Retail innovation will play a key role in enhancing the airport experience going forward, writes Chris Gwilliam, global senior vice president of business development at Airport Dimensions.
An ever-increasing number of the world’s bigger airports are undergoing a fundamental shift as they transition from being a mere point of transit to a destination in their own right.
In this transformation, retail is no longer simply a revenue generator but a vital component in shaping the passenger’s overall journey.
Airport Dimensions’ recent research, ‘Explore the Experience Era’ – which surveyed 100 global senior airport decision makers on the challenges and opportunities facing them over the next 10 years – underscores this, revealing that a significant 40% of airport leaders consider retail central to enhancing passenger satisfaction.
This enhancement is intricately linked to providing greater convenience, a wider array of choices, and a more personalised experience.
Pravat Paikray, vice president of commercial development at Bengaluru’s Kempegowda International Airport (BLR), is in no doubt about the importance of retail offerings at his gateway.
He says: “At BLR, travel retail is undergoing a significant transformation driven by changing buying behaviours, diverse passenger demographics, and varying dwell times.
“Airports are evolving into destinations beyond mere transit points. BLR is redefining retail to create an emotional connection with our passengers.
“Our approach to retail and customer experience is akin to a theme park, drawing inspiration from Disney’s methodology. The overall strategy, layout, and flow focus on experience design, guest-centricity, and storytelling, with a deep understanding of human psychology, spatial design, and emotional connection.
“This approach elevates our retail proposition beyond merely meeting functional passenger needs. It aims to satisfy the aspirational and emotional desires of travellers, fostering a genuine emotional connection with passengers and shifting the emphasis from impulse shopping to a more planned and purposeful experience by providing authentic and compelling reasons to engage and spend.”
RETAIL SHAPING PASSENGER SATISFACTION
When considering the key drivers of passenger satisfaction, several factors come to the fore. Convenience and ease of access are paramount with 44% of respondents outlining how they foster improved traveler satisfaction. The ‘Explore the Experience Era’ research also highlights that 39% of airports believe passengers are increasingly seeking differentiated products and expanded choice within the airport environment.
BLR’s Paikray notes: “Personalisation is equally critical as creating that emotional connection involves moving beyond spontaneous purchases to cultivating planned shopping experiences, offering travellers strong incentives to engage in planned shopping.
“At BLR Airport, for instance, we carefully curate a mix of iconic international brands and ‘local heroes’, creating exclusive store identities.
“Each outlet is designed as a unique experience centre, rather than a standard retail outlet, ensuring that every shopping encounter resonates with travellers on a personal level.”
This approach reflects a broader shift toward elevating the brand environment, where thoughtfully designed retail spaces and a balanced brand mix help define airport’s distinctive sense of place and deepen the emotional engagement with passengers.
THE DIGITAL TRANSFORMATION OF AIRPORT RETAIL
Technology stands as a fundamental enabler in this transformation, driving greater efficiency, enhancing convenience, and elevating the overall passenger experience.
E-commerce and mobile ordering have become essential, with a remarkable 78% of airports actively engaging in digital e-commerce and mobile ordering solutions, from exploration to integration, according to our research.
This surge reflects the pressing need to cater to the rising demand for seamless, engaging, and personalised journeys.
“The concept of the ‘phygital’ experience, which merges physical and digital retail, is also gaining prominence,” says Paikray.
“For example, BLR Airport utilises a platform called BLR Pulse, which connects various touchpoints of the airport to deliver a unified phygital experience.
“This innovative solution includes services such as booking flight tickets, flight tracking, taxi booking, food and beverage pre-ordering with gate delivery, duty-free pre-booking, contactless lounge access, wayfinding within the airport and airport hotel bookings and much more – all accessible from a single platform.”
Response to these same passenger needs, Airport Dimensions has created Connecta+, an innovative single marketplace solution that connects airport services – before and during their lounge visit – into a holistic journey.
Looking ahead, AI and immersive technologies will likely play an increasingly significant role in shaping the future of airport retail, with 30% of those surveyed increasing investment in sensors or AI driven analytics to monitorand manage passenger flows.
A further 35% have made investment to offer on-demand services such as food delivery shopping, or concierge services within the terminal.
BLR is already exploring these innovations through its in-house innovation lab, which has pioneered solutions like facial recognition-based on-boarding, cashier-less stores, and queue-less lounge check ins.
CREATING THE AIRPORT OF THE FUTURE
Ultimately, the vision is to create the airport of the future, spaces that transcend their traditional function and become vibrant ‘experience zones’ that captivate travellers, encourage exploration, and foster a desire to spend time and engage with the offerings.
Talking about what’s planned at BLR, Paikray says: “We are undergoing a significant transformation which will see the airport welcoming close to 100 million passengers by 2035. This entails adopting a guest-centric philosophy, where passengers are viewed as valued guests and airport staff as welcoming hosts.
“A key aspect of this transformation is the thoughtful integration of retail spaces with food and beverage outlets to create a more dynamic and engaging environment, while strategically managing passenger flow.
“This might mean, for example, an emphasis on creating integrated layouts where retail and food and beverage outlets are strategically positioned to optimise passenger traffic and enhance the overall shopping experience.
“BLR has implemented zoning strategies where a thoughtfully created F&B experiences act as magnets to slowdown traffic flow, thereby increasing exposure to nearby retail options.
“Retail offerings are also embedded into restaurants and cafes to optimise dwell time and stimulate impulse buying. Leveraging technology to streamline processes, minimise wait times, and provide convenient services such as pre-booking meals and duty-free shopping is also becoming essential.”
What’s clear from both changes in the Indian airport sector and the insights from global airport decision makers is that the reinvention of retail is not just a trend but a necessity in transforming airports into destinations that offer far more than a mere conduit for travel.
Initiatives like BLR’s Project Polar Bear, which incentivises sustainable purchasing behaviour through a green loyalty points system, further demonstrates how retail innovation can align with larger goals such as sustainability and social responsibility.
By prioritising convenience, choice, personalisation, and the creation of compelling experiences, the full potential of retail can be unlocked to enrich the passenger journey and redefine the very essence of the airport experience.