Trends & Insights
‘Travel Experience Voices’ – Blending retail and dining
The ‘Travel Experience Voices’ report reveals that airports are keen to invest and develop further hybrid stores, with technology as a key enabler. Among airports surveyed, 76% consider hybrid concepts – blending retail and food & beverage – as a long-term trend. Of all respondents 24% said such concepts are becoming more popular as they help enhance the customer experience.
The report states: “To successfully deliver a hybrid shop, spaces are being designed for consumers to browse and shop while having the option to dine and enjoy refreshments within the same space. One of the key benefits of hybrid concepts in sought after locations in an airport is that it can help the overall area thrive, having a ripple effect on all other retailers within the space and driving more activity and buzz.”
The industry is increasingly committing to such concepts, noted Lagardère Travel Retail.
“Investments are being made by airports to ease the journey for passengers through streamlining check-in and security processes, so customers can have more dwell time to shop and dine. This creates an upside for customers who relax and enjoy this experience, and for retailers there is an increased potential for impulse purchases and deeper customer engagement through sampling and activations.
“A key focus when it comes to design and productivity metrics per square meter in hybrid settings is paramount, where every square meter must be optimised to reflect the evolving needs of travellers.
“Hybrid spaces are meticulously designed to showcase not only mainstream, but also small designers and niche brands, emphasising the significance of a robust concept and a well-trained sales force.”
Airports and brands highlighted an ‘efficient store layout’ as the most important feature of hybrid stores, followed by a diversified offer and omnichannel integration.
The report noted that more lifestyle brands see the benefit of amplifying their brand through food & beverage collaborations, citing EL&N, Dior and Prada as examples.
On implementing hybrid concepts, 23% of airports and brands cited brand/concept collaboration as the biggest challenge with a further 23% citing B to C concept positioning and understanding.
Blending shopping and dining at Barcelona Airport
Airports said they consider space optimisation as the main challenge when creating masterplans that include multiple activities.
The report also leaned on external voices to reinforce its findings. Altavia Travel Retail Managing Director Hugo Vanderschaegh says: “The traditional model of segmented activities, where separate business lines, spaces, and operators function in silos, is gradually giving way to a more integrated approach.
“Modern airport master plans are increasingly crafted to foster lifestyle-driven zones, acknowledging that passengers vary in their needs, expectations, and aspirations. Consequently, terminals are designed to accommodate diverse lifestyle preferences by curating retail, F&B, leisure and entertainment offerings into destinations.
“Beyond catering to passenger preferences, these hybrid spaces offer additional revenue benefits. F&B outlets typically enjoy higher conversion rates than specialty retail stores. By strategically planning the layout to encourage flow towards F&B areas, foot traffic is naturally directed toward adjacent retail establishments. In essence, passengers seeking their coffee fix seamlessly explore specialty shops. This symbiosis thrives when the offerings complement each other coherently.”
He also noted: “These innovative hybrid concepts challenge the traditional revenue-sharing model between airports and retail operators. Concession rates for F&B transactions differ from those for retail transactions, and shoppers may engage with brands in-terminal but make purchases online.
“As a result, new contracts, characterised by flexibility and recognition of values beyond sales figures, will be necessary to adapt to the evolving landscape of airport retail.”
Summarising the key messages under the hybrid concepts theme, Lagardère Travel Retail Asia COO and Global Chief Strategy and Development Officer Séverine Lanthier says: “Based on the interviews, we see that airports want to go into more experiential spaces, and are open to finding more spaces that blend categories. One of the main barriers is how to frame the tenders for this format, which can be complex. Therefore planning ahead for hybrid spaces by the airport is so important.
“The size of the airport is not seen as a barrier to hybrid concepts, given technological advances. Broadly we see an acceptance hybrid stores as a part of the future. It is positive that airports and brands are willing to accelerate this concept.”
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The Moodie Davitt eZine
Issue 334 | 12 May 2024
The Moodie Davitt eZine is published 14 times per year by The Moodie Davitt Report (Moodie International Ltd). © All material is copyright and cannot be reproduced without the permission of the Publisher. To find out more visit www.moodiedavittreport.com and to subscribe, please e-mail kristyn@moodiedavittreport.com