Prague Airport growing commercial revenues with “innovative duty free sales channels” and “creative retail space differentiation”

Prague Airport is hosting this year’s ACI EUROPE Airport Commercial & Retail Conference & Exhibition, 21-23 April 2020.

Non-aviation revenues currently account for about 30% of the airport’s overall annual revenues, and its target is to increase that proportion to align with aviation revenues. “We have already started thanks to a new duty free contract,” says Jiří Petržilka, until recently Executive Director, Non Aviation Business, Prague Airport. “The annual revenues per one square metre of space are supposed to almost triple between 2020 and 2026.”

Jiří Petržilka, until recently Executive Director, Non Aviation Business, Prague Airport, explains that non-aviation revenues currently account for about 30% of the airport’s overall annual revenues, and the target is to increase that proportion to align with aviation revenues.

Lagardère Travel Retail last year won the tender to operate 24 stores at Prague Airport. “Their project impressed us by innovative duty free sales channels, creative ideas focused on the retail space differentiation, proposed assortment offer based on knowledge of customer composition, modern payment solutions, online and e-commerce sales ideas and, last but not least, the winning project included a highly-developed so called ‘love local’ aspect, which was one the main requirements of the tender,” Petržilka explains.

Lagardére Travel Retail is about to open seven different types of shops. Each of them will be focused on a different assortment with brands based on the needs of a specific customer segment. “That means the retail offer will be adapted not only to the nationality of the passengers, but also to their age, specific needs, travel behaviour, as well as a shopping or income behaviour,” says Petržilka. “Indeed, there will be something for everyone.”

The retail design, including equipment, will clearly refer to Prague’s and Czech history, architecture and art, and great emphasis will be given to the local product offer. In total, Lagardére Travel Retail will provide 767 brands, of which 140 will be completely new. More than 80 brands will be Czech, and more than 90 product lines will be available exclusively at the airport.

Lagardère Travel Retail last year won the tender to operate 24 stores at Prague Airport. It is about to open seven different types of shops. Each of them will be focused on a different assortment with brands based on the needs of a specific customer segment.

Virtual shopping: “driving traffic into shops and increasing average basket”

Virtual shopping is one of Prague Airport’s key projects and was started mainly to address three key targets:

  • Support physical shopping by driving more traffic into shops and increasing average basket.
  • Enable passengers to buy products and services at the airport even if they are not physically in the shops.
  • Extend commercial activities beyond the physical border of Prague Airport.

“This we would like to achieve by creating a marketplace which would integrate the relevant offer of our partners, but also off the airport in order to offer passengers better value,” Petržilka explains.

Ground-breaking customer service development

This year is set to be ground-breaking in terms of Prague Airport’s customer service development. In addition to the extensive commercial and retail renovation, several modernisation projects are planned. Among the tenders to be announced throughout the year are a luggage-wrapping service in both terminals, a supermarket provider, and a pharmacy provider.

“We are currently also renovating Restaurant Praha, which is under the direct operation of the airport,” says Petržilka. “It will bring a new and stylish design, as well as increasing the level of dining services at Prague Airport.”

Also underway is the extension and modernisation of the airport lounges. In November, the refurbishment of Erste Premier Lounge at Terminal 2 will be finalised, with a new terrace offering a view of the airfield. Extension of MasterCard Lounge in Terminal 1 will follow soon afterwards.

Delegates will learn more about these developments at this year’s ACI EUROPE Airport Commercial & Retail Conference & Exhibition. “One of the greatest specifics of the aviation industry is an ability to share information, expertise and best practices,” Petržilka comments. “This would not be possible without a wide cooperating network of airports, airlines and other organisations within the industry. I do not think there is another segment of transportation, which would cooperate on an international basis as intensively as aviation. Often, we say we are one big family. ACI EUROPE plays a very important role in this regard, and it is our honour to host the Airport Commercial & Retail Conference & Exhibition and contribute to closer cooperation between airports. Meanwhile, when it comes to Prague, we will do our best to prove that it is one of the most beautiful cities in the world, with a lot to offer.”

Prague Airport’s new Executive Director, Non Aviation Business, Jakub Puchalsky, began in the role on 1 February 2020. Delegates at the ACI EUROPE Airport Commercial & Retail Conference & Exhibition, will have the opportunity to meet him at the event.

The retail design will clearly refer to Prague’s and Czech history, architecture and art, and great emphasis will be given to the local product offer. In total, Lagardére Travel Retail will provide 767 brands, of which 140 will be completely new. More than 80 brands will be Czech, and more than 90 product lines will be available exclusively at the airport.

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