Groupe ADP
Groupe ADP strives for competitive edge with new retail and hospitality brand
Groupe ADP this week announced ambitious plans to create its own retail and hospitality concept called Extime, which it aims to deploy at its own airports and franchise to others around the world as part of a new strategic roadmap. By Dermot Davitt.
Photo: Seignette Lafontan
As part of its updated strategy from 2022 to 2025, Groupe ADP has revealed plans to launch a new retail and hospitality concept and brand called Extime. The move, it says, will enhance group competitiveness as a force in the world of airports and hospitality. ADP plans to deploy the concept within its own airports, led by Paris Charles de Gaulle and Orly, in 2022/23, followed by other group locations [it has major stakes in TAV Airports and GMR Airports, among others -Ed] from 2023 to 2026. Intriguingly, it then aims to franchise the idea to other airports around the world. In a statement, Groupe ADP said: “Extime capitalises on the know-how deployed for several years in the Paris hubs and in the group, and regroups it in a single brand. The preferred deployment model is that of a franchise, with a franchisor, Aéroports de Paris, providing the Extime franchise and its know-how to franchisees.” The concept is based around four levers of value creation. These include stimulating traffic through aviation marketing focused on the highest contributing destinations such as China. It also aims to drive demand pre-travel “via a high-performance digital ecosystem consisting of a loyalty programme” – brands will include Extime Reward and Extime Pass, plus a marketplace www.extime.com.
“The deployment of retail and hospitality activities of the new Extime strategy, in Paris and then abroad, will be decisive in the group’s search for competitiveness”
– Groupe ADP Chairman and CEO Augustin de Romanet
Under the business model, operations will be carried out by companies that are at least 50% owned by the group, bearing the Extime name. In addition, the plan includes developing airside ‘Boutique Terminals’ that aim for “excellence in design and architecture, in service and reception, and in the range of brands and concepts”. In a related move, ADP is changing the definition of sales per passenger at its airports. This will now include all retail activities airside: shops, bars and restaurants, foreign exchange & tax refund counters, commercial lounges, VIP reception, advertising and other paid services. Previously this definition covered only sales from airside shops. The group target is to raise spend per passenger under the new definition from €25.30 in 2021 to €27.50 by 2025.
Groupe ADP Chairman and CEO Augustin de Romanet said: “The deployment of retail and hospitality activities of the new Extime strategy, in Paris then abroad, will be decisive in the group’s search for competitiveness thanks to the implementation of a franchise concept that is new to the airport industry. “Extime carries a promise of excellence not only in terms of retail performance and customer satisfaction, but also in terms of profitability and productivity of retail operations.” The introduction of the Extime model is part of a 2022-2025 strategic roadmap (titled ‘2025 Pioneers’), which Groupe ADP said will “build the foundation of a new airport model geared towards sustainability and performance, in line with societal and environmental expectations”. Groupe ADP said in a statement: “At the heart of the industrial transformation initiated for 2025 Pioneers is the evolution of airports towards multimodal and energy hubs.”
It said that these “will no longer be a place to fly, but a place where one benefits from renewed connectivity, offering them a choice between different modes of travel (long and short-distance rail, bus, soft mobility, etc.), and where rail-air connections will account for a growing share of the development of Groupe ADP's hubs.” It added that airports “will host a diversification of our energy activities and the deployment of new clean energies”. They will also “see existing infrastructures densified and the capacities of stations and multimodal hubs extended, using new innovative and environmentally friendly construction methods”. De Romanet said the new airport model would enable Groupe ADP to return to its pre-crisis financial performance level by 2025.
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The Moodie Davitt eZine Issue 306 | 18 February 2022
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