Should Virgin Australia start charging for meals in its lounges?

While you are there, might as well suggest that “no BYO food and drinks allowed to be consumed on these premises” sign or “only food and drinks purchased on this airplane/lounge are allowed” rule

And then get have a senior person walking round and policing this rule. 

I think it is a perfectly reasonable idea. Pay for what you want instead of being offered things you don’t need. More sustainable as well. For me access to lounges is more about the ease of movement through the airport and then a quiet place to sit away from the uncomfortable seats in the terminal. 

David, please don't go giving the accountants at Bain more ideas as to how they can lower the bar! Okay, actually when I've visited the Virgin lounges at Sydney and Melbourne the free food's actually not that bad. I always rate a Virgin lounge as better than a Qantas Club but of course nowhere near a Qantas Business Lounge. If Bain took away the free food which Virgin used to serve before it collapsed, I'd be pretty annoyed. But if the choice was downgraded crap food vs decent paid food, as long as quality and price were on target, I could handle that. In the end it'll come down to how much cost-cutting Bain intends to do.

My immediate, emotional, visceral response: NO! I have paid for my lounge meals -- in the form of the thousands of dollars I pay each year for flights which earn me the Status Credits to get into the lounge. In this way I already pay for the food and drink in the lounge and charging me again would be greedy, unconscionable double-dipping on the part of Virgin Australia.

My measured, rational response: As long as I get value-for-money out of this, no problem. The meals should be reasonably priced (at cost or close to it), and the cost should be offset by either reduced airfares (since those airfares are no longer subsidising lounge food and drink), or some other useful perk. If my airfare costs $10 less and I have to pay $10 for a meal in the lounge, that's really not a problem for me.

Agree with StuParr. Bain says VA2 will be all about value, which I take to mean cutting out a lot of things that people don't actually need but still end up paying for, like economy meals, free WiFi, a checked bag on the cheapest fare, and maybe lounge f&b falls into that category. I certainly don't visit a Virgin lounge for the food, in fact I try to spend as little time in the lounge as I can. I don't want to cut things so fine that I am going straight from security to the gate, but stopping at the lounge for a coffee and a phone call or two is enough for me.

How about keep what they have now or slightly reduce - i.e it's only snacks, self made sanwiches, salad and soup and then charge for more substantial offerings that compete with airport food outlets - which means they can offer proper meals for ease of convenience for business travellers etc, compete with business lounge whilst offering cost value business and economy class airfares cheaper then QF, higher then Jetstar. 

I agree completely with this. I visit the lounge every time I fly, but always buy something decent to eat outside in the terminal rather than from the 'feeding trough' in the lounge. Under Bain, there is no way the already very mediocre free food offering in the Virgin lounge isn't going to become even worse. So rather than see them start dishing up 2 minute noodles, it would be great if they offered a good quality, changing menu of paid food at discounted prices. 

For a long time now, if I wanted a meal before flying I've been skipping the Virgin lounge at Sydney for Movida@T2. I started going there when there was a meal credit from Priority Pass through my Amex card, that's ended but if I haven't had time to grab a bite at the office or before leaving home, or if I'll need to pretty much go straight from my flight to a meeting, I'll still make tracks to Movida, in fact a lot of the time it also seems quieter than the Virgin lounge!

If VA started charging for food in the lounges, I'd be booking with Qantas, or maybe even Jetstar: it's as simple as that.

The whole point of lounges in Australia is to not have to pay for things you otherwise would in an airport, in a setting that's meant to be better than the terminal itself. Before coronavirus, Virgin's lounges were already insanely full, so there was little benefit in actually arriving early to use them, except to enjoy a drink or a meal without having to pay "extra" for it. Take that away, and there's not a lot left.

If I have to buy food in the lounge, and have to again buy food and drinks on board (as you reported the other day) if I want anything there, then the core experience becomes barely better than Jetstar (on which you'd have to buy things at the airport, and buy things on the plane if desired). In fact, it makes Jetstar better, because Jetstar passengers can access Qantas lounges, not to mention that Qantas has far more lounges across Australia than what Virgin has.

