‘Gold route service,’ luxury travel experience at BIA

Airport and Aviation Services (Sri Lanka) (Private) Limited (AASL), launched the ‘Gold Route’ fast track service in August 2022 to provide a premium airport experience for passengers travelling through Bandaranaike International Airport (BIA). We’re pleased to report its remarkable success, generating a total income of over US$400,000 (over LKR 124 million).

Following the global pandemic, we have seen considerable growth and re­surgence in the travel industry across the world. Research conducted to explore the factors affecting luxury travel have highlighted increased affluence, millennial travel, traveller desire for new experiences, the need for privacy and security, the growth of online platforms, travel to exotic destinations, and so on.

Amadeus (2016) introduced the hierarchy of luxury travel needs (LTNs) framework. It illustrates the luxury travel industry and defines the market motivations and service quality demands. The seven travel needs illustrated in this framework are:

• Trusted travel guardian
• Product quality standards
• Service level
• Authentic experience
• Indulgent experience
• Exclusive experience
• VIP privacy and security.

Among these key elements, AASL has found advice, service, security of information, convenience, 24/7 support, service level, an authentic experience avoiding mass travel audience, VIP privacy and exclusivity to be key factors for luxury travellers in choosing BIA’s Gold Route premium service. 

Target market

Where the B2C market is concerned, our target markets are the high net worth individuals in Sri Lanka and overseas, corporate business travellers, celebrities who are visiting Sri Lanka and local celebrities. In regard to the B2B market, we have identified international corporate jets, international airlines and luxury hotels/tour operators as our key markets. 

To provide an enhanced service to high-end travellers, we developed our service product to offer our passengers an array of highly privileged and prioritised amenities, including an exclusive lounge facility, personalised staff assistance and a direct access path to the aircraft bypassing the standard passenger route, while ensuring privacy and efficiency in the airport processes. Passengers are afforded the opportunity to unwind in a tranquil setting with refreshments and beverages as they await their flights, epitomising a new standard in airport travel comfort and efficiency. The service offers our passengers the ability to enjoy privacy, space and comfort in the Gold Route Lounge, where all necessary security, customs, check-in, and immigration/emigration formalities are handled.

The key positioning of the service is to speed up the arrival and departure processes with a premium airport service experience.

Revenue growth and financial performance

Since its inception in August 2022, the Gold Route service has served over 2,000 high-end passengers who looked for luxury in their travel through Bandaranaike International Airport (BIA). Our data reveals a clear upward trend in passenger movements, starting with a modest 165 in 2022, surging to 1,078 in 2023, and already recording over 600 movements in the first five months of 2024. This strong start to the year suggests the potential to surpass the previous year’s total by the end of 2024.

The Gold Route service has also demonstrated significant revenue growth. Since its launch, the service has generated a total income of over US$400,000. The revenue continues to grow in 2024, we’ve recorded 31% growth in the first five months of this year in comparison with 2023, showcasing a robust upward trajectory. The premium airport arrival and departure Gold Route service is available to our passengers at the cost of US$206 per person.

Monthly trends indicate significant growth, with peaks in December and January, and a notable surge in late summer, particularly in August. These patterns are crucial for us as an airport, in planning and resource allocation for managing those passenger flows. Furthermore, we are delighted that BIA’s Gold Route service has served many high-end international travellers including top business professionals, entrepreneurs, celebrities, athletes, fulfilling their unique needs.

Future market potential and service uplift

BIA conducts customer satisfaction surveys to measure the service level. According to our findings, the Gold Route service has been highly patronaged by loyal customers and the service excels in providing ease of access to airports, staff attentiveness, the booking system, security processes and time-saving measures, all earning strong ratings of 4.6 (out of 5) and corresponding percentage scores of 92%.

The Gold Route fast-track luxury service by AASL is a classic example of service innovation with minimum resource allocation, tapping an untapped market potential. It continues to demonstrate remarkable growth in passenger numbers and financial performance. With clear upward trends and seasonal peaks, we believe the service stands as a testament to AASL’s commitment to providing efficient and reliable services to passengers. As the service continues to expand, it promises to set new benchmarks in the industry, reinforcing Sri Lanka’s position as a key player in global aviation.

Meanwhile, the aviation industry in Sri Lanka has seen a significant increase in international passenger movements, with growth of 29% from 2023 to the first five months of 2024. International aircraft movements have also increased by around 24% and cargo movements have increased by around 28% during the same period. Furthermore, there has been an 80% increase in the number of international tourists arriving in Sri Lanka via air compared to the same period in 2024. AASL remains dedicated to enhancing the passenger experience and anticipates continued success with the Gold Route fast-track service setting a classic example for service innovations and value addition for the industry.   

Future research

The consumption of luxury brands is influenced by several factors such as consumer attitudes, identities, personalities, mindsets, values, social influence financial power and so on. Several scholarly studies on the consumption of luxury brands in rich Western countries have analysed the behavioural outcomes of consumers in terms of hedonism, prestige, uniqueness, quality and conspicuous consumption. However, little research has been conducted on the consumer behaviour of luxury consumption in emerging countries, such as Sri Lanka. Therefore, there is great potential to carry out studies on the luxury travel behaviour of high-end airport users to identify the dynamics of travellers at international airports.

About the author

Sumith de Silva brings expertise in strategic marketing, business management, marketing research, strategic planning and service marketing. He has more than 17 years of corporate-level experience, seven years of which in the aviation industry. He currently serves as the Head of Marketing and Corporate Communications at Airport and Aviation Services (Sri Lanka) (Private) Limited, which manages five international airports in Sri Lanka.

Sumith earned his Ph.D. in Business Management and Marketing, from the Management and Science University (MSU), Malaysia in 2020. He holds an MBA, specialising in Marketing obtained from Sikkim Manipal University (India), and earned his B.Sc. (Mgt.) special degree from the Rajarata University of Sri Lanka. He is a Practicing Marketer (SLIM), a Certified Professional Marketer (Asia) (Asia Marketing Federation), and a Member of the Sri Lanka Institute of Marketing (SLIM.

Sumith represents the visiting faculty of Colombo University, Sri Lanka, and several other visiting faculties of leading government and private universities.