Finding the right real estate, and the perfect amount of space to accommodate your needs is a common problem, not just affecting house hunters. Just ask Song Hoi-see, the Malaysian-born Hong Kong-born entrepreneur behind Plaza Premium Group, the world’s largest independent airport lounge provider. He talks to Travel Weekly editor Grant Jones about relieving pain points in airports.
Starting with Brisbane in 2016, then expanding into Sydney, Melbourne and Adelaide, Song Hoi-see has an eye for real estate. And not just any real estate. It started with international airport terminals and he now has a portfolio of independent Plaza Premium Lounge that offer a touch of class – Business Class – before you fly.
Just because you are not travelling Business Class doesn’t mean you can’t get the business-class experience of a lounge, says Song, the entrepreneur behind Plaza Premium Group, now the world’s largest independent airport lounge provider – some 1400-plus globally. He employs nearly 6000 people, including 200-300 in Australia
“I have 80 different nationalities,” he says. “That is a beauty of it. I always tell people, I say I feel so much pleasure in employing these different nationalities.”
His lounges provide a haven for a busy business traveller – to either connect or disconnect. A place to grab a bite to eat, to have a shower, have a quick meeting with colleagues via Zoom or in person, or just tap into the Wi-Fi that is not overcrowded so you can fire off a few emails.
“Travellers are becoming more discerning about what they want,” he says, and with a full return to travel and flights costs up, the belt is tightening for the frequent business traveller.
“They don’t have to be Business Class in the air, but they can be Business Class in the airport,” Song says.
And even though an airline may not have its own lounge in an airport terminal, international otherwise, PPG has been able to provide that same service without the significant outlay required to rent, build and service a similar space.
“Airlines realised that we are capable to run the operation,” says Song. “That’s why airlines follow us wherever we go, especially those airlines that don’t have lounge.”
Observe, listen and act
While the focus has been on international lounges, as he now has his eye on domestic terminals, particularly in Australia, given our busy domestic routes.
“We started in international, but after operating in Australia for so many years now, our philosophy of business is observe, listen and also (take) action,” he says.
“So, we observed the travellers in Australia, especially domestic, where we do not have any outlets,” he says. “We watch them, we talk to them. We ask them, ‘Are you comfortable?”
The feedback they received from travellers in Qantas and Virgin lounges, was that it’s okay for business class travellers or frequent flyers on domestic routes but most of the time the lounges are full.
“They are packed every day, so the comfort is in question. Also, those lounges only take care of business class or frequent travellers, but the rest of people do not have the opportunity,” he says.
“Business travellers do not necessarily have to travel business class all the time, but if they travel economy class, they may not have access to lounge services.
“So, we thought this a big sort of gap in the market where we can fill the market to provide comfort and convenience to the traveller who does not travel business class in domestic market.”
Song saw an inefficiency in airport operations, plus a pain-point for business travellers who fly often, so he decided to ease that pain, much as he did for airlines without lounges at international terminals.
Hello again Adelaide! Plaza Premium Group has just signed an agreement to introduce Flight Club Adelaide, PPG’s first domestic terminal experience in Oceania and the debut of the Flight Club brand in the region.
Located within the domestic departure hall at Adelaide Airport, Flight Club Adelaide will offer a tranquil, welcoming space for travellers to relax, dine, and recharge, building on the success of the existing Plaza Premium Lounge at Adelaide’s International Terminal. That lounge is available to paying passengers from A$39 for 1 hour, from A$71 for 2 hours, in a compact 532sqm, seating 137 passengers.
“We must provide four things – comfort, convenience, our love and care, and value,” Song says.
Plaza Premium Group to introduce domestic Flight Club lounge to award-winning Adelaide Airport
Apart from pricing there will also be differences in the offerings between Flight Club and Plaza Premium Lounge.
“The offer or the food will be different,” he says. “We cannot let the customer wait for half an hour for the food to come to the table (at Flight Club). We have to provide our convenience food, comfort food, where they can buy and take it easily.”
Add up what you pay in the food hall outside the lounge and you could be up for $15-16 for a sandwich and $6 for coffee, plus there are the queues.
In addition, Song makes sure there is consistent staff training through an internally-run academy, plus a focus on local food and beverages in both Flight Club and Plaza Premium Lounges.
“I want to make sure that we offer localised quality, by localised I mean in terms of design of the lounge, in terms of food, for example, we want to make sure that we get the local produce on the sandwich,” he says.
“I don’t care about French wine. I care about Australian wine. Actually, in Adelaide definitely we will use Adelaide wine because I want the Australians to feel proud to be in that lounge. We try to be 100 per local.”
More to do
The 67-year-old old Song admits that while he should retire, he still enjoys working and the satisfaction that it brings.
“I still work very hard. The reason is that it’s self-actualisation that I enjoy so much, where I can curate and I can see the gap in the passenger journey, and I can fill the gap, and I see the passenger enjoy themselves while they’re travelling. This gives me a lot of satisfaction.”
Now that the Adelaide domestic deal has been signed, Song is keen to add Sydney, Melbourne and Brisbane domestic airports.
“The next one we hope to open in Perth, in Terminal 1.”
But again space, as always, is at a premium. Song requires around 3000-4000 square feet (278-371sqm) for a lounge.
“For them to give me a space is quite challenging, but I present this concept to them,” he says. “They also buy into the concept. They want to provide convenience, comfort to their passengers too. So they know this concept works very well, and they have been working very hard to find me a space.”
Real estate, a never-ending Australian topic.
Feature image: PPG’s Song Hoi-see.
