This whitepaper describes how stakeholders in the travel retail industry – airports, airlines, brands and duty-free operators – can benefit from digitalization and how they can begin their journey on the way to a digital airport commerce ecosystem.
Airports, airlines and travel retail operators are currently facing unparalleled challenges, both in the way they do business as well as in the aviation industry itself. Rapidly changing purchasing behavior by customers, the evolving E-Commerce industry and digitalization are disrupting traditional revenue streams and business models of airports and airlines.
The passenger’s buying behavior has fundamentally changed. Research shows that traditional travel retail is being challenged and major growth is unlikely. Digitalization is a threat for all key players in the aviation industry, should they choose not to change anything. However, airports, airlines and travel retailers can also embrace digitalization and view it as an enormous opportunity to find new ways to generate core non-aviation revenues. To achieve this though, they will need to collaborate and create a digital airport commerce ecosystem together. The result: A win-win situation for all stakeholders.
Airports have several competitive advantages when utilizing E-Commerce that can help them gain the pole position in omnichannel retailing. To create a digital airport commerce ecosystem and an online platform, the key players in aviation need full management support, a skilled team with a digital attitude, value-creating digital business models, enabling legal contracts and high-performance, scalable IT.
This whitepaper shows the benefits of a digital airport commerce ecosystem for all aviation industry stakeholders and explains approaches and use cases for a successful collaborative digital business, such as a “Quaternity of Travel Retail”, which will transform current problems into future opportunities.
In Chapter I: The decline in Travel Retail – and how to stem the tide we showcase the decline in Travel Retail and explain how Airports, Airlines, Brands and Retailers can deal with it and find opportunities to benefit from digitalization.
AOE’s award-winning OM³ platform is a digital marketplace, consisting of a unique and modular set of pre-integrated omnichannel functionalities, services and infrastructure. It enables customized selection of functionalities according to airport-specific business requirements. OM³ was successfully implemented at Frankfurt Airport, Heathrow Airport, Auckland Airport and Singapore Airlines, many other airports and airlines are on their way to digitalizing their non-aviation revenue streams.