Dr Sani Şener, President & CEO, TAV Airports: “ATU Duty Free has the experience and knowledge through our major airport operations with TAV Airports – we are a very well-known company in the duty free sector.”
Earlier this year, ATU Duty Free fought off fierce competition from other world leaders in duty free to manage Houston George Bush Intercontinental Airport’s duty free operations for the next 10 years. Dr Sani Şener, President & CEO, TAV Airports, explained to Amy Hanna how the retailer’s first business in the US provides it with a much-valued foothold in a market flush with opportunity.
In a development earlier this year that will forever change the business of one of the world’s most influential duty free companies, ATU Duty Free was awarded the tender to manage the duty free operations of Houston George Bush Intercontinental Airport. ATU Duty Free – the travel retailer, distributor and supplier operated in a joint venture by TAV Airports Holding and Unifree Duty Free/Gebr. Heinemann – will operate the airport’s 700sqm duty free area, which served more than 41 million passengers in 2014, for the next 10 years.
The agreement between the airport and ATU Duty Free marks the Turkish firm’s milestone first business at a US gateway, and establishes a legitimate foothold in what is the biggest aviation market in the world. “We won the tender for the duty free operations of Houston George Bush Airport for 10 years as a Turkish brand after the fierce competition in the US,” TAV Airports President & CEO Dr Sani Şener said at the time. “The success we achieved is another indicator of our significant industrial growth.”
Şener explained to Airport Business that the duty free contract, which will begin in July, will serve as ATU Duty Free and TAV Airports’ footprint in the US – a footprint that Houston City Council, Houston Airport System and all of its competitors will be eyeing carefully. The principal aim, he said, is to leave an excellent and enduring impression, and introduce ATU to the US market in a “robust” way. “We consider it very prestigious to be a player in the biggest market in the world,” he stated. “It will be our first operation in the US, but we are very confident that we can adapt easily to different cultures and conditions. Houston is a strategically important city. Passenger stats are increasing and the city is investing in the airport. A new international terminal will be built in the next few years, so there will be more opportunities for us in Houston. Additionally, Istanbul is well-connected to Houston via Turkish Airlines direct flights.”
Houston is a highly developed city in terms of economy, and tourism is one of the main drivers of its prosperity, with visitors to the city growing in number and direct flights from major cities in Europe and Asia increasing every year. Though the US duty free market may not currently rank in parallel with that of Asia, Europe or the UAE, Houston and many other cities are rapidly emerging markets in the travel retail sector that indicate real market development opportunity, with plenty of scope for growth. “We must first establish a successful operation in Houston. Then we intend to expand our business to other cities and states in the US,” Şener said. “We fully intend to show our quality and depth of experience that we have already gained in different regions, serving many passengers with different cultures, discerning tastes and purchasing needs.”
ATU Duty Free’s sturdy partnership structure, consisting of local partners and group companies, was pivotal to its success. In its operation of Houston George Bush Intercontinental Airport ATU Americas will be in a fruitful cooperation with Heinemann Americas.
In the first quarter of this year the number of passengers served by ATU Duty Free grew by 7%, while revenue grew by 20%, and the Houston George Bush Airport tender is the third the company has won outside of the TAV ecosystem in the past year, following Salalah Airport, Oman, and the Tunisia Carthage package. “We want to ensure that ATU’s success in the last years continues in a sustainable manner. North Africa, Middle East, the Caucasus and the USA are the target regions for us,” Şener commented. “Whichever market TAV Airports enters, ATU will be the duty free operator and partner. So, thanks to our flexible organisation structure, we genuinely see future growth for the business.”
