Is credit card lounge access overrated?

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☀️ Rise and shine, gorgeous! The weekend is gone, but your taste in newsletters remains flawless.

Welcome back to Daily Drop, the only proper way to kick off your week. We’re gonna start off with something a little spicy today:

🔥 Hot Take: Screw credit card lounge access

I know, I know. Airport lounge access is like half the reason people get into this hobby.

But hear me out, because I've been stewing on this for a while. And to be clear, my beef isn't with lounges. It's with how we get into them.

Everyone's in the club now

The problem with credit card lounge access is that everyone and their uncle has it now.

And when everyone's a VIP, nobody is.

These days, flashing your card at the lounge desk usually means a waitlist, a line, and then a room so packed it feels less like a lounge and more like a DMV with a buffet.

A depleted buffet, by the way. If you've ever raced another grown adult to the last sad chicken skewer, you know exactly what I mean. 😬

Look, I pay for two cards with $700+ annual fees where lounge access is a headline perk:

Last time I flew out of New York LaGuardia Airport, I couldn’t get into either of those lounges… they were both full.

What are we even doing in there?

Here's my thing: I like lounges because I want to... well... lounge.

The whole point is a refuge from airport chaos. But when the lounge IS the chaos, what exactly am I waiting 45 minutes to get into?

Honestly, lately I'd rather pay $15 to sit at a quiet cafe in the terminal with a coffee and an actual chair. No waitlist, no hovering for a seat, no elbows at the omelet station.

And it's not really "free" anyway

This is the part I'm personally guilty of forgetting.

We love calling lounge access a "free" card perk. But the premium travel cards that come with it also come with annual fees north of $500.

Sure, the credits and other perks can help justify those fees. But if the main thing keeping you loyal to a card is lounge access you've started dreading, that's worth an honest look at the math. 💸

Meanwhile, the good lounges are gated differently

Last week I spent 4 hours in the Cathay Pacific first-class lounge. Showers, an à la carte restaurant, a full bar, free massages... and it's basically empty all the time.

No credit card gets you in there. I access it with my Atmos Rewards Titanium status.

That's the pattern I keep noticing: the lounges actually worth visiting are the ones gated behind elite status or premium cabins, not a piece of metal in your wallet. 😉

The more crowded card-access lounges get, the more I value earned status and the less I value card perks (I know, I’m in the privileged minority being able to travel enough to even earn status, so don’t come after me).

Hotel status has the same problem

This is exactly how I've started feeling about hotel elite status, too.

Anyone can pick up a premium Hilton credit card and get automatic Diamond status. Which sounds amazing, until you realize half the guests at the hotel did the same thing.

When 50%+ of the lobby is also Diamond, you're all fighting over the same upgrades, same perks, and the same crowded breakfast buffet.

Status you can buy with an annual fee just doesn't hit the same as status you earned. 🤷🏼‍♂️

The alternative

My thought process around some of these premium cards is…

What if I downgrade to low-annual fee cards, save like $800+ on annual fees, and just buy food at the airport when I need to…?

I’ll have to crunch the numbers, but I feel like I’d be less stressed, just as full of food, and probably save money. 🤷🏼‍♂️

The bottom line

Credit card lounge access used to be the crown jewel of premium travel cards like this one, this one, or this one. Now it's a coin flip between "nice perk" and "line at the DMV."

Of course, traveling with a family can get expensive, so I could see the Hunger Games-esque lounge buffet as being a worthwhile money saver.

Or nervous flyers might value the free drinks to take the edge off before a long flight, for example.

Plus, cards like this one have a more reasonable annual fee while maintaining fantastic lounge access.

Anyway, I want your take on all of this. Give me your opinion below, and I'll share the results in a future newsletter. 👇

✈️ Learn about transferable points with us this week

Lounge access is one of the easier credit card perks to wrap your head around. Hold a card, enter the lounge. Done.

But you know what’s not as easy?

Understanding how and where to transfer credit card points.

If you've got the basics down but the phrase "transfer partner sweet spot" still makes you nod politely and change the subject, I’ve got good news for you.

This week, we’re hosting a live class called Transfer Points 101: The Secret to Making Your Points Go Further.

It's happening live on Zoom this Wednesday, July 29 at 3pm ET, and here's what we're covering:

  • ✈️ The pros and cons of transferring points vs. booking through a portal

  • ✈️ The who, what, when, where, and why of transfer partners

  • ✈️ Sample bookings, walked through step by step, so you can see exactly how this works in real life

Then we'll stick around for a live Q&A to answer whatever you throw at us.

If you’re new to this world or just need a quick refresher, all you have to do is register and grab a spot. 👇

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And that does it, folks. All done for today.

Now go forth and earn and redeem wisely. See you tomorrow,

Head Writer, Daily Drop

6.9175° S, 107.6191° E

With contributions by Sam Anthony and Katie Begnoche.

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