
Asia Pacific / Airports
Changi creates new millionaire grand prize
By Doug Newhouse, 31 May 2010
The Changi Airport Group (CAG) has launched a new draw for passengers offering five top prizes of S$5,000 ($3,568) and one first prize of S$1m ($713,560) after a healthy first quarter where concession sales at Changi Airport rose by 15.9% compared with a 6.2% increase in the January-April 2009 period. At the same time, passenger traffic has risen by 15.5% 13.2m between January-April 2010.
In addition to the new prize draw - which will be held in 2011 - CAG has also extended its goods and services tax (GST) scheme known as 'Flying Or Not, You Shop We Absorb' beyond Terminal 3 to terminals one and two. This now incorporates more than 40 retail stores which account for over 80% of the retail outlets located in Changi.
The airport's public areas will now absorb the 7% GST levy on all purchases made at these additional stores which include Candy Empire, Carlo Rino, Chomel, Eu Yan Sang, Mini Toons, Swatch, SK Jewellery, Samsonite and Watsons.
Meanwhile, the new prize draw promotion kicks off tomorrow (June 1) and in addition to the aforementioned prizes, another 188 winners will win cash prizes totalling more than S$200,000 ($142,726).
Passengers who spend a minimum of S$60 ($42.81) on retail or F&B will qualify for the Millionaire Draw and the number of chances to win increases exponentially with the amount spent. Additional chances are given to 'Changi Rewards' members or those who pay with Visa cards. ['Be a Changi Millionaire' is co-sponsored by CAG and Visa Worldwide].
Purchases made in both the public and transit areas of Changi Airport qualify for the Draw where the qualifying period is between June 1, 2010 to November 30, 2010.
DAILY PRIZES ALSO FEATURE
The 'Be a Changi Millionaire' promotion will see a daily prize of S$1,000 ($714) awarded over the 183 days of the qualifying period. After the close of each month, a monthly draw will be conducted to shortlist one finalist for participation in the Grand Draw. Apart from the chance to win S$1m ($713,560), the finalists will win S$5,000 ($3,568) in cash, plus a three-day/two-night stay in a luxurious hotel in Singapore, with the air fare provided for non-Singapore residents. The Grand Draw will take place at Changi Airport in January 2011.
Besides an extra chance of winning the draw by using a Visa card when spending S$60 ($42.81), passengers spending larger amounts on retail and F&B also get even more chances. For example, a customer spending S$100 ($71.38) gets three chances, plus an extra two for using a Visa card, while anyone spending S$200 ($142.79) gets 15 chances of winning, plus an extra five for using a Visa card.
Any customer spending S$500 ($357) gets 50 chances of winning, plus an extra 10 for using a Visa card. An additional 50 chances are awarded to passengers spending an incremental S$500 ($357).
CAG Executive Vice President, Commercial Lim Peck Hoon said: "We are extremely excited about 'Be a Changi Millionaire'. Combining the pleasures of shopping and dining with the chance of winning one million dollars will appeal to many.
"This campaign is yet another example of CAG supporting our retail concessionaires and providing more value to our guests. It will serve to strengthen Changi Airport's position as one of the world's most attractive and vibrant airports for shopping and dining."
NON-AERONAUTICAL REVENUE STIMULUS
The CAG says that as part of its strategy to grow its non-aeronautical revenue, it believes in creating a conducive retail environment for concessionaires and working closely with them to boost the attractiveness of Changi as a shopping destination. To this end, it says that these shopping promotions play an anchor role in creating buzz and excitement among travellers at Changi, as well as drawing in local footfall to Changi's terminals.
In 2009, CAG had a sustained campaign of regular promotional events and activities aimed at increasing spending and drawing footfall to the airport. Those efforts helped to provide some cushion for concessionaires during a difficult year.
For example, footfall to the B2 Mall at Terminal 3 has more than doubled in the past year. CAG says that programmes and activities launched earlier this year are helping concessionaires ride the recovery and capitalise on the growth opportunities.
