NEWS ANALYSIS: XI’AN AIRPORT
New terminal brings fresh commercial opportunities at Xi’an Xianyang Airport
Last year, retail revenue at Xi’an Xianyang International Airport increased +8.9%, outperforming passenger growth of +6.8%. With the construction of a new terminal planned for completion in 2023/2024, there will be plenty more commercial space to play with, as Andrew Pentol discovers.
of the terminal will be based on a multiple layered cubical area with a decentralised open area for security. General expansion objectives
Above: Passenger numbers at Xi’an Xianyang International Airport grew from 41.86m in 2017 to 44.7m in 2018.
A
lready boasting some 27,000sq m of commercial space including 60 tenants
and 200 brands, Xi’an Xianyang International Airport (XIY) might well have up to an additional 60,000sq m at its disposal when the new East terminal begins operations in 2023/2024. The airport, a joint-venture
between German company Fraport and China West Airport Group is in the midst of an extensive expansion. Phase three, as approved by the
Shaanxi Government, involves a RMB46.6bn ($6.5bn) investment and the creation of a new 700,000sq m terminal. This is called Terminal 5. Capacity at XIY will eventually increase to between 80 and 100 million passengers. The new facility will include an
integrated metro station with future connection to the high-speed train network and a 350,000sq m Ground Transportation Centre. The structure
“The offer is more diversified now. We also observe a slow increase in luxury brands versus budget brands, particularly in regard to fashion, cosmetics and accessories.”
Heinz Gabel,
Deputy General Manager and COO/CCO, Xi’an Xianyang International Airport
38 TRBUSINESS
include finding optimum locations for featured products and services, focusing on crossover products, increasing areas for leisure and entertainment whilst narrowing in on ways to enhance customer brand recognition and reaching passengers on an emotional level. Reducing queue times as well as
passenger stress levels and creating more time for travellers to peruse the commercial offer is on the agenda. New technology (facial recognition and self-check-in), along with ‘humanised’ facilities to meet service expectations, will also improve the passenger experience.
The tender timeline Looking ahead to the opening of the new terminal, XIY will implement a unified tender management and brand introduction plan, which will revolve around four pillars. These are High-end Commercial
(VIP lounges, high-end theme restaurants), Experience and Adventure (technical experiences, virtual reality entertainment, beauty and body care), Culture and History (themed museum, local culture shows, cultural and creative brands) and Integrated Fashion brands (brand integration, fast fashion, integrated entertainment). Regarding the tender timeline
Heinz Gabel, Deputy General Manager and COO/CCO Xi’an Xianyang International Airport tells TRBusiness: “Given the status of the design and planning, this has not yet been decided. “Depending on the progress of the project, however, I would assume
that we would start the process around spring 2022.” There are clearly exciting times
ahead for XIY and if recent numbers are anything to by, it is certainly a case of onwards and upwards. “We are happy with development
in 2018/2019. Passenger figures grew from 41.857m in 2017 to 44.708m in 2018 (+6.8%) and this year we are expecting growth of +7.2% to 47.937m. “Retail revenue in 2018 actually
outperformed passenger growth, increasing +8.9%. Further growth of +8.3% is expected in 2019. This means average spend per passenger at the airport is increasing.” At XIY, the retail mix comprises
F&B (40% to 45%), convenience and souvenirs (about 15%) and function services such as banks (6%). The remainder consists of fashion
(15%), consumer electronics (7%), gifts and toy shops (4%), accessories (3%), leather goods and luggage (2%), books (2%) and perfumes and cosmetics (5%). Since the opening of China’s first
walkthrough duty free shop at XIY in 2015, there has been a significant increase in brands and shops. “The offer is more diversified.
We also observe a slow increase in luxury brands versus budget brands, particularly in regard to fashion, cosmetics and accessories.” «
A China Duty Free Group store at X'ian Xianyang International Airport.
OCTOBER 2019
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