current trends, challenges & opportunities in … · current trends, challenges &...
TRANSCRIPT
OUR PAST
AIRPORT LANDLORDS IN LATAM
15 years ago
• Majority of airports where State owned
• Focus on air side revenues
• Retail had little space
• Traditional side stores
OUR PAST
DUTY FREE RETAILERS – SUPPLIERS
• Multiple operators• Multiple suppliers
This combination created a very competitive environment thatgenerated high bids
Operators had to grow and could only achieve it by gaining newoperations at the airports calling for RFP
Multiple suppliers created a perfect market for operators to obtainnew additional margins to sustain aggressive proposals.
FIRST MAYOR TRANSFORMATION
Airport privatisation
• Pressure to increase revenues
• Focus on Land side & Retail
Partnership Spirit
• Airports & Retailers working together
• More space
• Walkthrough shops
PRESENT & FUTURE
FACTS
• Air traffic will increase average 5% - 10% in the next 10 years
• Profit oriented airports regardless of ownership
• New infrastructure requirements
• Consolidation on supplier side
• Consolidation on retailer side
CHALLENGES & OPPORTUNITIES
In order to maximize revenues the air related industry needs to create a “different” working environment.
The world and our region will continue to be volatile and with challenging economic environments
Consolidated and stronger retailers and suppliers will have to invest more in order to create the “needed different environments” to increase penetration and conversion rates
Less competition will be a challenge for airports to obtain new high offers from the retailers