MALAYSIA. ‘Navigating the Future: Innovation and Sustainability in Travel Retail’ was the evocative tagline for the Malaysia Airports (MAHB) Concessionaires Conference held at Sama-Sama Hotel KL International Airport on 17 November.
The conference, notable for its candid, challenging and forward-thinking tone, was followed that evening by an exhilarating KLIA Concessionaires Awards Night, inspired by the movie Crazy Rich Asians under the theme ‘Crazy. Bold. Ambitious.’
The Moodie Davitt Report Founder & Chairman Martin Moodie was on location, presenting at the Concessionaires Conference and enjoying the evening’s festivities as a guest of Malaysia Airports Senior General Manager of Commercial Services Hani Ezra Hussin. Here is our full report on a compelling dual event.
The Malaysia Airports (MAHB) Concessionaires Conference 2024 offered a fascinating exploration of how innovation and sustainability will – in fact, must – shape travel retail’s future.
Themed ‘Navigating the Future: Innovation and Sustainability in Travel Retail’, the event focused on forward-thinking strategies designed to boost industry revival, all crucially underpinned by cultural authenticity and sustainability.
Opening the conference, Malaysia Airports Managing Director Dato’ Mohd Izani Ghani delivered a powerful and positive address, underscoring the group’s strong traffic recovery driven by key markets such as India and China.
Passenger figures across the MAHB estate are projected to reach 95-98 million this year, he said.
With the ASEAN Summit 2025 and Visit Malaysia Year 2026 on the near horizon, he stressed the importance of Malaysia Airports’ strategic focus on creating retail and dining experiences that reflect the country’s rich and diverse culture.
Reinventing travel retail
Next up, The Moodie Davitt Report Founder & Chairman Martin Moodie explored the evolution of airports into dynamic consumer-centric commercial ecosystems
{Moodie began his presentation with this edited version of a longer film shown at The Trinity Forum 2024 in Ho Chi Minh City earlier in the month. It contextualises the challenges travel retail faces while outlining the growth opportunities.}
In setting the scene, he pulled no punches in outlining the challenges the travel retail sector is experiencing.
“Let’s face it – we find ourselves in unique times. A key point of discussion for the sector is around how – on a global level – and for probably the first time in memory, there is a meaningful and concerning gap between passenger growth and passenger spending. Consumers have changed. Cost structures have changed,” Moodie said.
“So when you reflect on the increased cost of travel, aligned to increased cost of living, unstable geo-politics and changing consumer behaviour, it necessitates the industry to transform urgently.
“When it comes to a solution, Malaysia Airports has hit the nail on the head with the topics they have asked me to discuss today –leveraging innovation; sustainability as a strategic imperative; and adapting to a digital age.”
Moodie shared some examples of best practice in these areas, including a short film underlining the power of retail imagination, produced by Moodie Davitt STUDIO for Qatar Duty Free at The Trinity Forum. This focused on an array of bold new retail and food & beverage concepts, newness, exclusives and world-class service, all housed in an extraordinary environment.
“Just sensational isn’t it?” he said. “What they have achieved is not by chance. They have over 5,000 staff all working with a common goal of customer service excellence, driven by a clear mandate from the top of their organisation to leverage innovation and put the customer first.”
Moodie emphasised innovation and sustainability as critical pillars of travel retail’s transformation, citing examples such as Lotte Duty Free’s use of the Makr Shakr robotic bartender at Changi Airport to create theatre and consumer engagement.
He also commended companies such as Diageo for the introduction of lightweight packaging, among other outstanding examples of good ESG practice.
Moodie stressed the importance of leveraging data to create tailored and seamless travel experiences, citing Qatar Duty Free’s new data-sharing platform, 36Q, revealed at The Trinity Forum, which will be accessible to all its brand partners from 1 January.
Commercial growth and future-proofing strategies
In a stirring presentation, Malaysia Airports Senior General Manager of Commercial Services Hani Ezra Hussin provided insights into the organisation’s commercial performance and the challenges it, in common with the wider travel retail world, faces.
Passenger traffic reached 89% of pre-COVID 2019 levels for the first nine months of 2024 while retail sales recovery stands at 82%, Hani said. The food & beverage and services segments have shown exceptional recovery, both achieving 140% of 2019 levels.
However some categories, particularly beauty, tobacco and fashion and luxury, have lagged way behind, Hani noted.
In the face of such challenges, she emphasised the vital importance of adapting strategies, embracing new technologies and aligning offerings in line with an evolving consumer landscape.
