Few industries are facing what aviation has to deal with this year. Airports need to re-think fundamentals and re-invent how to generate additional revenues to compensate for the missing earnings - and to prepare for the digital future. In this webinar AOE Founder and CEO Kian Gould explained his thoughts on how digital engagement can speed the post-covid recovery era.
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Re-inventing airport non-aeronautical revenue generation post COVID-19
1. 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
3. 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
4. 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
5. 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
11. 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
12. 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%
13. 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.
21. 2121 05.11.2020
Reinvention means a
Fundamental Paradigm Shift.
Competition to Collaboration
Offline to Online. Unified.
The New Normal Extraordinary.
The Quaternity
24. 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
25. 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
26. 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