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ATU DUTY FREE MODEL & THE CONCESSION STRUCTURE OF THE FUTURE Ahmet kötehne operatION UNITS & BUSINESS DEVELOPMENT DIRECTOR.

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Presentation on theme: "ATU DUTY FREE MODEL & THE CONCESSION STRUCTURE OF THE FUTURE Ahmet kötehne operatION UNITS & BUSINESS DEVELOPMENT DIRECTOR."— Presentation transcript:

1 ATU DUTY FREE MODEL & THE CONCESSION STRUCTURE OF THE FUTURE Ahmet kötehne operatION UNITS & BUSINESS DEVELOPMENT DIRECTOR

2 AGENDA Privatization – Catching the Wind ATU Duty Free’s Business Model Key Challenges of Collaboration The Next 25 Years Contribution to the Economy Q&A

3 PRIVATIZATIONS

4 Privatization – Catching the Wind
Change in theTurkish government’s vision towards privatization in the 80’s More attractive political and economic environment for investors (especially 2000’s) Being there at the right time Stability in Turkey despite global crisis

5 Privatization – Catching the Wind
2000 2012 ATU is only 12 years old Combining expertise of it’s partners - Collaboration between specialized companies: TAV, Unifree, Heinemann One of Turkey’s most performing successful BOT models Constant improvement: classic duty free store to a shopping mall concept

6 Airport + Supplier + Retailer = Customer Satisfaction Success Formula
Tekilalı foto, futbolcu adamlar BUSINESS MODEL Airport + Supplier + Retailer = Customer Satisfaction Success Formula

7 Business Model Efficiency Partnership Integration Level
Integrated Partnership Retail Service & Supply Agreement Concession Contract Management Contract Joint Venture Supply Agreement

8 Managing Partner & Supplier
Business Model One of Turkey’s first integrated partnership models Joint venture TAV Airports’ expertise in construction Unifree Duty Free’s experience in Turkish Travel Retail market Gebr. Heinemann’s leverage in financial structure and expertise in global travel retail Airport Managing Partner & Supplier Retailer Customer %50 %50

9 COLLABORATION

10 Collaboration Traditional models: standard rental agreements
Conflict of interest on fixed rent Lack of coordination Inefficiency vs Integrated partnership: collaboration on Rental Fee + Profit Sharing Designing of Airport Guiding Passenger Flow Data Sharing Ahl gidiş katı foto

11 Collaboration: Key Challanges
OPERATOR MANAGING PARTNER & SUPPLIER RETAILER Designing and coordinating retail mix: Duty Free, F&B, Lounges, Banks, Other commerical areas Strenghtening purchasing power Defining categories, brands and product mix Organizing logistics & Just in time deliveries Defining + designing retail space Defining marketing strategy Offering a pleasant shopping environment Guiding and analyzing traffic evolution and estimation Creating in-store layouts Ensuring quality standards & Customer satisfaction Adaptation of offers to the passenger mix and traffic Revisions and optimizations in airport design and retail space Coordination in overall marketing strategy Data sharing for further enhancements in efficiency and performance analysis Ahl gidiş katı foto

12 Airport Design Fundamentals of the building
The base for orientation and creating a relaxing environment for the passenger Efficiency and smooth passenger flow Elimination of stress Signage and guidance No competition between operating companies Interior design - Life span: 3 to 5 years Creating an inviting, comfortable and stimulating environment Clear segmentation of categories Modern designs Shopping concepts - Life span: Seasonal to 10 Years Create an offer for all customer profiles Maximal seduction and surprise Classic duty free shops + brand stores Combination of local and international brands ‘Story telling’ to enlarge stopping power Integrated and interactive concepts communicated to the customer through technology and tastings Airport design

13 Airport Design Airport design

14 THE NEXT 25 YEARS: ROOM FOR GROWTH

15 CONTINUOUS GROWTH DESPITE CRISIS
Economic Crisis – November 2000 Economic Crisis – February 2001 N.Y World Trade Centre Terrorist Attack U.S and U.K launch war against Iraq Departure Main Shops Expansion- October 2003 Suicide bombers attack two synagogues in Istanbul – Terrorist attack HSBC Bank in Istanbul – London hit by terrorist bombings – Arrival Shops Expansion – October 2006 Departure Shops Expansion – December 2006 Renovation in Departure Boutiques – March 2008 Turkish Airlines joined Star Allianca – April 2008 War between Georgia and Russia – August 2008 Economic Crisis – First Quarter of 2009 Swine Flu Epidemic – April 2009 Sealed bag procedures started – October 2009 Sales limits were decrease in all categories – Renovation in Arrival Shops – January 2010 Increase in Cigarette Prices – Volcanic eruption in Iceland – Limits were increased in Arrivals. – Arab Spring – January 2011 Economic Crisis in Europe – January 2011 Syria Crisis – April 2012

16 Subsidy Amount Given to Local Administrations to Support Tourism
YENİ GÖRSELLE DEĞİŞECEK Source : Ministry of Tourism and Culture - Turkey

17 The Next 25 Years: Turkish Economic Outlook
Annual Average Real GDP Growth (%) Forecast in OECD Countries 16th largest economy in the world. 6th largest economy compared to EU countries. Expected to have the fastest growing economy among OECD members between GDP tripled between (2002 GDP - $ 231 billion, 2010 GDP - $ 736 billion) Grafik değişecek * GDP of a country is the major growth driver of the aviation sector.

18 The Next 25 Years: Worldwide GDP Growth

19 YENİ GÖRSELLE DEĞİŞECEK
Source: Airports Council International

20 The Next 25 Years: Turkey Total Air Passengers Total Population
Propensity to Fly = Indicates how many times a person flies during a year. For Turkey, the propensity to fly is 1,4. (102 million/73 million). In developed countries the average is 3.0 Turkey and other developing countries still possess huge potential for air passenger traffic growth. e.g. every person in Turkey flies 1,4 times a year on average.

21 USE OUR MODEL TO GROW

22 CONTRIBUTION TO THE ECONOMY

23 CONTRIBUTION TO ECONOMY
Flow of Foreign Investment Major source of income from privatization Employee Education Promotion Cultural Enhancing Employment Volume Contribution to exports Sustainable Cultural Development Corporate Tax

24


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