The global travel retail market, valued at $63 billion, is facing significant disruptions, with varying performance across regions. Key strategies for survival include enhancing the in-store experience, leveraging digital engagement, and integrating e-commerce at airports. Adapting to the changing consumer behavior and expectations will be crucial for the future of travel retail.

1. THIS IS WHAT HAS TO CHANGE FOR
TRAVEL RETAIL TO SURVIVE
Manuel Heidler
Director Aviation Products @ AOE

2. Yesterdays Airport Passengers

3. Todays Passengers

4. The disruption has begun - A look at Travel Retail

5. The 63 billion USD global Travel Retail Market is beginning to be disrupted
AMERICAS
17.1% MS
___________
$10.9bn
↓7.5%
SOURCE: TFWA
Asia Pacific growth driven by Down-Town Duty Free +17.7% vs. Airports +1.5%
- Global Airport Shopping +0.4%
- Airlines -6.6%
- Ferries -2.7%
- Other Shops & Sales +7.3%
EUROPE
29.7% MS
___________
$18.8bn
↓7.9%
AFRICA
1.2% MS
__________
$0.8bn
↓2.7%
MIDDLE
EAST
8.9% MS
__________
$5.6bn
↓2.4%
ASIA PACIFIC
43.1% MS
__________
$27.4bn
↑10.4%
Market Share 56.2% vs. 57.3% ↓
Market Share 3.9% vs. 4.3% ↓
Market Share 3.2% vs. 3.3% ↓
Market Share 36.8% vs. 35.1% ↑
2015 - 2016

6. Moments of decision of Duty Free purchase
At home
before Leaving
for the airport
At destination
before leaving
for the airport
On the way to
the airport
At the
Airport
In the Duty
Free Shop
After looking around
After Getting Advice from Sales Staff
(only 2% in high spender category)
Importance of making in-
store experience unique!
After buying another category
Ensuring full digital engagement prior to travel
is essential to capture 65% of purchases
35%
6% 14%
10%
26%
7%
2%
SOURCE: m1nd-set Research

7. Planned vs Impulse Purchase
71% 29%
Planned in advance
what they wanted to shop
Bought on impulse
83% 79% 75% 44% 42% 40%
Shopping behavior has changed radically
SOURCE: m1nd-set Research

8. The new Quaternity of Travel Retail
INTEGRATED ADVERTISING
Via Wifi, Smart-Panels and
InfoTerminals offer unique
abilities
PARTICIPATION
in the international
e-commerce growth
CUSTOMER INFORMATION
Airports/Airlines know much
more about passengers than
most retailers do
CUSTOMER EXCELLENCE
Attractive digital offers
and services form a unique
customer experience
DIGITAL DEVICES
create new transaction
and communication
channels
DIGITALIZATION
of the travel journey
creates new touchpoints

9. Why E-Commerce at an airport has a competitive edge
RETURNSPRODUCT
Immediate Product Availability Low Cost of Returns Low Traffic Acquisition Cost
TRAFFIC

10. Todays and tomorrows passengers expect more!

11. The Quarternity as a true digital marketplace at airports

12. Use Case: Realtime & Multi Channel

13. Use Case: Personalization
Michael Madden (59), British
- Travels Business
- Lives in London
- buys his wife Chanel
- wears mainly Ralph Lauren
- has 10,000 loyalty points
- Drinks Double Espresso
Raj Mahindra (49), Indian
- Travels Business
- Lives in Bangalore
- Always uses Uber Black
- Loves BOSE Gadgets
- Buys Hugo Boss hsirts
- No Loyalty member
- Drinks Chai Latte
Pen Liyun (38), Chinese
- Travels First Class
- Lives in Beijing
- Buys 1 handbag each trip
- Ususally orders to lounge
- has 250,000 loyalty points
- Drinks Earl Grey

14. Use Case: Planning in Advance

15. Use Case: Integration of Down-Town/ High Street Shopping

16. Use Case: Product Selection

17. The future of Unobtrusive E-

18. Passenger
Experience
Non-Aviation
RevenuesOn-Premise Fulfillment
Mobile ShoppingE-Commerce Marketplace
VIP ServicesPersonalized Offers
Fast track Loyalty
Lounge AccessParking
The OM3 Suite The World’s Leading Airport Revenue Digitalization Platform

19. THIS IS WHAT HAS TO CHANGE FOR
TRAVEL RETAIL TO SURVIVE
Manuel Heidler
Director Aviation Products @ AOE
More questions? manuel.heidler@aoe.com