania Northern New Jersey it's totally within like 2 hours Drive of where you live so do follow us If you're interested it's going to be Ready in like 2 or 3 weeks anyway um Capital One Lounge also looking good so The credit card company setting up Lounges they're getting into a sort of Vicious battle right now and some of

Their offerings look really really good So yeah let's keep watching Lounge Investment and lower annual fees are Keeping these cards competitive in the Travel space to rival the American Express Platinum which offers access to Its signature Centurion Lounge system And while these premium travel credit Cards aren't cheap they offer travel Credit Kickbacks of up to $300 all right I don't think that's really fair right They put $300 on Capital 1 $300 on Chase Sapphire reserve and then only $200 on The MX Platinum they're referring to the Fine hotels and resorts collection Hotel Credit but you've also got the airline Incidental fee credit which if you're Flying us domestic that could pay for Your check bags you've got what other Credits you've got you must have some Other travel credits on well you got the Uber credit $200 that's kind of travel All right so if you count all those Three together that's already $600 worth Of travel credits as lounges become more Accessible overcrowding can become a Problem we added 900 seats last year um We are adding 2700 seats this year so That is every action we're taking that's What we're taking it for right and that Is very true so the AMX Platinum that we Just saw in the previous clip um if you Don't know that up until 2025 okay so up Until now and then for the whole of next

Year it's still giving unlimited access To Delta Sky clubs when you fly Delta so All these people with the AMX Platinum They flooding the Delta lounges the Delta lady was saying that you know They've been increasing seats because They're getting way too busy and they've Had to obviously do something about it Even more than that we'll find out about That in a minute Delta told CNBC that it Is not considering a reservation system For access to its lounges reservation is A complicated system at the end because You're arriving from a flight or you Taking a uber from the city 15 20 Minutes late do I all you see right yeah Reservation systems kind of a mixed bag I mean some priority pass lounges in the UK like number one Lounge for example They do have a reservation system you Have to pay five British pounds I think It is to reserve which is you know it's A nominal amount it's not too much and Then obviously get in the lounge for Free because it's priority pass I I Don't know I mean obviously you can't Really hold a table in a lounge for Something for someone because lounges Have different areas right so you might Want to go and eat some food at a sort Of sit down table first of all and then You might want to sit back and relax in A chair and get a little bit of rest Best or you might want to go into a

Quiet room and make some phone calls or Something like that and so lounges often Have different areas that people will Sometimes use like two or three Different areas during their stay in the Lounge so um it would be hard to give Someone a reserve table American Express Allows its Centurion Lounge guests to Check in Via a mobile app but access is Still not guaranteed Capital 1 is Currently experimenting with a digital Weightless system we are testing in our App now and I would think of the digital Weight list less like a reservation and More like the ability to kind of join a List ahead of time yeah I mean that Makes sense if it's genuinely getting Too busy and you can join a weight list Like you know half an hour before or an Hour before so you're actually Technically waiting in line just Digitally and then when you turn up in Theory it should hopefully be your place In line um that makes a lot more sense Than Reserve tables but you know that's Still a pain point isn't it it still Diminishes the exclusivity of the loung In 1940 American Airlines introduced the First Lounge for customers at the New York Municipal terminal now lagoria Airport there were no membership dues But you had to be invited the clubs Became so coveted that in 1967 American Airlines opened its doors to anyone that

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Would pay its annual dues of $25 $25 to Get an annual membership in a lounge I Mean that was probably to be fair though It's probably like 500 bucks today so It's probably about the same the 1960s Saw the expansion of airport lounges Across carriers the Transworld airlin Sunken Lounge still exists today in the Tww hotel with themed cocktails in Decor From the decade I've actually been here That's a really cool hotel so it's like A a little tip if you ever go to JFK and You want to stay at a hotel the night Before yeah you've got all the usual Options you know like Courtyard by Marriott or Hampton in or whatever um But the tww hotel is a really cool one To stay at a little bit more pricey you Can book it with points I forget which Points currency it is I'll I'll put it On screen if you want to check it out But I did stay there had a great time it Has got that sunken Lounge that you can Go and chill out here and eat some food And it has got what they call the pool C Uzi which is like their pool but it's Heated to like 80° so you can you know That's hot but it's not like Jacuzzi hot So they call it the pool Koozie uh there Is steam coming off it in the winter you Know and it's a really cool place you Can go and sit there watch planes and Stuff and yeah it's just a really really Cool hotel I thoroughly recommend it the

