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Tag: HKIA

  • $1.3bn Midfield terminal inaugurated at HKIA

    $1.3bn Midfield terminal inaugurated at HKIA

    Hong Kong International Airport (HKG) officially opened its HK$10bn/$1.3bn Midfield Concourse (MFC) and auxiliary facilities on Monday as scheduled – with the retail offer to be “gradually introduced” next year.

    The 105,000sq m, five-storey MFC is located between the airport’s two existing runways to the west of terminal one and is connected to it with an automated people mover. It has 20 parking stands and a capacity of 10m pax.

    On Monday, Jack So, Chairman of HKG’s operator, Airport Authority Hong Kong (AA), and Zhang Kui, President of Hong Kong Airlines, accompanied by CK Ng, Executive Director, Airport Operations of the AA and Ben Wong, Chief Operating Officer of Hong Kong Airlines officiated at the opening ceremony, and also welcomed the first batch of passengers.

    On the retail offer, AA says: “The concourse will gradually introduce restaurants, coffee shops and retail outlets to provide passengers with a one-stop shopping and dining experience.”

    On the significance of the concourse, So says: “The MFC is an important development as it will help the airport meet increasing passenger traffic demand. In the past 12 months, Hong Kong International Airport handled 68.2m passengers, marking a year-on-year increase of +8.3%.

    “With its capacity to serve an additional 10m passengers every year, the MFC will be able to increase the number of flights using airbridges to board and disembark, enhancing the overall passenger experience.”

    AA plans to gradually increase the usage of the MFC in the next few months. It is expected to serve about 20% of daily passenger flights from HKG when operating at full capacity by next March.

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  • HKIA to create one-stop shop in West Hall

    HKIA to create one-stop shop in West Hall

    Retail performance in 2015 at Hong Kong International airport (HKIA) has been shaped by a growing portfolio of leading brands and strong passenger growth, an Airport Authority Hong Kong spokesperson told DFNIonline.

    HKIA now plans to reinvigorate the retail facilities at the West Hall to be more of a “one-stop shop” and dining destination. HKIA has added two new brands to the facility, Hermès and MCM, both of which will make their introduction from the middle of 2016. So far over 50% of the stores are currently open as part of the West Hall redevelopment programme.

    After launching a local free delivery service in February 2015, where customers spending over $1,000 can enjoy free postage within Hong Kong, HKIA has extended its service within Greater China. Launched last month, customers spending over $2,500 on clothing, bags and accessories are offered free delivery to mainland China, Taiwan and Macau.

    The airport is also embarking on substantial retail change where several tenders have been issued. The spokesperson confirmed the airport is undergoing an evaluation process.

    In keeping with its uplifting retail experience the airport installed an “I Love Hong Kong” zone this year, located on Level 7 of the East Hall comprising an “East meets West” culture. Fourteen local brands for fashion, Chinese dried goods, Chinese bakery, optical shops and tea houses now carry the prominent logo on shop-design, merchandise and packaging, as well as Hong Kong Disneyland and Giordano.

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  • HKIA celebrates Xmas with shopping rewards

    HKIA celebrates Xmas with shopping rewards

    Hong Kong International Airport (HKIA)is marking the Christmas run-up with series of festive special offers and promotions, including cash coupon redemptions up to HK$5,200 ($671) alongside more than 2,000 surprise gifts for travellers.

    The new promotion begins this Thursday (17 December) with travellers spending more than HK$2,000 ($258) by electronic payments qualifying for redemption coupons. HKIA adds that passengers using their UnionPay cards stand to reap even more rewards.

    HKIA Xmas od=ffers Dec 2015

    A ‘glamorous gift-themed exhibition’ will also be featured on Level 6 of the Departures East Hall allowing travellers to experience the spirit of Christmas, while prompting them with gifting ideas.

    Various music performances will also take place here and there will also be miniature installations on display showing how different countries around the world celebrate Christmas.

    Xmas at Hong Kong Dec 2015
    Travellers spending over HK$1,000 ($129) in a single transaction at HKIA can also enjoy free local delivery service. Free delivery service to Mainland China, Macau and Taiwan is also offered to travellers who spend over HK$2,500 ($322) on clothing, bags and accessories in a single transaction.

