Ireland's Shannon Airport - where does it go from here?

In 1947 the Irish Customs Free Airport Act established Shannon Airport as the world's first duty free facility something which would become a template for other Duty Free facilities worldwide. The sharp rise in the number of transatlantic flights to North America established the airport as the last refueling point between the two land masses but the introduction of long range jet aircraft it soon saw passenger numbers decline.

Ryanair - was a regional hub for the airline?

Being under the control of the government owned Dublin Airport Authority (or Aer Rianta as it was known as then) since 1969 it has always been felt that Shannon Airport was seen as a second class status with it now being Ireland's fifth airport and suffering a 37% decrease in passenger numbers in 2010. Even with the advent of the low cost airlines such as Ryanair the DAA has not been able to cement a steady enough relationship with Ryanair who have taken traffic to other airports in Spain.

However, in a turn around decision this week it has been outlined that Shannon Airport will no longer be under the authority of the DAA - the Government will still own Shannon Airport but the direct control of the airport is being handed over to local management at Shannon Development, the regional development agency.

The Future Options for Shannon Airport

The first priority is to increase passenger numbers now it will be able to compete on a level playing field with the other Irish airports. Also establish niche activities will make it a player in the aviation market - with its long runway and abundance of surrounding land for warehousing, 24 hour flying capability due to its isolated location, US customs clearance (the only one in Europe) it would make a good European hub for cargo. The first development of this kind has already been signed with the US cargo group Lynx building a 19,000 sqm facility for a global airport cargo facility specialising in international logistics services.

The title of the world's first duty free shop will still remain with Shannon as long as they can guarantee their future with growth such as this.

The Changing Face of Travel Retailing

The Worldwide travel retail business is worth in excess of $30 USD billion and over two thirds of this is down to airport shopping. Nevertheless, as seen in the past it is more sensitive because of its susceptibility to crisis - SARS crisis and 09/11 are just two examples which hit the sector the hardest. The airport operators world wide are becoming more dependent upon the retail revenue as the emergence of budget airline operators suppress their revenues by moving out to new airports offering the best prices for them.

Over the last 10 years it has become a key feature of airports to showcase "walk-through concepts" - passengers are guided from the airport entrance to the airplane departure gate through a frenzy of retail sales activity (e.g. Duty Free Shop), a path of retail temptation. It is found that passengers are at their most relaxed after completing check-in, passport and security checks.

One of the growing trends now is the advent of the Arrivals Duty Free Shop - perfect locations for last second shopping on arrival or for travellers not wishing to carry duty free goods on a long journey. this gives the retailers an opportunity to showcase locally made products. However, the big drawback with arrivals duty free shops is that this entails changes in legislation to allow such an activity to take place - usually a long draw out process. Recent examples of new arrivals duty free can be found in Switzerland and numerous countries in South America.

The whole aim of these latest trends is to convert the "passenger" into a "shopper" - no easy feat since in excess of 70% of passengers do not shop, not really surprising as they are actually there to travel!. However, a well spoken about concept in the airport industry is the phrase "sense of place" in conceptualizing travel retailing. One of the foremost authorities on this is Robbie Gill of The Design Solution company who have designed airports throughout the world. He believes that this "sense of being" should and will play a major part in transforming passengers into shoppers via transforming their travel retail experience. Gill believes that bringing a "local flavour" into the equation will go a long way to achieving this and he cites the examples at Barbados' Grantley Adams International Airport, where the shops all have corrugated roofs reminiscent of chattel homes, and Minneapolis with sculptures of Snoopy and Canada geese in the terrazzo floors. Changi Airport in Singapore has its own very unique 'sense of place' through the remarkable range of gardens such as the Sunflower Garden, Orchid Garden, Cactus Garden and Butterfly Garden.

The Design Solution recently worked on The Irish Whiskey Collection Duty Free retail store at Dublin Airport's new Terminal 2. This is retail with a true 'sense of place', as it only promotes Irish Whiskeys to local and international travellers. The new concept and store design was created solely to boost Irish Whiskey sales within the airport's duty free store, boosting Irish Whiskey sales by over 30%.

It can be demonstrated that 'sense of place' is far more than bricks and mortar; it is of the locale, the commerce and the culture. It shows a more interesting passenger experience, and in today's tough operating climate where travellers have more choice of where to fly from than ever before, that cannot be underestimated.

The "Perfect Seat" on a flight

A recent passenger survey conducted by the flight comparison website, Skyscanner, asked 1,000 airlines passengers about their seating preference on board an aircraft. They were given the option of an aisle, window or middle row seat.