Rise of loyalty programs fueled the Transformation of Airlines going from Upscale waiting areas to immersive Luxury experiences by the 1980s that's What I like to hear immersive luxury Experiences Lounge experiences in the Past have typically been designed more Around business Travelers and today People are traveling very differently Than they did you know 10 15 years ago They're traveling more with family and Friends and in groups and you know Blending business and Leisure Travel That's true yeah it used to be that like Business Travelers were the ones in all The lounges and Leisure Travelers were Like people they would just be an Economy right but now a lot of people Who they are just traveling on vacation Are in business class whether they're Paying for it with cash or with with Credit card points or sort of a Combination of both the gap between Economy tickets and B business class Tickets has decreased Airlines and Credit card companies spend Millions to Secure space in an airport but these Lounges aren't making them much money at Least not directly it's not a moneymaker For us it's about offering that Experience for people who pay a premium To fly on Delta I think the crucial Statement there is not directly because The lounge undoubtedly does make money

Indirectly because it entices people to Fly that aine and for premium travel Credit cards like Chase American Express And capital 1 the main goal is new Customers airport loues in general are The number one reason why someone would Sign up for the credit card that's true I can vouch for that let me know in the Comments whether that's the number one One reason you would sign up for a Certain credit card may not every credit Card because you only need one to get You into the lounges but definitely a Lot of people are getting the Capital One Venture X because it is um you know It has great lounge access okay that's One of the big selling points obviously AMX Platinum you get Centurian loues you Get Delta Sky clubs too so it is a Really big selling point of signing up For credit cards the trend toward Premiumization started before the Pandemic and has since taken off overall Economy seats from a configuration Standpoint really haven't grown in 10 Years or so maybe even 20 so it's been a Long time since the economy uh section Has grown but really the the growth in In overall seats is really been more on The premium side that is true have you Noticed that like these days when you Get on a plane it's not like you know Economy or whatever takes up half the Plane you often walk through like

Several different classes you got first Class business class premium economy and Then like main cabin extra or like Delta CA like Comfort plus it's basically Economy but with more legum and then Finally you get to economy which is like This this really small part of the plane Like just this like you know you know 50 Ft or something at the back American has Partnered loyalty programs with British Airways for three of their lounges at JFK International Airport the first time That we we uh have partnered with them To this degree in really from the Beginning designing and creating these Joint lounges and so the three joint Premium lounges here at JFK are truly Just cabin or status based entry it's Not a credit card or a membership that Gets you in and still they managed to be Packed right I went to that Lounge um Very recently after it had just opened Actually the grenwich lounge that's the One you get when you buy a business Class ticket to Europe with British Airways and it's an American Airlinesbritish Airways out and it was Packed it was really packed on September 13th 2023 Delta announced changes to its Sky miles program causing customer Backlash they don't care how much you Fly they just care how much money you Spend so now we're getting into talking About the recent changes that delta made

So that includes just the Loyalty Program in general where they made it so You have to spend a lot of money it's Based on money now not individual Flights or whatever to work up the Loyalty status which you know I Mean although it's uncomfortable and It's not Um it's not going to be popular with Travelers because you know there were Ways that you could sort of like I guess Game the system a little bit where if You book certain flights that were cheap But got you a lot of um you know what Are they called like Medallion Qualifying miles or whatever um you know You there were probably strategies okay I'm not an expert on that side of it Just because I haven't really done it I Haven't got the only Airline I have Status with is British Airways just Because I I fly to the UK every Christmas but um there were definitely Easier ways to do it but now they just Sort of Base it on the amount of money You spend which is kind of how it should Be from an Airlines point of view and From an exclusivity point of view but You know obviously not popular with Travelers a month later the company said It would be walking back some of the More stringent Changes however Delta Sky miles reserve And American Express platinum card

