NEWS ROUND-UP Commercial revenues face challenges, says Jankovec
During a breakout press session during an ACI Conference in London recently, Olivier Jankovec, Director General, ACI Europe, acknowledged the importance of growing commercial revenues. This was in response to a question from TRBusiness on how ACI Europe
is dealing with the growing pressures facing Europe’s airports in the face of operational challenges (currently, 47% of Europe’s airports are loss making), and ensuring airport charges for passengers and airlines remain competitive. However, he admitted: “Over the last
two to three years it has become much more difficult to grow commercial revenues on a per passenger basis in Europe. The penetration of these revenues is proving to be much more difficult than it used to be.” The competition from online and
New TFWA Committee now in great shape
TFWA President, Erik Juul-Mortensen tells TRBusiness that he is currently very happy with the level of commitment from the association’s Management Committee, following big changes for the board in October. “Well I have to say that the Management
Committee had a big change at the elections in October and it always takes a couple of meetings before we get everything in gear,” admitted Juul-Mortensen “But [we’ve had] our second meeting now
and we had our first in December [2016]. I actually thought this latest one was very productive and I think that it is extremely positive that there is that kind of interest to serve on the Management Committee and serve for the right reasons.” “We have got a very engaged
Management Committee now. They are really eager and curious and
they want to take part and I think that is just great.” Juul-Mortensen adds that he is impressed
with the amount of ‘limited spare time’ board members are dedicating to their roles, which means that the association is in ‘really good shape’. The second part of Erik Juul-Mortensen’s
interview appears on p42. The first part was published in the April issue.
After a full year of operating its three SME retail units at Incheon International Airport, SM Duty Free can report strong sales growth, mainly driven by South Korean customers. SM Duty Free recorded sales worth
US$90m at Incheon Airport in 2016, exceeding original expectations. The company is looking for double-
digit sales growth at Incheon in 2017, despite the anticipated fall in Chinese visitor numbers, following a decision to
airlines implementing more restrictive cabin bag rules are among a number of obstacles to improving incomes, with uncertainty caused by the latter impacting spending at the tills. On the continuing landscape of travel
retail consolidation and the effect it is having on the industry, he added: “With consolidation, it’s becoming more difficult to make a tailor-made approach,
Olivier Jankovec ACI Europe Director General. (Photo credit: Aviation Media)
which is key in increasing the footprint and penetration of commercial revenues. “What we’re seeing in airports now is
if they have the capabilities, they want to have much more say and participation in the way concessionaires are working. “That’s why you’ve seen a lot more
joint venture agreements in recent years between airports and retailers.” Luke Barras-Hill’s report on the ACI London conference appears on p36.
SM Duty Free targets 20% sales growth in 2017
target the rising number of outbound South Korean travellers. “We are happy with the Incheon sales
figure and the fact that we did not lose money at the airport,” Lee Sun Young, Luxury Brand Team Manager for SM Duty Free Co Ltd’s Merchandising Division told TRBusiness. “Our 2017 target is to grow sales by 20%
at Incheon. “Most of this increase will be local
customers as South Korean outbound travellers are expected to increase from four to five million. “We think SM Duty Free needs
to strengthen marketing to local Korean travellers.” Lee also revealed that SM Duty Free is
bidding for all three SME duty free shop licenses on offer at the airport’s Terminal 2. Read more comments from SM Duty Free’s Lee Sun Young on p131.
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