WELCOME The Moodie Report 7 Days · the hundreds of thousands of inbound tourists who fly through Heathrow and includes the airport’s first ever multi-lingual advertisements.The

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“We want to encourage them toshop smart by taking advantage ofthe savings at Heathrow as well asthe amazing rangeof brands.”HeathrowMarketing andInsight DirectorNick Adderleycomments on theairport company’sunprecedented,intensive and multi-lingual summer advertisingcampaign that underlines the allureof the Heathrow shopping offer.

“The BA business adds furtherscale and value to our alreadysuccessful and growing businessoutside Africa.”Tourvest CEOSelwyn Grimsleyin understandablyupbeat mood afterthe company’searlier coup ingaining the BritishAirways inflightretail contract wasformally signed off and a start-update of 1 November announced.

“With 45 million passengers and atotal of nearly 80 F&B outlets atour single terminal,we offer our guestsa truly uniqueairport experience.We look forward towelcoming all FABparticipants toSchiphol and thecharming city ofAmsterdam nextyear.” Schiphol’s DirectorConsumers Otto Ambagtsheerwelcomes Amsterdam AirportSchiphol’s hosting of the secondAirport Food & BeverageConference (organised by TheMoodie Report) next June.

QUOTES OF THE WEEK

FRIDAYSATURDAYSUNDAYMONDAYTUESDAYWEDNESDAYTHURSDAY 7 JULY 2011DaysThe Week in Travel Retail

Issue401

WELCOME to The Moodie Report 7 Days. The ability of airports to driveconsumer awareness of shopping and food & beverage facilities is immense, yet theopportunity is too seldom seized, writes Martin Moodie. So it’s good to see two of theworld’s leading airports, Singapore Changi and London Heathrow, helping to drive retailsales through highly innovative communications campaigns.

In particular, London Heathrow Airport’s ambitious new advertising campaign (seeImage of the Week below) ticks all the boxes. The company is targeting the 13.6 milliontravellers expected to pass through Heathrow during July and August by championing itsretail offering and the savings that can be made there compared with London’s WestEnd shopping district.

Using the tag line ‘See it in London, Buy it at Heathrow’, the retail campaign will targetthe hundreds of thousands of inbound tourists who fly through Heathrow and includesthe airport’s first ever multi-lingual advertisements. The campaign will featureprominently in undergroundstations of popular touristshopping destinations and willappear in Spanish, Mandarin,Arabic, Russian and Japanese.

We also like Changi Airport’sdual 30th anniversarycampaign and build-up to theopening of the revampedTerminal 1, due to becelebrated early next year.Changi Airport Group hasutilised social media brilliantly(notably Facebook, Twitter, YouTube and Flickr) to create a real sense of communityaround three decades of achievement. And its on-airport advertising campaign (pictured)promoting the new-look T1 is a lovely blend of nostalgia and anticipation.

Readers of our popular online ‘From the Blogosphere’ series can see for themselves howcleverly Changi targets and embraces its ‘Fans of Changi’. Little wonder then that theairport has so many - and that includes us.

‘See it in London, Buy it at Heathrow’ is the theme of a major retailadvertising promotion being launched this summer by LondonHeathrow Airport – part of a wider campaign to target the 9.2 million

passengers who willpass through thegateway this summer.The unprecedentedcampaign includesHeathrow Airport’sfirst-ever multilingualadvertisements,which highlight thesavings available atthe airport comparedto the capital’s WestEnd stores.

Image of the Week

Thursday 7 July 2011The Moodie Report 7 Days


FRANCE. LVMH Moët Hennessy Louis Vuitton has obtained clearance from relevant competition authoritiesand the European Commission for the proposed acquisition of Italian luxury goods company Bulgari. In line withItalian Stock Exchange regulations, and as announced in March, LVMH will launch a tender offer for the shares ownedby Bulgari minority shareholders in the weeks ahead.

In March the Bulgari family announced its decision to join forces with the French luxury group “in order to reinforce, inaccordance with its history, values, craftsmanship and identity, the long-term development of the Bulgari Group”. The€3.7 billion deal will see LVMH acquiring a 50.4% stake, issuing 16.5 million shares in exchange for 152.5 millionshares held by the Bulgari family, making them the second-largest family shareholder of the LVMH Group.

In compliance with the Italian Stock Exchange regulations, LVMH will also submit a Public Purchase Offer at theprice of €12.25 per share on the remaining shares held by minority stockholders.

ICELAND. According to a report in the UK’s The Guardian newspaper, the Icelandic parliament is considering a billthat would make it impossible to buy cigarettes without a prescription, allowing only pharmacies to sell the products.

The bill has been drawn up by Iceland’s former health minister Siv Fridleifsdottir, the Icelandic Medical Associationand a number of health groups, and although a government spokeswoman has said its chances of success are limited, theproposal is being taken seriously.

