What does digitalization mean for airports? What can airports do to avoid beginner’s mistakes when introducing E-Commerce solutions? Why are premium products purchased so frequently in the travel retail environment? And how can airlines and airports work together optimally to achieve a win-win situation for everyone involved? Kian Gould, CEO and founder of AOE, answered these and other questions in an interview with Peter Marshall.
Peter and Kian spoke at the TFWA Summit in Cannes about the challenges in the travel retail industry - and how airports, airlines and retailers react to them. In addition, in the third part of the three-part interview, Kian explains how airlines are progressing with the digitalization of their E-Commerce offerings, why travel retail can simultaneously prevent and benefit from digital disruption, and what changes in the basic attitudes of all participants are necessary for digitalization in travel retail to be successful.
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.
What is the passengers' main focus when buying goods? Who is really driving digitalization in travel retail? Which two questions need to be answered before creating a successful E-Commerce business model? Read the entire transcript of Part III below for answers to these – and other – questions.
In the first two parts of the interview, Kian Gould explains the different business models for E-Commerce at Frankfurt Airport, Auckland Airport and London Heathrow. Among other things, you will also learn how to measure the success of digitalization strategies and omnichannel platforms, which USPs airports have in E-Commerce and what obstacles they face when implementing such solutions:
Aviation & Travel
One of the biggest emerging trends I have seen in the airline sector over the last couple of years is the concept of passenger self-serve onboard or order to seat. Despite the almost constant discussion at every industry event, the funny thing is, this isn’t really new at all – almost 10 years ago, a former CEO of an onboard retail technology provider proclaimed: “Over time the duty free model will shift to 100% passenger self-service transactions. One of the biggest reasons being the fact that the trolley only comes down the aisle once a journey, for half an hour – in essence the duty free store is only open for half an hour. If I can make transactions myself, through self-service technology, the store is open for the entire flight.” And yet, a decade later, this isn’t even close to the reality on-board most aircraft. During the pandemic, with the need for social distancing, coupled with a desire for innovation, self-service again bubbled to the fore – it gained a new level of relevance. With passengers across all demographics accustomed to ordering everything from groceries to new cars via their phones, digital transactions onboard an aircraft look to be a natural extension of what has become an everyday digital experience. The aviation sector is obsessed (but occasionally intimidated) by digital answers, and there is much that can already be done. Making a digital store available for browsing and even purchasing is achievable, both on IFE and passengers own devices. The process raises a number of operational implications, such as how crew learn of and deliver orders, how payments are handled (particularly if there is no air-to-ground connection) and how this sits alongside the existing cabin service. All of these issues require significant thought and, in some cases investment; and there lies the heart of the problem.
WIESBADEN, GERMANY, 19 JANUARY 2023 - Omnevo opens 2023 on a high with the announcement of two new airline projects following the launch of digital platforms with Fly Arna, Armenia’s national airline, and Fly Jinnah, a low-cost domestic carrier connecting main cities across Pakistan.
Aviation & Travel
In his two previous blogs in this three-part series looking at digital revenue adoption by airports, Daniel firstly outlined the compelling commercial rationale of ‘Why?’ airports should develop a digital revenue platform. He then explained the ‘How?’ - detailing the phased program in the creation of a digital revenue platform. Now he explains ‘Who?’ – highlighting the key roles required across the joint airport-Omnevo team to make the project a success.