How a Hong Kong-grown company utilises banking services with global reach to expand overseas
- Plaza Premium Group, a leading global airport hospitality services provider, boosted its international portfolio to over 250 outlets in less than three years
- As it continues its expansion into overseas markets, banking partner’s global network and international business services play a key role in its growth
[Sponsored article]
Amid the fallout from the Covid-19 pandemic, the global travel sector was among the hardest-hit industries. But for one company that began life at an airport terminal, the challenges fuelled its determination to emerge stronger than ever.
The Plaza Premium Group, best known for its 360-degree airport hospitality services and the owner of the world’s largest independent airport lounge network, saw its business plummet by 95 per cent during the pandemic. But despite the need to scale back services to protect its staff and customers, it turned the crisis into an opportunity to prepare for the return to normal. The company invested US$10 million in fully digitalising its operations in preparation for the travel rebound it believed would follow. As a result, the group expanded its airport lounge portfolio from 180 outlets in 40 countries to more than 250 outlets in less than three years. It also streamlined its 360-degree airport hospitality services to meet the various needs of travellers and fill an underserved part of the travel experience.
“Covid hit us hard, and at one point over 90 per cent of all our services were closed,” says Song Hoi-see, founder and CEO, Plaza Premium Group. “But we foresaw a realignment in the industry and decided to move forward, because we believed planes would soar in the sky again.”
Founded in 1998, the idea for lounge services for all classes of airline passengers was born at Hong Kong’s former Kai Tak Airport when Song, a former senior investment banker who had left his role to become an entrepreneur, lamented the lack of airport facilities for regular passengers requiring business facilities.
“Traditionally airport lounges are built for commercially important people, which means only 15 per cent of passengers are entitled to enjoy such a privilege. As an entrepreneur, I found my time at airports inconvenient and frustrating, as I had to ‘borrow’ electricity to charge my laptop and phone. That’s how my idea came about: to set up a lounge for everyone, regardless of class of travel.”
His vision to fill this gap in the market led to the opening of the world’s first independent lounge at Hong Kong International Airport at Chek Lap Kok. Plaza Premium has since expanded to a comprehensive portfolio of international airport hospitality services including lounges, airport passenger services and airport hotel dining brands that put the travellers’ airport experiences at the core of its business. The company is also working with leading airlines to build their airport hospitality portfolios.
Plaza Premium’s expansion required collaboration with airports, airlines and business partners in Hong Kong and overseas, so having a banking partner with an international network was crucial. With HSBC backing Plaza Premium from the beginning, it made sense to enlist the bank’s global network to scale up into international markets. “If you have different banks in different countries, you have to explain the business concept to each bank,” Song says. “I don’t have to explain my company to HSBC. When we go international, it gives us more convenience.”
HSBC’s network extends beyond 60 countries. This provides Plaza Premium with the ability to bank with ease in the countries where it has a presence, Song says. The bank connects the company with its local business teams on the ground and provides a full range of banking services to support its operations as it expands in new locations.
“When you expand across borders there are many challenges around culture, rules and regulations. HSBC provides us with the global network we need to help move along our expansion programme,” Song says, adding that even during the challenging times of the pandemic when its business operations dropped to less than 10 per cent, HSBC continued to support the company.
“What really made me value our partnership with HSBC was that even when we were struggling, they understood our vision and business strategy. It helped us through the good times, but in challenging times, too,” Song says.
As international travel readjusts to pre-pandemic levels, the group aims to continue expanding its global footprint. While technology has enabled the company to digitise systems for greater efficiency, it is also prioritising people and sustainability, according to Mei Mei Song, director of global brands and transformation, Plaza Premium Group.
An app-based global membership programme called Smart Traveller, which seeks to improve a user’s travel experience, was introduced last year. It bundles all the group’s airport services into one app, enabling users to select the services they need at their departure and arrival airports.
The new “travel experience ecosystem” upgrade enables users to book any of Plaza Premium’s airport services from one platform, whether it be reserving a car parking space, requesting a meet-and-greet service, organising an airport buggy service, or booking a transit hotel, porter service or airport transfer. The service is being rolled out, initially at Hong Kong International Airport and at India’s Kempegowda International Airport Bengaluru. The intention is to introduce the software to its operations in overseas markets, with the support of HSBC.
“What I love about what we do is the impact we can make on global travel. As travel grows, we grow and innovate. We’re here to make travel better,” Mei Mei Song says. “There is someone who takes care of you if you need a place to stay at your destination and when you fly, but what is overlooked is the airport journey. That’s where we come in.”
HSBC says it welcomes the opportunity to power the businesses of tomorrow by helping them establish their footprint both regionally and globally. “The creativity and persistence of Hong Kong entrepreneurs are powerful forces that will drive the sustainable growth and success of their businesses,” says Frank Fang, general manager, head of commercial banking, Hong Kong and Macau, HSBC. “HSBC is supporting them to turbocharge their expansion with our international network, local expertise and a comprehensive suite of banking solutions.”