I felt sick as soon as I heard Bain had won the bid. And it seems to only be getting worst.  Sigh........................ nothing good lasts forever ey.  I think we (not the so called general public) are all completely screwed with VA2.  See you all over at QA ey, triple sigh ............

Lol - I actually didn't mind my 2min noodles, in business to Darwin the other week. Thought it was definitely a good laugh. They did have three beers on board for me as well.  I wonder if that will be my last business flight with VA. And quadruple sigh ...... sure looks like we've taken our last flights in "The Business"   RIP VA RIP

Please don't limit the conversation to Virgin! Qantas' offering is beyond woeful. I'm not surprised that there aren't more complaints. Pre COVID, Qantas Biz Lounge Sydney had one hot food option and that was generally a curry or stew. Since Accor has been in charge, it's depressing. And with legitimate financial pressures of COVID, I don't like to think about how it will be going forward.

On a more positive note, how about Virgin and Qantas having some sort of credit system (perhaps depending on your status etc). Let's say you're entitled to $50 credit to use for your stay. You could choose to drink 5 or so beers. Or you may want to have a nice meal and a coffee or two. Or maybe one coffee, one meal and one wine.  And naturally, the expectation would be that quality and range goes up significantly.

Ah hell no - might as well remove the sliding doors and let the general public in. These Bain people better be listening to us - so far I've heard nor seen anything positive from them to keep me flying with Virgin. 

I’m fed up with crummy airport and airport lounge food whether paid or included. There’s often a tendency for it to be flubbery, starchy-carb, low-protein garbage that doesn’t satisfy for long. It just seems counter-intuitive to be paying for an annual lounge membership (if not automatically earned via status) and then paying again for ‘airport food’. Hey, but Bain Capital? I would anticipate paying for the privilege of breathing with that lot.

Perhaps a controversial comment, but I'll add it anyway. I think it is fair to say that the users of this website are not 'typical' in their travel compared to the wider public. My own view is that the importance of premium corporate (as opposed to business class) travel is going to significantly reduce for airlines post this pandemic. Companies have had forced upon them a whole new way of working and whether we like it or not, its a hell of a lot cheaper than sticking people in aeroplanes. Many companies have already started to manage peoples expectations regarding future travel. The decision for management now is not "what travel costs do I cut?" but rather "which do I reinstate?" and I suspect that it will be much reduced from the past. It has been proven that the corporate world will not stop turning just because people can't jump on an aeroplane. If you play into that too a likely need for businesses to want to be seen to be more environmentally responsible, I think that it will lead to reductions in corporate travel. Of course, before people jump at me, there are trips that must be made, but if we are completely honest, how much corporate flying is genuinely 'essential'. I worked for 2 large Oz based businesses and it truly staggered me the amount of utterly needless flying that took place. People hopping Sydney to Melbourne for facile one hour meetings. Going forward I think, for so many reasons we will see reductions there. This is bound to play into the lounge proposition (and other areas of the overall value proposition airlines have). The first responsibility any business has is to its shareholders and no one will be more aware of that than Bain!

Those that think Bain charging for food will result in quality food is kidding themselves.

If they start charging for food, it makes the lounge no different to a public waiting area.

NO! Well, not entirely at least.

There must be free (decent) food and beverage available to Velocity Gold and Platinum members who have been reliable and loyal customers spending substantial money with VA to earn that tier. (And perhaps this should be available to single entry pass guests too.)

Remember that Gold + Platinum members are also families who enjoy family pooling, and enjoy the awesome point of difference to use the lounge on arrival as well as departure. Having somewhere to snack and drink, quietly relax, use WiFi, without having to dig into the family holiday budget really makes the Virgin Australia experience great, ensuring we are repeat customers.

However, Virgin Lounges could explore and trial offering a ‘premium meal’ of sorts that warrants payment; the customer will soon act with their wallet if the offering should be permanent or not.

