8 November 2019
Malaysia Airports Holdings Bhd (MAHB) says its commercial reset strategy is paying off, with a recorded growth of 4.2% last year.
The commercial reset strategy is aimed at changing the travel retail landscape at its airports with an injection of new brands, high-end fashion retailers and a refreshed shopping experience.
It began in 2018, with the first phase involving international airports such KLIA and klia2, collectively known as KUL.
Recent retail outlets include Hershey’s Flotilla and the Dior Backstage pop-up store at KLIA, a first in Southeast Asia.
Popular Taiwanese franchise Din Tai Fung as well as celebrity chef Jamie Oliver’s restaurant will be added soon as well.
Nazli Aziz, the senior general manager for MAHB’s commercial services, said a similar “reset” at the Langkawi International Airport had also proven successful.
The airport now hosts a number of food and beverage outlets which cannot be found anywhere else on the island.
Nazli said last year, retail outlets at airports recorded RM2.7 billion in sales, about 60% of which came from duty-free sales.
“This shows our offerings are quite sought after by passengers, especially travellers from China who account for one-third of the duty-free sales.
“It also shows that we can generate revenue from other streams and that tourists coming into Malaysia and departing are also spending a lot at the airport.”
Commercial revenue, he said, forms the bulk of non-aeronautical revenue.
MAHB’s non-aeronautical revenue contributed to 49% of its overall revenue, with the other 51% coming from aeronautical sources.
He said the trend around the world was for 60% of an airport’s revenue to come from non-aeronautical sources.
“So there is a lot of room for us to grow our non-aeronautical revenue, and we see this coming from commercial revenue. That is why we have a lot more planned for our airports.”
As for klia2, bookstore giant WHSmith will soon open its first store in an Asian airport.
Be Relax, which offers well-being and beauty products tailored for airport visitors, will also set up its services
At the Kota Kinabalu International Airport in Sabah, there will be a total revamp to turn the airport into a shopping destination with an open mall concept and a cold zone area offering Sabah’s finest frozen seafood.
Nazli said at the Penang International Airport, a fashion gallery, walkthrough emporium and napping zone would be introduced.
Meanwhile, Sense of Malaysia stores offering locally-made artisan products will be opened at all international airports.
“Our airports will offer a refreshed and exciting array of retail, food and beverage and services for everyone, from budget travellers to those who want to splurge on luxury goods.”