Interview: Dubai Airports
Reaping the benefits of investment at DXB
As Dubai International Airport reports its busiest quarter for passenger traffic since 2020, Martin Moodie speaks to Dubai Airports EVP Commercial Eugene Barry about the recovery of retail and services, and about how the rest of 2022 is shaping up.
With 13.6 million travellers served between January and March this year, Dubai Airports was able to recently salute its busiest quarter since the pandemic began in 2020. The opening of more international travel destinations helped Dubai International (DXB) – the world’s leading airport for international traffic – to post a healthy +15.7% rise in passenger volumes compared to the final quarter of 2021. By comparison, DXB recorded 5.7 million passengers in the first quarter last year. Speaking to The Moodie Davitt Report Founder & Chairman Martin Moodie in Dubai earlier this month, Dubai Airports EVP Commercial Eugene Barry highlighted the importance of the recent traffic increase. “It is very robust [growth]. Point-to-point traffic has returned over 100% to 2019 levels and overall we are at around 60% of where we were pre-pandemic.” The forecast for the full year is to serve 58 million passengers, with over 70 million expected in 2023, meaning DXB should return to pre-pandemic volumes a year later. That growth is having an impact on sales while spend has remained consistently high through the past two years although from a lower traveller base. Barry says: “More people are travelling more through DXB, which we are delighted to see. But we are seeing ATVs up across the board in every category: in retail, food, hospitality.”
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“Brands love airports and today they are perhaps expressing themselves differently at airports than they had before”
Dubai Airports EVP Commercial Eugene Barry
This interview is based on a Moodie Davitt Podcast from 12 May; click above for access
This, he says, is partly down to the big investment in new concepts and services right through the crisis. “We never stopped investing. Even in the first year of the pandemic we opened 40 new concessions, with another 30 in 2021. We invested in premium product, in economy class product, and created our own ecommerce marketplace, called DXB&More. We are seeing the benefits of investing in the customer proposition. When people started travelling again, the product and service mix at the airport, even for frequent flyers, looked different.” That investment, and the reaction of travellers to the newness they see, offers encouraging signals that the recovery will accelerate. Barry says: “Our forward bookings for Summer are very positive. People who committed to travel are following through with travel now. With the activations that are happening now, we see the interest among brands to invest at the airport. Brands love airports and today they are perhaps expressing themselves differently at airports than they had before. “We are seeing a lot more partnerships too. One of the features of what has happened in the industry is more collaboration between airports, retailers and brands to do something more meaningful, to create points of differentiation. We have spoken about it for many years but we are seeing that happen today.”
In October 2021, Dubai Airports partnered with hospitality platform Servy to launch DXB&more, a regional first mobile food, beverage and retail ordering service at Dubai International (DXB). The airport company said the move would “revolutionise the DXB guest experience”.
An example is one of the major events attended by The Moodie Davitt Report at DXB recently, namely the inauguration of Guerlain’s first Haute Parfumerie pop-up store in travel retail in partnership with Dubai Duty Free, Dubai Airports and JCDecaux. “All the silos have been shattered in the past couple of years,” says Barry. “JCDecaux are a close partner of ours, as they are with Dubai Duty Free. They have invested in digital infrastructure across the airport, they are close to the brands and we are seeing the results of that now.” The past two years have been tough nonetheless, notes Barry, but he says the balanced approach from the Dubai authorities has helped fuel the recovery. “I’ve been in this region for over 25 years, and I never thought I’d see the day when an airport, or commercial activity at an airport, would grind to a halt. That happened on 25 March 2020.
“But since then, Dubai as an emirate found the right balance between people’s health and welfare, safety and reopening society and the economy. The government also communicated very well with residents and businesses about the approach and we feel very comfortable with that. We have seen the benefits of that. There are many more inbound visitors than would have come here without that balance. Life here in general has returned to normal ahead of many other countries, and the airport is at the forefront of that.” Barry concludes with an upbeat message. “We are very optimistic about the future. The focus is 100% on service and experience as a key feature of recovery. Once everyone gets past recovery that will stand the test of time going forward.” *Click here for our on location coverage from DXB as Guerlain opened its groundbreaking Haute Parfumerie with Dubai Duty Free and JCDecaux. Click here for news of another big LVMH event in the same week, as Givenchy and Glenmorangie joined forces with Dubai Duty Free in a unique collaboration showcasing the craft and artistry of perfume creation and whisky making.
Representatives from Guerlain, Dubai Duty Free, Dubai Airports and JCDecaux at the official inauguration of the first Guerlain Haute Parfumerie pop-up store in travel retail
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The Moodie Davitt eZine Issue 311 | 30 May 2022
The Moodie Davitt eZine is published 14 times per year by The Moodie Davitt Report (Moodie International Ltd). © All material is copyright and cannot be reproduced without the permission of the Publisher. To find out more visit www.moodiedavittreport.com and to subscribe, please e-mail kristyn@moodiedavittreport.com