News from IAADFS
Did You Know?
"Lotte Shopping Invests $2.8 Billion to Ramp Up E-Commerce Biz"
"MAHB Eyes 5 Percent Surge in Non-Aeronautical Revenue Within Five Years"
"Bermuda Tourism Continues Strong 2018"
"Mace Does Its Duty-Free at Muscat's New Terminal"
"Swiss Duty-Free Retailer Dufry Makes Solid Start to 2018"
"Duty-Free Giant to Upgrade 21 Miami International Airport Stores"
"United Airlines Increases Service Between Houston and Havana to Daily"
"Istanbul New Airport to Have World's Largest Duty-Free Complex"
"Carnival Cruise Line to Expand Its Cuba Cruise Offerings in 2019-20"
"U.S. Asks Foreign Airports to Strengthen Passenger Electronics Screening"
"A Strong Future for Airport Retail"
"Tourist Demand Drives Wine Industry to New Heights in Thailand"
News from IAADFS
Did You Know?
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Lotte Shopping Invests $2.8 Billion to Ramp Up E-Commerce Biz
Pulse - Maeil Business News Korea (05/15/2018) Han-na, Lee; Ha-yeon, Lee
Lotte Shopping has announced that it will invest 3 trillion won ($2.8 billion) to become South Korea's top e-commerce operator by 2022. The company plans to integrate all eight online shopping platforms operated by its affiliated companies — department store, discount store, home shopping, and duty-free store operators — into one online shopping platform. The first phase will be to launch a specialized e-commerce business division that will bring online systems and research and operating staffs currently scattered across its affiliates under one roof in August. The division and newly integrated online shopping mall will be operated by Lotte Shopping, which acquired its online retail site operating affiliate Lotte.com for its stable operation, said the firm. The company also plans to build a voice-activated shopping assistant system that will allow customers to use artificial intelligence in choosing and buying goods. Lotte Shopping's revenue from online sales last year reached about 7 trillion won, and following the investment, the company said, "We aim to earn 20 trillion won in revenue by 2022, and we'll go all out to be the leader in the e-commerce market."
MAHB Eyes 5 Percent Surge in Non-Aeronautical Revenue Within Five Years
New Straits Times (Malaysia) (05/14/18) Yusof, Ayisy
Malaysia Airports Holdings Bhd (MAHB) Managing Director Datuk Badlisham Ghazali said aeronautical and non-aeronautical revenue currently contribute equally to the group's revenue. The airport projects its non-aeronautical revenue will increase by 5 percent within five years. "We have stated our goal to increase non-aeronautical revenue to potentially 55 percent of the group's revenue. The target is a journey that goes hand in hand with airport expansion to make it more efficient and increase customer's service," he said. MAHB's non-aeronautical revenue throughout 2017 rose 10.5 percent to RM531.1 million, driven by stronger sales registered by duty-free outlets and other retailers. Badlisham said MAHB also will upgrade its retail commercial business at all airports network, starting with Langkawi and moving towards at KLIA. "This is important as the passengers' preferences have changed — the concept of spending time at the airport retailers. Passengers want more experiential shopping and different environment with different brand categories. We want to redo it so that we can provide better customer service and beyond to our passengers," he said. He added that MAHB is keen to open up its available slots for better retail and commercial offerings. "It will take about five years to hit double-digit growth per person spending from where we are today. We are going to redo commercial offerings over the next three years. We want to increase our sales per passenger. Currently, it is relatively low compared to our regional peers," said Ghazali. According to MAHB, passenger spending at all its MAHB airports averaged about RM24 per person.
Bermuda Tourism Continues Strong 2018
Caribbean Journal (05/11/2018) Niland, Dana
The Bermuda Tourism Authority says the tourism industry grew in vacation air arrivals and spending during the first quarter of 2018, marking the ninth straight quarter of growth. Stayover air arrivals jumped 21.3 percent from the first quarter of 2017, and leisure tourism spending rose 25 percent to $32.7 million. "The steady comeback of Bermuda's tourism industry, which began statistically in January of 2016, is now continuing into a third consecutive year," said Bermuda Tourism Authority CEO Kevin Dallas. "After a decades-long malaise, this is very encouraging news for our tourism industry's workers, business owners, and investors."
