INTERNATIONAL. Leading airport service provider Plaza Premium Group (PPG) has embarked on what it calls a “business transformation strategy” based on the evolving needs and behaviour of the travel market.
It also set out its ambitious expansion plans for the years ahead. PPG aims to grow from around 180 lounges to over 500 by 2024/25 through both Plaza Premium Lounge locations and affiliate lounge networks.
PPG aims to build a bigger, global network via consolidation and alliances with industry players, positioning PPG at the 100 busiest airports worldwide.
The company said it is looking to take “a robust and exciting new direction” that addresses the evolution of the travel industry and consumer needs over the last year. It noted that expectations from the market have changed, both from consumers and from PPG’s business partners – especially financial institutions and corporates that seek attractive travel benefit programmes to help acquire and engage their customers.
The company will present its new strategy in detail at a round table next week (4 May). Key areas of PPG’s travel demand strategy include:
- Reassessing PPG’s value proposition: PPG said it plans to enhance its service offering and customer experience journey to meet the new demands and expectations of travellers. It noted that the leadership team “has been working closely with airport authorities and long-time corporate clients to solidify PPG’s product proposition. Additionally, reshaping customer experience offerings and products to ensure a comforting, peace-of-mind airport experience in the future is of top priority.”
- An end-to-end airport hospitality experience: On top of PPG’s flagship brand Plaza Premium Lounge, the company said it sees “a rising need to refine customer offerings and the airport journey to connect airport hotel accommodation, wellness services, meet-and-greet services and high-standard airport dining concepts. PPG strives to offer the entire ‘curbside-to-gate’ spectrum of airport passenger services.” In doing so, it is reviewing and reformulating its product and distribution offerings.
- Reshaping distribution through strategic partnerships: PPG said it aims to create a “more open, innovative and commercially favourable” trading environment. It added: “In the past months, PPG has been working closely with our industry partners including airports, airlines, financial institutions, travel benefit programmes and even other airport service providers, who were previously considered competitors. Recently, several strategic partnerships have been formulated and announced, including those with the global meet-and-greet service aggregator YQ NOW, and leading airport service provider marhaba. More announcements will be made in the coming weeks.
- Level up information and technology-driven decision making: Positioning PPG beyond being viewed as simply a ‘lounge operator’, the company said it aims to develop a more data and insights-driven strategy. Over the last two years, PPG said it has invested over US$5 million on technology and data management capabilities and will invest double that in the coming two years.
- Strengthening the direct-to-consumer approach: “Open to all travellers” is PPG’s updated customer proposition. The group said it has used the Covid-19 downtime to conduct multiple customer surveys and consult with corporate partners to re-examine the product proposition.
Addressing diverse customer needs
As noted above, PPG aims to grow from 180 to over 500 lounges in coming years, and build its presence at the world’s top 100 airports. PPG has also extended lounge expertise beyond airports, with the recent opening of the brand’s first high-speed railway lounge in China, which is fast becoming a key form of cross-country land transport for business and affluent travellers.
Despite the pandemic, in the past 12 months PPG has expanded its services to include the following airport and railway stations:
- Plaza Premium Lounge:Sydney, Dallas/Fort Worth, Sabiha Goken, Changsha High-speed Railway Station
- ALLWAYS meet-and-greet: Rome Fiumicino, Istanbul Sabiha Gokcen
- Additionally, approximately 50 locations are expected to be launched over the next 12 months, including lounges, hotels, dining concepts and meet-and-greet services, covering regions that include the Americas, Australia, EMEA, Greater China, India and Southeast Asia. Announcements will be made in due course.
Smart Traveller
PPG said it aims to become a “seamless, dynamic and digitally driven” operator through its Smart Traveller global membership programme and services.
Strategic positioning of Smart Traveller:
- The company said it has developed an integrated digital solution, both app and web-based, to connect all PPG airport hospitality offerings with the air travel market. Smart Traveller members enjoy rewards, exclusive offers, benefits and service packages (such as lounge access bundles and upgrade options) which are constantly refreshed.
- It said this is the first global loyalty and membership programme built for air travellers and airport users, combining both PPG offerings and extensive non-PPG affiliate network offerings via a point reward system. This currently houses over 1,000 curated travel and lifestyle products within the Smart Traveller marketplace.
- Smart Traveller, said PPG, is a “data-centric, seamless engagement, marketing and distribution platform that connects consumers with corporate partners, including airlines, financial intuitions, corporates, travel brands, retailers, airport merchants and rewards programmes”. Smart Traveller’s point-based trading model allows flexible commercialisation models, such as buy/sell or conversion and product bundling, to become easier, economical and completely technology-driven.
- Smart Traveller technology infrastructure is built for B2B, B2B2C and B2C. It is also connected to Plaza Premium Group’s guest admissions system, which enables a more advanced and seamless customer experience upon entering PPG’s locations.
PPG Founder and CEO Song Hoi-see said: “Being at the forefront of reshaping the future of travel, PPG continues to support the dynamic growth of the industry by taking a lead in forming strategic partnerships with airport service providers, airlines, financial institutions and stakeholders across the ecosystem.
“PPG will continue to share the best operational practices and technological know-how within the industry and play an active role in promoting the wellbeing and the revival of global travel.”