    At the same time, HKIA is partnering with its retailers to provide travellers with shopping and dining offers. More details are available at: https://www.hongkongairport.com/eng/shopping/special-offers.html

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  • The Peninsula to expand its luxury retail network with Hong Kong airport opening

    The Peninsula to expand its luxury retail network with Hong Kong airport opening

    While Hong Kong’s hotel sector faces a drop in mainland travellers this year, The Peninsula is pushing ahead with plans to open a retail shop at the city’s airport on Sunday. Paul Tchen Pao-shan, the group general manager of operations of Hongkong and Shanghai Hotels, which operates The Peninsula, says he is upbeat about the venture, even as the luxury retail sector been under pressure in recent times, forcing a number international brands to close in Hong Kong.

    “When customers do not come to us, we will go out to them,” Tchen said, adding that the 644 square foot shop will expand its product range to include customers who would not normally stay at the hotel.

    “The airport is a good location for retail business. It is a place guaranteed to have a lot of traffic. There are many tourists who want to get rid of their local currency and they will shop at the airport for souvenirs,” he said. “Food items such as chocolate are popular among tourists.” Tchen said the inspiration to diversify into luxury chocolates, teas and other gift items began during the height of the Japanese tourism boom in the late 1980s.

    At the time, Japanese visitors accounted for the majority of room bookings. A culture of gift giving, however, meant that many guests needed to stock up before their return journeys, creating a demand for products that over time would become an integral part of the hotel’s business. When the Japanese stock market imploded in the early 1990s, signalling an end to a long period of economic growth, visits by Japanese to Hong Kong began to decline, forcing The Peninsula to branch out with what had been an in-house business.

    In 2001, the hotel signed a licensing agreement with Nuance-Watson under which Peninsula-branded food products were sold at a dedicated counter under the retailer’s duty free network at Hong Kong International Airport. Business was so good that the Peninsula’s products were also sold under licence at a stand alone shop in 2003. The shop operated for 10 years until it was closed owing to rezoning of the airport retail area.

    The retail outlet set to open on Sunday will be directly owned and operated by The Peninsula, according to Tchen.

    “When we first started to sell products at the duty free shop in 2001, we did not have any retail experience. But now we have an experienced team of retail staff and we can operate our own shop at the Hong Kong airport,” he said. During the past 14 years, the company has opened 27 retail outlets worldwide, including Taiwan and Singapore, where the company has no hotel presence.

    “We consider running a retail shop in cities without a [Peninsula] hotel is like having an ambassador in that city,” Tchen said.

    “When they travel to Hong Kong, some of these retail customers may consider staying with us. Also, when we open hotels in these cities in the future, the retail shops will have played an important role in building up the brand.”

    The Peninsula also established retail shops in Japan in 2004, three years before it opened a hotel there. The retail business contributed 2.8 per cent of Hongkong & Shanghai Hotels’ turnover last year. Plans to take the retail concept online are underway with a launch tentatively set for March or April.

    “The new generation of customers is growing up with shopping through their mobile phones or desktop computers. We have to offer what customers want,” Tchen said.

  • Hong Kong tenders five new retail contracts

    Hong Kong tenders five new retail contracts

    Hong Kong International Airport is currently tendering three retail contracts in the merchandise areas of fashion accessories, audio visual/electronics and gifts/souvenirs and toys.

    The first consists of a fashion or fashion accessories shop opportunity comprising 50sq m on Level 5 Departures in the North Satellite Concourse restricted area, where bids close on December 3.

    Another tender process is for an audio visual/electronics concession consisting of five shops, with four located on Level 7 in the Departures Check-in Hall, Terminal 1 non-restricted area. These outlets vary from between 18 to 70sq m in size.

    Another outlet comprising 48sq m which falls under the same contract is also located on Level 5 Arrivals in the Pre-Immigration Hall, Terminal 1 restricted area. The date for submission for offers for this five-outlet contract is December 10, 2015.

    Tenders also close for a small 48sq m gifts/souvenir/toy concession at Hong Kong Airport tomorrow afternoon. This is located on Level 5 Departures in the North Satellite Concourse restricted area.

    The airport describes all of these opportunities as ‘extraordinary’ and in ‘premium locations’.

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  • Hong Kong airport to offer deluxe promotions to travellers

    Hong Kong airport to offer deluxe promotions to travellers

    Hong Kong International airport (HKIA) is to offer a series of deluxe promotions to travellers including HKIA cash coupons of HK$5,000 ($645) and free delivery service to Greater China. Travellers spending over HK$50,000 in no more than two electronic transactions on the same day until December 16 can redeem the HKIA cash coupons.

