Industry Survey
Travel Retail Voices III
Adapting to new consumer needs
Travel retail continues to assess how much change has taken place in passenger profiles, and how long change will last as travel returns at scale. In the short term, notes the Lagardère Travel Retail report, “the quicker recovery of domestic and regional travel gives an edge to low-cost airlines and the industry must be prepared to cater to the needs of less affluent passengers and offer good value for money”. Regional and leisure travel has led the recovery to date while a new generation of travellers (Gen Z) is also emerging.
A new generation of travellers is displaying very different needs and demands
“The transition is important as the Gen Z cohort is beginning to exert a strong influence on older profiles – and eventually it will also have scale.” Travellers now expect sanitary safety, contactless experiences and the ability to shop online. The report states: “Against the benefit of added ‘online footfall’, airports and retailers need to be prepared for pricing transparency and more scrutiny from consumers versus online giants like Amazon.
A majority of airports sees the changing passenger mix as a threat travel retailers will have to face in the near future
Top trends for airports
1 Convenience
2 Authenticity and localness
3 Online and digital / good value for money
4 Green, healthy and ethical
Top trends for brands
1 Convenience
2 Online and digital
3 Green, healthy and ethical
4 Authenticity and localness
5 Good value for money
“A ‘now’ culture exists, for younger generations especially, so convenience will also be critical to success. A large US restaurant chain says that by early next year, 50% of its orders will be placed digitally and, not surprisingly, it is accelerating digital platforms in airports.” Agility and flexibility in the face of a new type of traveller is vital, while trust and purpose are elements that travel retail needs to show to remain relevant, the report adds. Here, an ability to develop new offers and more experiential concepts to adapt to consumer profiles, alongside more effective CRM systems, will make a difference.
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The Moodie Davitt eZine Issue 308 | 13 April 2022
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