The Trinity Forum – The Changing Consumer


Adapting to a new consumer mindset

“There’s a lot to be excited about. The future is bright and evolving.” So said Pragma Consulting CEO Alex Avery as he presented data from the company’s latest consumer study while leading the day one closing session.

He cited changes to traveller demand on-airport as an opportunity for the business – today in the hierarchy of needs people want to sit and relax, eat, shop and engage in personal activities – in that order – before they fly. And he addressed how airports and their partners need to adapt into evolving motivations to shop by delivering instant inspiration and offering experiences alongside convenience.

He was later joined by an impressive roster of speakers, including Heathrow Airport Retail Director Fraser Brown, CAVU Experiences Head of Growth Robert Hassard and Malaysia Airport Holdings Berhad Senior General Manager Commercial Services Hani Ezra Hussin.

Alex Avery: The changing hierarchy of consumer needs

Brown presented how Heathrow is blending digital and physical innovation to address the issue of limited space. He said: “We are growing our passenger numbers as an industry, which is great, but for many of us in legacy airports we have a space problem. We have the capacity to process passengers but we are constrained in the space we need to host passengers. This is because hosting involves hospitality.”

Brown added: “So, we’ve got constrained terminals and we want to deliver great service and grow passenger spend. When you have limited space and you don’t have ‘elastic walls’, then I argue that digital can be your elastic wall.

A strong panel featured (above) Heathrow Airport Retail Director Fraser Brown; (below) CAVU Experiences Head of Growth Robert Hassard and (lower) Malaysia Airports Senior General Manager Hani Ezra Hussin

“Digital gives us the ability to offer more in terms of range and price than a physical space can allow. Ultimately, leveraging digital can deliver a great experience for both the passenger and the shareholder.”

To maximise yield and optimise conversion, Heathrow has launched a digital ‘Curated Marketplace’. This aims to leverage Heathrow’s fulfilment capability to create best-in-class convenience, single payment, click and collect, virtual retailers, order to satellite, lounge gate or even collect on return.

CAVU’s Robert Hassard offered his own case studies on how passenger perceptions of airport lounges have changed.

Hassard said: “During and after COVID, lounges became a ‘safe space’ with awareness growing significantly. Lounges searched per passenger has grown +76% in the pandemic years with demands for lounges at an all-time high. Access through partners continues to grow and ATV has grown +40% as passengers are more willing to pay for high-level experiences.”

He explained that lounges are facing a capacity crunch and offered solutions on how airport operators can meet growing demand. He highlighted pre-booking, good partnerships and customer data as key enablers to elevate the lounge experience.

Malaysia Airports’ Hani Ezra Hussin illustrated how the company is showcasing Malaysia’s distinctive cultural heritage to stay “always in, in a world of always on travellers.”

She said: “Travel shopping is witnessing a shift from cautious and casual to intentional spending. With less dwell time and high digital distraction, travellers want to make the most of their available time and are expecting capsuled cultural shopping experiences.”

She also highlighted Malaysia as ‘Asia’s Cultural Melting Pot’ and underlined the approach of bringing ‘Malaysian uniqueness’ to life by delivering authentic and immersive cultural experiences such as cultural heritage pop-ups.

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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

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