    In addition, travellers spending over HK$1,000 in a single transaction can enjoy a complimentary local delivery service. Those spending over HK$2,500 on clothing, bags and accessories in one transaction can benefit from the free delivery service to mainland China, Macao and Taiwan.

    An HKIA statement said: “During the promotion period HKIA will also join hands with its retailers to provide travellers with an array of fabulous shopping and dining offers, as well as an exciting selection of special complimentary gifts.”

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  • HKIA launches ‘deluxe shopping rewards

    HKIA launches ‘deluxe shopping rewards

    Between now and December 16, Airport Authority Hong Kong is incentivising passengers with ‘deluxe promotions’ which include a coupon for HK$5,000 ($645) and a complimentary delivery service to all addresses in the Greater China Region.

    The offer is open to all travellers spending more than HK$50,000 ($6,450) in no more than two electronic transactions on the same day. Customers spending more than HK$1,000 ($129) in a single transaction at Hong Kong International Airport (HKIA) can also benefit from a new free local delivery service during the promotion period.

    Those customers that spend more than HK$2,500 ($322) on clothing, bags and accessories in a single transaction can also receive free delivery to Mainland China, Macau and Taiwan.

    HKIA Deluxe Rewards Ad

    As part of this promotion AAHK is also working closely with its retailers to provide its customers with what it describes as ‘fabulous shopping and dining offers’, as well as ‘an exciting selection of special complimentary gifts’.

    HKIA says travellers can discover more by scanning the QR code on the promotional materials, or by visiting its website at the following address: https://www.hongkongairport.com/eng/shopping/special-offers.html

    Meanwhile, newly-opened shops at Hong Kong International airport between September and November, include (T1) Bee Cheng Hiang; China Mobile; Discover Hong Kong; Gift & Take by Nobletime; and millie’s. (T2) ARKA; and Living Plaza by AEON.

  • Aeon Living Plaza opens at HKIA

    Aeon Living Plaza opens at HKIA

    Aeon Living Plaza has opened at Hong Kong International Airport.

    The new 4200 sqft store offers 8000 items ranging from snacks and convenience items through to home furnishings, fine stationery and other giftwares.

    Aeon Living Plaza at HKIA 1

    The shop takes up three retail spaces on the second floor of Terminal 2 and trades from 9am to 9pm daily.

    Aeon Stores (Hong Kong) Department Store was founded in 1987 and listed on the Hong Kong Stock Exchange in 1994. It operates eight integrated general merchandise department stores (GMS) in Hong Kong, five supermarkets, 27 Living Plaza by Aeon stores, six Bento Express by Aeon and two independent La Bohéme Bakery outlets. In Guangdong Province it has opened 20 GMS stores, six independent supermarkets and two shopping centres.

    Aeon Living Plaza at HKIA 2

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  • Hong Kong airport executes summer promotions

    Hong Kong airport executes summer promotions

    Hong Kong International airport (HKIA) has welcomed the summer season with various promotions. These include special offers such as cash coupons with savings of up to HK$700 ($90) and complimentary local delivery service.

    From July 31 to August 11, travellers spending over HK$2,000, HK$5,000 and HK$10,000 by electronic payment can redeem HKIA cash coupons of HK$100, HK$200 and HK$600 respectively. Travellers using UnionPay cards to make purchases of over HK$5,000 and HK$10,000 can enjoy an extra HK$100 HKIA cash coupon.

    HKIA is also collaborating with retailers to provide travellers with exclusive shopping and dining offers and a selection of special complimentary gifts during the summer. Travellers spending with UnionPay cards can enjoy further offers. Details can be found by scanning QR codes on the promotional materials or by visiting https://www.hongkongairport.com/eng/shopping/special-offers.html.

    In addition, travellers spending over HK$1,000 in one single transaction at HKIA can enjoy complimentary local delivery service, while HKIA’s “Guaranteed Downtown Prices” mascot dresses up to welcome the summer and greet travellers. The mascot will make special appearances at terminal one and pose for instant photos with travellers and distribute  gifts. Travellers can also enjoy music performances while shopping in the Departures East Hall.