So, I am a US person who travels to and in Australia a lot; up to eight times year, maybe more (always business class). I take either Qantas or Virgin for intra-Australia as I am Star Alliance Gold but United Global Services so get nothing from either in way of status (I book based on schedule to be honest). The lounges in Australia are actually kind of crappy compared to other lounges in the world (Star Alliance or other) EXCEPT ones in the US (they truly suck except new United Polaris lounges are now the exception). Yes, you get free alcohol in Qantas/VA lounges for those who love alcohol but outside of the Ham and Cheese Toasty machine, fruit and salad there is really nothing I would want to pay for but not sure I’m going to pay for a Ham & Cheese Toasty. As long as water and coffee is free I guess I’ll be OK.

If VA2.0 becomes part of Star Alliance I may change my opinion a but the United lounges in US don’t do too good by Star Alliance Gold members to be honest.

The ticket prices in Australia are sick expensive whether economy or coach (I usually am Sydney, Canberra and Melbourne) so if they start to charge for stuff in lounges maybe lower ticket prices (oh, scratch that thought).

Definitely the answer here is no, the value proposition of flying Virgin vs Qantas is already weak! this will be a nail in the coffin for many, particularly for us who fly coast to coast, A330 v 737, flat seat business class vs 90s style seating, all inclusive lounges vs paying, where is the value proposition flying Virgin let alone earning and burning Velocity points???

"Should Virgin Australia Start Charging For Meals In Its Lounges?"

Hmm, it seems to me that there is an automatic assumption that the lounges are a source of substantial revenue loss. 

I would suggest that this may not necessarily be the case going forward. Why?

-  lounge costs for Virgin Australia are divided into two distinct but different groups : international vs domestic. It is customary for airlines to pass their tiered guests travelling internationally off to their relevant (intl) partners ie: in the USA to Delta, in Singapore (and other locations) to SQ, and to Etihad in the Middle East and Europe. This comes at a substantial cost to VA. The average cost for a typical day-pass visit in the USA is around USD $65-70. For the likes of SQ and EY (who do not offer paid day passes) the cost is probably even higher.

-  Ergo, with COVID-19 and with VA now not flying internationally, as well as severely or completely severing ties with some of these carriers / partners, these substantial expenses will cease to exist. If Virgin Australia Mk2 goes hybrid or in plain terms, LCC pay-for-service - then these costs to Virgin disappear for all international travellers. Bingo ! Instant savings.

- Typically, Virgin's lounge offering for food and beverage has been generally what one would call 'cafe-style food' rather than fine dining. No deconstructed pav or sectioned barramundi (a la QF First Lounge) here. Similarly, I don't recall VA winning awards for 'cellar in the sky' ... or on the ground, for that matter. So guest costs for alcohol and F&B are probably closer to AUD $20 on average. Remember, many domestic guests simply grab a coffee and cake, snacks or an alcoholic drink.  Having some basic kitchen staff and some serving staff in each capital / major city would not be particularly expensive - and a constant flow of visitors would keep them employed.

- Now, it is not unreasonable to consider that the lounge is not a dedicated profit centre. Airlines provide these facilities to their tiered guests as a perk or in recognition of constant patronage. It is, in short - a hospitality cost to the airline. On the trunk triangle routes such as SYD/MEL/BNE, it is not uncommon for Golds and Platinums to bypass the lounge entirely. Some of these people genuinely have better things to do than play 'Leisure Suit Larry' in a domestic lounge. Equally, it is not desirable for the lounge to become a major financial drain either.

- Clearly, there is also a composite and very real asset value attached to such lounges - and that is called 'goodwill'. The problem becomes a cost issue when airlines begin to diversify their lounges in each major city to cater for cache or niche members. When you have a base domestic lounge, a business lounge or two (domestic vs international), a first lounge and a Chairman's Lounge it becomes obvious that there is substantial duplication .... and cost. When does it become 'loss-making?