Holders Who currently enjoy unlimited Sky Club access will still need to spend At least $75,000 for the same privilege Beginning in 2025 yeah and that's the Part that obviously a lot of people who Watch this channel are going to be Concerned about because they have Changed it so that if you have the AMX Platinum you only to get six visits to The Delta Sky Club per year and if you Have the Delta Reserve it's only 10 Visits unless you spend $75,000 on each Card which to be honest it's not going To happen like with most people they're Not going to spend that much the the Side of Saving Grace is that MX gives You a $200 Airline Credit which you can Use on Delta so what I did uh when I Went to the Delta Sky Club recently in La I used um a one of the six visits for Myself H and then my wife had her MX Platinum and she used one of her six Visit actually well we have unlimited Visits anyway right now but if it had Been in the future 2025 when this is Coming in um would have been one of the Six visits and then you can't bring Guests you have to pay for guests but What you can do is you can pay the guest Fee on the card and as long as your Airline is selected as Delta you'll get Refunded the $50 guest fee through the Airline Credit so that's what I did I Put the guest fees for my kids $100 and

It got refunded so you know that's kind Of a way to get around it but obviously If you're someone who flies a lot and You were kind of reliant on that Delta Sky Club access um then that's going to Be hard for you but to be honest though If you fly a lot you probably fly enough To build up some Airline status anyway Unless you hold an annual membership Which cost $695 starting as early as 2024 those Flying basic economy with Delta will not Be able to access its lounges I mean Basic economy come on guys basic economy Is for like college students and stuff We don't want them in the lounges anyway Delta joins American and United who have Also raised their spending requirements To achieve status this is a copy cap Industry in general so someone has a the The new shiny object there there's going To be a one up at at some point that Goes for labor that goes for pricing That goes for product that goes for Basically everything yeah so I think you Know in conclusion I think what we're Seeing is that so many people have been Accessing Airlines lounges specifically Lounges owned by Airlines because you Got different lounges right you've got Independent lounges that don't have an Airline um associated with them but Maybe they provide services to some Airlines that don't have their own

Lounges or they're just you can pay to Get in or whatever or they work with Priority pass um so you've got like Plaza premium lounges that's not owned By an airline it's just its own thing Right and they work with priority passs Or they work with um you know cards like The MX Platinum Capital 1 Venture X Etc Um so you you got different types of Lounges and the specific Airline lounges Have been feeling the pressure because Many credit cards give access to these Airline lounges and I think that's What's changing that's getting much more Strict okay so Airlines lounges are Getting harder get to get into but what We do have is loads of credit card Companies American Express Capital One And Chase Building their own lounges and That is really exciting so people with Credit cards they're still going to have Lounges to access because they got Priority pass which comes free with B Pretty much every High level travel Credit card and that gives you like 1,300 lounges worldwide so that's like Onethird of all the lounges that exist In the world actually cuz there was it Said there was like 3,000 loungers Across the world or something um almost Half actually and uh so you know you're Definitely going to have lounges but the Only thing is that there might be a Little bit of time while the airline uh

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The credit cards sorry build out their Network of lounges the airlines are Going to be cutting back so Delta is Restricting access to its lounges and Other airlines it's already not that Easy to get in I mean Admirals Club you Can buy a day pass maybe they'll start Restricting that that was something I Used to do with the MX Platinum Airline Credit I said it to American by the day Pass for Admirals Club get refunded um But yeah it's interesting to see uh the Whole industry changing but remember Guys don't feel bad about it because There are always sweet spots and that's What we do we just adapt and sooner or Later some you know companies going to Have they want to launch a new product They're going to come out with a really Sweet deal to attract people in right That's going to happen as well remember When the Chase Sapphire Reserve came out You got unlimited guests in priority I Bought like six people into a priority Pass Lounge once with with that back in The day and then they closed that down So stuff is always changing there's Always sweet spots don't worry about it Guys if you are interested in getting a Credit card like AMX Platinum that gets You access to any of these louers do Check out our credit card guide below Where we talk about many of the cards That we frequently talk about on this

Show as always these are affiliate links They help out our show so we do thank You very much if you use them other than That thanks for watching guys please Subscribe to the channel let us know What you think in the comments we'll see You next time bye-bye

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