Who will manage Ben Gurion's new multi-million VIP lounges?
The Israel Airports Authority is launching a tender for five VIP lounges in Terminal 3, allowing two operators for the first time to boost competition and service. Annual turnover exceeds NIS 60M.
The Israel Airports Authority is taking a new approach in the field of VIP lounges at Ben Gurion Airport: For the first time since the establishment of Terminal 3, the operation of the lounges will be split between two different concessionaires, rather than a single one as it has been until now.
The new tender, published as the current contract period with the existing operators—Dan Hotels chain and QAS company—comes to an end, offers the operation of five lounges in two separate areas. The agreement will be for a period of six years, with an option for an additional 36-month extension.
The lounges will serve first-class and business-class passengers of various airlines, members of loyalty clubs that grant access to the lounges, as well as allow paid entry for all other passengers.
"The goal is to increase competition and provide greater operational flexibility," explains the Israel Airports Authority. "The bidder with the highest financial proposal will have the first choice of their preferred area."
A Rapidly Growing Market
Global market data for airport lounges shows significant growth: From revenues of $4.21 billion in 2024, the market is expected to reach $9.44 billion by 2029. At Ben Gurion Airport alone, turnover exceeded NIS 60M in 2023, before the outbreak of the Swords of Iron war.
The tender is open to a wide range of competitors, including local and international hotel chains, airlines, and other entities with experience in the field. The new lounges are expected to open in May 2025.
The winners of the tender will be required to provide a comprehensive range of services, including fresh refreshments, office and communication services, and meeting rooms for business gatherings. Additionally, there will be an option to allocate up to 50% of the lounge space for the exclusive use of specific airlines.
The lounges will cater to first-class and business-class passengers, members of loyalty clubs, and will be open to all passengers for a fee.
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