So, in essence, this may not be the problem that is assumed. Consider also that Virgin Australia may choose to offer a composite 'Day Pass' revenue option for say AUD $35.00 for a 2 hour visit. I could imagine that would have a serious 'take-up' functionality for non-tiered members. And it would be substantially cheaper than the price level QF flirted with. All of a sudden, you might have a revenue earner, that even helps to subsidize the freebie tiered members. Problem solved.

David, no! This would be a line in the sand for me (unless it was *retaining* what they do have, and adding something substantial instread of replacing what was free with something that is not).

I work for a company that not only doesn't fly its suits around in business class, it actively prohibits it (even if we are using funds we have brought in separately from clients or grants). I don't care about "the Business", fancy meals and seats or anything up the pointy end, but I *DO* care about the lounge, as a quiet(er) place to sit, have a (free) drink (proper coffee, or a sundowner if required) and light food (usually toasties or pastries - but I do like a bacon sarnie in the morning and the hot food is great if meetings mean I missed lunch or dinner) and TBH it is the *main* value proposition of staying with one airline for me. Importantly, I value it being there *when I do need it* rather than needing it each time.   

It is also is the only thing that allows me to book QF or VA over JQ on BFOD policy as they factor in food and internet connection that would otherwise be compensated. If they bring this in the company eyes we may as well fly JQ and factor in a far more decent feed in the airport (where the bars and food is nicer nowadays) and charge that. 

I realise I am not the kind of value proposition a suit travelling up the pointy end is, but they are about to become very much the exception and business travellers like me are about to become very much the rule. Take away the only real benefit I get and I'm either going to the person who retains it, or changing my travel patterns entirely. Losing me (a bum-in-seat Platinum who flys enough to gift Platinum as well) may not be an issue. But if 90% of higher-end business travel is about to become like me we have a problem.   

Correct me if I'm wrong but I always thought the virgin lounges had quite a limited kitchen setup out the back?

I certainly felt many of the dishes in the VA lounge were reheated rather than freshly prepared. Eg soups, pasta dishes, stews and even the poached eggs..

Would Bain spend all that money on equipment for something that would likely break even at best (particularly if pricing is set reasonable like AA lounges)? 

Aside from that I think anything that breaks the trough mentality is a good thing. 

Good question David.  I've seen fellow travelers treat the lounge like an 'leagues club buffet on pension day', with overloaded plates drop food on the floor and a plane's take-off weight materially increased.  Not a pretty sight.  

Something needs to be done whereby quality increases but quantity remains sufficient merely to remove hunger without enabling carb-loading of triathlon proportions for 5 days on 'Survivor Island' (you know who you are, the tribe has spoken, it must stop).  

There needs to be a measure of complimentary F&B, after which there's a modest charge to recover the 'hard cost'.  If some grubby little bean-counter in the Bain mothership thinks the Lounge can become a 'profit centre', then Deloitte should standby at the ready for their next airline administration.  The starting point will be 'smart cards' for Platinum and Gold that allow (a) the airline to pre-load non-convertible 'Virgin dollars' onto my account but also allow me to load Australian currency.   

Virgin's hard costs will not include occupancy/leasing.  The cost of the 'Uniforms' on the front counter are not recoverable as they're inter-changeable with attendants out at check-in.  To give this perspective, a G&T sold out in the public bar at, say, $12 - $15 would in the lounge have a recoverable hard cost of $3 - $4.  As a Platinum member, I'd only expect to pay hard cost for my 3rd and later G&T, happy to see Gold get their first drink (only) on a complimentary basis, with Silver and others paying 'hard cost' as they go.  Of course, if later in the day in another Lounge waiting for a connecting flight, I'd expect those metrics to be re-set to zero.  

It does sound complicated, but that's only during the set-up phase and even then, that's the challenge for the Bain-brains  to make it simple, fair and with absolutely no 'fuss and bother'.  

Hey hey its on its way from another well know airline as well. Someone has let the cat out of the 'bag'

I've never flown with Virgin, but my first thought was about the suggestions for self-service toasters and sandwich makers--I think they will have to go because of the infection risk.  And what about social distancing in lounges?  Won't that reduce the numbers allowed into the lounges?