What are the challenges in Travel Retail? How can airports, travel retailers and airlines respond to changing customer behavior? And what role does E-Commerce play in airports' new business models? Kian Gould, CEO and founder of AOE, answers these and other questions in an interview with Peter Marshall.
The two industry professionals took the TFWA Summit in Cannes as an opportunity to discuss the most important trends and topics in the travel retail industry. In the three-part interview, Kian explains the beginnings of the OM³ Platform, which first went live worldwide at Frankfurt Airport, and explains the different business models and USPs at Frankfurt, Auckland International Airport and London Heathrow.
In this first part, you can also find out how to measure the success of digitalization strategies and Omnichannel platforms, why and how online and offline commerce support each other and how digital solutions improve the customer journey. A transcript is also available for download.
In their three-part video interview, Peter Marshall of Marshall Arts International, and Kian Gould, CEO of AOE, discuss challenges that airports and the travel retail industry are facing. Learn about different approaches to these challenges and find out how Frankfurt Airport, London Heathrow and Auckland International are digitalizing their business cases to optimize the customer experience and create new non-aviation revenue streams.
Do you want to know what the other two factors for measuring success of travel retail commerce platforms are? Interested in finding out how the USPs of each airport influence their respective non-aviation revenue business models? And, most importantly, how do these platforms impact spend per head? Read the entire transcript of Part I below for answers to these – and other – questions.
In parts 2 and 3 of the video, Kian Gould explains, among other things, which USP airports have when it comes to E-Commerce. You will also learn why airports underestimate the cost of implementing E-Commerce solutions and why mass-market products cannot solve E-Commerce problems at airports:
A three-part series of blogs showing how LCCs of any size have a proven, low-cost entry option to seize the digital initiative in driving their ancillary revenue recovery.
After 20-months of Zoom sessions it was amazing to be out in the real world again this month, flying the globe and actually meeting industry colleagues in person! Following the World Aviation Festival (WAF) in London I moved on to Future Travel Experience (FTE) in Las Vegas and it was so encouraging to find that these two major industry events, 8,000 km apart, echoed the industry’s increasing buzz around the digitalization of ancillary revenue. Sadly, I’ve now been brought back to earth by the latest twist in the crisis as Omicron looks to inflict yet another challenging phase. However, after two years of disruption the aviation industry knows it has to adapt to each new challenge and strengthen its ability to respond just as long as governments finally realize that locking down borders is a very short-sighted approach (unless you are an island state) and haven’t stopped any of the previous 4 COVID waves in any meaningful way. If the last two years have taught us anything, it is that airlines, like governments, will need to think a lot more globally than locally.
December’s World Aviation Festival in London was a great opportunity to bring the industry together and, although attendance was inevitably lower than normal, there was a strong conference program that carried a mood of guarded optimism. Best of all, I was delighted to see just how strongly the focus was on real action to drive ancillary revenue and recovery. Much of 2021 has been spent waiting for a recovery to be established and many airlines have understandably been hesitant (or unable) to commit to new investment or major change in their customer operations. The long hoped-for recovery has been impossible to forecast accurately and many airlines opted to simply ‘hunker down’ and wait until a clearer path can be seen through the storm. That strategy carries deep risks. We now face a new phase of crisis as Omicron sadly develops its global presence but the fact is that the world will continue to turn, people will continue to travel, the crisis will eventually recede, and traffic will return. Airlines need to be preparing right now to create the customer experience that the recovery will demand. Yes, the picture of how the 2022 travel market will look in recovery is still blurred right now - but the key point is that we do already know exactly what the returning customer looks like and what they want. We have a clear understanding of the experience they want - and we have the digital tools to deliver that experience.