Airport Authority Hong Kong launches core category tenders

HONG KONG. Airport Authority Hong Kong today released two tenders for the liquor & tobacco concession and perfume/cosmetics & fashion concession at Hong Kong International Airport.

The authority described the tenders as “an extraordinary business opportunity in a premier location”.

Bids will close on 2 February 2017. The winners will be named in Q2 2017.

The liquor & tobacco tender will cover eight shops in T1 and T2, embracing some 3,400sq m. The dual perfume & cosmetics and fashion accessories tender involves six shops and 3,300sq m of space.

Airport Authority Hong Kong (AA) said it had been “conducting intensive consumer research to understand passenger needs in regard to the anchor travel retail concessions. The AA recognises the changing shopping behaviour of travellers, and hence plans to use the tender opportunity to modify the retail spaces and concession mix in an effort to enhance customer shopping experience and excitement.”

Executive Director, Commercial Cissy Chan said: “As a world-class international and regional aviation hub for around 70 million passengers a year, it is critical that HKIA continues to offer a variety of attractive shopping choices for our diverse range of travellers. We will leverage this tender opportunity to take HKIA shopping excitement and relevance to the next level.”

To request a set of tender documents, send a cashier’s order (HK$50,000 for one set or HK$100,000 for both, the respective amount will ONLY be refunded upon tender submission) made payable to “Airport Authority”, along with a written request on your company letterhead specifying the Tender Number, company name, contact details and trading name to:

Mr. Alby Tsang
Assistant General Manager
Retail & Advertising
Airport Authority Hong Kong
5/F, HKIA Tower, 1 Sky Plaza Road
Hong Kong International Airport, Lantau
Hong Kong

The tenders follow Airport Authority Hong Kong’s decision – reported exclusively by The Moodie Davitt Report in September – to restructure its core category airside retail contracts.

Whereas there are currently three anchor concessions – liquor & tobacco, airside general merchandise, and perfumes & cosmetics, all held by DFS – the Authority has opted to redefine the category and contract mix.

The core liquor & tobacco and perfumes & cosmetics concessions are being continued but with important refinements. To spice up the traditional liquor & tobacco offering, AAHK plans to allow the new concessionaire flexibility to include other products. These include liquor & tobacco-related accessories, such as wineglasses and decanters, as well as upmarket gourmet items, for example fine teas and coffees.

To make the perfumes & cosmetics offer more attractive, the Authority is creating a beauty and accessories “one-stop shopping destination”. That involves combining perfumes & cosmetics with fashion accessories – the latter including sunglasses, fashion watches, small leathergoods, handbags and others. Those categories are currently sold through the airside general merchandise concession.

The airport company said in a statement this week: “Under the two concessions, new product categories and activities will be introduced. The increase in total floor area will also further enhance flexibility, experimentation, product uniqueness and excitement to passengers.”

NOTE TO AIRPORT OPERATORS: The Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport revenues, simply e-mail Martin Moodie at Martin@MoodieDavittReport.com.

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