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Increasing Airport Customer Retail Spend
According to Airport Council International figures, “non-aeronautical” revenues derived from sources other than aircraft operation
have almost doubled since the 1990's. Today, many airport operators consider these new business areas as a major
chance to generate future airport revenue streams. To date, the effort to increase retail revenues has depended solely on
traditional marketing techniques, which have not been produced the anticipated results. Unfortunately, their efforts are hampered by a lack of a customer relationship.
The challenge for airports is to develop insight and knowledge of their customer’s airport retail experience,
with the objective to increase the customer's airport retail spend. |
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Airport Infrastructure Management
Airports have one of the most complex and demanding IT, telecom and video infrastructures. In many cases, it has overwhelmed
even the most adept of the airports. There is the ever-changing array of new technologies that promise increased cost reduction; the ever-present airline legacy
systems that challenge cost containment and of course, the changing demands of the security regimes. In addition,
airport marketing departments are becoming more customer-aware, requiring new marketing tools, which makes
it even more complex. The challenge for airports is to to manage this change
for new skills and technologies. |
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Transforming Airports: Changing Airport IT&T to a Business Services
Unit
The challenge for an airport's IT&T
department has been
always been one of delivering the expected high service level to their clients. Effective airport
business services comprise all activities necessary to develop and market the airport's IT&T services to airport
tenants and manage the ongoing client-relationships. Most importantly, business services manages the financial
relationship between the airport and its tenants by providing a billing service for the usage of infrastructure,
computing, telephony, security and other services at the airport. And all this must be done at a competitive cost for
the tenants. In effect, the challenge for the airport is to create and operate effectively as a Business Services
Delivery Agent. |
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Proximity Marketing
Proximity Marketing is the new 'push and pull' marketing channel for the delivery of personalized and targeted sales
offers directly to an airport's customer (the passenger); in so far as the consumer is in the proximity of the transmitting device.
The obvious benefits are a greater retail sales using 'eVouchers' and shop promotions. The not so obvious benefit is the ability
improve airport efficiency using 'Passenger Track & Trace'. The challenge will be to ensure that the airport implements Proximity Marketing as a key element of
their marketing strategy mix. |
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In-Building Wireless Design
& Management
Airports are increasingly designing and implementing new wireless technologies for their in-building needs.
Airports traditionally have relied on wireless operators, equipment manufacturers and infrastructure integrators to provide the necessary design
and implementation data, requiring a broad understanding of the frequency management issues required at airports. What tools can airports
utilize to facilitate and control the process? By using an industry-specific planning and design software tool, airport engineering can take in-building network design beyond prediction to improve accuracy and standardize designs that are shared across the in-building airport
community. |
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Airside/Landside Security
Airlines, airports and security regulators are often accused of a piecemeal, reactionary approach to
security. The current security regime focuses on each traveler as a potential security threat, essentially a
detection-based security systems rather than a deterrent-based approach. Airport are mandated to secure
their airside and landside facilities. Yet these very same security implementations have impacted passenger facilitation to the
point that the 'hassle factor' is deterring many passengers from traveling. What is needed is to address the issues of risk management, harmonization and
information exchange to support both airport security and passenger facilitation. |
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Digital Video Management Systems
70% of a buying decision is made in the retail shop as the customer is about to buy. P&G calls this
the 'Moment of Truth' and we call it the best chance to sell your products. Forbes magazine calls Digital Video Signage the new
POP (point of purchase). It's proven cost effective and it's infinitely changeable. Digital Video Signage gives airport retail shops proven sales lift and
a new channel for sales. The challenge for airports is to integrate with this with existing infrastructure and current
marketing strategies, and yet make a positive return on their investment. How do the airport retailers fit into the proposition? |
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Common-Use Strategies
As passenger growth continues, airports face the critical issue of ever decreasing capacity in their terminals. Building a
consensus within the airport community is critical, as
customers expect a better travel experience. How does the airport engage in an objective analysis of all airport constituents'
technical and commercial interests, that is fully integrated with airport's master plan? What methodologies should airports take to facilitate the reduce this liability, while at the same time enhancing their customer's travel experience and
retaining their business? |
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Social Media Platforms -
Increased Retail Spend
As airports develop a dialogue with their
travelling customers, they need to implement systems to
capable of communicating directly with the customer's chosen
social media platforms. Airports need to implement Web 2.0
social media platforms to enable ongoing customer dialogue.
An essential part of this dialogue is the ability to tap
into existing social media such as blogging communities (Facebook),
traveler-centric social networks (TripIT) or other business
communities (LinkedIn) with a view to provide products or
services. This provides the ability to create new offers for
their customers in order to increase the customer's
increased airport retail spending. |
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