Airport Retailing
Mastering Airport Retail
Roadmap to New Industry Standards
Contents
Executive Summary ........................................................ 1 Demand Dynamics and Offer Development Securing Strong Market Growth ................................... 2 Key Success Factors for Optimizing Airport and Operator Performance ............................... 4 Focus on Operator’s Financial Robustness, Offer Flexibility and Operational Performance ............. 8 New Industry Standards Creating Turbulence in the Value Chain ............................................................ 9 Conclusion ...................................................................... 12 Contacts .......................................................................... 13
Foreword
Over the past five years, the efforts of the airports to develop revenue from non-aeronautical sources have driven strong growth in the airport retail sector. The sector will become all the more strategic as the decline in air traffic forces airports to reduce their dependency on airline fees. Airports are battling to improve performance and optimize the management of concessions, while retail operators face the challenge of responding to the airports’ new expectations and growing competition. This study by Arthur D. Little, based on a comprehensive industry outlook and substantial experience in travel retail strategy consultancy for key clients in the Travel & Transportation sector, provides an insight into some of the key questions for the sector: n How can airports maximize retail revenues and what are the best practices from the top-performing airports? How have airports’ expectations of retail operators changed? What impact will the new rules of the game have on the value chain and what challenges will industry players face in the long term?
n n
Authors:
Vincent Bamberger, Aurélia Bettati, Stefan Hoeffinger, Thomas Kuruvilla, Vincent Wille.
Mastering Airport Retail
Executive Summary
Roadmap to New Industry Standards
Contents
Executive Summary ........................................................ 1 Demand Dynamics and Offer Development Securing Strong Market Growth ................................... 2 Key Success Factors for Optimizing Airport and Operator Performance ............................... 4 Focus on Operator’s Financial Robustness, Offer Flexibility and Operational Performance ............. 8 New Industry Standards Creating Turbulence in the Value Chain ............................................................ 9 Conclusion ...................................................................... 12 Contacts .......................................................................... 13
Foreword
Over the past five years, the efforts of the airports to develop revenue from non-aeronautical sources have driven strong growth in the airport retail sector. The sector will become all the more strategic as the decline in air traffic forces airports to reduce their dependency on airline fees. Airports are battling to improve performance and optimize the management of concessions, while retail operators face the challenge of responding to the airports’ new expectations and growing competition. This study by Arthur D. Little, based on a comprehensive industry outlook and substantial experience in travel retail strategy consultancy for key clients in the Travel & Transportation sector, provides an insight into some of the key questions for the sector: n How can airports maximize retail revenues and what are the best practices from the top-performing airports? How have airports’ expectations of retail operators changed? What impact will the new rules of the game have on the value chain and what challenges will industry players face in the long term?
n n
Authors:
Vincent Bamberger, Aurélia Bettati, Stefan Hoeffinger, Thomas Kuruvilla, Vincent Wille.
Mastering Airport Retail
Executive Summary