27 Jun 2014
Malaysia Airports has launched a major retail campaign to celebrate the long-awaited official opening of its purpose-built low-cost carrier terminal klia2.
Entitled ‘Destination Curious’, the campaign kicked off on 26 June with the ‘Wonderful Visit to Oz’ contest, offering klia2 travellers the chance to win discount and cash vouchers and a trip for four to Gold Coast, Australia, as the grand prize. The 5-day/4-night trip includes return air fares, accommodation and a range of ground tours.
The launch of the campaign, which runs until 7 August, was officiated by Malaysia Airports’ Senior General Manager Commercial Services Division Puan Faizah Khairuddin and newly appointed Managing Director Yang Berbahagia Datuk Badlisham Ghazali. The event – attended by The Moodie Report alongside other local media – was followed by a tour of the new terminal.
Speaking at the launch, Puan Faizah noted that klia2 has become “a destination in itself” since its soft opening on 2 May, with both travellers and non-travellers curious about what the new terminal had to offer.
“Needless to say we are extremely pleased with this development,” she said. “We have always maintained that the airport is more than just a place you go to catch your flights. With klia2 we are able to articulate this proposition more clearly. With commercial space five times that of the old low-cost terminal, klia2 is truly an airport in a mall. If anything klia2 is a destination in itself.”
She continued: “As a purpose-built low-cost terminal, klia2 caters to specific traveller groups: travellers who are generally more adventurous and naturally curious.
“Malaysia Airports’ aim is to help them realise that their sense of adventure and curiosity need not wait till they get to their destination – they can start engaging their senses and having fun the moment they arrive at klia2.
“With our ‘Destination Curious’ campaign, we are challenging the mindsets of travellers. Travels do not necessarily begin or end when one boards the plane or reaches the destination – it can start and end at the airport, effectively extending the entire travel experience.”
The campaign was designed to bring to life klia2’s five brand pillars – Experiential, Liberating, Innovative, Thrilling and Ever-changing – or E.L.I.T.E. for short. By invoking and incorporating these elements in its retail, service and product offerings, Malaysia Airports aims to "evoke the inner explorer in each traveller" while engaging them with a thematic/destination retail approach.
The ‘Wonderful Visit to Oz’ contest is supported by a ground activity called ‘ELITE 5 Senses’ that puts participants’ sense of touch, smell, taste, hearing and sight to the challenge. Participants are required to guess the contents within five mystery bags and correct guesses will be rewarded with shopping vouchers.
A minimum purchase of RM150 (US$46.70) at any retail or food & beverage outlet in klia2 gives travellers one contest entry and lets them take part in ELITE 5 Senses. For purchases of RM750 (US$234) and above, participants can take part in up to five sensory tests. The grand prize winner will be selected via a computerised lucky draw.
In addition to the ‘Wonderful Visit to Oz’ contest, the campaign also offers instant prizes through its six weekly themed games. For the duration of the six-week campaign, travellers stand to earn discount coupons based on one of the following themes: destination, birth month, apparel colour, lucky number, etc. No purchase is required to take part, but the discount coupons can only be used with a minimum purchase of RM50 (US$15.60) per transaction.
As part of the campaign, Malaysia Airports has dressed up the activation locations to create an exciting ambience. An upside-down living room of a traditional kampong house – furnished with real furniture and decorated for the upcoming Hari Raya festive season – has been installed at the Domestic Departure and Arrival Airside and International Departure Satellite, providing travellers with photo opportunities. At the Public Concourse Departure Hall and Sky Bridge areas, 3D floor stickers with images of shopping elements have been laid out to create optical illusions for passengers and visitors to experience.
As the campaign is taking place during the 2014 FIFA World Cup season, live screenings of football matches are provided using large LED screens at Level 3A of the Departure Hall, Main Terminal Building and the Movie and Sports lounges at Level 2 International Departure, Satellite Building.
klia2: “a source of national pride”
Two days before the launch of ‘Destination Curious’, klia2 was officially opened by Malaysia’s Prime Minister YAB Dato’ Sri Mohd Najib Tun Abdul Razak, who was the guest of honour along with the Acting Minister of Transport YB Datuk Seri Hishammuddin Tun Hussein.
In his welcome speech Malaysia Airports Chairman Tan Sri Dato’ Sri Wan Abdul Aziz Wan Abdullah thanked the government for its support in promoting the aviation industry, specifically to the Prime Minister and Acting Minister of Transport for their special attention towards the progress of klia2, which has been fraught with setbacks since construction started in September 2010.
“This was the first time Malaysia Airports had embarked on the development of a ‘greenfield’ airport. The project required careful coordination, monitoring and interfacing of thousands of site activities and workers. The team worked day and night with almost 200 external stakeholders.
The challenges and setbacks were too numerous to mention but despite them all, the team excelled and delivered all that was expected and more. To the Malaysian public, klia2 is a source of national pride, but to the team that made it happen it stands as a monument to their achievement and passion,” he said.
klia2 was built primarily to address the soaring demand for low cost air travel. In the last ten years, low-cost air travel in Malaysia has consistently recorded an average of +25% year-on-year growth and has shown no signs of abating. Based on projected growth, klia2 is expected to be handling 25 million passengers by the end of 2014. This mega terminal has the capacity to accommodate projected growth for the next ten to 15 years. It is able to handle 45 million passengers per year – three times more than the previous capacity of Low-Cost Carrier Terminal (LCCT-KLIA).
