Office Space News
Regus Inks Strategic Alliance with Virgin Atlantic
Published September 23rd, 2009 by Jennifer LeClaire
Just when you thought Regus might be slowing down with its rapid-fire strategic alliance strategy… Regus Group tied up with Virgin Atlantic in Australia last week in a deal that once again targets globetrotters looking for office space on the go. Regus’ latest deal is a joint venture that offers tit for tat benefits to each company’s customers.
Specifically, Virgin Atlantic’s Gold and Silver Flying Club members get a free Regus Businessworld Gold Card for 12 months. The Businessworld Gold card offers global travelers access to Regus’ 1,000-plus serviced office centers in 450 cities and 75 countries. Gold Flying Club members also get an undisclosed number of office vouchers that let them use Regus offices free. That’s an attractive deal that falls out of the sky for Virgin Atlantic customers, and may even drive new frequent flyer memberships with the airline.
Red Flying Club members get a 50 percent discount on the Businessworld Gold card, plus 3,000 bonus miles when they purchase the card. Will a 3,000-mile bonus and a half-off offer entice travelers to invest in a Businessworld membership? I imagine it would if these travelers are already using Regus, already using serviced office space in general, or plan to. Otherwise, I don’t think the deal in and of itself is going to drive memberships for Regus. The partnership also offers opportunities for all Flying Club members to earn Flying Club miles on a range of Regus products and services worldwide.
“We are always seeking partnerships with similar-minded organizations that we can work with to provide greater benefits to business travelers,” says Ian Wheeler, Country vice president for Regus Australia and New Zealand. “The Regus Businessworld program provides business travelers access to world-class, business-ready office facilities around the world, wherever their work takes them. Whether Virgin Atlantic flyers are expanding into new markets, or identifying ways to reduce facilities costs, the Businessworld program provides them with a powerful tool during these challenging times.”
Margy Vary, marketing manager for Virgin Atlantic in Australia, said the partnership offered Virgin Atlantic frequent flyers a number of benefits: “Our passengers are already able to enjoy Virgin Atlantic’s award-winning Clubhouses around the world, and now have access to over 1,000 prestigious Regus business centers in their city location or when they arrive at their destination.”
Beyond the typical marketing spin from both companies, the Regus Businessworld Gold Cards can be a good deal for world travelers. Gold members also get complementary Internet and tea and coffee, discounts on meeting rooms, day office and videoconferencing, access to professional administrative support and preferred rates on office supplies.
Even if Virgin Atlantic customers are just traveling around their home region, they can find value in this strategic alliance. That’s because Regus has 20 business centers in major metropolitan cities including Sydney, Melbourne, Adelaide, Brisbane and Auckland. All in all, a good deal for folks who are already leaning in this direction.
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Maggie Correta September 23rd, 2009 at 7:47 am
I’m not at all surprised that Regus struck another strategic alliance for its businessword serviced office membership. The airlines seem to be one of the sweet spots for Regus and I imagine we’ll see them try to do deals with other airlines as well. People who travel need day offices or meeting rooms. This is a way for Regus to stay top-of-mind with road warriors.
Bill Brookshire September 23rd, 2009 at 8:00 am
I have seen these examples time and again. I think Regus needs to do a better job of spelling out the benefits. A businessworld membership costs a small fortune. If you aren’t a heavy user of serviced office space, then it doesn’t really make sense to shell out thousands of dollars for a membership. Now, when you can get it for free because you are a frequent flyer with this airline or that airline, it makes great sense. This might be Regus’ best bet for driving memberships.
Marcus Hester September 23rd, 2009 at 8:06 am
Does Regus even have any alliances with airlines in the U.S.? I keep seeing Regus making alliances for its businessworld memberships with airlines in Europe and Asia. What about Delta? U.S. Air? Maybe these are harder to broker. Or maybe there’s just no interest. Or maybe it’s because serviced office space is much more adopted and accepted in other nations than it is in the U.S. Something to ponder.
Elizabeth Sanchez September 23rd, 2009 at 8:20 am
The Businessworld memberships are certainly attractive to the target audience: frequent travelers and frequent serviced office space users. As I understand it, Regus has gained lots of members for this relatively new program in a short time. So it seems like the strategic alliance path is working. I am not sure how the alliances translate to real revenue in terms of executive office suite rentals, but over time this will add up.