‘A whole new level’: Melbourne Airport underlines ambitious commercial vision

AUSTRALIA. Melbourne Airport has outlined its vision for retail and food & beverage as a major investment in the International Terminal (T2) takes shape.

At its annual stakeholders’ day, the airport company discussed its next big investment projects and underlined its recent traffic growth trajectory: international volumes climbed by +9.5% in the year to 30 June, hitting 9.2 million.

Chief of Retail Andrew Gardiner underscored the importance of retail to stakeholders at the event. He said: “Our challenge is to enhance the traveller journey by offering a variety of experiences that help create an airport that Melbourne can be proud of. Retail is an increasing and sophisticated part of the modern airport, both in Australia and internationally. It also plays a big role in shaping perceptions about the destination.

“Our great city is renowned for its shopping, food & beverage and cultural experiences. We are the fashion capital of Australia and we want our airport to mirror our city. We want those attributes to be front of mind for passengers when they travel. First and last impressions are often those that remain. The standard of retail at all major airports in Australia is improving and we are no different.”

He added: “We are working on some exciting projects which will take the experience to a whole new level. We have started a major refurbishment of the retail in the International Terminal, which will be up there with the best in the world. This new space will capture the character of Melbourne and not in a token way. It will showcase the sophisticated and varied essence of Melbourne.

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View of the future: How Melbourne Airport explained its vision to stakeholders in images (video of the presentation below)

“There will be a focus on the luxury brands keenly sought by many of our international visitors, especially from our growing Chinese market. Just as visitors head for Collins Street and the CBD, so we want to offer them a similar experience here at the airport.

“We are also upgrading our duty free areas as part of this upgrade. This will be completed in the second quarter of 2017.” As reported, Dufry has extended its duty free contract to 2022.

“By the middle of next year we will have created a new dining experience in T2 with leading Melbourne restaurants offering visitors an experience to remember. Our Laneway luxury stores and hospitality area will be open by the end of 2017.

“I look forward to working with many of our retailers to deliver a thing of beauty and an experience which will enthrall and excite our passengers and make us proud of Melbourne Airport.”

Gardiner outlined some of the pans in an interview with The Moodie Davitt Report recently, which can be accessed here.

In other news from the stakeholders’ day, Melbourne Airport Chief Executive Lyell Strambi said that Victoria now accounted for more than 25% of Australia’s international passenger market, with the airport outperforming international growth at Sydney and Brisbane.

“The China market performed strongly through the year, with a +21% increase in Chinese passports which was achieved largely by extra capacity from the established Chinese carriers,” he said. “The arrival of Scoot during the year contributed to a +31% increase in passport holders from Singapore. The Middle Eastern carriers also continued to grow. The United States market achieved double-digit growth for the second consecutive year, and of course New Zealand remains a key market for Melbourne with passenger numbers approaching 1.4 million for the year, reflecting steady growth.”

In 2015/16 total passenger numbers grew by +5% to reach 33.9 million.

Over the past financial year Melbourne Airport invested almost A$250 million in a series of capacity-building and maintenance projects. These included the opening of a new domestic Terminal 4, including a dedicated parking and transport hub.

The expansion contributed to an +11% increase in operating revenue, and an after tax profit of A$267 million.

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