Airport Premium Loyalty Programme Concept

[MEL_Traveller]

But not useful if traveling with someone without the same status. The HKFV card has always allowed my companion to join me in the line.

Happy wandering

Fred

that's interesting - i didn't know that. thanks for the heads up.

 

[serfty]

The best airport loyalty benefit I can recall is the frequent visitor card available through the Hong Kong airport. ...

I earned one once but it lapsed; I then earned another and found that it by then made me eligible for the e-channel.

So my HKIA FVC has been mothballed (unless travelling with SWMBO) and my PP proudly sports an HK Immigration barcode on it's back cover.

 

[litey]

First of all, thanks to everyone who has commented it's all been very helpful to get your opinions. Given some extra research it certainly does seem that I had my rose tinted marketing student glasses on when I came up with the original concept. So I revised it for a more realistic and feasible approach.

In answer to your question Andyc: I have previously thought about this and I believe that ultimately the programme should aim to increase revenues, add value for tenants, and rather than increase market share (as OOL is a completely different kettle of fish) it will act as a foundation for future market barriers should the need arise.

harvyk, I really like your idea of the airport club and it’s from this that I have restructured my concept. Because BNE hold almost a monopoly on the region, the financial benefits of implementing this program will need to outweigh the expenses. So as far as I see it, the best way to do this in a comparatively smaller market than previous cases such as Schiphol would be to keep it simple and build the programme up in stages dependent on predetermined market and sales KPIs.

Having looked into immigration and airport security legislation, it seems either impossible or financially inefficient (approx. 700k a year for an extra security lane on my calculations) to implement the priority security processing at BNE. However the new car park features a premium parking zone on level three (the same area the valet parks) which gives the quickest access to the terminal.

I'm thinking that the programme might provide discounts on this area, or as you currently have to book it online in advance, even an easier method of entry might be enough when coupled with discounts on valet and car wash services which can allow them to implement some form of rudimentary yield management. Additionally as the new Airportlink opens it might be worthwhile offering a discount on the toll to speed up the product lifecycle; encouraging high volume users to add the Airportlink into their travel process early on so that the owners don't go the same way as the Clem7 crew. I'm thinking a minimal fee for this 'club' something like $25-$50 to recover the cost of implementing the programme and administration.

As the program builds a customer base, then the airport can approach retailers and other tenants like the Novotel and airlines to gauge their interest in joining the programme or offering discounts as a means of promoting their wares to the airports frequent travelers.

I've sent out a few emails in regards to a pay per use lounge, BNE were kind enough to respond saying that they had conducted their own studies on this and found that there wasn't enough interest to warrant the investment. I can understand this having seen the costs of constructing a lounge and the fact that they would have to have relatively cheap entry prices due to competing directly with the Qantas and Virgin lounges. So at the moment I'm considering either including a system for gathering market research that will allow BNE to pin point when exactly there is enough interest to implement such a project OR implementing the children's lounge, which is a great concept as it targets a completely different market and offers great benefits; my concern however would be how easy is it be for the airlines to copy this and void the investment?

 

[harvyk]

First of all, thanks to everyone who has commented it's all been very helpful to get your opinions. Given some extra research it certainly does seem that I had my rose tinted marketing student glasses on when I came up with the original concept. So I revised it for a more realistic and feasible approach.

Everyone who comes up with a business idea, either real or for an assignment is issued a pair of rose coloured glasses as soon as the idea comes into their head.

So at the moment I'm considering either including a system for gathering market research that will allow BNE to pin point when exactly there is enough interest to implement such a project OR implementing the children's lounge, which is a great concept as it targets a completely different market and offers great benefits; my concern however would be how easy is it be for the airlines to copy this and void the investment?

A children's lounge wouldn't be too expensive to actually set up, and whilst yes QF have the kids zone in SYD, that is pretty much just a sectioned off area with some toys thrown in. (Don't get me wrong, as a parent waiting between flights, it's a godsend). So if you built your kids zone with proper play equipment, and a decent collection of video games I doubt you'd have much competition from the airlines, and I doubt they would ever really try and capture that market. Have a look at something like Kids Rampage for some ideas on what would work well for younger kids, and consider something like Timezone for older kids, with a decent bar \ cafe attached (unlike other lounges, they are not free), I'd say you'd be on a winner.

 

[elbarto]

A children's lounge wouldn't be too expensive to actually set up, and whilst yes QF have the kids zone in SYD, that is pretty much just a sectioned off area with some toys thrown in. (Don't get me wrong, as a parent waiting between flights, it's a godsend).

BA has a room in their Galleries lounges for Kids. Doors and all to keep the sound out.