Technology Reinvents the Airport Retail Experience

The number of airport users continues to rebound from the lows of 2020. Just recently, Dubai International Airport was voted as the world’s busiest airport, with more than 29 million users visiting the airport in 2021. And while aviation is big business, airport retail shows a lot more growth potential for airports.

Airport retail is getting much more complex as retailers face an imminent technology disruption that will change their operations. Technology will disrupt traditional airport retail as it has evolved the traditional retail industry. The ability to adapt to new technology will redefine the leaders and followers.

The potential for innovation to influence the bottom line, is forcing airport retailers their rethink their business model. The goal is to redefine the traveler’s customer experience using different contact channels with the help of technology. Retailers that do not adapt quickly may not survive the disruption.

Understanding The Need For Change

Traditional retail is a big part of the aviation industry as most people stop to shop for souvenirs in the different cities as they await their flights. Various changes have started to emerge, and airport sellers need to understand what fuels these changes.

• Rapid technology development. Innovation has caused a massive shift in how people shop. Travelers want to shop conveniently and enjoy a speedy, efficient delivery. This has prompted airport retailers to rethink their whole shopping process and how they deliver products to their buyers.

• Demographic changes. Much younger, affluent travelers are gracing airports worldwide. This generation of travelers is digitally focused and expects instant gratification. Airports must rethink their retail models with this generation in mind.

Airport Retail Trends To Watch Out For

Ibrahim Ibrahim, our aviation industry expert, ascertains that airport retailers will have to rethink how they sell and what they sell. Technology will continue disrupting the commerce industry, and it is prudent for retailers to be aware of emerging trends. Here are a couple of changes you can expect in the foreseeable future.

Quick commerce

Customers no longer want to wait for hours on end or queue up in endless lines to buy what they need. Technology has made it possible for retailers to reduce the average shopping and wait time. This change will also bring a massive shift in how airport retailers sell their products.

But what exactly is quick commerce, and how will it revolutionize airport retail?

According to Ibrahim Ibrahim, quick commerce involves using a technology platform to get orders from airport retail shoppers and deliver them in ten minutes or less.

The benefit of quick commerce is that you can utilize a smaller retail footprint in the airport. All the retailer will need is a fulfillment hub and to lay down the necessary logistic infrastructure that would allow them to deliver goods or services rapidly.

Brand spaces

Brand spaces have sprung up in several industries, and they are pretty compatible with the aviation industry. Ibrahim Ibrahim asserts that there will likely be three types of brand spaces, including transactional community and recruitment fulfillment.

Under transactional fulfillment, airport retailers can improve the customer experience to influence their purchase decision. For example, they can give potential clients more details about the product and how they make it. Delivery is anywhere in the airport, even aboard the plane, and the best rent model in such a case is the standard turnover rate.

Community fulfillment is where a brand may take up space in the airport and attract people who follow certain interests such as yoga, food, or even whiskey. Brands can then create spaces for communal or social experiences for the classes. A reasonable rent model could consider the number of people joining the communities, a subscription model, or visitors’ time in the spaces.

Lastly, airports can also take a recruitment brand space. This is where they can attract and push people to their online or social platforms such as Twitter. Using the impressions from the recruitment space is a great rent model.

A digital twin of your airport

Airports found a couple of ways to create bustling physical retail spaces in the past. This means that travelers can access different amenities when they land at the airport. Creating a digital version of the airport multiplies these opportunities.

Having a digital twin of your airport gives you access to big data that you would not otherwise access. The digital version will help you collect more data from people who want to book their flights, shop, check-in, and much more. You can quickly analyze this data too.

A digital version of the airport also reduces the need for businesses to take up too much space. Players in the food and beverage industry, for example, can hire much less space and deliver their food to clients around the airport.

Technology can help integrate airport retail’s physical and digital aspects to create a unique experience for customers. Some of the different types of technology that can change the game include smart vending, socially-enabled signage, sensing feeling that measures your mood, and data tools that map social media behavior.

Reinventing The Airport Retail Experience

You can expect a lot of technology disruption in the airport retail industry soon. Rapid changes in technology and the traveler population are the primary reasons for disruption. People now want to shop conveniently, which prompts the need for quick commerce. Airports will also change how they use and hire their spaces with the emergence of different brand spaces. Having various types of brand spaces increases the revenue for airports while creating unique experiences for travelers. Airports can create a digital version of their space to maximize space and offer outstanding customer experiences.