The Trinity Forum – Avolta
How Avolta is driving innovation and making passengers happier
Fast-paced innovation to deliver improved customer experiences is among the keys to industry growth – so said Avolta CEO Xavier Rossinyol in an inspirational session at The Trinity Forum.
He said: “The big challenge this industry has been, in my opinion, the current commercial model. The contracts we have are based on a reality that doesn’t exist anymore, and the only way we can go where we need to go is to change that commercial side.”
Rossinyol suggested the new generation of travellers are generally not interested in traditional airport stores but are looking more at their electronic devices and walking straight through duty-free shops. To counter this, he suggested: “We need to do more experience [in airport stores], things they cannot see in an online experience.
“However, money needs to be invested to achieve that,” he added. “If just one of the three players in the Trinity invests it’s not going to be enough. The three need to invest, and the only way to do that is through a new commercial model.
“I think as an industry we are not as imaginative as we need to be. It’s all about looking at the future, not looking at the past. We have to make the journey as rewarding as the destination, we must define new ways of doing the stores and I think we can achieve that.”
Xavier Rossinyol in fireside chat mode with Martin Moodie: “We can double the value of the industry if we get it right”
In conversation with Martin Moodie, Rossinyol acknowledged the uniquely captive audience of the airport traveller. The pair explored the theme of leveraging Avolta’s strong position across the three main axes of travel retail – duty free, travel essentials and food & beverage.
Discussing the hybrid initiatives now open to Avolta since its merger with Autogrill, Rossinyol highlighted the recent example of the combined dining and retail concept called The Corner by Real Madrid at Adolfo Suárez Madrid-Barajas Airport Terminal 4.
Such openings, promoted by the appearance of the Real Madrid football team at the airport, can capture the attention of the new generation, he contended.
“So, you saw entertainment [with that opening],” Rossinyol noted. “It’s a great option for Real Madrid and a great option for passengers. So, you are bringing a football brand, retail concept and F&B together, and you attract a different type of passenger, with different behaviour and habits. The three businesses give us more opportunities to give the passengers the experiences that will command their attention.”
He added: “This industry will not be transformed by one of the three points of the triple axis. Either we develop the three together or it’s not going to happen. I believe that we can double the value of the industry if we get this right.”
Rossinyol returned to the subject of the contract model, saying it must be looked at to support the changes needed and give retailers the ability to invest at the correct levels.
“I would love to have [discussions with] an airport that instead of focusing on X percentage of concession fees we are freer to invest in the early years of contracts and the financials will come later. Unfortunately, we all know that this is not the type of discussion we will have.
“If an operator says, look, we need to revise a commercial model, invest more in the business, the airport is not hearing that. The airport is hearing just that you want a better contract.”
Asked by Moodie for his wish for the travel retail industry, Rossinyol concluded: “Let’s eliminate the mistrust [between airports and retailers]. Let’s be truly open because I think none of us individually have the solution. I think [if we work together] as an industry, we can transform it and double the profitability.
“So, let’s open up to each other, step by step, that would be my humble ask. Let’s trust each other a little bit more.”
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The Moodie Davitt eZine
Issue 341 | 4 December 2024
The Moodie Davitt eZine is published 14 times per year by The Moodie Davitt Report (MA Travel Retail). © 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