Jorge Chavez International Airport passenger movements |
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First floor 3D view of The VIP Club: Lima Airport Partners is launching a unique and ambitious customer service facility at Jorge Chavez International Airport |
| Download 2005 passenger traffic figures and 2006 to date |
PERU. Lima Airport Partners (LAP) and their lounge operator Inversiones FISA are launching a unique and ambitious VIP Service Lounge called The VIP Club at Lima’s Jorge Chavez International Airport (JCIA) – and it has issued a call for commercial partners through The Moodie Report.
Jorge Chavez International is one of South America’s fastest-growing and most ambitious airports. It handled almost 5.7 million passengers last year, of which nearly 3.3 million were international. This year has seen an acceleration of recent growth with +5.9% and 5.2% year-on-year increases for international passengers in January and February respectively.
Lima Airport Partners Commercial Manager Jan Laufs told The Moodie Report: “We are looking for a dynamic partnership with brands who would like to use the lounge platform to promote their products. The presentation form can be via fixed materials but preferably through events – tastings, happenings etc.
“They are not permitted to sell their products to the end consumer in the lounge as this would lead to conflicts with other concessionaires. But of course there is the possibility to have cross promotions with existing operators selling the brand, such as duty free retailer Aldeasa or food & beverage and destination merchandise specialist Cafe Britt.”
The airport company has a well-advanced programme to grow commercial revenues – the spend per passenger currently stands at US$14.60 for retail and US$2.19 for food & beverage.
The VIP Club is described as a new concept in VIP service lounges that combines modernity, innovation/technology and fun/entertainment in each one of its products and services. It will serve business and leisure travellers across all airlines flying out of the airport.
It includes the following areas:
– A Bar and Lounge area
– A Buffet area
– The Smokers’ Terrace
– An Entertainment area
– An Electronic Games area
– An Internet Zone
– A ‘Relax’ and ‘Spa’ area
– Workstations
Details of The VIP Club |
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“Airport VIP lounges can be spaces as profitable as any retail store at the airport,” according to LAP |
| For full details on these ambitious areas and services click here |
LAP said: “Airport VIP lounges can be spaces as profitable as any retail store at the airport – or even more so – if they are considered as commercial showcases both for generating passenger traffic to the airport’s retail stores and for companies intending to develop market presence through their brands and products among potential customers, fully captive in a VIP lounge.”
Here, in exclusive association with The Moodie Report, Lima Airport Partners presents a full background briefing on this ambitious project. Also see www.thevipclub.com.pe or contact Jan Laufs of Lima Airports Partners by e-mail at jlaufs@lap.com.pe quoting “˜The Moodie Report’.
Airline management vs. third-party management
Traditionally, airport VIP lounges have been run by airlines as part of their VIP services and loyalty programmes aimed at their passengers. Consequently VIP lounges did not represent a profitable business to the airport and were merely part of the airline’s service.
However, having identified the opportunity to generate more income for the airport, Jorge Chavez International Airport is proposing a new management concept for this kind of services, not only handing over the administration of VIP lounges to private companies but also incorporating them into their commercial area. With these changes, the airport considers VIP lounges as a potential source of income and as a means to increase productivity per square meter, 24 hours a day.
Third-party management: commercial showcase; traffic generation towards other businesses
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Top to bottom: Location of the Bar and Lounge area at The VIP Club; 3D views of the Bar and Lounge area with and (below) without furniture |
Traditionally, an airline-managed VIP lounge sought to keep passengers in its facilities as long as possible while they were waiting for their flights.
Products and services offered by the airline to passengers were very similar to those offered onboard. There was often no difference between the experience onboard and the experience in the lounge. As a result, passengers were exposed only to the brand and products sold by the airline, thus restricting their future purchases at other airport retail stores.
Today, with third-party management, lounge facilities can exhibit all sorts of products and brands without restrictions, and at the same time exhibit the airport’s own retail store brands. This will encourage impulse buying in passengers, who will be willing to leave their hand luggage safe in the lounge’s custody to do some shopping in the airport’s retail stores or to buy the product of the brand experienced in the lounge.
This generates the possibility of selling specific areas and spaces in the lounge to international brands, who will display and/or offer their brands and products in the lounge on an exclusivity basis, resulting in additional income for the airport.
Third-party management: Better use of space 24 hours a day
Third-party management allows the airport to use a specific physical space for passenger service, regardless of what airline they are flying with, 24 hours a day. On the contrary, when VIP lounges were run by an airline, they were open just for the specific attention of their own passengers.
In consequence, having a lounge managed by third parties allows the airport to maintain profitable spaces 24 hours a day.
Third-party Management: Who is the third party?
Unlike an airline that regards the VIP lounge business as an additional service to its core business, the company responsible for managing VIP lounges is specialized in running hotels and restaurants, which allows for:
• The allocation of resources to continuous improvement of its core business.
• Enough flexibility and speed to adapt to the airport’s needs and requirements.
