The world of airport lounges is about to get a luxurious upgrade, and it's all thanks to a British company. But is this exclusive access worth the hype? Get ready for a journey into the elite world of airport hospitality.
Imagine a scenario where you're whisked away from the chaotic airport crowds and into a private VIP suite, only to be chauffered directly to your aircraft when it's time to board. This is a stark contrast to the typical experience of queuing for a busy terminal lounge, only to be turned away due to limited space.
Introducing Priority Pass, the global leader in airport lounge access, with an impressive 30 million members and a network of 1,800 lounges and facilities. In September, they unveiled an exclusive new service called Priority Pass Private, catering to an elite clientele.
This expansion traces back to the visionary British entrepreneur, Colin Evans, who founded Priority Pass three decades ago. His family-run company, Collinson Group, named after himself and his sons Christopher and David, is now a thriving business with projected sales exceeding £2bn this year.
However, the industry is facing a dilemma. Premium credit card holders, entitled to airport lounge access, are voicing concerns about overcrowding, especially in US and UK airports. Andrew Harrison-Chinn, marketing director of competitor Dragonpass, acknowledges the challenge, stating, "We are victims of our own success when customers are being turned away."
Airport lounges, often seen as more inclusive alternatives to airline business and first-class facilities, are now facing similar crowding issues as more travelers upgrade. Christopher Evans, now 50 and leading Collinson's international division, describes their lounges as an "oasis of calm," but is this truly the case?
Priority Pass Private is Collinson's strategy to enhance its flagship brand. This service caters to top corporate executives and high-spending clients of private banks, credit card companies, and hotels, offering access to private jet lounges and exclusive VIP facilities. Christopher Evans confirms, "There was demand to elevate the experience."
Yet, the company must also address issues at the core of its revenue stream. Priority Pass has implemented measures to manage overcrowding at busy airports by alerting members when lounges are full and encouraging pre-bookings for a fee. Families can also be redirected to airport restaurants with meal discounts.
Christopher Evans attributes the crowding to the post-Covid travel boom and believes it's a temporary challenge. However, older airports like Heathrow face greater difficulties compared to newer, more spacious airports in the Middle East and Asia.
The challenge lies in the fact that Priority Pass and Dragonpass rely on external partners to expand their capacity. Dragonpass, for instance, doesn't own lounges but negotiates access with independent operators. Collinson has taken a proactive approach by creating a division to design, build, and manage lounges, but they currently have only 84 in the Priority Pass network.
As lounge access becomes more common, maintaining their exclusive appeal becomes a struggle. Lounge networks are attempting to enhance the experience by adding amenities like gyms, and one Priority Pass lounge in the Dominican Republic even features a swimming pool. Dragonpass has also included access to fast-track security lanes.
Interestingly, the fear of losing this privilege keeps the business thriving. Airport lounge access, though not inherently luxurious, is considered a key perk by fee-paying cardholders, who are reluctant to give it up. Christopher Evans notes, "Once a customer has access to that premium space, they don't want to step back."
The industry continues to grow, despite tight margins. Collinson's operating profit for the year ending in March was £48mn on revenues of £1.5bn. As their lounge network expands, it becomes increasingly difficult for competitors to keep up. Dragonpass, formed in 2015 through a merger, stands as their closest rival.
Colin Evans' journey began in 1985 when he acquired a travel benefits business, later expanding into insurance and other travel services, in addition to Priority Pass. He remains the executive chair and sole owner, with his son David as chief strategy officer. The company aims to remain private and become a multigenerational family business.
This vision, however, faces a unique challenge. The Evans brothers have five daughters and no sons, which means Collinson may one day outgrow its original name.
And here's where it gets intriguing: What's your take on this exclusive airport lounge phenomenon? Are these services worth the premium, or is it just another way to segregate travelers? Share your thoughts in the comments below!
