Has the improved U.S. economy translated into
higher concessions sales at your airport locations?
If so, can you quantify the improvement in terms of
gains in 2012?
PAT BANDUCCI, COO, HMSHost
We are seeing increased airport traffic and
travelers having more willingness to spend,
translating into better sales.
LAURA SAMUELS, vice president, corporate
communications, Hudson Group
In its latest annual report, our parent company
Dufry AG reported Hudson (Region 4 of
Dufry) increased its revenues in 2012 to a
record approximately $800 million, versus
approximately $700 million in 2011 (both
measured in Swiss francs, roughly equivalent to
the U.S. dollar.) This was due to the addition of a
number of new stores, the improved performance
of existing stores, and the addition during the
year of the North American duty-free business.
GERRY SAVARIA, president and CEO, LS Travel Retail
Sales in our U.S. airports have been trending up in
the mid-single digits in the last few months, and
it’s likely due to a combination of traffic growth,
economic vigor and higher consumer confidence
post-presidential election and fiscal cliff doomsday
threats. That being said, it’s still hit and miss, as
there are airports and/or terminals that are very
soft in traffic evolution, which impacts sales the
most. The other reality is that the traditional news
and gift locations are being challenged by the
decline in reading materials more so this year than
last year for various reasons.
JOHN CUGASI, senior vice president, strategic planning
and business development, Paradies
While the economy is improving, enplanements
are flat, and we are still facing the issue of year-on-year significant declines in reading materials.
That said, we are significantly performing at levels
above the enplanement growth, so in essence sales
per enplanement performance are strong.
LES CAPPETTA, president and CEO, SSP America
2012 was a good year for SSP, as revenue-enhancing
marketing programs and menu redesign drove same
store sales, year over year.
The strongest traffic-related growth was
concentrated around international gateway
facilities. Meanwhile, we have seen significant
traffic declines in some small and mid-size airports.
Our sense is that the travel market has improved
year over year but the economy remains fragile, and
some customers have pulled back on spending.