Mace Does Its Duty-Free at Muscat's New Terminal
Global Construction Review (05/02/18)
U.K. project manager Mace has finished the fit-out of 20,000 square meters of retail and lounge space at the new termination of Oman's Muscat International Airport. Oman Airports hired Mace to oversee the process, from concept design to the opening of the duty-free and catering concessions, first- and business-class lounges, and other commercial tenant spaces. The 580,000 square meter terminal will handle up to 12 million passengers annually, and future expansion will increase capacity to 48 million passengers per year.
Swiss Duty-Free Retailer Dufry Makes Solid Start to 2018
Reuters (05/08/18) Dabrowski, Bartosz; Adinarayan, Thyagaraju
Dufry AG reports that positive market conditions and its cost-savings plan helped drive up results in a seasonally-weak first quarter. The duty-free firm reported organic growth of 7.1 percent, lifted by robust performance in Eastern Europe, the Middle East, Asia, and Australia. Those markets surged 21 percent. "The positive market conditions seen throughout 2017 have continued in the first months of 2018 in all divisions, providing a good base for the start into the high season," says CEO Julian Diaz. Dufry says initial contributions from its cost-savings plan also helped earnings before interest, tax, depreciation, and amortization (EBITDA) jump 18.4 percent to 183.1 million Swiss francs ($182.5 million). Revenue rose 6.6 percent to 1.82 billion francs.
Duty-Free Giant to Upgrade 21 Miami International Airport Stores
Miami Today (05/08/18)
Duty Free Americas Miami has extended its leases at two of the Miami International Airport's terminals to 2024 in a no-bid deal. The duty-free retailer has pledged to spend $17 million to upgrade its 21 stores. The deal is part of the fifth amendment to the lease of Duty Free Americas Miami that the Miami-Dade County Commission approved in November 2005 and that was to expire at the end of 2017. The first four amendments waived some rent and reset some lease dates multiple times to compensate the firm for lower airport passenger traffic or construction delays. The company currently pays the county a minimum annual guaranteed rent of $26,710,605, a total payment that in some years reaches $30 million. The stores sell only to outbound passengers on international flights, offering name-brand luxury goods at a discount that is typically not available to domestic buyers of the same goods. The 21 stores deliver the purchased goods directly to the gates of outbound flights. Duty Free Americas Miami is 70 percent owned by Duty Free Americas Airports Inc., which operates 150 duty-free stores and international border boutiques.
United Airlines Increases Service Between Houston and Havana to Daily
Caribbean News Now! (05/07/18)
Beginning July 20, United Airlines will increase service between Houston's George Bush Intercontinental Airport and Havana's José Martí International Airport to daily. "This expansion to Havana will provide significant public benefits to our city, region and state. As a diverse global city — in which many people speak Spanish — we are heavily reliant on international travel for our economic success," said Houston Mayor Sylvester Turner. "Worldwide access to Houston by air helps bring financial health back to Houston after Hurricane Harvey. The addition of Havana to Houstonians' travel options will also help us build cultural bridges with our neighbor nation across the gulf." United's flights from Houston are the only ones to Havana from the entire central and western United States. According to United Vice President of International Network Patrick Quayle, "United's new daily service to Cuba will offer more opportunities to connect our customers traveling from Houston and the central and western United States directly to Havana. Houston is United's gateway to Latin America and its convenient location offers customers easy access to connect to 44 destinations across our broad domestic network."
Istanbul New Airport to Have World's Largest Duty-Free Complex
Daily Sabah (05/09/2018)
On Oct. 29, the world's largest duty-free shopping mall complex will be opened at Istanbul New Airport, also known as Third Airport. Heinemann and its Turkish partner, Unifree, signed a 25-year agreement with Third Airport operator IGA to operate the duty-free shops. The duty-free complex will feature six sections spanning 53,000 square meters. Luxury boutique shops will take up 6,500 square meters, while stores selling Turkish products will be built on a 3,000-square-meter area. The whole complex will feature 500 square meters of information areas, 15,000 square meters of duty-free shops, 6,000 square meters of activity and tasting stands, and 12,500 square meters of shopping malls.