It is not yet known whether Iceland’s duty free stores would be included within any ban on shop sales of cigarettes, butthe European Travel Retail Council confirmed that it is seeking clarification of the proposal’s likely scope.

Tobacco accounts for an estimated 13% of sales for Icelandic retailer Duty Free Store, a subsidiary of airport operatorLeifur Eiríksson Air Terminal. High domestic taxes on cigarettes make the product a popular purchase at KeflavikInternational Airport, especially at the location’s arrivals stores, which account for around 60% of total tobacco sales.Given Iceland's non-EU status, all outbound and inbound travellers are permitted to buy duty free goods.

Passenger traffic at Keflavik reached 1.79 million in 2010, slightly up on the previous year but down on the 2.18 millionrecord registered in 2007. Before the economic crisis in Iceland, Duty Free Store’s total annual sales had grown toexceed €40 million.

INDONESIA. According to Korean news agency Yonhap, LotteDuty Free is to open a duty free store at Jakarta Soekarno-HattaInternational airport later this year. The move would confirm theambitious South Korean retailer’s international aspirations, following itsbid to operate space at Singapore Changi and Sydney Airports and ashort-lived venture at Moscow Sheremetyevo Airport Terminal C.

As confirmed in an interview with The Moodie Report earlier thisyear, Lotte Duty Free aims to become a global top-three operator by2018, and is likely to compete in forthcoming tenders at Hong KongInternational Airport. In a statement Lotte Duty Free said the Jakartamove would “further cement [its] status as Asia’s biggest duty free shopand pave the way for it to become one of the top three duty free shopsin the world by 2018”.

The company posted duty free sales of US$2 billion in 2010, up by+29.3% on the previous year. Lotte’s extensive downtown duty freebusiness accounted for over US$1 billion in sales, while revenue fromits powerful array of stores at Incheon International Airport reachedUS$629 million.

Lotte also operates duty free at the airports of Gimhae (where salesreached US$105 million last year), Seoul Gimpo (US$66 million) andJeju (US$19 million).

Moodie Interactive: Click for the advertiser’s website

THE MOODIE REPORT 7 DAYS BUSINESS NEWS

http://www.esteelauder.com



RUSSIA. Riviera Duty Free has opened a new 208sq m duty free store in SochiInternational Airport’s new terminal. The store(pictured) offers perfumes and cosmetics,liquor, tobacco products, accessories,confectionery and toys.

Riviera’s strategic partner is German companyGebr Heinemann, which has an exclusivesupply contract. The shop was designed byFinnish architectural firm JRA Finland, andthe shopfitting was handled by Austriancompany Umdasch. Riviera Director VictorGoshev told The Moodie Report: “We are veryoptimistic about this project. The first month

showed a very high value average purchase. Providing the number of international passengers is increasing we will behappy. To be frank, we didn’t expect to achieve fast results; this project is one for the future.”

A number of exciting developments in Sochi – a resort city in Krasnodar Krai, just north of the southern Russian borderby the Black Sea – augur well for the duty free operation. Sochi will host the Winter Olympics in 2014; and besides theOlympics the city will also host Formula 1 racing in 2014 and the FIFA World Cup in 2018.

“In addition to those events, the city authorities would like to do everything possible to attract people to visit Sochi, notonly in 2014,” Goshev said. “The city of Sochi is growing and developing. The new airport looks very good.Unfortunately for the time being only Austrian Airlines and Turkish Airlines in terms of Western companies are flyingfrom Sochi. That’s why the main transit point for flights abroad from Sochi is still Moscow. But everybody expects thatnew Western air companies will come to Sochi.”

Riviera Duty Free is a daughter company of Latvian company Vingo Ltd, which has been connected with the duty freebusiness in the former USSR for 19 years. Vingo handles the merchandise logistics for a number of duty free retailers inRussia. “This is our first own duty free retail project but definitely not the last one,” Goshev said. A second travelretailer, Duty Free Alliance, has also opened a store at Sochi International Airport.

SOUTH AFRICA/UK. Tourvest Duty Free (TDF), the South Africa-based inflight retail concessionaire, hasformally signed an exclusive agreement with British Airways (BA) to supply and manage the carrier’s inflight retailbusiness. BA has confirmed that TDF will launch its new inflight retailprogramme on 1 November 2011 across the airline’s fleet of 229aircraft, serving both short-haul and long-haul destinations.

For Tourvest – which has a well-established UK operation, including theVirgin Atlantic concession – securing the BA account (first revealed byThe Moodie Report earlier this year) is a major coup. BA is one of themost respected inflight retailers, and Tourvest Duty Free said it is“extremely proud to be associated with such a high profile business, whichnaturally complements its current portfolio of legacy airline customers”.

