Imagine escaping the airport chaos and stepping into a private VIP suite, whisked away to your aircraft when it's ready. This is the world offered by a British company that's reshaping the airport experience. It's a far cry from the crowded terminal lounges where entry can be denied.
This company, Collinson Group, is the force behind Priority Pass, the world's largest airport lounge network. With over 30 million members and 1,800 lounges and facilities, they've recently launched Priority Pass Private, an exclusive offshoot.
Founded by British entrepreneur Colin Evans three decades ago, Collinson is a family-run business on track to surpass £2 billion in sales this year. But the company is facing some growing pains. Premium credit card holders are complaining about overcrowding in airport lounges, particularly in the US and UK.
"We are victims of our own success when customers are being turned away," says Andrew Harrison-Chinn, marketing director of Dragonpass, a leading competitor. This highlights a pivotal moment for airport lounges. They're the more accessible alternatives to airline business and first-class facilities, which are also becoming increasingly crowded.
Christopher Evans, now the CEO of Collinson's international division, calls the lounges an "oasis of calm," but that's debatable.
Priority Pass Private aims to protect and elevate the brand. It will offer access to private jet lounges and VIP facilities for top corporate executives and high-spending customers. "There was demand to take the experience up a level," Evans explains.
To address the overcrowding, Priority Pass is taking steps like warning members when lounges are nearing capacity and encouraging pre-booked entry for a fee. They're also offering discounts at airport restaurants for families.
Evans believes the crowding is mainly due to the post-Covid travel surge and will eventually ease. However, airports like Heathrow face challenges compared to newer ones in the Middle East and Asia, which have more space.
But here's where it gets controversial... Priority Pass and Dragonpass rely on others to expand their capacity. Dragonpass doesn't own lounges, relying on access deals with independent operators. Collinson has created a division to design, build, and run lounges, but it only has 84 in the Priority Pass network so far.
The wider challenge is that when so many people frequent lounges, they lose their exclusivity. Lounge networks are trying to enhance the experience with amenities like gyms or even swimming pools. Dragonpass has added access to fast-track security lanes.
However, the fear of losing these perks works in the company's favor. Airport lounge access may not be a luxury, but it's a major draw for fee-paying cardholders. "Once a customer has access to that premium space, they don’t want to step back,” Evans notes.
The industry continues to grow, although margins remain tight. Collinson's operating profit was £48 million on revenues of £1.5 billion in the year to March. The larger its network becomes, the harder it is for others to compete. Dragonpass, created in 2015, is its closest rival.
Colin Evans founded Collinson in 1985 and has since expanded the company to include insurance and other travel operations. He is the executive chair and sole owner, with his other son as the chief strategy officer. The company intends to remain private and become a multigenerational family business.
And this is the part most people miss... The company's future might face a unique challenge. With five daughters and no sons, the family business will eventually outgrow its name.
What are your thoughts on the future of airport lounges? Do you think the current overcrowding issues will be resolved? Share your opinions in the comments below!**
