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This is what has to change for Travel Retail to survive

February 09, 2018
About the author Christian HolzschuhChristian Holzschuh
Online Marketing

"This is what has to change for Travel Retail to survive" was the topic of the presentation at Hamburg Aviation Conference, given by Manuel Heidler, Director Aviation Products at AOE. See the video of his talk and find the presentation slides in this article.

Customer behavior is changing - this is already happening, research shows this very clearly, the disruption has begun. In the past, passengers were excitited by the atmosphere at airports. Nowadays, passengers are glued to their smartphone, not really paying attention to their surroundings. This customer behavior change has to be considered by airports and travel retail. Engaging with the customers has become a different story. 

One major aspect of the changed customer behavior is the change of decision making of passengers. Research by m1nd-set shows that only 29% of todays' passengers buy on impulse in duty-free stores. The vast majority of 71% plan their purchases - if airports give them the opportunity. 

In his talk, Manuel gives an overview about the situation of the aviation industry and shows possible solutions to benefit from digitalization

Talk Video "This is what has to change for Travel Retail to survive"

Presentation Slides

Aviation

How airlines can regain trust, loyalty and revenue by taking control of the digital customer journey.

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.