• Teamwork with the airport’s commercial area in order to achieve common objectives.
• The development of profitable spaces without restricting free competition between exclusive brands and its own brands.
The SUMAQ experience
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Top: Location of the Buffet area at The VIP Club (1st floor); Below: 3D view of the Buffet area, showing a rent proposal area with furniture |
Although in previous years there were VIP lounges operated by airlines, SUMAQ is at present the only VIP lounge at Jorge Chavez International Airport. It is managed by third parties, which allows it to serve all passengers regardless of what airline they are flying with.
SUMAQ was created because of the need to attend first-class and business-class passengers as well as frequent travellers. SUMAQ passengers have some common characteristics:
• They are passengers ranging from 45 to 65 years of age.
• They appreciate privacy, security and quietness, as well as luxury and comfort.
• They do not like to be exposed to harassment by other people and advertising brands.
This distinction of SUMAQ’s profile allows its supply of services to stand out and offer passengers a real experience in an environment where products and services have been carefully selected.
With the purpose of meeting all these needs, SUMAQ was inaugurated in 2005 at the International Concourse of Jorge Chavez International Airport. From then on it has become a selective experience for its passengers who visit it frequently because of the privacy, luxury, and tradition combined in one area.
Today SUMAQ receives passengers who have been invited by all airlines as they consider it part of their privileged services to their own VIP passengers. The airlines are: LAN, TACA Iberia, Avianca, Varig, KLM, Continental Airlines, Delta, Copa, Aeroméxico, Air Canada, Aereolineas Argentinas, Air Madrid, Air Plus whose passengers invited to SUMAQ represent 7% of total passengers who are waiting for their international departure. SUMAQ handles an average of 10,000 passengers every month.
Proposing a new concept: The VIP CLUB
However, SUMAQ is not oriented to a 30-to-45-year-old public. Indeed, while this segment seeks an access-restricted area, it also demands modern and technological features that SUMAQ would not be considering, given the nature of its passengers.
This is how the concept of The VIP CLUB was born, to meet the needs of junior executives who frequently travel on business, or of those occasional tourists and senior tourists who expect to find in The VIP Club first-class services and attention within an environment specially created for them.
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(Above) Location of the entertainment area on the first floor; the picture below shows a 3D image of the entertainment area at The VIP CLUB, featuring a rent proposal area with furniture |
Although The VIP Club will seek to meet the needs of three different types of profiles (see below), its marketing and commercial strategies will be focused on junior executives because:
• They are the frequent travellers in the lounge.
• They are passengers whose profile fits many of the experiences the lounge expects to provide.
• They are the kind of passenger willing to spend top money in technology, entertainment, fashion and wellness and who strongly appreciate the showcasing of these concepts
• They are the main users of the lounge
• Their open mind and variety of interests make them the group most likely to use the majority of offers in the lounge, from internet to spa and bar
Therefore, The VIP Club includes in its group of basic services (food, beverages, clean restrooms, attention) additional and innovative services such as an electronic games area, relaxation and spa area and multifunctional internet service.
These will enable the lounge not only to sell modernity and technology but also to become much more attractive both to passengers wishing to use such services and to companies who regard its facilities as a great opportunity to finalize fixed-term exclusivity agreements with the lounge. That will in turn allow for companies to have brand presence, display their products and run current and new launch campaigns for passengers – their own potential customers – who are captive in a restricted area.
The VIP Club has an area of 610sq m distributed over two storeys, suitable for developing an up-to-date and modern concept where fashion and technology are inherent to the lounge.
It is a concept that is closer to the passenger and that allows a strong focus on the concept of commercial showcases in strategic zones of high passenger traffic. That is exactly the case within the areas used for buffet, games, entertainment, smokers’ terrace, relaxation and spa, and for access to the internet.
In summary The VIP Club’s main features are:
– Ample space to enable interaction and networking
– Modern design and spaces
– The presence of technological and innovative products and brands
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(Above) Location of the mezzanine; a 3D view of the mezzanine area of The VIP Club. Rent proposal area with furniture for internet area, Spa area and workstations |
TARGET GROUP
The VIP Club aims to serve three different profiles:
1. Junior executives
2. Occasional tourists
3. Senior tourists
Typical junior executives are young and single men and women in their early 30s who have positions with a medium level of responsibility within mid-sized or large companies.
Their main motivation is to achieve professional growth and take on further challenges in life. They are frequent business travellers and, due to their itineraries, are subject to a multiple array of products and services from different locations worldwide.
Therefore they are refined critics when evaluating and comparing products or services. Given the nature of their trips, when junior executives get to the VIP lounge their attitude is quite rational, and so is their analysis when they evaluate the lounge services.
Thus, junior executives are the profile par excellence who will evaluate and compare the lounge services against the highest standards, in terms of satisfaction levels both of their business needs and of their needs for relaxation and entertainment.