Innovation and sustainability are key to creating a resilient and sustainable future, she insisted, especially as travel shopping has shifted from casual browsing to more intentional spending.
Cultural innovation is also key to showcasing Malaysia’s identity globally, she affirmed, outlining plans to create immersive retail spaces that reflect the country’s heritage.
This vision is neatly aligned with the upcoming Visit Malaysia Year 2026, presenting opportunities for the integration of local elements into airport stores to appeal to international and domestic travellers.
Changing consumer behaviour
In a hard-hitting presentation, Malaysia Airports General Manager of Commercial Services Zulhikam Ahmad explored how consumer expectations and preferences are evolving, and how the airport company and its partners need to respond.
Zulhikam presented a comprehensive breakdown of performance across categories and nationalities, noting Malaysians and Chinese remain the top two demographics by total sales. But the traditionally critical Chinese spend is under great pressure, he cautioned.
Zulhikam’s key message was how evolving consumer behaviour driven by demographic, market and economic changes demanded agility and the ability to leverage technology on the part of airports and their commercial partners. At the same time, he insisted, maintaining or enhancing service levels is vital.
Travellers now spend only a small portion of their dwell time in the stores so data sharing and careful integration is crucial to a vibrant and collaborative future, he added.
Data sharing and integration crucial
Zulhikam emphasised the importance of understanding customer demographics better (e.g. departing vs. arriving passengers) and their preferences for local vs. imported products. To acheive that understanding, he highlighted the need for data integration to help stakeholders make informed decisions and improve services.
He also stressed the importance of understanding shifting consumer behaviour, particularly across generations. Digital engagement, exclusive products, and personalised experiences are all critical for Gen Z & Gen Alpha consumers while Gen X & Baby Boomers still place more value on personal interaction and direct discounts.
Overall, passengers are flying more but spending less, he said, echoing a message being expressed across much of the industry worldwide. Globally, fragrances & cosmetics and wines & spirits are the worst-affected, both remaining far below 2019 sales levels.
Many consumers are neither spending their dwell time on shopping nor store browsing, Zulhikam pointed out. Hence, he repeated, there is a need to leverage data and technology to meet these evolving needs. At the same time, airports and retailers should not lose on sight of the irreplaceable role human touch plays in enhancing the travel experience.
From Trinity to Pentarchy
Zulhikam said the industry Trinity needed to evolve into a Pentarchy involving five key stakeholders: airlines, airports, retailers, brands and out-of-home media partners.
Harnessing the power of AI and data science
In another strong address, Modalis Infrastructure Partners Head of Airport Investor Resource Khair Mirza highlighted the transformative potential of AI and data science in travel retail.
He encouraged industry players to embrace sustainability trends, customer traffic insights and advanced analytics to drive sales and improve operations.
Data science is both very real and very necessary, Khair said.
Can passenger data increase sales? The answer was a clear and resounding yes. Is the airport community maximising “joy” based on such publicly available data, he asked, noting that happier consumers equates to increased sales. And, critically, he continued, how do retailers start using such data to increase sales?
Crazy. Bold. Ambitious.
The conference was followed by a hugely memorable awards gala inspired by the movie Crazy Rich Asians themed ‘Crazy. Bold. Ambitious.’
Hani Ezra Hussin said the title of the awards evening, the first since 2019, recognised and celebrated the hard work, energy and dedication of concessionaires who transform airports into vibrant destinations.
She said the conference earlier in the day had highlighted the industry journey by focusing on the trends and strategies shaping the future. Hussin cited the recognition of collective recovery and growth over the past year, fuelled by the impressive commitment of MAHB’s partners.
The awards, she said, celebrate exceptional performances in terms of creativity, dedication and passion. All MAHB’s concessionaires had played their role in enhancing the travel retail experience, Hani added.
How a ‘Crazy. Bold. Ambitious’ formula is paying rich dividends for Malaysia AirportsThis was by some distance the most thrilling and sheer fun awards night I can recall attending over my four decades in the business.
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She congratulated the award winners for setting inspiring examples and thanked all attendees for their ideas, energy and commitment.
In a stirring closing message she encouraged guests to enjoy the evening and reflect on their achievements. Hussin expressed her optimism in a future that was indeed ‘Crazy. Bold. Ambitious.’ For MAHB it would be characterised by a focus on innovation and creating memorable traveller experiences, she pledged.
An unforgettable performance by The Shang Sisters, dressed in vintage-inspired costumes, provided a glamorous backdrop to the evening, capturing the elegance and vibrant energy of old-world jazz. ✈
