Israel Airports Authority Spokesperson:
The Israel Airports Authority Has Published a Public Tender for the Management and Operation of the Hospitality Lounges in Terminal 3 at Ben Gurion Airport
Five lounges operate in the terminal, run until now by Dan Hotels and QAS
The Israel Airports Authority published a public tender for the management and operation of five hospitality lounges, in two complexes, in Terminal 3 at Ben Gurion. The tender was published ahead of the end of the contract period with the companies currently operating the VIP lounges in the terminal: Dan Hotels and ground services company QAS. The lounges will serve first-class and business-class passengers of the airlines, members of customer clubs whose membership grants lounge access, and will also allow paid entry for all other passengers. The tender is for a period of 6 years with an option to extend the contract for a further 36 months. The tender also includes a period for planning and building the internal layout of the lounges, with reopening scheduled for May 2025. The tender is open to local or international hotel chains, airlines and other bodies with experience in the field.
A Growing Lounge Market
The global airport lounge market is experiencing strong growth and a marked recovery since the end of the COVID-19 crisis. Significant growth is also expected in 2024–2029, with revenue forecast to grow from $4.21 billion in 2024 to $9.44 billion by 2029. The market benefits from a growing middle class, the increase in international travel and expanding partnerships between credit card companies and lounge operators (about 45% of lounge activity). At Ben Gurion, lounge turnover exceeded NIS 60 million in 2023 (until the outbreak of the Swords of Iron war).
The Israel Airports Authority says that in order to improve passenger service, increase competition and allow operational flexibility, it was decided to allow up to two winners in this tender rather than one as until now. This will allow bidders from different categories (international lounge companies, international airlines, hotel companies, etc.) to participate, offer a greater variety of services and improve service to the traveling public. The bidder with the highest financial offer will have first right to choose the complex it prefers to operate, provided it submits the highest bid for both complexes.
The winners will have to operate lounges hosting airline passengers, including serving fresh, varied refreshments, providing office and communication services and operating meeting rooms within the lounges, where business meetings can be held and services provided for them. In addition, there’s an option to provide services in part of the lounge area (not exceeding 50% of its total area) exclusively, continuously or intermittently, to passengers of specific airlines, at the winner’s discretion.
An Opportunity to Refresh and Upgrade the Lounge Experience
The new tender allows the IAA to take the lounge experience at Ben Gurion a step forward, incorporating elements of luxury and up-to-date international standards. Today, with more demand for personalized services such as healthy refreshments, quiet work areas and fast charging stations, there’s an opportunity here to create a hospitality experience suited to all types of passengers. The goal is to attract visitors from around the world and make Ben Gurion a gateway that offers a unique, comfortable experience even before boarding.
Growth Trends and Expectations for the Future
According to forecasts, the global lounge market will only continue to grow, especially as more middle-class people start using these services as part of their trip. There’s also an expectation that these services will be available for a fee or as part of credit card programs and customer clubs. At Ben Gurion, this is an excellent opportunity to expand services to occasional customers looking for some peace and quiet before the flight, and even to offer one-time entries at friendly prices.
Healthy Competition for the Benefit of Passengers
In the current tender, two operators can win and run the lounges at Ben Gurion, which could increase competition and improve the quality of service for passengers. Usually, such competition brings a higher level of service and better prices for passengers. That way, everyone can find a lounge that suits them and enjoy an upgraded hospitality experience tailored exactly to their personal needs.
