MALAYSIA. Malaysia Airports yesterday hosted its 9th annual Concessionaires Conference & Awards.
‘Gearing towards the future of travel retail’ was this year’s theme. Malaysia Airports said the aim of the Conference is to “provide a platform for airport professionals and concessionaires to network and share insights on current and future developments in the industry”.
A key topic of discussion was the travel retail sector’s need to leverage the increase of tourist arrivals to Malaysia.
The Awards, said Malaysia Airports, aim to recognise outstanding concessionaires and encourage them to set “industry-breaking standards of service”.
21 awards were given, the highest number to date. The full list of winners can be seen in the table below.
The future of travel retail for Malaysia Airports
Malaysia Airports Senior General Manager Commercial Services Mohammad Nazli bin Abdul Aziz said: “Malaysia Airports is committed to growing the airports’ connectivity as we believe that Malaysia’s strategic location in the heart of ASEAN is a huge advantage for the travel retail industry.
“With the latest instalment of its Commercial RESET Strategy, Malaysia Airports aims to raise the retail profile of airports in Malaysia through real estate improvement, brand positioning and new retail mix. The strategy will change the current travel retail landscape through constant innovation of retail spaces with the introduction of various new retail formats.”
Malaysia Airports said it hopes to increase average spend per pax “four-fold” in five years, from RM35 (US$8.36) to RM140 (US$33.44).
It also said it expects the current non-aeronautical to aeronautical revenue ratio, currently at 50:50, to become 60:40.
Mohammad Nazli bin Abdul Aziz added: “We also need to rethink travel retail as there are changes in passenger buying behaviour where they are now more informed than ever. Digitalisation and e-commerce are very important, and we need to move forward beyond our traditional retail business model.
“At Malaysia Airports, we believe that creating the right environment to provide innovative and memorable experience will generate more avenues for passengers to spend, leading to increase of retail sales.”
The company said that 2018 travel retail highlights included the introduction of “fresh concepts” to its food & beverage offer and the addition of brands including Innisfree, Dior Backstage and Atelier Cologne to its perfume & cosmetics selection. The beauty additions were informed by strong demand, in particular from Chinese and Middle Eastern travellers, said Malaysia Airports.
