Cathay Pacific’s Long View on Investing Outside of Its Jets
Photo Credit: Cathay Pacific's lounge The Deck opened in March at the Hong Kong International Airport. Cathay Pacific
Skift Take
The so-called soft product is often the first to get the knife as airlines undergo turnarounds. Thanks to patient, long-term investors and the desire to be customer-centric, Cathay is investing in its lounges and end-to-end experiences even in the middle of a business turnaround.
On Experience
Colin Nagy is a marketing strategist and writes on customer-centric experiences and innovation across the luxury sector, hotels, aviation, and beyond. You can read all of his writing here.
Premium airline messaging is full of hyperbole tailor-made for marketing. Crack open Departures magazine or any of the travel monthlies, and you see glossy pages filled with onboard chefs, offers of chauffeurs to the plane, and all sorts of decadence that makes a traveler’s mouth water.
However, in a business downturn, these are among the first things cut to the bone.
The Etihad lounge in Abu Dhabi that blew my mind the first time I flew the airline nine years ago was a shell of its former self on a recent transfer. There was no magic, and if you squinted, you could probably feel like you were in a decent, but not incredible U.S. lounge. Same goes for the car services, barbers, spa treatments and many other accoutrements that the Middle Eastern carriers were touting for a long time. Now, end-to-end, many of these experiences remain far and away better than most of their competitors, but it does go to show management's willingness to cut into the premium offering when times get