The terminal was built over 45 months or 3.75 years, a “commendable feat” when compared to Bangkok Suvarnabhumi Airport (4.75), Heathrow Terminal 5 (5.75), and Hong Kong International Airport (6), the airport said. Its opening has been delayed five times from its initial target in September 2011. Among other repercussions, the delay has caused significant difficulties for retailers and food & beverage operators which had been ready to open for business in tandem with the airport.
In the one and a half months since its soft opening, klia2 has handled more than 3 million passenger movements and 24,000 aircraft movements. According to Malaysia Airports, user and passenger feedback have been positive, with most saying that they were delighted with the enhanced facilities and size of the new terminal; they were also said to be excited about the ‘airport in a mall; mall in an airport’ concept.
During the official opening ceremony, klia2 was inducted into the Malaysia Book of Records for the ‘Biggest Purpose Built Terminal for Low Cost Carriers & First Airport Terminal Sky Bridge'. The Prime Minister also launched 70-room Sama-Sama Express – Terminal Airside Transit Hotel; gateway@klia2, the landside mall located between the drop-off point and klia2’s Main Terminal; and the KLIA Ekspres and KLIA Transit services to klia2.
A milestone towards increasing non-aeronautical revenue
With the opening of klia2, Malaysia Airports has ticked off the last of several bold targets outlined in its Runway to Success five-year business plan (2010–2014). The next five years will see the airport operator setting its sights higher – from being a ‘World-Class Airport Business’ to being ‘The Global Leader in Creating Airport Cities’. Central to this new vision is the KLIA Aeropolis, a master plan to develop the 6,750 acres of land surrounding Kuala Lumpur International Airport (KLIA) into a self-sustaining and multi-functional airport city.
By the year 2020, Malaysia Airports is targeting revenues in excess of RM5 billion (US$1.56 billion), EBITDA of over RM1.65 billion (US$0.51 billion) and, significantly, a ratio of 55% for non-aeronautical revenues. klia2 is expected to be a key driver in the equation.
klia2 has dedicated 20% of the terminal’s space for commercial offerings, which span 35,200sq m. When fully utilised, it can house up to 225 outlets in the form of bars and island cafes, duplex store fronts, duty free walkthrough and specialty boutiques. Of the 225 outlets, 118 lots are dedicated to retail, 81 lots to food & beverage and 26 lots to services. Currently retail occupancy rate stands at 80%.
There is a strong local flavour, with almost twice as many local brands (80) as international ones (41). As reported, the strong Malaysian presence – led by Malaysia Airports subsidiary Eraman, The Valiram Group and DFZ – is complemented by a powerful line-up of globally renowned names, including Heinemann Asia Pacific, Nuance-Watson Asia, WHSmith and LS travel retail.
The expansive food & beverage offer also includes bars and coffee houses.
Several key retail locations are still undergoing construction, including the two DFZ perfumes & cosmetics airside stores and Eraman’s 3,000+ sq m Level 3 departure walkthrough emporium (scheduled to open in August). Hugo Boss and Tumi will also open standalone boutiques later this year.
There is also a Movie Lounge and Sports Lounge at Level 2 International Departure Satellite Building, served by a Lindt Chocolate Café and Gloria Jean’s Coffees respectively.
gateway@klia2, which caters to meeters, greeters, staff and residents from the surrounding residential districts of Sepang, Putrajaya, Bangi and Nilai, counts among its tenants established retail brands such as Hush Puppies, Crocs, Nikon, Jaya Grocer, and Lazo Diamond, together with a number of new local brands.
Serving a captive customer base of at least 45 million, the projected annual sales of klia2 is expected to exceed RM410 million (US$128 million) in the first eight months of operations. Average sales per passenger at klia2 is forecasted at RM28 (US$8.70).
KLIA set for passenger traffic boom as it celebrates 16th anniversary
To top off a momentous week, Malaysia Airports held an event on 27 June to celebrate the 16th anniversary of its main KLIA terminal building. As a sign of appreciation to airport users, KLIA feted five lucky passengers in a special reception attended by senior officials of Malaysia Airports and representatives of government agencies, airlines and business partners.
Since its opening in 1998, the airport has received numerous accolades in both the domestic and international arena. Malaysia Airports said KLIA played “a prominent role” in achieving its goals under the 2010-2014 Runway to Success business plan, with the three pillars of traffic growth, service excellence and commercial development hinging on its performance.
The year 2013 saw healthy year-on-year growth of +19.1% to 47.5 million passengers. This was attributed to a number of factors such as increased number of flight frequencies, commencement of new routes from the airline partners and the success of Malaysia Airports’ airline incentive programme.
For the first five months of 2014, KLIA has registered a total of 20.3 million passenger movements, representing a +12% growth compared to the corresponding period in 2013.
The birth of klia2 is projected to lead KLIA into handling a total of 52 million passengers per annum, thereby putting it in a new league for airports handling 50 million+ passengers according to the Airport Service Quality (ASQ) categorisation.
KLIA was recently voted the second best airport (serving 40-50 million passengers) in the Skytrax 2014 World’s Airport Awards – a testament to Malaysia Airports’ efforts “in pursuing its mission of creating joyful experiences by connecting people and businesses”.
“We must continue to evaluate and measure the levels of service delivered and understand the areas of improvement required to continue delighting our customers,” Malaysia Airports Managing Director Datuk Badlisham Ghazali said at the anniversary event.
Original Source: www.moodiereport.com