Airport Experience® News - Food & Beverage Issue 2025

Collaboration May Be Key To Lounges And Concessions Co-Existing In The Airport

BY SALLY KRAL

The airport has changed quite dramatically over the past several decades, and the evolution of airport lounges is a prime example of this. “When we first entered the market in 1998, with my father Mr. Song Hoi See founding the world’s first independent lounge, airports were primarily seen as transport hubs and lounges were very exclusive. Over our nearly 30 years in business, we’ve witnessed a significant evolution: airport lounges are now a must have for travelers across all classes, whether you fly economy, business, or first,” says Jonathan Song, chief commercial officer at Plaza Premium Group (PPG), which operates more than 450 lounges worldwide. Airport Dimensions currently operates 84 airport lounges across the globe and the company has seen steady year-over year growth, according to Nancy Knipp, president of the Americas.

Above: Nancy Knipp, president of the Americas for Airport Dimensions, says her company’s research shows that lounge guests are among the airport’s highest-value customers, spending an average of $137 in the airport, which is spending that she claims extends across food and beverage, retail and services throughout the airport.

“What’s driving this expansion isn’t just increased travel demand – though that’s certainly a factor – but a fundamental shift in how airports view the lounge experience,” Knipp says. “It’s moved from being a nice amenity to an essential component of the modern travel ecosystem.” Song points out that lounges themselves have expanded their offerings and amenities substantially. “They’re evolving to offer more than just comfort, incorporating wellness, dining, entertainment and even retail experiences,” he says. That reality troubles many concessionaires. At this year’s Airport Experience Conference, during the panel discussion, “The Impact of Lounges on Airport Concessions,” Richard Schneider, chief development officer for Areas USA , raised concerns about how lounges can negatively affect concessions sales.

Above: Jonathan Song, CCO at Plaza Premium Group, hopes that lounge operators and concessionaires can team up on cross-promotions and other collaborative efforts to help drive revenue for both, as well as provide a better experience for the passenger.

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AX NEWS JULY/AUGUST 2025