Mon, 10 Mar 2025

Mon, 10 Mar 2025 Luxury lounges: Credit card perks we are all paying for

Why credit card providers are opening lavish customer lounges in airports and cities.

* Credit card companies like Chase, American Express, and Capital One are building luxury airport lounges, with some costing up to $550/year for access.
* These lounges offer high-end amenities such as caviar, champagne, and private suites, and are seen as a way to appeal to cardholders and attract new customers.
* The development of these lounges has been described as an "arms race" among credit card companies, with some spending tens of millions of dollars on each location.
* Experts say that while most people can't access these lounges, they may be indirectly paying for them through higher fees charged to merchants by credit card companies.
* The increased costs are passed on to consumers in the form of higher prices at restaurants and bars, among other places.
* Credit card companies are also moving into new areas such as coffee shops, with Capital One opening cafes where customers can get discounts if they use a Capital One card.
* Experts say that these efforts are not just about offering amenities, but also about creating a sense of self and exclusivity for cardholders.
  >>