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Webinar: Securing growth by digitalizing airport non-aviation revenues

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Kian Gould and Adil Raihani giving insights and best practices on how to digitalize travel retail and creating successful digital business models for airports and airlines to increase non-aviation revenues. Don't miss the Q&A section on 35:37.

More information about OM³ solution: https://www.aoe.com/en/solutions/om3-suite.html

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Webinar: Securing growth by digitalizing airport non-aviation revenues

  1. 1. Kian T. Gould (Founder & CEO at AOE) Securing growth by digitalizing airport non-aviation revenues Adil Raïhani (Partner at The Blueprint Partnership)
  2. 2. Kian T. Gould (Founder & CEO at AOE) Adil Raïhani (Partner at The Blueprint Partnership)
  3. 3. Who is ?
  4. 4. The World‘s No.1 Travel Retail Digitalization Company 22 airports/airlines currently in rollout, tender or consulting phases
  5. 5. The disruption has already begun…
  6. 6. Yesterdays Airport Parking Customers
  7. 7. Yesterdays Airport Passengers
  8. 8. Yesterdays Airport Advertising
  9. 9. 4.8 Bn. mobile devices but only 4.2 Bn. toothbrushes worldwide
  10. 10. Todays Parking Customers
  11. 11. Tomorrows Parking Customers
  12. 12. Todays Passengers
  13. 13. Yesterday’s Urban Myth | Travel Retail is 100% on Impulse Purchasing
  14. 14. What is the new reality?
  15. 15. The average American spends nearly 4hdaily on their smartphone
  16. 16. Europeare made on mobile in 25% of all eCommerce sales
  17. 17. In China it is 75%already approaching
  18. 18. But the market is still growing!? Market yes, spend per passenger no… SOURCE: TFWA & IATA Passengers (per leg in billions) 6,7 7,2 7,7 8,3 Travel Retail market (in billion USD) 63.5 62.0 63.5 68,6 $8.27 (2017) TR
  19. 19. Here is what these same passengers roughly spent when not traveling… SOURCE: eMarketer $540 $6,030 in Retail online
  20. 20. Planned vs Impulse Purchase 81% 19% Planned in advance Bought on impulse 89% 89% 85% 32% 30% Planned purchasing continues to grow SOURCE: m1nd-set Research 2018
  21. 21. The dominance of Online search 79% of today‘s purchasing methods involve Online search 47% 14% 8% 7% 7% Source: Gartner 2018 Search Online / Buy Online Search Online / Buy In-Store Search Online and In-Store / Buy In-Store Search Online and In-Store / Buy Online Search In-Store / Buy Online
  22. 22. Frankfurt Airport | Some early signs of success ↑ 62 % beyond business plan Customer Growth Rate +90 € Additional spend (by FRA Rewards members) 30 % Repurchase rate YTD Plan 780 % Avg. Basket increase (online vs. offline) Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 300,000+ Loyalty sign-ups to-date
  23. 23. Steady growth in the premium segment 200+ New loyalty members daily 400€+ Average basket value
  24. 24. Frankfurt Airport sold over 50,000 EUR worth of Leica cameras in Q1/Q2
  25. 25. A single order of premium wine exceeded 8,000 EUR
  26. 26. All signs point towards luxury 500+ % Average basket increase in first month (420£ online vs. 75£ offline)
  27. 27. The top seller by total share of all sales is a 35k JAEGER-LECOULTRE
  28. 28. The most sold brand is
  29. 29. Revenue distribution at Heathrow Boutique 56% 24% 9% 7% 4% Sales Share per Category High-End Electronics Luxury Watches Luxury Fashion Others Duty Free
  30. 30. Highlights I 20,000+ packages per month going through the Collection Point
  31. 31. Highlights I 95% of sales comes from 5 categories
  32. 32. Highlights I Key KPIs of Collection Point logistics platform 20,000+ parcels per month 90 seconds average wait time 10+ monthly parcels with ATV over 50,000
  33. 33. With the highest ever single watch purchase exceeding $1.2 million!
  34. 34. The airport as a true digital marketplace
  35. 35. Passenger Experience Non-Aviation RevenuesOn-Premise Fulfillment Mobile ShoppingE-Commerce Marketplace VIP ServicesPersonalized Offers Fast track Loyalty Food & BeverageParking The OM3 Suite | Digitalizing the entire non-aviation revenue stream
  36. 36. The Airport Marketplace Ecosystem Shopping Services Payment Services Retail / Shopping Flight Data Hotels Loyalty Parking Valet Services Lounge Fast Track F&B Ordering Maps Rental Cars . . . Airport Marketplace Voice Mobile API Touchpoints
  37. 37. All the research we conducted over the last two years shows that what AOE started at Frankfurt Airport is the future of Non-Aviation Revenues! Peter Mohn, CEO m1nd-set research
  38. 38. Excited to answer your questions…

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