A few weeks ago, Simple Flying spoke with Bora Isbulan, Deputy CEO of Plaza Premium Group (PPG). The conversation centered around how PPG went from being an airport lounge network to offering end-to-end passenger experiences.

About Isbulan

Before joining PPG, Isbulan worked ten years at TAV Airports, a Turkish airport operations firm. During his tenure at TAV, Isbulan was general manager and oversaw over 1,000 employees at more than 40 airports, developed and introduced new products, led real estate projects, and more. Shortly before the COVID pandemic began, Plaza Premium Group hired Isbulan as Deputy CEO. Little did he know the challenges he would face soon after starting at PPG.

Bora Isbulan
Photo: Plaza Premium Group

At the start of the pandemic, PPG faced the same reality that companies worldwide were facing; things were shutting down. As a lounge network, the outlook was highly negative as airlines grounded significant numbers of aircraft, reduced flights, and very few people were flying. Because of the pandemic, PPG was forced to innovate and pivot.

Pivoting

PPG lost 98% of its revenue in two weeks, so it devised a forward-thinking plan. During meetings, PPG leadership saw the potential for a significant expansion. At the time, its focus was on lounges, and it had a footprint in 42 airports in about 20 countries. Multiple ideas were birthed from the drawing board, leading PPG to its successful position today.

DS_Plaza Premium Group_0388
Photo: Plaza Premium Group

Plaza Premium First was one of the products created during the pandemic. This new product is highlighted to be "an elevated experience for elite travelers."

"Embark on an all-inclusive journey of relaxing ambiance, personalised service, exquisite dining and cross-brand offerings."

Currently, Plaza Premium First is available in Hong Kong (where PPG is headquartered), Malaysia, and will soon open in Macau.

In brainstorming, PPG realized how crucial it would be to diversify its portfolio to more than just airport lounges, so it launched a hotel brand. The Aerotel brand now has more than ten locations at more than ten airports. Additionally, Aerotel manages Refreshhh, which caters to passengers needing to refresh, shower, nap, or massage.

Allways Concierge has more than 20 services available at more than ten airports worldwide, including meet & assist, limousine service, wheelchair, and more. Speaking on PPG's shift during the pandemic, Isbulan said

"PPG transformed itself into a more marketing and sales driven company."

Plaza Premium Group also entered the dining scene and has more than ten brands worldwide. Culinary options range from western-style to Chinese, Korean, Japanese, and more.

Moving forward

The group launched a reward/membership program called Smart Traveller, designed to "provide avid travellers with the perks of PPG’s extensive airport network." Today, the program has over 300,000 members, but PPG has ambitious goals. In the next 12-18 months, PPG aims to reach two million members in its Smart Traveller program by refining the program’s offerings and expanding its partnership network based on member preferences and travel behaviors. Simple Flying asked Isbulan more about

PPG’s hopes to reach these numbers.

“Our 300,000 lounges employ thousands of team members. Those are the natural brand ambassadors. We have staff at reception, in kitchens, floors, and management to promote membership. With a 2% capture rate, we will hit two million members.”

Currently, membership in the Smart Traveller program is free, but PPG will soon launch two new tiers at a cost. So far, the memberships have been tested in Turkey, and PPG hopes to roll out the new tiers in Canada, Brazil, the United Kingdom, Malaysia, and Hong Kong.

In our conversation with Isbulan, it became evident that PPG experienced a rapid decline at the beginning of the pandemic, followed by rapid growth. Simple Flying asked Isbulan what the most significant challenges PPG faces. The response was "managing rising costs and finding suitable personnel," two problems companies worldwide face.

Next month, Plaza Premium Group is launching its 25th-anniversary campaign, which according to Isbulan, will be very sophisticated. On the record, Isbulan could only share that the campaign will include in-depth content about people, brand promise, and what PPG has brought to the industry.

Isbulan stated that many think that PPG is just a lounge network but that it is much more. PPG is about increasing its footprint in everything, diversifying. In the last two years, PPG has invested significantly in IT teams, from a handful of people to about 100. PPG is also developing TECO (Travel Ecosystem) and Tata Consultancy Services to provide an Uber-like experience with any app or webpage.

Did you know PPG was such a diverse company? Let us know in the comment section.