    HKIA has also teamed up with the Hong Kong Tourism Board as part of the Hong Kong Summer Fun campaign, providing travellers with two rounds of lucky draws. Travellers entering Hong Kong through HKIA can participate in the “Instant Mega Draw” until August 31. Before leaving Hong Kong, travellers can also enter the “Return to Hong Kong like a Millionaire” draw to win prizes, including a return-trip to Hong Kong.

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  • Nuance wins 13 awards for ‘green’ HKIA stores

    Nuance wins 13 awards for ‘green’ HKIA stores

    Thirteen Nuance Group (HK) stores have been recognised for their environmental performance and commitment out of a total 23 at Hong Kong International Airport’s Environmental Management Recognition Scheme 2014/15.

    Essentially, the Airport Authority Hong Kong-backed scheme is aimed at encouraging retailers to adopt green initiatives and take active responsibilities for the environmental management of their stores. The scheme is co-organised by the Hong Kong Productivity Council (HKPC), which conducts on-site assessments of retail F&B premises at HKIA.

    Nuance is a wholly-owned subsidiary of Basel-based Dufry AG and the 13 stores which were recognised for their efforts this year include the following: (Silver awards) Sound & Vision store reference numbers 6E102, 6E150 and 6W520; Bally 6E125; Longchamp 6W544.

    Bronze awards went to the following Nuance stores: Taste & Delights 6W572; Amazing Grace 7E192; Bags Unlimited 5P084; Best of…Stores      5P103; Fortress 7T096 & 7T097; Fortress 5P028A; Scent & Beauty 5P065; and The Peninsula Boutique 7T040.

    Commenting on the initiative, Alessandra Piovesana, Regional Managing Director of Nuance Asia and Regional COO (ad int) Asia & Middle East of Dufry Group said: “My team and I are delighted for our 13 winning stores at the latest HKIA Environmental Management Recognition Scheme, underlining our widespread corporate commitment in environmental conservation and protection across all our stores as part of our mission of ‘Enriching Travel, Enriching Life’.

    “We believe that environmental management succeeds only through continuous engagements and stewardship with a consistent attitude acted on a united front. Since we took a lead in this area to kick off our first corporate green initiative ‘Save & Preserve’ to reduce the use of plastic bags as early as in 2007, we have continuously nurtured our staff to take ‘green’ as an everyday approach, making ‘green’ practices part of their daily working lives.

    “Every year, we organize different activities to optimize ‘green’ awareness among travellers at HKIA. Our on-going environmental management programmes reflect our passion for life and our will to demonstrate that performing business and environmental actions can surely co-exist. With our concerted efforts with the Airport Authority and other stakeholders, our team is determined to leverage our presence within the airport to continue raising travellers’ consciousness of the need for a sustainable future.”

    ENVIRONMENTAL MEASURES TAKEN BY NUANCE

    The retailer adds that its continuous efforts at environmentally sensible stewardship and customer engagement include the following: minimizing the environmental impact of shopping bags by choosing certified biodegradable materials and by administrative measures; having agreements with suppliers or service providers to reuse containers or materials in goods delivery; installing energy efficient lighting; regularly maintaining air-conditioning systems; establishing ; Green Procurement Policy; using of state-of-the-art sustainable technologies, such as paperless PO system, use of Radio Data Transfer for stock logistics, Electronic Business Process Management and Digital Filing, etc.

    Most importantly, Nuance management says it provides regular training in environmental management to its employees.

    THE SIX KEY CRITERIA USED FOR JUDGING

    The judging criteria for the HKIA Environmental Management Recognition Scheme was based on six aspects, i.e. waste management, energy efficiency, waste water management, air pollution control, noise pollution control and overall environmental management.

    The judging panel consisted of representatives from the Airport Authority Hong Kong, Environmental Protection Department, Hong Kong Waste Management Association, Friends of the Earth (HK) and Academia (Professor C.S. Poon of HK Polytechnic University).

    Nuance adds that in 2012 it received five Gold Awards in the first-ever HKIA Environmental Responsible Retail Recognition Scheme held by AAHK. The retailer also received a Green Management Bronze Award from the Green Council Hong Kong in 2011.

  • HKIA retail growth halves to 10.8% but still flies high

    HKIA retail growth halves to 10.8% but still flies high

    The retail licences and advertising revenue segment at Hong Kong International Airport (HKIA) rose by a respectable +10.8% to HK$6,820m/$880m in 2014/15, with an upswing that was lower than the year before when it shot up by +23%, largely reflecting a full year of contributions from DFS Group as its anchor tenant.

