Industry Survey
Travel Retail Voices V
Embracing the digital challenge
The Lagardère Travel Retail report found contrasting views on how far the industry should go in digitalising the journey. Digital should be seen as an enabler, a tool that contributes to the experience, but cannot play the same role everywhere. “Brands are keen that digital should not ‘take over’ and that a hybrid/augmented experience would best serve travel retail. There is a worry too, particularly for luxury brands, that ecommerce might turn their products into commodities. “Nevertheless, digital offers convenience and the possibility of a higher SPP by allowing constrained store product ranges to be extended indefinitely – so-called endless aisles.” The study cited examples of airports that have gone beyond their traditional remit to connect with non-travellers, Changi Airport with its iShopChangi platform, for example. In F&B, digital plays a vital role in communication menu choices, ordering and offering personalisation and convenience.
Airports and brands say physical experiences, click/shop & collect and seamless checkout are the top three digital initiatives for the future of travel retail
Q: Which of these digital channels do you think have the most potential for the future of travel retail?
Airports' digital channels ranking
In-store 'Phygital' experience
Seamless checkout
Click/shop & collect
Digital technology to support back-office operations
Brands' digital channels ranking
Click/shop & collect
In-store 'Phygital' experience
Seamless checkout
Digital technology to support back-office operations
“Digital means different things to different people but no one will argue that it must engage the passenger. Whether that is through a store ambassador using an iPad, a gaming function, a digital promotions wall, or a loyalty programme, it will be the way to grab a passenger’s attention. It is up to travel retailers to find the model that works for them and find a way to make it a profitable part of their wider retail offer. “It is clear that the travel retail industry is still in the exploration phase of the right model in digital. Airports do not have the same level of maturity and travel retailers should work closely with them to help define their needs and collaboratively develop a stronger digital value proposition which will both improve the customer experience and unleash revenue opportunities.” In the context of an industry that is accelerating its digital capabilities, the issue of data-sharing was a key one. “The era of Covid has softened attitudes to data sharing: competitors have become allies to an extent, including airlines. Sharing airline data in particular will grow the pie to everyone’s benefit. The pandemic is still squeezing everyone so each incremental gain counts.”
Partner's message
The Moodie Davitt eZine Issue 308 | 13 April 2022
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