“We are delighted to have been appointed by British Airways tomanage such a prestigious inflight retail business,” said TDF ChiefExecutive Selwyn Grimsley. “The BA business adds further scale andvalue to our already successful and growing business outside Africa.Our dynamic UK-based team is working well with the BA team,headed by [BA Inflight Retail Manager] Nigel Smith, and we verymuch look forward to launching the new programme on 1 November.”

“After a very thorough evaluation process we made the decision tooutsource and appoint TDF to manage our inflight retail business,”Smith commented. “TDF’s proven track record and vision will enableBA to enhance its retail offer across new sales channels whilst addingvalue to the overall customer experience.”


http://www.omegawatches.com



TAIWAN. Tasa Meng DutyFree’s new Johnnie Walker VIPLounge at Taiwan TaoyuanInternational Airport Terminal 2,which opened this week, brings anew upscale element to theretailer’s offer. The Lounge ishoused inside the retailer’s ‘TheCollection’ area, which opened inFebruary.

The retailer and brandpartnership aims to promote the“culture of whisky”, Tasa Mengsaid. From 27 June to 27 Julyactivities will focus on ultra-premium Johnnie Walker BlueLabel. Travellers can discover thehistory and products of JohnnieWalker through a dedicatedBrand Ambassador and have theopportunity to sample Blue Label.

The facility offers limited sessions and seats each day, by reservation only. VIPs from China Airlines Dynasty Loungeand credit card holders with Taipei Fubon Bank (Platinum Commercial Card, Master Card, Infinite Card and co-branded Tasa Meng cardholders) are given priority in reservations.

UK. M&M’s, the world’s biggest confectionery brand*, this week announced the grand opening of its M&M’s WorldStore in London’s Leicester Square. The 35,000sq ft destination store is the first in Europe, building on the success ofthe Times Square New York, Orlando and Las Vegas stores, visited by more than 10 million people every year.

Spanning four floors and big enough to house more than 100 double-decker buses, the new store offers a huge range ofexclusive M&M’s chocolates and merchandise including clothing, kitchenware, bedding, jewellery and glassware as wellas seasonal items and specially designed London-themed M&M’s branded products.

The opening of the M&M’s World store represents an investment ofover £10 million (US$16.1 million) by Mars Incorporated. Occupying aprime location in the old Swiss Centre Building beneath the W Hotel,the store becomes the latest shopping destination for Leicester Square’sannual 27 million visitors.

Mars International Travel Retail General Manager Jack Tabbers saidthe opening has significant repercussions for travel retail. “The launchof stand-alone M&M’s stores in flagship US cities and now in Londonsupports our objective to grow the opportunity for M&M’s throughdirect contact with the consumer,” he said. “This strategy has provedincredibly successful thanks to its focus on increasing the brandconnection and the relevance of M&M’s in the lives of its fans. In thesestores we typically see yield increases of around +300% per kilo versussupermarket sales.

“Although the dynamics of travel retail are different to city centrelocations, we are actively exploring opportunities with key partners,including direct with airports, to develop shop-in-shop concepts andother ways to energise the in-store experience, bringing to life thecolourful impulse appeal of M&M’s and its power as the world’sleading confectionery brand.”

*Source: Euromonitor, 2009Moodie Interactive: Click for the advertiser’s website

http://www.diageo.com



NETHERLANDS. Amsterdam Airport Schiphol is to host the second Airport Food & Beverage (FAB)Conference and Awards, owned and organised by The Moodie Report. The event will be held in Amsterdam in June2012 (final dates and conference venue will be confirmed soon). Delegates will hear international experts debate travel-related food & beverage issues and opportunities during the one-and-a-half day conference.

As with the inaugural event, held earlier this year at Manchester Airport, the conference will be complemented by theFAB Awards, designed to encourage excellence in the airport food & beverage sector and conducted during a glitteringGala Dinner.

“With 45 million passengers and a total of nearly 80 F&B outlets at our single terminal, including the HollandBoulevard and Airport Park concepts, we offer our guests a truly unique airport experience,” said Schiphol’s DirectorConsumers Otto Ambagtsheer. “We look forward to welcoming all FAB participants to Schiphol and the charming cityof Amsterdam next year.”

The Moodie Report Founder & Publisher Martin Moodie said: “The first FAB Conference & Awards was a hugesuccess and we’re looking forward to an even bigger and better occasion in 2012. We’ve moved the event to summerfrom its original northern winter dates, an ideal time to view the beautiful city of Amsterdam. We are delighted topartner with Amsterdam Airport Schiphol, one of the world’s leading airport operators – and a champion of excellencein food & beverage.”

The Moodie Report simultaneously announces the launch of The Foodie Report, a new ‘e-zine’ covering all travel-related (revenue-generating) food& beverage activities, embracingall channels from airports toairlines to railway stations.