    The segment now represents 41.7% of turnover – a marginal share increase on the previous year. Retail was a key component that allowed operator Airport Authority Hong Kong (AAHK) to generate record revenue of HK$16,367m/$2,111m (+10.5%) and rocketing profit of HK$7,254/$936m – a rise of +12.4% (see chart below and click to enlarge).

    Retail licences and advertising contributed nearly half of the rise in AAHK’s turnover for the year and the authority specifically highlights higher retail concession revenue as a major contributor to the above figures.

    AAHK does not split out its retail and advertising income, but from its comments it seems that the shopping units – in particular its well-trodden high-end boutiques – have delivered good gains. They have also been more of a focus in FY2014/15.

    STILL SEEING GOOD LUXURY DEMAND
    AAHK says: “This increase (of +10.8%) was a result of the commencement of new luxury retail licences; better sales performance for luxury brands, liquor and tobacco, perfumes and cosmetics, commercial catering and financial services categories; higher advertising revenue from new clients and categories; and joint promotional initiatives with major brands and China UnionPay.”

    Other terminal commercial revenue grew +5.2%, to HK$1,160m/$150m and mainly represents income from leasing offices and airport lounges to airlines and other tenants.

    HKIA enhanced its shopping experience in 2014/15 with the opening of 33 new luxury boutiques, with 10 new brands making an entry at T1.This latest luxury cluster includes the first Harrods store in Hong Kong, plus Balenciaga, Blancpain, Bulgari, Christian Dior, Givenchy, Jaeger Le Coultre, Miu Miu, Moncler and Tory Burch.

    HKIA is still attracting Chinese passengers in big numbers

    With a strong Chinese PRC mix at the airport and numbers in the last fiscal year up +22% (bettered only by passengers from southeast Asia) HKIA has, so far, managed to leverage high-end sales to this group. Whether the authority can maintain that successfully this year, in the light of the luxury downturn being seen in the local Hong Kong market, remains to be seen.

    Looking ahead, AAHK believes that traffic demand will continue to grow, but at a slower pace. “As a result, some of HKIA’s facilities, such as aircraft parking stands and other terminal facilities will soon reach capacity in the existing two-runway system,” it warns.

    MIDFIELD TO THE RESCUE

    To meet immediate needs, the expanded west apron is now fully operational with 28 aircraft parking stands. The Midfield development, which includes a five-level concourse and 20 aircraft parking stands, will provide added capacity when it enters service later this year for up to 10m passengers.

    AAHK expect profits to grow at a slower pace this year largely due to its current capacity constraints. Nevertheless, it has its eye firmly fixed on increasing non-aeronautical revenue “by optimising HKIA’s retail space, revamping the overall retail experience for our passengers, introducing innovative marketing, and supporting our business partners while they expand their operations”.

    HKIA is the world’s third busiest international hub after Dubai International and London Heathrow – and in FY 2014/15 it handled 64.7m passengers, up +6.6%.

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  • Pandora partners with DFS in major Hong Kong Airport promotion

    Pandora partners with DFS in major Hong Kong Airport promotion

    Danish jewellery brand Pandora has opened a dedicated 13.5sq m promotional area at Hong Kong International Airport (HKIA) in partnership with DFS Group.

    The zone is a celebration of ‘Explore, Dream & Discover’, involving a pre-launch of Pandora’s new travel charms, which will launch in other selected stores on 30 July.

    The use of a 6sq m video wall creates a multi-media experience to highlight the pre-launch.

    “We are extremely proud and excited about opening stores at prestigious locations together with DFS,” said Pandora VP Travel Retail Julian Mullins.

    “Here at DFS we aim to be the world traveller’s preferred destination for luxury shopping and developing fantastic brand partnerships is key to delivering on that promise,” said DFS Group Director of Merchandise-­‐ Sunglasses, Fashion Watches and Jewellery Jason Blejwas.DFS and Pandora have worked in partnership for just over a year, opening stores in Abu Dhabi, Honolulu, Guam, Saipan and Hainan as well as DFS Group’s downtown Hong Kong locations and the retailer’s main store in HKIA’s East Hall.

    “We’re excited to expand on our relationship with Pandora and bring their unique brand aesthetic to the traveling consumer at HKIA.”

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