This article is archived. Take a look at our new website for the latest news from the Travel Massive community.
Sponsored, Travel Startups

LoungePair – How to launch a startup in times of crisis

Learn more about LoungePair, a travel tech startup that enables travelers to bid for airport lounge access that was launched by Travel Massive member Daniel Kinnoch during the current COVID-19 crisis.

In this interview, we talk with Daniel Kinnoch, co-founder and CEO of LoungePair, to learn more about the project and how the Travel Massive community can get involved.

👉 Fill in the customer survey to earn credit ,or join LoungePair’s referral program for frequent flyers. 

How did you get involved in the travel industry?

My co-founder Todd and I both worked with Point Hacks for several years. Point Hacks is a website in Australia and New Zealand that promotes deals and tips for earning and using frequent flyer points.

My role has been as an editor and contributing writer, while Todd has been the full-stack developer leading the development of the website.

What is LoungePair and how does it work?

Airport lounges often struggle to forecast and manage their capacity. We’ve built a tool that enables lounges to accept variable priced bids from airline passengers, to better enable the fulfillment of excess capacity during off-peak times.

LoungePair‘s initial users will either be travellers who haven’t experienced a lounge before, or those who are simply price conscious. Both fall into the camp of being unlikely to want to pay full price for access.

At this stage, we’re partnering with independent lounge operators for whom lounges are at the centre of their business, rather than at the periphery as they are with airlines. We make money by charging commission on every transaction.

What’s the size of the market, and how will you reach it?

Prior to COVID-19, more than 3 billion passengers per year (around 94% of passenger volume) were traveling without the use of an airport lounge.

Most of these travellers are already spending money in the airport terminal on food, drinks, reading material, and WiFi.

Based on a survey of over 1,000 of our existing users, we found that the average value placed on lounge access was $25 – $65 AUD per entry.

Our main strategy for market reach is geo-targeted advertising opportunities, including within and on the approach to airports. We’re also working with our independent operator partners to roll out co-sponsored advertising when their lounges begin to reopen following the current travel lockdowns.

What it’s like launching a business during a crisis? 

It’s a bit scary. You’re starting a business without knowing whether anyone will be in a position to use your product on the other end of the crisis. You’re hedging your bets based on what you know at the time.

But on the other hand, perhaps it’s actually the best time to start. We’re all stuck at home, with more time and no commuting to our day jobs. Everyone is looking for their ‘new normal’ and any smart entrepreneur will be on the lookout for opportunities to shape what that will be.

What members from Travel Massive are you looking for to help you launch?

We’re looking to those who (normally) travel frequently and have an interest in airport lounges and would therefore like to join our Customary Advisory Board to help shape the future experience of LoungePair.

We also have an active customer survey, which takes about three minutes to complete. In return for your time, we’re offering $15 AUD in credit that you can use towards a future bid with our platform.

loungepair #lovemylounge

We’ve recently launched a private Facebook group to engage with other members -– if you complete our survey, click ‘yes’ when asked whether you’d like to join our ‘Customary Advisory Panel’, and be sure to hit ‘Follow’ on our Facebook page.

We’re also running a campaign called “#Ilovemylounge”, which is based on promoting a different airport lounge each day for 100 days (till Mid August). We’re doing this to bring attention to lounges and also their staff. Feel free to use the hashtag to show support for your favourite airport lounge.

How do you see aviation rebuilding in 2020, and when will volumes return?

Travel will resume slowly and gradually, with air traffic expected to recover in 6+ quarters. Business travel is likely to re-start first. Recovery pace will be faster for domestic travel.

Recovery is expected to be led by Mainland China, and within the Asia Pacific region, with Europe and the Americas taking longer. Local tourism, experiences and cultures are likely to be more appreciated and enjoyed by locals wishing to support their local economies.

We’re heartened by a recent customer survey we ran which shows that over 40% of our users are planning travel within the next three months, and 48% within the next 3-12 months.

👉 Fill in the customer survey to earn credit, or join LoungePair’s referral program for frequent flyers. 


Follow Daniel on Travel Massive and learn more about LoungePair.


© 2011-2021 Travel Massive Global P.B.C.
👋 This article is archived. Take a look at our new website.