The first edition will bepublished next month and it willbecome a vital tool in promotingthe FAB Conference & Awards (if you would like to be added to the free mailing list please e-mail [email protected]).

Genevieve Knevitt, formerly Senior Editor at The Hub (a luxury print magazine covering food, wine, travel, culture,fashion, music, film, design, fine art and architecture) has been named Deputy Editor, reporting to Editor MartinMoodie. Advertising Directors Sarah Genest and Karen Lindsay will drive the sales effort.

Moodie said: “With the change of a single letter, Moodie becomes Foodie and in editorial philosophy and content, too,the new title will stay close to our flagship publication. It will bring a highly innovative, content-rich and strongly visualapproach to the exciting, burgeoning world of travel-related food & beverage. All editions will be archived on a ‘Foodie’section of The Moodie Report.com to ensure maximum readership penetration and like all our products will be ‘Fast,Factual and Free’.”

Note to airport operators and other travel companies: If you have news relating to your revenue-generating food &beverage activities please send information and images to [email protected]

THE MOODIE REPORT 7 DAYS FOOD & BEVERAGE & OTHER COMMERCIAL REVENUES



SPAIN. Áreas, the Spanish food & beverage and specialist retail operator, has opened four catering outlets in thenew terminal at La Palma Airport in the Canary Islands. The move makes Áreas the sole F&B provider at La Palma,and follows an open tender concluded at the end of last year.

La Palma’s new terminal was officially inaugurated yesterday ( July 6). Áreas’s new outlets cover almost 2,000sq m withinthe facility, and the operator said it expects the concession to generate €16 million in revenue over the eight-yearduration of the contract. The operator’s largest new outlet is La Pausa, a grill and brasserie concept present in severalother Spanish airports. This space also contains a Henry J Beans ‘grab and go’ corner.

The boarding area also now features the Áreas café concepts Meal O'Clock, Ars and Caffriccio, said to offer “both quickconsumption as well as a coffee and a pastry or sandwich in a relaxed atmosphere”. Áreas said the development at LaPalma “reflected the company’s ‘tailor-made’ philosophy”, through which it had studied the requirements of La Palma’s keytravelling nationalities: “primarily Spaniards, but with an increasing number of German, Dutch, and Belgian passengers”.

“Being the sole food services operator in La Palma Airport's new terminal is another major success for the company,”said Áreas President Pedro Fontana. “This new opening in the Canary Islands, where Áreas already had a presence inLanzarote Airport, encourages us to continue growing and strengthening our presence in the Canaries, which is for us avery attractive location with indisputable potential.”

Elsewhere in the Canaries, Áreas runs ten F&B and specialist retail outlets at Lanzarote Airport, in addition todowntown news and books shops in Las Palmas, Fuerteventura and Tenerife.

TURKEY. BTA Catering, a subsidiary ofTAV Airports Holding, last week unveiled adiverse range of 15 food & beverage outlets,described as ‘new flavour stops’, at IstanbulAtatürk Airport. The company, which aims toharmonise local tastes and world cuisine withtraditional Turkish hospitality, opened sevenlocations in the domestic terminal and eight inthe international terminal.

BTA, which was named best supplier at TheMoodie Report’s inaugural Airport Food &Beverage Awards in January (for its

Cakes&Bakes operation), said the new outlets will offer “an affordable,wide range of menu options with elegant service at a high standard”.

General Manager Sadettin Cesur (pictured with some of his team) saidthe company had responded to passenger demand, commenting: “AtBTA Catering we continue our investments to give passengers theopportunity to begin their journey with excellent food andrefreshments, providing them with enjoyment throughout their travels.With this goal in mind we launched our new food units which offermenus for all tastes, including traditional Turkish food and the latesttrends in world cuisine. At facilities designed to maximise customercomfort and satisfaction, we welcome our guests with traditionalTurkish hospitality, offering exquisite dishes of Turkish, Italian, FarEast, Mexican and American cuisine.”

Cesur continued: “In accordance with TAV Airports’ ‘100 millionpassengers per year’ goal for 2020… we will continue to support theTurkish economy through consistent growth and diversity and offer ourpublic the latest innovations, representing our country in the finestlight with our exceptional service quality and high standards.”

For more on the new F&B offer at Atatürk Airport go towww.TheMoodieReport.com


http://www.vicemartini.com


UK. A new and improved ‘rhubarb’ restaurant & bar opened at London Heathrow Airport Terminal 3 this week. Theindependent restaurateur has created a bespoke concept based on “approachable and affordable” dining. “The modernBritish menu with global influences will have wide appeal, with a huge choice for individuals travelling alone, as well asmeals designed for family groups,” it noted.

