Pragma Pulse research reveals key airport spend drivers

Ensuring comfortable commercial dwell time, better integration of services, using digital to add value and blending local and global brands and experiences are key to driving traveller satisfaction and spend at airports.

That is according to Pragma Consulting, a leading commercial advisor for the travel retail industry, which has released its Pulse Global Passenger Survey detailing traveller spending habits in the airport market.

Conducted with 1,500 consumers across the globe, the research reveals the most important drivers of satisfaction and spending.

Key highlights are presented in the infographic right.

Create Comfortable and Commercialised Dwell

• With passengers primarily seeking a comfortable place to relax, airports need to create more innovative common seating arrangements that accommodate a variety of uses, such as watching personal content on screens, working on the move, resting, and socialising with friends and family, said Pragma.
• Pragma notes clear opportunities to commercialise comfort – by creating larger and more creative seating arrangements in F&B outlets, as well as exploring sponsorship opportunities in common-access areas and developing larger common access paid-for lounges.

Integrate Facilities and Space Typologies

• With passengers seeking a range of end uses, from seating, to F&B, retail and work spaces, retail design planning that integrates complimentary uses and creates distinct zones with a variety of space typologies will help to drive cross-category footfall and spend, added Pragma.
• Strong zonal identity supported by engaging architectural and environmental design helps to deliver clusters that can fulfil multiple functions in one space, and by effectively satisfying passenger comfort and hunger it cann create opportunities for retail spend.

Balance the Brands

• The retail mix must satisfy the functional basics, while delivering new brand experiences and encouraging premium purchases, with income groups, nationalities and ages seeking to purchase across multiple price points.
• A clear hierarchy of needs in tenant mix planning, combined with a strong brand presence and clear store frontages, will help passengers find the product that matches their needs, said Pragma.

Be Diligent with Digital

• Passengers demonstrate a high willingness to engage with digital pre-order and click & collect services across multiple categories, particularly those from the GCC, China and India, noted Pragma. But the service offered must be relevant and drive added value and utility to generate demand.
• The high appetite for digital integration is creating more opportunities to streamline operations and drive unit-level and processing efficiencies that can increase transaction volumes and speed of service, freeing up passengers’ time to spend on additional categories.

Champion Local and Blend with Global

• Local F&B brands are the most popular concepts for enhancing experience and the motivation to purchase, closely followed by local & authentic retail, with those from China and India also citing a strong appeal for global F&B brands, and UK and US passengers mid-price brands.
• Local F&B and retail brands can play a fundamental role in delivering a distinct Sense of Place and unique identity of an airport, equally popular to visitors as residents, while the travelling consumer is still seeking the familiar comfort of global brands and high-street favourites.

You can download the full report here.