Projecting the airport as a destination with Pradeep Panicker at Hyderabad International

GMR Hyderabad International Airport Limited CEO Pradeep Panicker assesses the drivers of commercial performance, an emerging generation of shoppers and key projects that will drive a fresh wave of growth.

INDIA. At 26% of annual revenues for GMR Hyderabad International Airport Limited, commercial activities have plenty of scope for growth in share and scale. So says CEO Pradeep Panicker as he outlines the ambition to see Rajiv Gandhi International Airport become as much destination as travel hub.

In line with the airport’s remarkable passenger growth – it served 25 million in the year to 31 March 2024, with an expected final count of closer to 29 million to March 2025 – commercial space has been expanded and reworked.

Panicker says, “With the terminal’s expansion from a capacity of 12 million to 34 million, over 200 new outlets have been added, ranging from fine-dining F&B and exciting new bars to high-end experiential retail stores, unique pod hotels and a new transit lounge.

“These additions cater to the diverse needs of ever-changing consumer behaviour. As we continue to expand, we plan to introduce new concepts such as a luxury zone and a bridge to the luxury zone.”

A big strategic focus today is on non-passenger revenue, notably in appealing to Gen Z, which makes up 32% of the audience. As this group prioritises experiences, it means the airport must evolve from “conventional retail spaces to something more”, says Panicker.

“We achieve this by focusing on non-passenger income and projecting the airport as a destination, not just a means of transport.”

Aero Plaza serves as the airport’s prime destination for food and events, attracting both passengers and city visitors. The retail zone there will soon be expanded with the introduction of R2, a recreational area near water featuring water sports, a wellness centre and a venue for destination weddings, along with an expanded Aero Plaza featuring fine-dining concepts and a Family Entertainment Centre.

Recently GMR has also introduced facilities such as JPod sleeping pods for overnight stays, while business travellers can work at iSprout’s co-working spaces.

Technology is also a driver of commercial performance. Panicker says, “Hyderabad has been a leader in implementing new technological initiatives, such as smart trolleys that help passengers navigate to their gates, reducing boarding stress and informing them about ongoing offers and sales, thereby increasing purchase chances.

“In the future, we plan to expand on this by implementing AR and Al for virtual try-ons and AI-based skin analysis in retail stores, as well as smart autonomous food delivery robots to ease passenger worries and boost sales.”

Panicker also highlights key consumer trends that are leading retail and dining performance. Summing these up he says that Gen Z and Gen Y are becoming ever more important to spend, while Millennials too are spending more with increases in disposable income.

The role of experiential retail is becoming vital, with tech an enabler and booster. In addition, says the CEO, F&B requires even more diversity, such as vegan, gluten-free and organic options, while grab & go and gate delivery formats are becoming more relevant amid constraints to travellers’ time.

The airport company is also striving to create points of difference from other airports and downtown through its store design strategy, which should communicate each brand’s own values through their look and feel.

“Over the past year, every store we have opened has adhered to this principle, helping passengers connect with the brands and enhancing their retail experience. This approach has significantly improved experiential retail, making shopping more engaging and memorable for customers,” says Panicker.

“Additionally, we are focusing on integrating technological initiatives as a core component of our store designs. By incorporating advanced technologies, we aim to create a seamless and innovative shopping environment that meets the evolving needs of modern consumers.

“In the future, we plan to introduce a wider selection of renowned brands, particularly from the F&B sector, to enhance passenger experience. Our commitment to both design and technology ensures that our stores remain at the forefront of retail innovation.”

Hyderabad Airport faces similar challenges to its peers in the fast-growing Indian market. Among these are changing patterns of arrival at the airport before travel. Panicker says, “Post-pandemic, passengers are reluctant to arrive early, opting for a more streamlined airport experience, leading to a -16% reduction in dwell time.”

He also cites the rise of quick-delivery ecommerce, which has reset consumer expectations about all retail channels.

Beyond that, travellers’ access to instant price comparisons via online marketplaces empowers them to make well-informed purchasing choices, a factor all airports must face. However, notes Panicker, “these shifts in consumer behaviour present an exciting opportunity to enhance convenience-driven services, embrace innovative retail solutions and create experience-focused offerings that resonate with modern travellers.”

GMR also manages the duty free in-house through its GMR Hyderabad Duty Free arm, with the sales outlook broadly positive, notably for core categories liquor, P&C, confectionery and tobacco, says the company.

“With our new arrival store, we have got the leverage of expanded space providing us the opportunity to drive category expansion for premium cosmetics & fragrances and watches & sunglasses,” says Panicker.

“We are also excited to [soon] unveil our revamped departures store, which shall provide a much more premium, immersive and intuitive buying experience. At the revamped departures, we will strengthen high-end spirits collections, luxury fragrances and destination merchandise with a focus on travel-retail exclusives and curated gifting.”

These continuing store investments are bolstered by a tradition of high-profile campaigns that encourage spend, with more to come in 2025, from the popular summer and year-end bonanzas to the Mega Shopping Fest.

Panicker says, “Our objective is very clear: to create excitement, spark customer engagement and elevate the shopping experience. We ensure that our flagship promotions are running during the key times of the year. The promotions are curated with a spotlight on focused product categories through offers, exciting contests and eye-catching displays.

“We are bringing in more digital elements, social media activation and also influencer partnerships with a memorable vibe. The focus is always on delivering value and customer delight and making the GMR Hyderabad Duty-Free experience a standout part of every passenger’s journey.”

This interview first appeared on page 66 of The Moodie Davitt Magazine, May issue. Click here to open the edition.