Airport lounge operators need to understand their customers to stay ahead of their competitors, says Jonathan French, head of brand at lounge access provider Priority Pass
IATA recently reported that airlines have seen a rebound in transatlantic premium bookings, confirmation that some sort of economic recovery, however meagre, is under way. While an improving global economy gives grounds for optimism, the downside for international business travellers is the increased time they must spend at the airport. Thanks to increased security, congestion and delays, the airport experience has become the most dreaded part of a trip for many frequent flyers, and the refuge offered by airport lounges one of their most treasured ‘perks’. However, as airport lounge operators look ahead, there is no room for complacency in how they serve their demanding clientele.
Much has changed since the American Airlines Admirals Club at New York’s La Guardia was launched as the world’s first airport lounge in 1939. Today, there are hundreds of airport lounges around the world, operated by airlines, airports and specialist providers. While the first Admirals Club began as an invitation-only affair, travellers can now gain lounge access by various means: as a bundled benefit with a premium airfare; through a lifetime, annual or ‘pay-as-you-go’ membership of a lounge access scheme; or as a benefit with a bank account or credit card.
The quality of the lounge experience is extremely important to travellers and, therefore, a powerful marketing and customer retention tool for airlines and other businesses. In a March 2012 global survey of more than 5,000 Priority Pass members, 47 per cent said the airport lounge was their favourite aspect of a journey. Similarly, in a recent poll of more than 2,400 business travellers by loyalty marketing agency ICLP, lounge access was consistently rated either the most or second most highly valued travel loyalty product offered by banks and credit card providers.
Given the value travellers place upon these facilities, there has naturally been an evolution in the quality and sophistication of lounges. In the 20 years since Priority Pass was launched, we have seen the quality bar raised time and again. At minimum, lounge users today should expect to enjoy comfortable and well-appointed relaxation and working areas, complimentary refreshments and the all-important access to dependable wifi. However, some lounge operators now offer facilities that would have seemed impossibly luxurious back in 1939, such as gourmet catering, hot showers, spas, videoconferencing, pool tables and even cigar rooms.
Every industry has its innovators and many airport lounge improvements have been led by Asian and European airlines. These companies recognise the quality of their lounges is an extension of their brands and an opportunity to cement relationships with profitable customers. However, these ‘incumbent’ lounge operators have more recently seen determined competition from a new generation of independent providers. For example, the No.1 Traveller lounge at Gatwick’s North Terminal has just been honoured by Priority Pass members for offering the business facilities of any airport lounge, a remarkable achievement against some fierce competition.
To surprise and delight travellers, lounges need to listen to the market. According to Priority Pass members, the most important factors in an airport lounge are comfort (according to 72 per cent of respondents), the quality of refreshments (68 per cent) and having sufficient space to work or relax (52 per cent). During a lounge visit, once food and drink has been enjoyed, travellers’ next highest priority is to get some work done (49 per cent). The most successful and appreciated lounges are those that focus on these core needs and invest appropriately to exceed customer expectations.
However, in a restless world driven by technology, it is just as important to look ahead to meet the requirements of next year and beyond. For example, some lounges already enable travellers en route to the airport to send documents electronically for printing in the lounge’s business centre; upon arrival, the traveller simply enters a code into the printer for their document to be produced. We are also now entering the era of ‘mobile wallets’, powered by Near Field Communication, and can expect operators to begin offering new ways to improve the in-lounge retail experience.
Given the high standards set by many operators, what is surprising is that, at a global level, the quality of lounges remains uneven. For example, with certain notable exceptions, domestic US travellers often face airport lounge facilities surprisingly basic compared to their international peers. Elsewhere in the world, there remain many lounges that would benefit from greater imagination and investment from their owners. The task for organisations such as our own is to help travellers locate lounges that uphold the highest international standards. However, with the examples set by today’s best operators, the influx of new providers and the relentless drive of technology our task is sure to become easier. We can be confident many more of tomorrow’s airport lounges will offer the very best of home and office for the time-pressured traveller.
- Priority Pass offers access to more than 600 airport lounges in 300 cities in more than 100 countries.
www.prioritypass.com