11 05.11.2020
What got us here
won’t get us there
Re-inventing airport ancillary revenue
generation in the post-COVID era with a
digital collaboration mindset
Kian Gould | AOE
22 05.11.2020
Hello,
we are AOE – a company
re-shaping the future
of travel commerce.
33 05.11.2020
The World’s Leading
Travel Retail Digitalization Experts
300 people serving
225M passengers
powering over $500M in revenues
in
2019
Miami | Frankfurt | Zurich | Dubai | Hong Kong
44 05.11.2020
Setting the Scene
Lack of investment
in digitalization &
ecosystems
The BadThe Good
Pre-COVID continuous
passenger growth
Falling spend per pax
and drop in conversions
The Ugly
55 05.11.2020
The COVID Impact
Immediate
less revenues, pax numbers
down, fears of infection
health, less business
travel, sanitization, fear,
disconnect with channel
Longer term
66 05.11.2020
Parking Revenues will
take years to recover
Impact on Non-Aeronautical Revenues
77 05.11.2020
Or might never
Impact on Non-Aeronautical Revenues
88 05.11.2020
Physical Advertising will be depressed
Impact on Non-Aeronautical Revenues
99 05.11.2020
F&B will recover first
Impact on Non-Aeronautical Revenues
1010 05.11.2020
Travel Retail
will not be
the same
Impact on Non-Aeronautical Revenues
1111 05.11.2020
The Post-Covid Opportunity
The future will have to
depend on more than
pent-up demand
(hope is not a sufficient strategy)
No more »romance«
in travel.
Now it’s stress &
uncertainty
Need to get back to
attraction +
engagement
= excitement
This means
prioritising
Choice
Control
Communication
Customer Centricity
1212 05.11.2020
How will habits change Post COVID?
SOURCE: m1nd-set Research
65%
of travellers will change their
habits in the airport after the
Covid-19 outbreak
I will spend more time entertained
with my mobile/tablet/laptop
I will avoid interacting with other
passengers
I will try to isolate from
the crowds
I will spend
less time shopping
91%
81%
78%
44%
1313 05.11.2020
COVID has caused the adoption of
E-Commerce to accelerate by 5-10
years within the period of just 4 months
SOURCE IBM’S U.S. RETAIL INDEX, FORBES
May 2020
195%
buy online, pick up
in-store grew
Jan 2020 2025
Total online
spending in May
hit $82.5 billion,
up 77% year-
over-year
Department stores
are expected to
decline by over 60%
for the full year.
Meanwhile,
e-commerce is
projected to grow
by nearly 20% in
2020.
1414 05.11.2020
Some things
you must do alone
1515 05.11.2020
Start thinking like a
customer experience company
(off- and online)
Stop thinking like a landlord
1616 05.11.2020
Invest less in concrete
and more in digital
1717 05.11.2020
Create the digital foundation
For customer acquisition,
retention and digital sales
1818 05.11.2020
Form partnerships with luxury brands
(online/downtown/at airport)
1919 05.11.2020
Start thinking outside of the
box and think as global
customer experience and
logistics companies.
2020 05.11.2020
But the real impact
will happen together.
2121 05.11.2020
Reinvention means a
Fundamental Paradigm Shift.
Competition to Collaboration
Offline to Online. Unified.
The New Normal Extraordinary.
The Quaternity
2222 05.11.2020
Data partnerships with
airlines are becoming
inevitable
2323 05.11.2020
A part of the seamless experience
3. In-Flight2. Check-In1. Booking
2424 05.11.2020
How airlines are approaching it
How we launched the world's most omnichannel airline e-commerce program,
quadroupling sales in just 9 months and transforming the retail program to be digital first.
S I N G A P O R E A I R L I N E S
2525 05.11.2020
Setting new benchmarks for Singapore Airlines’ KrisShop
Delivery
choices
Tailored
recommendations
Mixed payment
options
Concept stores
Shop-in-shop
solution for
luxury brands
Reward loyalty with
instant miles earning
Live search
2626 05.11.2020
KrisShop KPIs after 12 months
In-flight
90%
E-commerce
90%
E-commerce 10%
In-flight 10%
E-commerce revenue
increased by
500%
3%
7%
1%
more than tripled
peaking at 7%
during promotions
Conversion
Basket value
50%
Transformed Model
Product assortment
600 30.000
SKU SKU increase
Pre-order cutoff time
3 days 60 min
Revenue
2727 05.11.2020
CRM-
Data
Loyalty/
Miles
From Competition to
Collaboration. Build a single
customer view with your
partners.
2828 05.11.2020
Customer acquisition
integration and 3rd party
marketplaces.
Start paying for traffic!
2929 05.11.2020
Precise targeting of travelers
along the journey
3030 05.11.2020
Break the Silos
One Platform. One Experience.
3131 05.11.2020
Kian Gould
Founder & CEO at AOE
AOE GmbH
Kirchgasse 6
65185 Wiesbaden
Germany
+49 6122 70 70 7-0
kian.gould@aoe.com
Please ask questions…
3232 05.11.2020

Re-inventing airport non-aeronautical revenue generation post COVID-19

  • 1.