And the result from a standard plane....seat 6A.

This finding backs up similar surveys carried out in the past which suggest the popularity of the first six rows due reduced engine noise, quicker exit from the plane on arrival and better selection of food and duty free trolley. The preference though would be for an aisle or window seat as only 1% of those questioned said they would opt for a middle seat.

Some airlines are now preparing to charge people for booking seats and with this data available EasyJet airline plans to charge £8.00 for this sector in the plane and £3.00 elsewhere.
 

First six rows are the preference

And the least popular seat... 31E (middle seat at the back). Presumably this is due to lack of choice on the duty free trolley! 

The Smartphone Duty Free City of the East but located in the West.

Paraguay’s Ciudad del Este, or translated from Spanish “City of the East”, is in the West to most Europeans as it is located on the great South American Paraná River that cuts a frontier between Mercosur’s tri-border area of Paraguay, Brazil and Argentina.

The City of the East is indeed a Latin equivalent of the famous Far Eastern shopping havens of Bangkok and Hong Kong, with electrical products and gadgets the lifeblood of this city’s retail bonanza. Strolling the main street after negotiating the precarious Friendship Bridge from Foz do Iguaçu in Brazil, there are shops, mini malls and stalls selling every conceivable electrical appliance at prices far cheaper than in the adjacent and modernising Brazil, just across the river.

C de E is supposed to be threatening, but during the hustle and bustle of the day and the midday autumn heat rising to 35 degrees, the only risk encountered would be buying too many pairs of socks. Likewise, why is every foreign tourist named “taxi”, whenever they travel to such locations?

Goods are sold at Duty Free, Tax Free or low-tax discounted prices. The city is a (Duty Free) Special Freezone, created to capitalise on the border crossing traffic coming from Brazil’s industrial and economic heartland cities of São Paulo, Londrina, Curitiba and Campinas, encompassing a population rising to 20 million or more.

Mobile phones are the in-demand item, especially the Apple iPhone and iPad, which can be bought for around 40 per cent less than in Brazil and without a service contract. A multitude of other cell phones are also available as are spares, cables, batteries and accessories for all makes of mobile. A replacement battery for the iconic Nokia 6310 or 6230 costs USD$1 per unit and to date charging well, unlike a similar version bought at Bangkok’s MBK.

Paraguay has the infamous reputation of being the copy capital of the Americas, but there was zero evidence of fake products in the plush stores operated by Mannah’s “La Petisquera”, “Macedonia” or the largest department store “Monalisa”.

The latter provides a very good early morning coffee and a live pianist giving you Sammy Cahn’s best. Not, the three Paraguayan Indians on the harp one expects.

Yes, some of the mini malls are a little unkempt, but when did you last find a similar arcade in Europe that can fix your camera or phone in an hour, rather than negotiate a sophisticated westernised customer service system equivalent to a maze?

At the arrival or departure border crossing and right next to the Customs control is the stylish “Shopping del Este” Centre, a quality Mall that would grace any European city, with air conditioning that works to the full and easily entices you in from the Middle Eastern like, dry heat.

In fact, the heat is not the only Arabic similarity as many of the traders who run the commerce in the city have Lebanese or Gulf roots and it is strange to hear Bukra, Insha'allah and Tamam mixed with Buenos Dias, Gracias and Tudo Bem.

The final hurdle is to return to Brazil over the bridge, by bus, taxi or on foot and passing the nonchalant Paraguayan Customs and Immigration Officials. When asked what the duty free allowances are for arriving into Paraguay, the Customs Officer needed some convincing to find the exact exemptions. His bemusement as to why anyone would want to bring goods into Paraguay was somewhat justifiable if you consider that everything in Brazil is more expensive.

With all the hearsay Paraguayan threats avoided, the biggest danger is the miniscule guard rail protecting you from the mighty Paraná, 200 hundred metres below.

And the Brazilian taxi driver who takes you home.

Clearly, they hadn’t yet been to Ciudad del Este to get their counting gadgets working properly!

Click here to check all world Duty Free shopping centres and Allowances.

Worldwide Duty Free Allowances

Global duty-free and tax-free "easy to identify" icons now released.

All duty-free allowance icons copyright 2010 http://www.dutyfreeonarrival.com/

Perfume, liquors, gifts & tobacco duty-free allowances icons are now released so to assist travellers with the interpretation of restrictions and regulations. Worldwide duty-allowances by Country will be released shortly, examples are currently available at www.dutyfreeconsejo.com