“Our brand new menu will include delicious dishes such as the ‘the mile high club’ sandwich, salt & pepper squid and‘cod friendly fish & chips’. In short, there will be something for everyone, from a quick power sandwich before abusiness flight, to a full three-course dinner to start off a honeymoon.”

A wide selection of drinks will be available from old classics to new discoveries. Weekly menu promotions will beshowcased, and the “rhubarb” signature style will be brought to every dish.

Rhubarb originally operated a T3 site between August 2008 and November 2010. It closed during a majorrefurbishment of the terminal by Heathrow Airport and the operators was invited to relocate to a larger site. The 130-cover restaurant and bar is expected to have an annual turnover of over £3.5 million (US$5.64 million). The company’srevenue across all its UK outlets has grown from £4.5 million in 2004 to a predicted £28 million in 2011.

Rhubarb Managing Director Pieter-Bas Jacobse said: “The new look is fresh, contemporary and very stylish. We havedeveloped our original concept to accommodate a larger format which appeals to discerning travellers who are lookingfor a quality food offer whilst in transit.”

The company’s Retail Director Helen Bowey added: “We are raising the bar in airport catering standards, bringing 15years of experience from the events and restaurant world to create a unique and delicious food and drink offer.”

UK. EYE, the airport media specialist, hasannounced the launch of its new DigitalLandmark sites, the first wave of an extensiveasset development programme across itsnational portfolio of eight UK airports. EYEand its airport partners have committed a£3.5million (US$5.6 million) investment torefurbish the advertising media across each ofthe airports with which the company works.Over 90% of this investment will be spent onnew digital inventory creating a flexible mix of

locations, formats and networks to give advertisers greater choice inreaching the airport audience.

The new landscape digital screens – just switched on at GatwickAirport – will form part of EYE’s Digital Landmark network, whichincludes six sites across London Gatwick, London Stansted andManchester airports. These premium quality screens will be located inand around areas with the longest dwell times to deliver a strongbroadcast message.

Beauty house YSL (L’Oréal) is the first advertiser to appear on thescreens at Gatwick Airport, which are situated in the South Terminal’sdeparture lounge, just above the main duty free shopping area (pictured).

EYE has a leading presence in the airport media sector and partnerswith airports including London Gatwick, London Stansted,Manchester, Belfast International, East Midlands, Bournemouth,Cardiff and Humberside.


Moodie Interactive: Click for more information

http://www.moodiereport.com/document.php?c_id=6&doc_id=27773



US. Master Concessionair hasopened two food & beverage outlets –a Seattle’s Best Coffee cafe and CubanCorner – on the second level of theRental Car Center at Fort Lauderdale-Hollywood International Airport.

The location features the full line ofSeattle’s Best Coffee and non-coffeebeverages, including lattes, mochas,hand-shaken cold brewed coffees andJavaKula – the company’s signatureblended beverage line.

Cuban Corner offers authentic Cubancoffee beverages and freshly made

Caribbean pastries and snacks. “This combination allows the traveller to select between a toasted bagel or toasted Cubanbread, a blueberry muffin or a guava pastry, a hand-crafted white chocolate mocha or a Cortadito,” said MasterConcessionair CEO Peter Amaro Jr. “It is a great opportunity to represent the melting pot of flavours South Florida hasto offer.”

“We are very excited to team with Master Concessionair and their brand partner, Seattle’s Best Coffee, in order to bringa whole new offering to airport users. The combination of Caribbean flavours and American favourites bringssomething new and very exciting to our customers,” said Alan Gluck, Aviation Business Manager for the BrowardCounty Aviation Department.

Historically concessions in US airport rental car centres have not prospered, Gluck told The Moodie Report. “[But]this one is doing quite well,” he said. “I don’t have sales figures yet for a full month but sales have been at or aboveexpectations, and this is our slower season. The vendor really did a good job of delivering what it promised, and thewhole airport is just thrilled with how it came out.”

INTERNATIONAL. Travel retail’s ultimate Marathon Man, Sean Staunton, is continuing an epic endurancefeat around the world. As revealed in the Moodie Blog, the Dubai Duty Free Manager – Operations is running fourmarathons across four continents in four months. That’s a total of 168km, all for a mighty cause – to raise funds fortravel retail industry charity Hand in Hand forHaiti (whose school opens this September).

Previously Sean had completed the Barcelona and Borneo marathons. On 23 June, reports hismanagement colleague Sinead El Sibai, theIrishman (on the right in the picture) added aKenyan marathon to that towering portfolio ofachievement, running with the Maasai tribesthrough the Laikipia plateau in the beautifulKenyan wilderness.

Next stop is Rio, where Sean plans to ‘samba’through the great city of Rio de Janeiro.

Dubai Duty Free is rightly proud of Sean. Soshould the whole travel retail industry be. To datehe has raised US$4,000 towards his original goalof US$5,000. It’s a finishing line Sean will reach,just as he will reach the other four. But this onewe can help him cross. To donate please click onthe link on The Moodie Blog.

