Question 1

What is a good airport lounge utilization rate?

Accepted Answer

Most industry experts consider an average utilization rate of 60-75% to be optimal. This range suggests the lounge is profitable without being consistently overcrowded, which can degrade the premium guest experience. Rates below 40% may indicate poor demand, while rates above 85% can lead to service quality issues.

Question 2

How is theoretical maximum capacity calculated?

Accepted Answer

Theoretical maximum capacity isn't just the number of seats. It's calculated as (Lounge Capacity * Operating Hours) / Average Stay Duration. This formula, known as 'turnover-adjusted capacity', reflects how many unique guests can be served in a day, not just how many can sit at once.

Question 3

Why is my lounge not profitable even with high utilization?

Accepted Answer

High utilization doesn't guarantee profitability. Key factors could be:Guest Mix: A high percentage of non-paying guests (e.g., from airline contracts with low reimbursement rates) can squeeze margins.High Costs: Your food & beverage, staffing, or other operating costs might be too high relative to your revenue per guest.Low Ancillary Revenue: Are you missing opportunities for upselling premium drinks, spa services, or other amenities?

Question 4

What strategies can I use to improve lounge performance?

Accepted Answer

To improve performance, focus on balancing the key metrics. If utilization is low, launch marketing campaigns for day passes or renegotiate airline contracts. If utilization is too high, consider dynamic pricing for day passes (higher prices during peak hours) or redesigning the space for better efficiency. Always monitor your profit per guest to ensure changes are positively impacting your bottom line.

Question 5

How does guest mix affect my strategy?

Accepted Answer

Your guest mix is crucial. Paying guests are typically the most profitable. Membership guests (like Priority Pass) provide steady traffic but at a fixed reimbursement rate. Airline guests ensure occupancy but may have the lowest per-guest revenue. A balanced mix is ideal. Use this calculator to model how changing the mix (e.g., converting 10 airline guests to 5 paying guests) could impact profitability.

Airport Lounge Utilization Calculator

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Understanding Airport Lounge Utilization

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