Statement from Mr. Song Hoi-see, Founder and CEO of Plaza Premium Group Issued 5 May 2021
Plaza Premium Group (PPG) is on a mission to make travel better, together. As a global, leading premium airport service provider, the Group has embarked on a business transformation strategy to reshape the future of travel. PPG’s forward-looking strategy is based on the evolving needs and behaviours of the travel market, both during and post-pandemic.
Re-engineering travel demand strategy: Reassess the needs of the industry and consumers
Over the past years, the travel industry and general consumer needs have expectedly and drastically evolved. Expectations from the market have also changed, from the perspective of both direct-to-consumer and business partners – especially corporate brands and financial institutions who seek attractive travel benefit programmes as a tool to acquire and engage their customers. As the industry leader, PPG sees market gaps and strong opportunities for the Group to drive an industry-wide business re-modelling exercise to consolidate resources and efforts to support demand and distribution. A few key areas of PPG’s travel demand strategy include:
- Reassess PPG’s value proposition: Enhance PPG’s service offering and customer experience journey to meet the new demands and expectations of travellers. At the same time, 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.
- Expand an end-to-end airport hospitality experience: Address the evolving travel trend of a seamless, comforting, worry-free airport experience. On top of PPG’s flagship brand Plaza Premium Lounge, we see 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, a proactive approach has been taken to expand a united and seamless offering by reviewing and reformulating current product and distribution offerings.
- Reshape distribution dynamics through strategic partnerships: Specifically, in regards to B2B and B2B2C, the anchor approach is to formulate collaborations to create a more open, more innovative and more commercially favourable trading environment. 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 the Middle East’s leading airport service provider marhaba. PPG has a strong line of partnerships in the pipeline across its global network, with more announcements set to be made in the coming weeks.
- Level up information and technology-driven decision making: As partnerships with corporate clients have grown, positioning PPG beyond being viewed as simply a “lounge operator”, the need to level up on data and insights driven strategy is clear. Over the last two years, PPG has invested over USD5 million on technology and data management capabilities and will invest double that in the coming two years, enabling an enhanced customer experience, product creation, operational efficiency and commercialisation for both partners and the Group.
- Strengthen the direct-to-consumer approach: “Open to all travellers” is PPG’s fundamental customer proposition. The Group has maximised the Covid-19 downtime to conduct multiple customer surveys and consult with corporate partners to re-examine the Group’s product proposition – from customer experience, operations, direct online sales, customer services and communication touchpoints – which are then reflected in all aspect of PPG’s business transformation.
Aggressive growth planning & supply strategy: Addressing the diversified needs of global customers
PPG is the world’s largest independent airport hospitality company and its network will continue to grow through anchoring strategic partnerships. In the coming years, PPG targets to expand from over 180 lounges to over 500 lounges by 2024/25 through growing both the Plaza Premium Lounge venues and through affiliate lounge networks. The plan is to expand PPG’s footprint to create a bigger, global network that is built via strategic consolidation and alliances with industry players, positioning PPG within the top 100 busiest airports worldwide. Again, creating a more open, more innovative, more commercially favourable trade environment is the goal.
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 Covid-19 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, Sabiha Goken
- 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: Welcome to a new level of loyalty membership
How does PPG connect the dots to be seamless, dynamic and digitally driven? The answer is: Smart Traveller.
PPG’s global membership programme is here. Smart Traveller is the key driver transforming PPG’s end-to-end airport hospitality customer experience, distribution and business modelling. The 360o business transformation consists of multiple components, evolving upstream, downstream, vertical and horizontal aspects throughout the entire air travel ecosystem.
Strategic positioning of Smart Traveller:
- The first 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.
- 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 which currently houses over 1,000 specially curated travel and lifestyle products within the Smart Traveller marketplace.
- Smart Traveller 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, and boasts profound integration capabilities. 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.
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.