THE MOODIE REPORT 7 DAYS GENERAL NEWS



THE MOODIE REPORT 7 DAYS RETAIL & COMMERCIAL SALES RESULTS

UAE. Dubai Duty Free has announced record first-half year sales of US$698 million, a +16.6% increase year-on-year,putting it on course for a new sales high in 2011. Dubai Duty Free Managing Director Colm McLoughlin said: “Weare extremely pleased that 2011 has shaped up to be such a positive year for the operation. We have seen consumer

spending increase across mostcategories, with significantspikes in luxury sector products.

“We have also seen significantincreases in sales across all threeterminals for both departing andarriving passengers, all of whichis encouraging for the year-endfigures.”

The top three categoriescontinued to be perfumes, liquorand gold with perfume salesincreasing by +20% to US$99million. Gold rose +24% to top

US$79 million. Electronic goods (pictured) shot up by +22% to US$54 million while watches sales rose by an impressive+41% to US$47 million.

Spending trends across all three terminals continued to increase with duty free sales in Terminal 2 increasing by +31%for the first half. Sales in T1 and T3 rose by +15% and +16% respectively, while overall Arrivals sales increased by +16%.

Dubai Duty Free was the world’s largest single airport duty free retail operation last year according to The MoodieReport research, with sales of US$1.27 billion, just ahead of Incheon International, which reached US$1.26 billion,according to Incheon International Airport Deputy Director Concession Planning Team Sang-Ho Lee. GenerationResearch also ranked Dubai Duty Free number one in 2010, ahead of Incheon and London Heathrow airports.

McLoughlin said: “We are obviously delighted to retain the number one [Generation] spot for the third consecutive year.In acknowledging this achievement I would like to thank Dubai Duty Free’s Chairman and President of Dubai CivilAviation Authority, H.H. Sheikh Ahmed bin Saeed Al Maktoum, for his ongoing support. Also, a big congratulationsto all of our 4,000 employees who do a fantastic job and thanks to our customers for keeping us at the top.”

INTERNATIONAL. Global passenger traffic grew significantly in May, according to Airports CouncilInternational (ACI), with total passenger numbers (international + domestic) up worldwide by +6.6%. The increase wasdriven by strong international demand across all regions with the exception of Africa (-16.5%), where key markets such

as Egypt continue to feel the impact of theuprisings in several North African countries.

International traffic in Asia Pacific expandedby +9.8%, a “very positive” result even againstthe background of continued declines atJapanese airports following the earthquake andtsunami in March, ACI said.

Total passenger numbers in Europe increasedby +8% as Turkey, Spain, Russia and NorthernEuropean countries generated significantgrowth. Latin America/Caribbean registeredthe fastest growth rate at +15.3%, driven bystrong domestic demand in Brazil.

THE MOODIE REPORT 7 DAYS DATA ROOM – PASSENGER TRAFFIC NEWS

International airport traffic by region May 2011

ACI May 2011 Year to dateregion International Change International Change

pax (’000) on 2010 pax (’000) on year

Africa 4,104 –19.6% 20,458 –16.7%Asia Pacific 25,685 +9.8% 129,683 +8.1%Europe 82,919 +8.3% 337,952 +11.3%Lat. Am. & Caribbean 4,562 +10.8% 24,202 +9.8%Middle East 6,854 +6.7% 34,268 +6.7%North America 13,830 +7.8% 64,520 +5.8%ACI total 137,954 +7.4% 611,084 +8.5%

Source: Airports Council International



Overall growth of +5.1% in North America was helped by a +7.8% expansion in international traffic. Results in theMiddle East (+6.7%) were subdued by declining traffic in trouble-hit Bahrain.

ACI World Economics Director Andreas Schimm commented: “We are encouraged by the continuing strong growthtrend in passenger traffic. Most recent forecasts from the IMF predict robust GDP and trade volume growth in excessof +4%. Passenger and freight growth are expected to remain well above that figure for the remainder of 2011.”

INTERNATIONAL. The International Air Transport Association (IATA) has revealed traffic results for Maywhich show a +6.8% increase in traffic over May 2010.”We saw positive developments for the air transport volumes inMay. International passenger load factors rebounded by 0.8 percentage points to 75.8%,” said IATA Director Generaland CEO Giovanni Bisignani.

“Freight volumes improved by +1.2% over April and passenger volumes were up by +1.8%. These will help to alleviatesome of the pressure on profits from continued high fuel prices.

“But there are risks associated with political unrest in the Middle East and the European currency crisis. We still expectthe industry to make US$4 billion this year.That is a pathetic 0.7% margin, and anothershock could alter the industry’s fortunesdramatically.

