Airport retailing has become a popular concept in the last few years. Often called travel retail (which takes place mostly but not entirely in an airport), it has become one of the important strategies of companies planning to promote and create awareness about their brand. Airports where airfares are low are not able to generate high revenue from aeronautical business. Therefore, they shift to non-aeronautical businesses such as retail shops, restaurant, bars, and cafeterias. Airport retailing can also include services such as hotels, nursing homes, car rental outlets, banks, exchange offices, drugstores, and other stores such as jewelry, books and magazines, gifts and crafts, clothing & accessories, convenience stores, optics, perfumes, and souvenirs.
Airport retailing requires several characteristics for better functioning. For instance, a store needs to be at a convenient location for efficient accessibility. Furthermore, wide range of products and prolonged customer service might attract customer attention at airports. However, the quality and quantity of products in stores located in an airport strongly depend on the number of passengers travelling through the airport, and whether the airport is international or domestic. Retail stores can avail various benefits by establishing an outlet at an airport. Brand recognition and awareness are the most important ones. These provide immense scope for retail outlets to showcase their brand and broaden their customer base.
The airport retailing market is driven by the rise in number of passengers, specifically in countries such as India and China, where the level of commute is high. The airport retailing market is also boosted by travelers’ appetite for shopping on-the-go and retailers’ growing skills for selling products. The time spent by passengers at airports has also increased due to the early check-in times set by airlines due to security and operational concerns. This has offered retailers the scope to sell products efficiently. High disposable income of people in growing economies has provided opportunity for big brands to set up their stores in airport premises. People shop the most in the timeframe between clearing the security-immigration desks and boarding the aircraft. Therefore, airports strive to cut down the waiting times at check-in, security, and immigration queues to maximize this timeframe. Viable prices and the presence of big brands at discounted prices are vital factors encouraging travelers to make purchases at airport retail stores. Retail store at airports are duty-free; this typically means that these stores are exempted from payment of local or national taxes. Thus, travelers can buy products available in these stores at cheaper rates. Brands are customizing their offerings to help improve the shopping experience of travelers.
In order to efficiently compete in the market and create value proposition, retailers are engaged in extensive research to collect data related to flight schedules, number of passengers in the flight, and location. The data is expected to help retailers keep check of their warehouses, adopt price skimming strategies, and conduct promotional activities to create strong customer base.
Key players operating in the airport retailing market are Dufry AG, Tata Inc., Shoppers Stop Ltd, William Penn Ltd., Pavers England Limited, WH Smith PLC, Hidesign Accessories Ltd., and World Duty Free Group.
The report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the market, including but not limited to: Regional markets, technology, types, and applications.
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
2. Insights and Tools
The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.
3. Actionable Results
The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.