FlyerTalk Forums - View Single Post - Peninsula HKG lounge catering contract not renewed, Plaza Premium replacement
Old Apr 26, 2016 | 6:10 am
  #131  
brunos
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Originally Posted by QRC3288
Folks, end of the day the impact to us will come down to how much CX pays per entry, not who is running the lounge.

For all the talk of the Pen, it is simply marketing. That "Pen" is a catering company owned by the HKSH (Pen parent company) which uses the Pen name precisely because of the impression it gives. In fact, i believe it used to be a different name but then the clever folks at HKSH realized they could charge more calling it Peninsula. PP is a strong competitor in HK for the Pens catering service. As much as HKSH would love you to think this is a downgrade like Peninsula to Motel 6, it's not at all. Different industry. How much CX is ponying up is the real question.

That "Pen" branding and aura it gives costs money. All else equal, for an identical passenger experience, the Pen will charge a luxury premium to stamp their logo on the menu and name badges. This is not a Pen hotel, where they control the entire guest experience. They are a partner with CX, who still has the lion's share say over your experience in the lounge. Pen isn't dictating terms of lounge design and service flows to CX, like they would in their hotel. It's very different. Mainly a branding exercise to get all the pax oohing and aahing.
+1
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