“It’s another tough year for a very fragileindustry.”

African airlines’ international traffic increasedby +1.1% over the previous year. Travelmarkets to the region had been depressed bythe impact of political unrest in Egypt andTunisia. Flights to these two destinationsare still down by about -20% . However asignificant 2.2 percentage point improvement

in the load factor for the month does show initial signs of improvement, IATA said.

Asia Pacific carriers recorded an expansion of +4.7%, considerably below the global average of +8.0%. This is due tocontinuing weakness in the post-earthquake/tsunami Japanese market, IATA explained. Compared to May 2010,capacity expanded +5.0% and the load factor fell slightly to 73.4%.

European carriers’ traffic expanded by +10.9%, boosted by increasednorthern European economic activity and a weaker Euro, encouragingtrade and inbound travel. Capacity expanded by +10.6%, second onlyto Latin America, and the load factor strengthened to 77.7%.

Latin American carriers saw the fastest international growth, up +21.3%compared to May 2010, and the fastest capacity expansion (+15.2%).This is a consequence of strong economic growth and increased traveland trade flows to North America and across the Pacific, IATA said.The load factor is just above the industry average at 76.0%.

Middle East carriers grew international traffic by +7.8% over May2010, slightly below a +9.6% capacity expansion that saw load factorsslip to 70.8%. Political unrest continues to have a dramatic impact onseveral of the region’s smaller markets, but the overall impact on theregion’s carriers is very limited.

North American carriers have cut capacity for two consecutive months(-0.4% in April and -0.5% in May). Year-on-year, traffic is up +4.5%and capacity increased by +5.5%. This cautious approach to capacityexpansion resulted in the highest load factor (81.8%) among the majorregions.

International air traffic development May 2011 & YTD 2011

May 2011 vs May 2010 YTD 2011 vs YTD 2010Region RPK ASK Load RPK ASK Load

growth growth factor growth growth factor

Africa +1.1% +2.3% 64.1 –0.7% +4.5% 64.1 Asia/Pacific +4.7% +5.0% 73.4 +3.8% +6.5% 75.1 Europe +10.9% +10.6% 77.7 +12.0% +12.9% 75.8 Latin America +21.3% +15.2% 76.0 +18.2% +14.8% 77.1 Middle East +7.8% +9.6% 70.8 +9.0% +10.5% 73.6 North America +4.5% +5.5% 81.8 +7.3% +10.5% 77.3 Industry +8.0% +8.1% 75.8 +8.4% +10.2% 75.2

Source: IATA

THE MOODIE REPORT 7 DAYS PEOPLE NEWS, JOBS, EVENTS & NOTICES


US (HAWAII). Japanese visitor arrivals to Hawaii, a key indicator for the strength of DFS Group’s travel retailbusiness there, fell by -17.1% year-on-year in May to 81,127, according to Hawaii Tourism Authority.

Japanese tourism has been hit hard by the impact of the March earthquake and tsunami and subsequent nuclear crisis.However spending (including travel retail shopping) has held up surprisingly well, according to informed sources. Totalexpenditure by Japanese travellers dropped -10.4% year-on-year in May to US$137.9 million.

Japanese spending per person per day actually increased in the month over May last year, rising by +2.5% to US$287.60.

“A stronger Yen, which boosted shopping and food & beverage spending, contributed to the increase in daily spending,”noted the authority. That factor, allied to a fast-rising Mainland Chinese business, has helped DFS maintain asurprisingly vibrant business since the March disasters.

Japanese spending per person per trip, boosted by longer average stays, rose by +8.0% to US$1,699.90. Total arrivals inMay across all nationalities increased slightly by +0.6% to 553,505 visitors.

Japanese arrivals for the first five months of 2011 declined by -6.7% but total Japanese visitor spending in the periodincreased +5.3% year-on-year. Total expenditures by all visitors who came to Hawaii in the first five months of 2011increased by +15.3% compared to the same period last year, to US$5 billion. Total visitor days for all visitors grew +8.5%and total arrivals rose +6.7% to 2,958,699.

BELGIUM. Belgian chocolatier Neuhaus has appointed Gerry Murray as Head of Travel Retail, responsible forleading and further developing Neuhaus’s travel retail department. A long-time industry expert, Murray was previouslySales Director at Godiva Chocolatier.

Neuhaus Director International Sales Philip Geeraert said: “We are very pleased to expand the travel retail team withsuch a dynamic, well-respected professional as Gerry Murray. Neuhaus has known consistent double-digit growth intravel retail over the past years and we owe it to our customers to further expand and professionalise this division.


