CANADA: VANCOUVER AIRPORT
Vancouver duty free keeps pace with +11% concessions surge
Vancouver International Airport is undertaking a comprehensive overhaul of its concessions programme to bolster its 170-plus offering of retail, F&B and services units. Scott Norris, Vice President, Commercial Development, Vancouver Airport Authority tells Luke Barras-Hill why shopping revenue remains a crucial component in helping to offset higher airport charges.
H
ow did the airport’s duty free and travel retail business perform in 2017
in (%) growth and sales terms and what are your predictions for this year? We had 24.2m passengers come through Vancouver Airport (YVR) in 2017 – a +8.4% increase from the year before. We are seeing this increase reflect positively across our concessions programme. For example, both our duty free
offering and overall concession programme had a +11% increase last year in comparison to 2016. This rapid growth is going to continue according to our forecasting, so we will be continuously reviewing the current offer and planning for future demand, both in respect to the capacity of the commercial offerings but to also create new, memorable shopping and eating experiences for our passengers to reflect recent trends.
Can you outline any exciting plans for the coming months (including new products,
retail
concepts, partnerships or store developments) with your duty free partner(s)? Our duty free and food and drink business streams are two key areas of development at YVR at present and this will continue over the next few years. We have just opened a new walkthrough duty free store in our US trans-border area. This second store at the area increases a fuller complement of product categories and selections for our US-bound customers. New brands include Herschel, Radley, Fjällräven and Mywalit in the travel category and Casio, Daniel Wellington, Sekonda and Anne Klein in the watches and
MARCH 2018
jewellery category. In the coming months, we will introduce a new pop-up style concept featuring the cosmetic brand Whoo in the international terminal and another exciting fashion concept to be announced soon that will complement our pre-existing high- end boutiques. We are also continuing to work
on redeveloping our pre-security domestic food court and shopping area and extending the international pier, creating an entirely new commercial zone and local food market within a uniquely YVR terminal environment. This will build upon a very good
base that has produced the highest spend per enplaned passengers in North America in our most recent review.
How much emphasis are you putting on increasing non- aeronautical revenue’s share of total airport income through a focus on enhanced retail concession margins? As a not-for-profit organisation, YVR
is dedicated to providing innovative approaches to business. We have created a business model that keeps costs for passengers and airlines low though generating non-aeronautical revenues from a variety of business streams including, cargo, retail, parking, border technology and a designer outlet centre among, other sources. Due to our success in these revenue streams, we’ve been able to introduce ConnectYVR, a five-year rates and charges programme for airlines. The programme provides a highly competitive rate structure
“We have just opened a new walkthrough duty free store in our US trans-border area. This second store at the area increases a fuller complement of product categories and selections for our US-bound customers.”
Scott Norris, Vice President, Commercial Development, Vancouver Airport Authority
TRBUSINESS 67
Above: World Duty Free operates at the international terminal post- security.
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