Wooing jet-setters on the ground via airport lounges

AMID crowded skies, the battle for passengers isn't just taking place in the air - it's on terra firma too.

Airlines such as Singapore Airlines (SIA), British Airways (BA), Cathay Pacific and Qantas are among the carriers expanding or upgrading their lounges worldwide with plush offerings to attract and retain passengers with a complete travel experience.

In a cut-throat operating environment where yields are coming under pressure, carriers are dialling up the comfort, and in some cases, the glamour, to stand out from the crowd.

David Reimer, managing director of American Express Business Travel (Asia-Pacific), said: "It's about that end-to-end proposition in a really competitive market. Airlines that do think about that full traveller experience are going to win more business."

For frequent business travellers who need to hit the ground running, the lounge experience is critical, he said; it gives them a chance to squeeze in a shower while in transit, catch up on work or indulge in a quality meal so they can sleep uninterrupted on the plane.

"As products are improving and customers are being asked to look at limited options, it's important that airlines really hit it out of the park," he said, noting that firms in the region are tightening corporate-travel policies against the backdrop of a challenging global economy.

Last month, BA unveiled a refreshed lounge in Heathrow's Terminal 5. Aimed at its premium passengers, it has a dedicated champagne bar, spa and contemporary furniture.

Here in Singapore, BA gave its lounge at Changi Airport's Terminal 1 a face-lift last year, throwing in a private bar for its first-class passengers.

It will also open the doors to a new lounge at Dubai International soon - one decked out in "opulent interiors, black Nero marble surfaces, European oak flooring and bespoke furnishings", said BA's head of sales (Asia-Pacific) Robert Williams.

Hong Kong's Cathay Pacific, which is now renovating its Business Class lounge at Hong Kong International Airport, will upgrade lounges in Vancouver and London in the second quarter.

This comes after having overhauled its lounges in Bangkok, Taipei and San Francisco recently. Its First-Class lounge in Hong Kong offers complimentary foot massages.

In the Middle East, Gulf carriers such as Dubai's Emirates and Abu Dhabi's Etihad have also introduced spacious, luxurious lounges for their premium passengers, who are also eligible for perks such as free airport transfers.

SIA, on its part, earmarked S$100 million back in 2013 to revamp its lounges over a five-year period; this is on top of other investments that the group is making in new aircraft, next-generation cabin products and customer service.

The carrier's chief Goh Choon Phong told The Business Times this month, while onboard its first A350 aircraft: "We have been introducing lounges based on new concepts overseas.

"For those cities that already have the new lounge, we've had very, very good feedback from customers."

These new lounges are designed on a "home away from home" concept. They feature a living room, a dining room offering local favourites and quiet nooks for relaxing or working.

These lounges aim to replicate on the ground the feeling of "home" that passengers get onboard an SIA plane, said Mr Goh, debunking the notion that glitz is what it takes to win passengers over.

The upgraded Silver Kris lounges, already introduced in Sydney, Hong Kong, London and Manila, will be rolled out in Brisbane in April and in Bangkok in September.

Plans are afoot to also introduce them in SIA's home base.

Mr Goh said the Singapore one will be a huge project, and that rolling them out progressively in other cities has enabled the airline to learn from the process.

The experience will be incorporated in the Singapore project.

Quality lounge services are just as important to airports, as they compete to become established air hubs, or to cement their status as such.

Aside from lounges run by airlines, there are also independent lounges, open to non-premium passengers willing to pay for access to a quiet spot and a quick bite.

Last November, aviation services provider dnata launched a new premium lounge at Changi Airport's Terminal 1, complete with baristas to brew lattes and bartenders to mix up cocktails in the evening.

The 860 square metre lounge, open to passengers from a number of carriers including Cathay Pacific and AirAsia, is expected to serve more than 250,000 passengers annually.

Song Hoi-see, founder of independent lounge operator Plaza Premium Group, which operates a new lounge in Changi's T1, said: "We've received feedback from travellers that airports with well-equipped independent lounges would be a preferred transit hub.

"In addition, we have seen that some major transit hubs, such as Changi Airport, are very eager to invest and upgrade their facilities for transit passengers."

Last month, Plaza Premium launched its new transit hotel brand Aerotel at Changi, which it says is the only transit hotel in the world with a swimming pool, Jacuzzi and pool-side bar within the airport to cater to long-haul travellers.

"More passengers, especially frequent travellers, expect a higher quality of customer service.

People are more willing to pay for services which are value for money," Mr Song added.

"This is where our hospitality (and) services can fill the gap, and subsequently more airport authorities are seeking partnership with our group to introduce our services into their airports."

Some of its lounges offer perks such as live cooking stations, a spa and rooms to nap in.

Plaza Premium now serves more than eight million passengers annually, in some 130 locations in 35 airports. New lounges are set to open this year in Taipei, Siem Reap, Brisbane, Rio de Janeiro and London.

It has set aside more than US$100 million over three years to boost its footprint to 200 locations by 2018.

This article was first published on March 19, 2016.
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