Revenue & Commercial

Dubai Airports concluded another successful year in 2013 with a record 66.4 million passengers passing through Dubai International and the opening of Concourse A in January, both of which fuelled a double-digit rise in revenue.
Concourse A: Come dine in style



The quality and choice of food and beverage outlets is an increasingly important measure of any airport’s overall reputation and Dubai Airports considers it essential to provide the right mix of trusted brands appropriate to Dubai International’s diverse passenger base.

In Concourse A, the world’s first purpose built A380 facility, Dubai Airports believes that we have come up with a portfolio of 16 international recognised brands that will not only ensure high standards of quality, value and service, but will also inject excitement into a very special terminal.

Our customers’ experience on-board the Emirates A380 is now reflected through the environment on the ground and has become a dining destination in itself.

The 16 carefully selected brands include Paul, Umaizushi Bistro, Picnic, Wafi Gourmet, Carluccio’s, Cho Gao, Pulp Juice Bar, McDonalds and McCafe, Shake Shack, Costa Metropolitan, Starbucks, Le Pain Quotidien, Giraffe, Heineken Lounge, Jack’s Bar & Grill and Moet & Chandon Champagne Bar, all of which have become firm favourites with our passengers.

The success of our fresh approach to airport dining has attracted praise from around the globe. At the 2013 Airport FAB awards in October, Dubai Airports was recognised by the award of “Best Airport Food & Beverage Offer of the Year”, while Concourse A’s Jack’s Bar and Grill was awarded the “Best Speciality Concept” at the Frontier Awards held during the Tax free World Association exhibition in Cannes.

Come try our fare the next time you fly into Dubai International.

Overview

The robust growth in passenger traffic and a strong performance from Dubai Airports’ commercial portfolio boosted total revenue 17 per cent year on year in 2013.

Aeronautical revenue rose 12 per cent, reflecting the strong growth of Dubai International’s two home airlines, Emirates and flydubai, which recorded double-digit increases in passenger numbers during the year.

Non-aeronautical or commercial revenue – which contributed towards 52 per cent of total airport revenue – strongly supported Dubai Airports’ long-term corporate objective of reducing dependency on aeronautical revenue sources or other funding while keeping aeronautical charges among the most competitive in the world.

Commercial revenue rose 23 per cent, driven mainly by new or upgraded concessions across Dubai International and by new leasing arrangements with key stakeholders at Dubai International and Al Maktoum International at Dubai World Central.

Improvement across most revenue categories – which include asset management, advertising and retail and food & beverage concessions – helped commercial revenue outstrip passenger growth and boost average revenue per passenger as well as revenue per square metre across both our airports.

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Concession Management

Food & beverage, retail and on-airport advertising concessions grew 29 per cent in 2013, aided by the opening of Concourse A, the world’s first purpose built A380 facility, in January 2013.

The successful opening of Concourse A showcased 16 new and innovative food & beverage outlets designed to meet the highest global standards and elevate airport dining to a new level. Many of the outlets were industry firsts, including the first Giraffe family restaurant outside of the UK, the first Jack’s Bar & Grill created in partnership with Brown Forman and Emirates Leisure Retail, and the first airport Shake Shack outside of the US.

Le Clos Premium Wines & Spirits opened an additional store in Concourse A while Dubai Airports extended its successful partnership with Travelex with a new outlet in the concourse.

Elsewhere in the airport the retail mix was enhanced with new brands being introduced. Among them was spa services managed by Be Relax which opened in Concourse C, offering wellbeing treatments to our passengers. Further Be Relax outlets are expected to be introduced at Dubai International in 2014.

Several new retail and food & beverage outlets opened their doors at Al Maktoum International in concert with the opening of the new passenger terminal in October. These included McDonalds, Costa Coffee and Starbucks. As traffic increases over the next few years, more outlets will begin operating from the airport.

Dubai Airports will also continue to introduce new concepts and brands to Dubai International in the next 18 months with the opening of the fully refurbished Terminal 2 later in 2014 and Concourse D in the first quarter of 2015.

On the advertising front, JC Decaux continued to invest in digital advertising platforms, growing revenue from this medium in excess of 160 per cent in 2013. The advertising portfolio was also boosted by the opening of Concourse A as well as by innovative campaigns such as Nissan’s record-breaking “What If?”, rolled out across Dubai International. The centerpiece of the campaign was the world’s largest backlit billboard above the skylifts in Concourse B. The sign, recognised by Guinness World Records, was 28.117 metres wide, 6.31 metres high and was lit up by 183,024 white LEDs bulbs.

Asset Management

Revenue from Dubai Airports’ property and stakeholder portfolio grew by 30 per cent in 2013 with the addition of Concourse A, the continued delivery of infrastructure in line with Dubai International’s SP2020 expansion plan and implementation of a long-term leasing strategy.

During 2013 there was a significant increase in activity at Al Maktoum International at Dubai World Central where Dubai Airports signed lease deals for land use at the airport with dnata, National Air Cargo and DFS. Dubai Airports also completed arrangements with airlines for offices within the passenger terminal building to allow them to start operations.

At Dubai International, new arrangements were signed off with Emirates airline while service level agreements with key stakeholders were put in place to ensure improved and more consistent service offering.

Also during the year under review, space planning exercises for Concourse D – due to open in early 2015 – was completed, ensuring that customer-facing services are well positioned. Furthermore, a competitive process for selecting dedicated lounge operators was successfully finalised.

Innovation

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Dubai Airports is constantly looking for ways to improve the passenger experience across both of its airports by making their journey a little more memorable.

In November Dubai Airports, together with TWSteel Watches and Dubai Duty Free, took the unusual step of hosting a live pop-up concert where headline recording artist Kelly Rowland surprised passengers and airport employees in Dubai International’s Concourse B with her performance. This one-off event attracted a considerable crowd of passengers and the video clip capturing the moment was subsequently widely shared on Twitter, youtube and Facebook.

The event was not only welcomed by passengers but enhanced the brand of TWSteel, Dubai Duty Free and Dubai Airports.

In another successful partnership Dubai Airports teamed up with Emirates Leisure Retail (ELR) and Costa Coffee to globally launch the Marlow 200, Costa Coffee’s first 5-sense self-serve coffee experience. The Marlow 200 is the result of 12 years of coffee innovation and is the next wave of the Costa Express business. The new coffee machine is designed to appeal to all five senses of the coffee lover.

These innovative products and events help enhance Dubai International’s position as one of the world’s preferred airport hubs.