The Indicator from Planet Money The rise of the credit card airport lounge
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May 20, 2025 The podcast dives into the booming world of airport lounges linked to credit card rewards and questions their value for credit card companies. It also examines how carbon taxes in Canada are performing and the political dynamics at play. Additionally, listeners learn why gasoline prices are rising despite lower crude oil costs, exploring factors like seasonal formulations and refining margins. The hosts unravel these topics with engaging insights and expert opinions, making it a fascinating listen!
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Competition Drives Lounge Expansion
- Airline lounges expanded rapidly due to competition among credit card companies offering lounge access as a premium perk.
- Lounges used to be airline loyalty tools but now credit cards have adopted this to attract and retain customers.
Credit Cards Profit Despite Lounge Costs
- Credit card companies make ample profits even when providing costly lounge access due to interest income from card balances.
- Lounge usage alone does not offset credit card companies' overall earnings, which remain strong.
Carbon Tax Effects in Canada Varied
- Canada's carbon tax aims to reduce carbon emissions by charging emitters per ton of CO2, returning revenue to citizens.
- Effects are mixed due to other policies and exemptions; emissions reductions are hard to isolate solely to the tax.