ISRAEL. Israel Airports Authority has issued a public tender seeking partners to manage up to five VIP lounges at Ben Gurion International Airport Terminal 3.
T3 is the largest and main terminal at the country’s leading international gateway.
Israel Airports Authority views the VIP Lounges Services as a key T3 passenger facility. To improve service levels, increase competition and allow for operational flexibility, it has decided there will be two winners rather than one.
This is intended to encourage participation from various sector categories (including international lounge companies, international airlines and hotel companies).
The tender invites bids from hotel chains, airline companies, airline alliances or VIP lounge operators, whether local or international. They must manage and operate at least five lounges in Israel or worldwide as of the tender submission date.
The five lounges are currently operated by a partnership owned by Israeli hotel chain Dan Hotels and QAS. The latter also provides ground handling services at Ben Gurion.
The contracts are for six years. Israel Airports Authority is exclusively authorised – according to its sole discretion – to extend the tenures for an additional 36 months.
The period of services will also include a planning and construction period for renovations of the VIP lounges, with a new opening date set for this June.
The tender proposals may be submitted jointly by a number of bidders, whereby at least one of the stakeholders complies with the above conditions and serves as the lead partner by holding at least 75.1% of the shares and other means of control.
Consequently, the cumulative shareholding of all other joint bidders in any alliance shall not exceed 24.9% of the shares and other means of control.
Ben Gurion International Airport VIP lounges are used by first-class and business-class passengers and members of various frequent flyer programmes and customer clubs, whose memberships grant access to the lounges, and also allow paid access to all other passengers.
If an airline or airline alliance wins a contract, it will be obligated to provide the same services at the lounges for paid passengers who are not the airline’s or alliance’s customers on a current flight without any discrimination.
The bidder with the highest tender score will be able to choose the lounges in which they operate as per the details below.
The VIP Lounges subjected to this tender are located in two main areas:
A) Two lounges in Concourse E and Concourse B at the Departures Hall, and the lounge in the eastern gallery of the Arrivals Hall (currently the ‘Arbel’ Lounge);
B) The lounge in Concourse C and another in the ‘Small Rotunda (roundabout)’ in the Departures Hall.
Highest bidders gets first option on sites
The Israel Airports Authority Tender Committee will declare two winners. The bidder with the top financial offer will be given the right to choose which area (A or B) it prefers to operate, provided it submits the highest bid for both areas.
The winners will serve fresh and varied refreshments; provide office and communication services; and operate meeting rooms within the lounges where business meetings can be held and related services provided.
There is an additional option to provide services in part of the lounge area (not exceeding 50% of their total area) exclusively, continuously or intermittently to passengers of specific airlines (at the discretion of the winner).
Israel Airports Authority said: “The global airport lounges market is experiencing strong growth and a significant recovery following the end of the COVID-19 crisis, and there is also an expectation of substantial growth between 2024 and 2029, with projected revenue increasing from US$4.21 billion in 2024 to US$9.44 billion by 2029.
“The market is benefitting from the growth of the middle-class population, the increase in international travel, and the expansion of partnerships between credit card companies and lounge operators (accounting for approximately 45% of lounge operations).”
The VIP lounge market at the airport generated turnover of more than NIS60 million (US$16.6 million) in 2023, the authority added.
Total passenger traffic at Ben Gurion International Airport reached approximately 21 million passengers in 2023, with a consistent increase in passenger volume. By 2030, around 30 million passengers are expected to pass through the gateway.
The tender documents are available on the Israel Airports Authority website www.iaa.gov.il.
The tender registration deadline is 11 February and the deadline for submitting bids 2 March. ✈
TENDER ALERTThe Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport or other travel-related infrastructure revenues, simply email Martin Moodie at Martin@MoodieDavittReport.com. We have a variety of options that will ensure you reach the widest, most high-quality concessionaire/retailer/operator base in the industry – globally and immediately. The Moodie Davitt Report is the only international business media to cover all airport or other travel-related consumer services, revenue-generating and otherwise. Our reporting includes duty-free and other retail, food & beverage, property, passenger lounges, art and culture, hotels, car parking, medical facilities, the internet, advertising and related revenue streams. Please send relevant material, including images, to Martin Moodie at Martin@MoodieDavittReport.com for instant, quality global coverage. |
