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Eating is the new shopping:

Is Food & Beverage the rising star of non-
aeronautical revenue?

John de Giorgio
Director, CA Plus – Veovo
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Data is flimsy

Consolidated data across sector is limited

ACI Economics Report 2018 relates to 2016
700 participating airports
Sample changes make multi-year comparisons difficult
Based more on percentages than actual values

Significant variations across airports

Airport types (hub or O&D)
Size
Regional disparities – Europe, N. America, Asia
Geographic location
National economic situation
Source: ACI Economics Report 2018
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Growth % in Selected non-Aeronautical Revenues Worldwide

(2015/2016)
12.00%
11.20%

10.00%

8.00%
Pax growth
6%
5.90%
6.00%
5.30%

4.00% 3.80%
3.50% 3.40%

2.00%

0.00%
F&B Retail Car Parking Aviation Catering Car Rental Property & Real Estate
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Distribution of Non-Aeronautical Revenue (2016)

Retail

F&B

Source: ACI Economics Report 2018

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Evolution of non-aeronautical revenue per passenger

Non-aeronautical revenues experiencing growth but per

passenger spend stable $7.12 (2015-16)
The cost of a burger
Expected drop in car parking revenues - increased competition
from:
Improving public transportation options
Off-site car-parks
Ride sharing
Autonomous vehicles Source: ACI Economics Report 2018
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Pressures on Further Retail Growth?

Sameness of retail offering

Same brands in most airports & high streets

Digital disruption
Competition from eCommerce + delivery at
home
Showrooming
Price comparisons are easier

Where’s the differentiation in retail?

Travelling more frequently reduces
novelty value
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Opportunities of F&B
F&B has greater impact on Customer Experience than retail
+ or -
First & last taste of a destination

F&B offers greater possibilities for differentiation, novelty and

experience
Sense of Place and Sense of Experience

Airport food need not be low quality

Reduced on-board catering options presents opportunity for
airport F&B
Eat before you fly
Plane Food example at LHR T5
Carry on-board quality food
Fortnum & Masons
Sustainable packaging please
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Trends in F&B

Consolidation in sector
Multi-nationals operating multiple brands

F&B struggling on the high street

Pressure of high rents
Airports offer revenue share model & longer opening hours which help
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But …….

We need to better understand who are our customers

Match offer to their desires & expectations
Millennials demand healthier eating choices
Sustainability - No green-washing please
We need data

Passengers get Wait Anxiety

Risk of cannibalisation of F&B by pay-as-you-go lounges
Challenge to manage passengers lingering at tables
Food trucks
Easier to change concept. Element of surprise
Meet the needs of distributed passengers
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We need better data

 Thank you
John de Giorgio
jdg@caplus.aero
Control, Manage & Boost
Non-Aeronautical Revenues