London Heathrow Airport CEO, John Holland-Kaye insists 2018 was its ‘best year ever’ and assures passengers to continue ‘booking as normal’ during an uncertain period for the UK regarding Brexit.

 

As reported, Heathrow registered a record 80.1m passengers in 2018 (+2.7%), which helped to boost retail revenue by 8.6% to £716m ($935m), up from £659m in 2017. Retail revenue per passenger rose 5.8% to £8.94 (2017: £8.45).

 

The airport believes the ‘outstanding’ retail performance can be attributed to the positive way in which passengers have responded to several new retail initiatives – such as the additional digital capability of its online Heathrow Boutique – along with its luxury proposition, which includes boutiques from Louis Vuitton, Burberry, Cartier and Chanel among many others.

 

In an exclusive interview with Holland-Kaye last year, he told TRBusiness that the airport continues to reap rewards from Terminal 3’s ‘magic’ retail formula, which he says makes it ‘probably the most successful airport retail space in the world.’

 

‘PREPARED AS WE CAN BE’

He also told TRBusiness that the company is prepared for numerous Brexit deal (or no-deal) scenarios.

 

“We are prepared as we can be. There’s a limit to how much planning you can do without knowing which scenarios you are planning for and to what extent you can actually implement them.

 

“For the big things; keeping the airport flowing; keeping us working as a business, yes, we have all those plans in place and that’s the most important thing; having a sustainable business through what may very well be a period of uncertainty.”

 

Holland-Kaye told the BBC Breakfast News programme this morning that the airport was confident travellers could continue ‘booking as normal’ as he anticipated no major disruption in March and April.

 

AVERAGE SPEND PER PAX GROWS

Commenting on the retail figures for 2018 the airport says that it is ‘seeing more passengers participating in [the] retail offering with each spending more on average’.

 

“Retail revenue growth was strong across all revenue streams with retail concession reflecting higher passenger numbers as well as our call to gate initiative which increases passenger dwell time in the departure lounge,” says LHR.

 

 

 

“Retail concessions were additionally boosted by the roll out of new digital capability on Heathrow boutique, allowing customers to reserve and collect their shopping, with 52 brands now offering this service,” says LHR.

 

Catering also benefitted from the call to gate initiative, and strong performance in the year was further enhanced by refurbishments in Terminals 3 and 5, as well as ‘Grab & Go’ offerings for passengers to take meals on flights.

 

Other retail reflects a significant increase in advertising income from improved utilisation of advertising spaces.