For instance, in March 2010 CAG launched 'Changi Rewards', a programme which rewards customers for every dollar they spend at Changi. In just two months following the launch of the programme, CAG reports that more than 12,000 people have now signed up and collected their 'Changi Rewards' cards, with more than 2,900 redemptions for Changi Vouchers.
In addition, last month saw the launch of 'Let's Do Lunch' - a dining promotion at the public areas of Changi, targeted at local residents and those who work near the airport. Under this promotion, 22 dining establishments offered weekday set lunches at price of just S$10 ($7.13).
TOP SPENDS, CITIES AND SALES
CAG says that it now works with more than 230 retail stores and 110 F&B outlets located across Changi Airport's three main terminals and Budget Terminal. In 2009, the top five nationalities in terms of spend per passenger came from Singapore, China, the European Union, India and Indonesia. The top 10 city links from Changi last year were (in order) Jakarta; Kuala Lumpur; Bangkok; Hong Kong; Manila; London; Tokyo; Sydney; Shanghai; and Denpasar in Bali, Indonesia.
The most popular items by sales in Changi Airport are currently (in order) liquor and tobacco, perfume and cosmetics, and luxury branded goods. International passenger traffic has also grown consistently over the last six years, with the only dip occurring last year for obvious reasons. Total traffic in 2004 stood at 30.4m, followed by 32.4m in 2005; 35m in 2006; 36.7m in 2007; 37.7m in 2008; and 37.2m in 2009.
While Changi handled the aforementioned 37.2m passenger movements in 2009, it also registered a monthly record of 3.83m in December 2009 which highlighted the recovery in a difficult year. The first four months of this year have also been very positive, with 3.38m passengers in January (+10.1%); 3.10m in February (+21.5%); 3.44m in March (+18.8%); and 3.28m in April (+12.6%).
As of May 1, 2010, the airport served 86 airlines flying to 200 cities in about 60 countries and territories worldwide. As of January 2010, Changi was the world's fifth-busiest airport for international passenger traffic with total concession space across all terminals of about 70,000sq m, with transit malls on the airside accounting for about 50,000sq m.
COMMENT: Few airports in the world can boast an average time of just 12 minutes for first bag to appear on the baggage belt after an aircraft lands and 25 minutes for the last, but Changi Airport manages it consistently. It has also been voted the best in virtually everything else at one time or another, having won just about every award going (350-plus) for its services and efficiency levels. Last year alone it won 28 and another eight accolades have come its way so far this year and there is nothing lucky about this.
The airport has concentrated on building its reputation for top quality customer service for more than two decades and it has simply made 'getting better' a mantra and a priority. It will be really interesting to see how the airport company develops in 2010 and beyond following the 'corporatisation' of the Changi Airport Group on July 1 last year. How it expands the services it offers to other airports and where it chooses to invest its money will be equally significant.
The company's overseas interests, joint partnerships and investments have already grown considerably. Only relatively recently it acquired a 5% stake in Gemina S.p.A., the holding company of Aeroporti di Roma (AdR) which owns the concession to operate Italy's largest airports' group, comprising Rome's Leonardo da Vinci Airport and Giovan Battista Pastine Airport.
It also holds a 26% stake in the Bengal Aerotropolis Projects Ltd (BAPL) for the development of India's first privately-owned airport in Durgapur, West Bengal and in China it has entered into a strategic partnership with Shenzhen Airport Group (SAC) to develop a portfolio of regional airports across China.
Other airports with whom it works - or has worked with - include the Xiamen International Airport Group Co. Ltd in China, plus several others, including Beijing Capital, Chengdu Shuangliu, Guangzhou Baiyun, Fuzhou Changle, Qingdao Liuting and Chongqing Jiangbei. It has also worked with Dammam and King Fahd International Airport in Saudi Arabia; Abu Dhabi International Airport; Moscow Sheremetyevo International Airport (Terminal C); and many others in countries which include India; Jordan; Rwanda; Uganda; Philippines; and Fiji.
[On the commercial side, an exclusive interview with CAG Executive Vice President, Commercial Lim Peck Hoon appears in the May 2010 issue of The Travel Retail Business magazine-Ed].

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