Business to business
Providing a forum for the travel-retail industry to meet and do business remains the key priority for the Duty Free Show of the Americas, as IAADFS executive director Michael Payne tells David Davies
Following last year’s historic 40th anniversary gathering, the Duty Free Show of the Americas (DFSA) – organised and operated by the International Association of Airport Duty Free Stores (IAADFS) – is now powering into its fifth decade.
Providing a meeting point for suppliers and retailers not just in the Americas but worldwide, DFSA remains an important stopping-off point on the busy duty- free/travel-retail calendar. With the 2009 show just weeks away, Frontier spoke to IAADFS executive director Michael Payne about the prospects for this year’s show and whether the wider travel-retail business can continue to flourish in light of the current economic conditions.
At the time of speaking (late February), how close is the 2009 Duty Free Show of the Americas to selling out and how many exhibitors have signed up?
We are about 85% sold as of last week, with 192 exhibitors. We also have some people on a list that we are trying to place.Given the present economic conditions, this is in line with our expectations. Most trade shows that I am familiar with or working with are down 10-15%, and when people say that they mean in the context of both attendees and exhibitors, and I suspect we will be in that ballpark.
I think that we are going to get is fewer people from companies. Every indication that I have looked at [suggests] that the same number of companies are visiting, but that instead of sending five people they might be sending, say, five. I think we feel that because everyone is looking for ways to economise.
At the same time, it is important to note that some [exhibiting] companies have expanded their presence, taken more space or upgraded their booth.
Presumably, then, you are expecting a reduction in visitor attendance this year?
Overall, the numbers are encouraging, but we don’t have our heads in the sand [as regard the] fact that we are going to feel the pinch, although we are doing whatever we can to help encourage and work with people. However, I would be naïve to sit there and think that we are going to be exactly where we were last year.
Given the current challenges faced by many in the travel-retail business, what do you hope that visitors and exhibitors will take away from their visit to this year’s show?
Our view about this show which has been consistent for years is that this is a business-to-business show. We have really promoted the message that it is an opportunity to do a year’s worth of business in three days. We have got 58 or 59 countries and close to 200 exhibitors, so we are really trying to make the case that a lot of business can be done in one location over three days. We hope that people will regard it as a really productive business environment, and that even with the economy out there they get a lot done and are able to do it in a very cost-effective fashion.
Yes, it is important to remember that even in difficult times such as these, lots of people are still doing good business.
I think that is exactly right. Some places are worse than others, and some are feeling it more than others, but everyone will feel it at some point. You just have to keep pushing on.
What qualities do you think distinguish the Duty Free Show of the Americas from other travel-retail industry events?
There are a lot of quality events in the industry. This is the oldest show and draws on a huge region, although we also have a large percentage of attendees from the EU, certainly in the supplier area. [So you have to consider] the history and the true business-to-business nature of the event – we have really tried to create an environment where that is the focus. We also bring a lot of Caribbean, Latin American, Central American, US, Canadian and Mexican culture to the place, and I don’t know if there is another show that does that – certainly not to the extent we do.
How can you and the other members of the management team ensure that the show remains relevant and responsive to industry needs?
One of the things that we do is hopefully listen to our attendees, buyers and exhibitors. We have made changes when we felt like feedback suggested we needed to make changes, including the move from Orlando to this environment [in Fort Lauderdale], and if we ever got the sense that they were lacking something in this environment and wanted another one, we would respond to that. We used to have the floor close at 5pm, and a lot of people don’t want to leave at five – they want events – and that is an example of something that we just changed. Basically, we are trying to make the event as user-friendly and efficient as possible, and we keep doing that.
In terms of relevancy, I think that as long as we are focused on the advocacy work we are doing in representing the industry in a very productive and meaningful way, I think it continues to be relevant.
Finally, do you remain optimistic for the long-term future of duty-free/travel-retail?
I do. It is a very resilient industry and it has proven that through the EU abolition of duty-free, through SARS, through post-9/11. You can pick a few big triggering events of the last decade-and-a-half and see how it has continued to prosper, so yes, I am optimistic. Even if international travel numbers are down, I think that it will turn itself around and that people will continue to travel. No one knows how fast it will bounce back, but I certainly think that it will.
There are also positive signs that there is going to be investment in infrastructure needed to grow airport facilities, which is critical for us. It may not be as fast as initially, but I think that in the long-term the prospects are actually very positive. Also, some regions are doing better than others – the Middle East continues to thrive, and it is also very positive in the Americas.
In essence, there will be some short-term pain, but in the long-term I am very optimistic. It’s an important part of the travel experience and it is not going to go away.
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