THE MOODIE REPORT 7 DAYS TRAVEL & TOURISM NEWS

Hawaii arrivals numbers and spending: May 2011 vs May 2010

Visitor arrivals Average length of stay (days) Spending per person per trip (US$)Arrivals from May 2011 Change on year May 2011 Change on year May 2011 Change on year

US West 243,073 +0.8% 9.23 –0.0% 1,369.8 +3.6%US East 131,754 +1.8% 9.83 –0.4% 1,793.4 +5.4%Japan 81,127 –17.1% 5.91 +5.4% 1,699.9 +8.0%Canada 23,591 +19.1% 10.66 –3.9% 1,737.9 +11.5%Others 69,314 +17.6% 9.12 –13.9% 2,349.5 +1.1%

Total by air 548,859 +0.3% 8.93 –0.2% 1,659.8 +5.5%Total by ship 4,646 +69.0% 7.00 +16.2% 279.6 +7.4%

Total 553,505 +0.6% 8.92 –0.2% 1,648.3 +5.2%

Source: Hawaii Department of Business Economic Development & Tourism – Research & Economic Analysis Division

Arrivals from Jan–May 2011 Change on year Jan–May 2011 Change on year Jan–May 2011 Change on year

US West 1,180,256 +7.3% 9.56 –0.3% 1,404.0 +3.8%US East 697,737 +6.1% 10.58 +1.3% 1,913.4 +10.4%Japan 442,059 –6.7% 5.95 +4.0% 1,677.6 +12.8%Canada 253,800 +25.5% 12.84 –1.3% 1,986.1 +7.4%Others 323,039 +12.3% 10.11 +1.5% 2,331.6 +7.9%

Total by air 2,896,891 +6.4% 9.60 +2.0% 1,722.9 +8.3%Total by ship 61,808 +18.7% 5.52 –12.0% 260.0 –9.9%

Total 2,958,699 +6.7% 9.52 +1.7% 1,692.3 +8.1%

INDIA. Some of India’s most powerful figures in the aviation and travel retail sectors will address the country’sbiggest-ever airport commercial revenues conference ‘The Power of India’ this December. The event was postponedfrom last year because of extenuating circumstances at joint organiser The Moodie Report.

The Power of India is a joint venture between Airports Council International and The Moodie Report – alreadypartners in the industry’s leading airport revenues conference, The Trinity Forum. It is being hosted in Hyderabad bypowerful infrastructure giant GMR, which operates Indira Gandhi International Airport in Delhi and Rajiv GandhiInternational Airport in Hyderabad.

The event will be held at the Novotel on 6–8 December, beginning with an Opening Cocktail on the evening of 6December. A Gala Dinner at a spectacular venue will be hosted by GMR on 7 December. Delegate registration willopen soon, via ACI. A special rate has been negotiated at the Novotel – again, details will be published soon, alongsidethe speakers’ line-up. For all programme and sponsorship details please contact [email protected]

SWEDEN. Powerful Scandinavian travel retail company Inflight Service has added a new Business Developmentfunction to the Management Group, appointing John Baumgartner as Director, Business Development.

The company aims to focus on innovative business concepts, attract new customers and drive international expansion,while identifying and liaising with industry actors for prospective business partnerships. Baumgartner’s successor inProduction and Logistics is Oskar Aronsson, who will assume Directorship for the function. “This organisationalchange will ensure continued focus on operational excellence and best practice-sharing across business sites in the groupwhile it allows us to step change our growth efforts,” said Inflight Service CEO & President Björn Ulfberg.

US. John F. Kennedy International Airport ( JFKIAT) has announced the appointment of Edward Midgley as its newDirector of Concession Management at Terminal 4. In the newly created role Midgley will manage the daily and long-term performance of the terminal’s concession programme with a focus on maximising revenue streams and improvingcustomer service levels. He will be responsible for carrying out and delivering the concession programme strategyencompassing revenues from all non-aviation categories including, among others, duty free, speciality retail, food &beverage and advertising.

Before joining JFKIAT Midgley served as the Food & Beverage Director/Assistant General Manager for WestfieldConcessions Management at Newark Liberty International Airport Terminal C.

US. John Cugasi has joined the executive leadership team at The Paradies Shops, according to Airport RevenueNews. The former Hartsfield-Jackson Atlanta International Concessions Director becomes a Senior Vice President atParadies, responsible for leading strategic planning, development and marketing. Cugasi joined Paradies from retail andreal estate development company Caruso Affiliated, where he served as Vice President of Airports for just over a year.

He told Airport Revenue News (ARN) that he is looking forward to taking The Paradies Shops to the next level, inboth retail and F&B. “To me, Paradies sets the gold standard for the industry,” Cugasi said. “I want to continue to raisethe bar in providing the best retail shops, but also we’re looking into F&B – to enter that market in a meaningful way.”

The Moodie Report works closely with ARN on an information-sharing basis. Please visit www.airportrevenuenews.com

Thank you for your readership and support of The Moodie Report.

Martin Moodie, Founder and Chairman



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