Occasional tourists are men and women, ranging from 35 to 55 years of age, who use the airport facilities while waiting for their flights during vacation trips. They may travel alone, with their partners, friends or families. An occasional tourist can also be a junior executive who was served while he/she was waiting for his/her business flight.
When these people get to the lounge, they feel relaxed, absolutely free of pressure and concern, ready to start their dream holidays. People who are on vacation prefer this type of facility because they want to enjoy an environment restricted to the general public where they can have access to a number of products and services in a place reserved for people like them.
Senior tourists are people of 60 years of age and over who travel around the world in large groups of 15 to 30. They are mostly retired people who wish to use their golden years to go on trips they always longed to take and could not until now.
They therefore choose a very good travel agency which ensures all the details are covered for an unforgettable experience on their dream trip. Senior tourists are the ideal pattern of traveller a junior executive would like to become when he/she reaches this age.
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(Top) Location of the electronic games area on the first floor; a 3D view of the same area showing a rent proposal area with and (below) without furniture |
TARGET GROUP – PRINCIPAL
Although The VIP Club will address its services to three different types of profiles, its marketing efforts should be focused on meeting junior executives’ needs because:
1. Due to their recurrent business trips, this is the target group of frequent travellers whose satisfaction from the service they receive will allow for maintaining the contracts with the companies they work for, which will ultimately pay for these services.
2. It is the fastest-growing target group in terms of number of components.
3. It is the target group that will allocate large sums of money to buy high-tech and fashion products.
4. It is the most rational target group when it comes to evaluating the lounge’s products and services, not only because of the international comparative standards they are exposed to but also because of their attitude when entering the lounge.
5. They are people whose maximum satisfaction is based on the additional services and innovations (relaxation areas, electronic games, multifunctional seats, etc.) they may find in the lounge, other than basic services (food, beverage and attention) which are considered to be customary in this type of lounge.
6. It is the most demanding group, who will generate word-of-mouth advertising if results from their own comparative evaluations are positive.
7. It is the target group that matches the other profiles, though not vice versa.
8. It is the profile that will be able to enjoy all services in the lounge without restrictions, thus being able to do an overall evaluation of the lounge. In other words, because of their age range, not only will they be able to enjoy a drink at the bar but – unlike the other target groups – they will also be able to take advantage of the games area and have fun with an electronic game.
9. Given the nature of their trips, we will be able to reach more corporate customers than we would do if the lounge were aimed only at tourists on holiday.
TARGET GROUP – SECONDARY
Secondary target groups are occasional tourists and senior tourists.
Both groups strongly appreciate the exclusivity and security offered by an access-restricted VIP lounge. They are very critical of the basic services (food, beverage, attention, internet and clean restrooms) and consider any additional services offered in the lounge as added value.
The decision to buy this service is usually made by the travel agency as part of the package sold to the passenger; sometimes, however, such decisions of purchase can be made by the occasional tourists themselves.
The award-winning SUMAQ VIP Lounge |
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The new facilities of the SUMAQ VIP Lounge were opened on May 31, 2005, involving an investment of over US$1.5 million |
| Click here to find out more about the SUMAQ VIP Lounge |
SERVICE DEFINITION
Airport VIP lounges are access-restricted areas where passengers wait for their flights. There are two types of services: The basic services that all passengers expect to find and the additional services that stand out as a benchmark.
BASIC SERVICES
The basic services all passengers expect to find in this type of spaces include: food, beverage, magazines, access to the internet, restrooms, relaxation areas, and good customer service.
The way these elements are combined will give the lounge a certain level of distinction and will make it stand out over other alternatives. The passenger also expects to find comfortable facilities and rational criteria for access restriction.
ADDITIONAL SERVICES
Additional services are those passengers do not necessarily expect to find in an airport VIP lounge.
When a lounge provides additional services, it stands out as a benchmark compared to other options offered at airports while passengers are waiting for their flights. The level of unexpected satisfaction and passenger experience with each of these additional services will strengthen brand equity and passengers’ loyalty, and will generate cost-free advertising and recommendation by the passengers.
With the aim of providing a benchmarking service, The VIP Club has implemented relaxation areas, electronic games, multifunctional spaces, etc. intended to maximize passenger experience in the lounge.
COMPETITION
1) Direct local competition at Jorge Chavez International Airport: At present there is only one VIP lounge, SUMAQ, in the international concourse of the Jorge Chavez International Airport. This offers access-restricted services to first class passengers from different airlines.
This gives The VIP Club the opportunity to serve other passengers, not travelling first class, but included in the above-mentioned profiles.
2) Indirect local competition at Jorge Chavez International Airport: A combination of entertainment alternatives for the passengers waiting for their international flight, that currently exist at the airport.
3) Direct international competition: Other VIP lounges worldwide, managed both by third parties and by airlines. The basic services offered include: food, beverage, information, (access to the internet, magazines and newspapers) and additional services with added value (showers, relaxation area, beauty parlor, gym, day-care center, etc.)
