The hidden potential for US airports
Maximizing value for airport concessions
Thursday, March 2, 2023Article
Despite being a food and retail powerhouse globally, the US airport travel retail proposition has failed to keep pace with global markets and, beyond select examples, the passenger experience is not reaching its full potential.
With 25-50% of guests not making a food & beverage or retail purchase on their most recent airport visit, there is huge untapped potential for the industry.
Overcoming the barriers holding back deeper customer engagement could unlock $2.5bn for the industry (a 25% increase in value), by driving up both participation and spend per head, as well as significantly improving customer satisfaction rates, bringing them closer to international parity.
A running theme is that guests are yearning for better value, digital convenience, and a modernized healthy and fresh set of brands.
While price is constrained by the underlying economic model, there are ways to deliver value tactically through key value indicators, entry pricing or deals while also ensuring service, experience, and offer supports the wider value halo.
Travellers want a convenient and seamless experience, where technology mirrors that of retail in their everyday lives. This means access to more information, self-service, digital ordering…these are the basics that need delivering before more advanced technology models.
Range needs a refresh, younger consumers expect a wider variety of buzzworthy brands, where capsule ranges or one-stop-shops can be a way of broadening out the offer. Similarly, there is increased appetite for more fresh and healthier food choices, with more grab’n’go availability.
Now is the time for airports and operators to act. As technology increases efficiency of transiting through airports, the captive audience of dwellers will decline, and the proposition will need to work harder to get customers through the door. Similarly, as Gen Z becomes a greater share of passengers (30% by 2027), airports will need to prepare for the ever-evolving needs of travelers in the future which are further away from today’s offer.
Timing is critical: we believe there are 5 key levers that can help unlock this potential now.
To find out more about our experience in this space, get in touch:
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