Friday, 27 April 2012

The Changing Face of Travel Retailing

The Worldwide travel retail business is worth in excess of $30 USD billion and over two thirds of this is down to airport shopping. Nevertheless, as seen in the past it is more sensitive because of its susceptibility to crisis - SARS crisis and 09/11 are just two examples which hit the sector the hardest. The airport operators world wide are becoming more dependent upon the retail revenue as the emergence of budget airline operators suppress their revenues by moving out to new airports offering the best prices for them.


Over the last 10 years it has become a key feature of airports to showcase "walk-through concepts" - passengers are guided from the airport entrance to the airplane departure gate through a frenzy of retail sales activity (e.g. Duty Free Shop), a path of retail temptation. It is found that passengers are at their most relaxed after completing check-in, passport and security checks.

One of the growing trends now is the advent of the Arrivals Duty Free Shop - perfect locations for last second shopping on arrival or for travellers not wishing to carry duty free goods on a long journey. this gives the retailers an opportunity to showcase locally made products. However, the big drawback with arrivals duty free shops is that this entails changes in legislation to allow such an activity to take place - usually a long draw out process. Recent examples of new arrivals duty free can be found in Switzerland and numerous countries in South America.



The whole aim of these latest trends is to convert the "passenger" into a "shopper" - no easy feat since in excess of 70% of passengers do not shop, not really surprising as they are actually there to travel!. However, a well spoken about concept in the airport industry is the phrase "sense of place" in conceptualizing travel retailing. One of the foremost authorities on this is Robbie Gill of The Design Solution company who have designed airports throughout the world. He believes that this "sense of being" should and will play a major part in transforming passengers into shoppers via transforming their travel retail experience. Gill believes that bringing a "local flavour" into the equation will go a long way to achieving this and he cites the examples at Barbados' Grantley Adams International Airport, where the shops all have corrugated roofs reminiscent of chattel homes, and Minneapolis with sculptures of Snoopy and Canada geese in the terrazzo floors. Changi Airport in Singapore has its own very unique 'sense of place' through the remarkable range of gardens such as the Sunflower Garden, Orchid Garden, Cactus Garden and Butterfly Garden.

The Design Solution recently worked on The Irish Whiskey Collection Duty Free retail store at Dublin Airport's new Terminal 2. This is retail with a true 'sense of place', as it only promotes Irish Whiskeys to local and international travellers. The new concept and store design was created solely to boost Irish Whiskey sales within the airport's duty free store, boosting Irish Whiskey sales by over 30%.

It can be demonstrated that 'sense of place' is far more than bricks and mortar; it is of the locale, the commerce and the culture. It shows a more interesting passenger experience, and in today's tough operating climate where travellers have more choice of where to fly from than ever before, that cannot be underestimated.

No comments: