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Trinity Forum to help airports meet challenges of changing nature of airport retail and commercial revenues

November 2, 2018 Airport No Comments Email Email

Airports Council International (ACI) World Director General Angela Gittens today addressed the world’s most influential airport commercial revenues conference, Trinity Forum 2018, on the theme of “the changing airport and travel retail commercial eco-system”. The Trinity Forum brings together airports, concessionaires and brands to improve understanding between these three crucial sectors and help the industry confront challenges and seize opportunities in the airport retail business for the benefit of the travelling consumer.

Hosted for the second time by Shanghai Airport Authority, in conjunction with ACI World, ACI Asia-Pacific and the Moodie Davitt Report, the event includes leading speakers from all over the world.

Dubai Duty Free Executive Vice Chairman and Chief Executive Officer Colm McLoughlin, Harrods International Director Raj Assanand, Mars General Manager Gary Clarke, Groupe ADP Customer Division Director Mathieu Daubert, and Moodie Insights General Manager Craig Mackie are set to debate around the perspectives on the future of the business, consumer engagement strategies and more.

“Airports are vital economic generators for the local, regional and national communities that they serve so it is critical that they make the most of retail and commercial innovation,” said Angela Gittens, Director General, ACI World. “This is the reason why the Trinity Forum is such an important event for airports as they seek to improve both their commercial offering as a source of non-aeronautical revenue and provide an exceptional passenger experience.

“We have found through our research that there is a positive link between overall passenger satisfaction and non-aeronautical revenue. On average, when satisfaction increases by 1%, non-aeronautical revenue increases by 1.5%. In addition, for most airports, prioritizing customer service results in the greatest positive impact on non-aeronautical revenue – it can potentially deliver an even greater return on investment than can be achieved through traffic increases or expansion of commercial space.

“The retail industry is experiencing a dramatic shift, moving from the traditional retail store experience to the digital retail experience. Airports compete with city retailers and online stores. With the rapid digitization of the retail business, airports must seize every business opportunity to adapt to changing customers’ needs and the external environment.

“Our ACI Airport Economics Report 2018 shows that airports’ non-aeronautical revenues account for 40% of total revenues. This revenue stream is much more diverse than aeronautical revenue and constitutes a vital component of an airport’s income statement. Its resulting bottom line is essential for the overall economic sustainability of airports, since aeronautical revenues generated from aviation activities are not sufficient to cover the full costs of providing and operating airport infrastructure.”

From a regulatory perspective, ACI’s policy position states that there should be no requirement to use non-aeronautical revenues to reduce airport user charges. ACI fully endorses ICAO’s statement which emphasizes the need to prioritize the investment needs of airports when determining how non-aeronautical revenues may be used.

Moreover, non-aeronautical revenues should not be subject to any limitations on profitability as they are not derived from aircraft operators and are generated in a competitive market environment.

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