    11 05.11.2020 What gotus here won’t get us there Re-inventing airport ancillary revenue generation in the post-COVID era with a digital collaboration mindset Kian Gould | AOE
  • 2.
    22 05.11.2020 Hello, we areAOE – a company re-shaping the future of travel commerce.
  • 3.
    33 05.11.2020 The World’sLeading Travel Retail Digitalization Experts 300 people serving 225M passengers powering over $500M in revenues in 2019 Miami | Frankfurt | Zurich | Dubai | Hong Kong
  • 4.
    44 05.11.2020 Setting theScene Lack of investment in digitalization & ecosystems The BadThe Good Pre-COVID continuous passenger growth Falling spend per pax and drop in conversions The Ugly
  • 5.
    55 05.11.2020 The COVIDImpact Immediate less revenues, pax numbers down, fears of infection health, less business travel, sanitization, fear, disconnect with channel Longer term
  • 6.
    66 05.11.2020 Parking Revenueswill take years to recover Impact on Non-Aeronautical Revenues
  • 7.
    77 05.11.2020 Or mightnever Impact on Non-Aeronautical Revenues
  • 8.
    88 05.11.2020 Physical Advertisingwill be depressed Impact on Non-Aeronautical Revenues
  • 9.
    99 05.11.2020 F&B willrecover first Impact on Non-Aeronautical Revenues
  • 10.
    1010 05.11.2020 Travel Retail willnot be the same Impact on Non-Aeronautical Revenues
  • 11.
    1111 05.11.2020 The Post-CovidOpportunity The future will have to depend on more than pent-up demand (hope is not a sufficient strategy) No more »romance« in travel. Now it’s stress & uncertainty Need to get back to attraction + engagement = excitement This means prioritising Choice Control Communication Customer Centricity
  • 12.
    1212 05.11.2020 How willhabits change Post COVID? SOURCE: m1nd-set Research 65% of travellers will change their habits in the airport after the Covid-19 outbreak I will spend more time entertained with my mobile/tablet/laptop I will avoid interacting with other passengers I will try to isolate from the crowds I will spend less time shopping 91% 81% 78% 44%
  • 13.
    1313 05.11.2020 COVID hascaused the adoption of E-Commerce to accelerate by 5-10 years within the period of just 4 months SOURCE IBM’S U.S. RETAIL INDEX, FORBES May 2020 195% buy online, pick up in-store grew Jan 2020 2025 Total online spending in May hit $82.5 billion, up 77% year- over-year Department stores are expected to decline by over 60% for the full year. Meanwhile, e-commerce is projected to grow by nearly 20% in 2020.
  • 14.
  • 15.
    1515 05.11.2020 Start thinkinglike a customer experience company (off- and online) Stop thinking like a landlord
  • 16.
    1616 05.11.2020 Invest lessin concrete and more in digital
  • 17.
    1717 05.11.2020 Create thedigital foundation For customer acquisition, retention and digital sales
  • 18.
    1818 05.11.2020 Form partnershipswith luxury brands (online/downtown/at airport)
  • 19.
    1919 05.11.2020 Start thinkingoutside of the box and think as global customer experience and logistics companies.
  • 20.
    2020 05.11.2020 But thereal impact will happen together.
  • 21.
    2121 05.11.2020 Reinvention meansa Fundamental Paradigm Shift. Competition to Collaboration Offline to Online. Unified. The New Normal Extraordinary. The Quaternity
  • 22.
    2222 05.11.2020 Data partnershipswith airlines are becoming inevitable
  • 23.
    2323 05.11.2020 A partof the seamless experience 3. In-Flight2. Check-In1. Booking
  • 24.
    2424 05.11.2020 How airlinesare approaching it How we launched the world's most omnichannel airline e-commerce program, quadroupling sales in just 9 months and transforming the retail program to be digital first. S I N G A P O R E A I R L I N E S
  • 25.
    2525 05.11.2020 Setting newbenchmarks for Singapore Airlines’ KrisShop Delivery choices Tailored recommendations Mixed payment options Concept stores Shop-in-shop solution for luxury brands Reward loyalty with instant miles earning Live search
  • 26.
    2626 05.11.2020 KrisShop KPIsafter 12 months In-flight 90% E-commerce 90% E-commerce 10% In-flight 10% E-commerce revenue increased by 500% 3% 7% 1% more than tripled peaking at 7% during promotions Conversion Basket value 50% Transformed Model Product assortment 600 30.000 SKU SKU increase Pre-order cutoff time 3 days 60 min Revenue
  • 27.
    2727 05.11.2020 CRM- Data Loyalty/ Miles From Competitionto Collaboration. Build a single customer view with your partners.
  • 28.
    2828 05.11.2020 Customer acquisition integrationand 3rd party marketplaces. Start paying for traffic!
  • 29.
    2929 05.11.2020 Precise targetingof travelers along the journey
  • 30.
    3030 05.11.2020 Break theSilos One Platform. One Experience.
  • 31.
    3131 05.11.2020 Kian Gould Founder& CEO at AOE AOE GmbH Kirchgasse 6 65185 Wiesbaden Germany +49 6122 70 70 7-0 kian.gould@aoe.com Please ask questions…
  • 32.