Carnival Cruise Line to Expand Its Cuba Cruise Offerings in 2019-20
Caribbean News Now! (05/10/18)
Carnival Cruise Line has added 23 three- to five-day sailings to Havana in 2019-20 as part of its expansion in Cuba. The cruises will depart from four homeports on the East Coast: Carnival Sunshine from Charleston, Carnival Triumph from Fort Lauderdale, Carnival Paradise from Tampa, and Carnival Victory and Carnival Sensation from Miami. "Cuba has proven to be extremely popular with our guests, and we're delighted to provide even more opportunities to experience and explore this fascinating destination with these new voyages departing from four key East Coast homeports, including the first Cuba cruises from Charleston," said Carnival Cruise Line President Christine Duffy.
U.S. Asks Foreign Airports to Strengthen Passenger Electronics Screening
Reuters (05/03/18) Shepardson, David
The U.S. Transportation Security Administration (TSA) issued a memo to officials at foreign airports requesting that they tighten the screening of U.S.-bound passengers' carry-on electronics and adopt U.S. domestic security procedures instituted last year. In July 2017, TSA began requiring domestic air travelers to remove all electronics larger than mobile phones, including tablets, e-readers, and video game consoles, from carry-on baggage for screening. The new memo said the agency wants foreign airports now to adopt those procedures. Foreign airports also are being asked to adopt a TSA policy, instituted in mid-2017, that passengers may be required to remove food, powders, and other materials "that can clutter bags and obstruct clear images on the X-ray machine," the memo said. "The United States is seeking to collaborate with foreign governments to declutter carry-on bags and strengthen security effectiveness at your central checkpoints." The memo aims to address the screening of passengers from 280 airports in 105 countries flying to the United States. In total, about 325,000 airline passengers fly to the United States daily on 2,100 flights.
A Strong Future for Airport Retail
Aviation Pros (05/07/18) Petrie, Joe
In an interview with Airport Business, Hudson Group President and CEO Joe DiDomizio says ecommerce is "cannibalizing street retailers, but our business is very different than street retail. When you get to an airport, we're satisfying the immediate needs and wants of travelers. We have a captive audience. Average dwell time is around 75 minutes. These customers have a high propensity to spend and we really focus on catering to their immediate needs and wants." He does see technology making an impact, noting that there is a "long-term opportunity to leverage digital platforms, such as product consulting, payments, and individual promotions. This is a way to improve customer service and conversions in our stores and ultimately drive long-term sales growth." DiDomizio says airports are dynamic and evolving, as they look to grow non-aeronautical revenue, which he sees as advantageous for travel retailers. "I think the challenge we have is to be proactive by meeting those changing habits because it has happened very quick," he says. "Our management team has been nimble and flexible to adjust as demographics have changed and consumer preferences have changed. We really evolved because it has always been about serving the immediate wants and needs of the traveler. That purpose has served us very well because it's very flexible." DiDomizio adds that airports rely on their retailers to be "innovators in product assortment" and "on top of all the trends." In terms of Hudson's recent effort to go public, he says, "Our IPO now gives investors direct ownership of the growing North American business. We have always demonstrated sustained growth and have been amongst the best-in-class brands in the industry."
Tourist Demand Drives Wine Industry to New Heights in Thailand
The Nation (Thailand Portal) (05/11/18)
In Thailand, tourists continue to drive the wine-services business, said Joe Sriwarin, president of Wine Professionals' Services Limited. He added that the wine importing business is flourishing because Bangkok has continued to be the No. 1 tourist destination, and Thailand will receive 37 million visitors this year. The 11th Bangkok Grand Wine Tasting is fast approaching, and the event remains the biggest and most elaborate wine professional get-together in the country. The annual event attracts overseas boutique wine producers and importers, who exhibit their wines and offer tastings to 1,000 wine professionals. "We've seen the volume of wine sales increasing year after year with more wine importers, fine dining, and Michelin Star restaurants, more wine bars, wine shops, and duty-free shops opening at border crossings as well as international airports all over Thailand," said Sriwarin. Tourism is becoming the No. 1 industry in Thailand, due to its location in the center of mainland Southeast Asia, he said.
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