Sachin Walls
Airport shopping is a unique experience, offering everything from fast food to luxury goods, and even the most unusual items like bottled water. With sales from retail shops and concessionaires increasing worldwide, airports present a rare opportunity for businesses to target a captive audience of travellers with money to burn. But how do airports decide which stores to include? And what makes these shops so appealing to customers? This guide will explore the strategies behind airport retail, the benefits for travellers, and the challenges faced by businesses in this unique setting.
| Characteristics | Values |
|---|---|
| Location | Stores located in airports benefit from a captive audience of travellers who are more willing to spend. |
| Customer Profile | Airports attract wealthy customers with time to kill and money to spend. |
| Tax | Items purchased at the airport are often duty-free, which can result in significant savings for customers. |
| Product Offering | Stores must comply with airport regulations and restrictions, which may include restrictions on certain products due to security concerns. |
| Local Focus | Airports may prioritize local and small businesses to boost the airport's unique and local feel. |
| Convenience | Services such as click-and-collect and online ordering enhance the convenience of shopping at the airport. |
| Exclusivity | Airport stores may offer exclusive deals or products that are not available elsewhere. |
Explore related products
What You'll Learn
Understanding your target audience
Firstly, it is important to identify who you want to reach and why. Your target audience can be segmented by various criteria, such as demographics, psychographics, travel preferences, or loyalty status. You should also consider the needs, challenges, and motivations of your target audience, and how your airport can address them. For instance, if your target audience includes business travellers, your marketing message could be centred around the availability of free Wi-Fi at the airport.
Secondly, you can leverage mobile technology to address the key concerns of your target audience. Airports can ensure that the right message gets delivered at the right stage in the passenger journey. For example, if someone is within 20 metres of a duty-free store, you can send them a 10% off coupon code to encourage spending. By using location-based technology, airports can better understand and predict passenger behaviour, allowing marketers to send highly relevant and personalised messages.
Thirdly, you can target your audience within specified geographic boundaries through the use of geofencing, wi-fi, beacons, or similar geotargeting technology. Airports can successfully leverage location-based technology to provide an array of digital services to passengers, such as seamless indoor navigation to checkpoints and location-specific information in real-time.
Lastly, it is important to create marketing content that is relevant, engaging, and valuable to your target audience. Your marketing content should showcase your value proposition and brand identity, as well as include a clear call to action, such as booking a flight or visiting your website. You should also use different types of content, such as text, images, videos, or podcasts, to suit different channels and audiences.
Airport Accessibility: Granada's Gateway to the Skies
You may want to see also
Explore related products
Researching the airport's unique challenges
When it comes to picking stores for airports, it is crucial to conduct thorough research on the unique challenges and characteristics of the airport in question. Each airport has its own set of operational challenges, regulations, and models that can significantly impact the selection and performance of retail stores.
One of the key challenges is understanding the unique customer demographics and travel trends associated with the airport. Airports serve a diverse range of passenger groups, including domestic travellers, long-haul international travellers, business professionals, and tourists. Each of these groups has distinct needs and preferences that should be reflected in the types of brands, ranges, and products offered. For instance, during the colder months, while some travellers may seek winter sun destinations, others might be interested in ski wear and Christmas gifts. Therefore, airports need to stock a variety of items to cater to these varying demands.
Additionally, airports have unique marketing calendars that are influenced by events, passenger groups, destinations, and travel periods. For example, the Paris airports targeted specific international groups, such as China, Russia, Japan, and Hong Kong, for marketing purposes, and planned events around Chinese and Russian New Year. Understanding these unique marketing opportunities can help retailers align their offerings with the airport's promotional strategies.
Airports also face challenges in terms of capacity assessments and external factors. Larger airports, despite having high capacity, can experience reduced throughput due to arrival delays or adverse weather conditions. Understanding how to maintain capacity and resilience during such events is crucial. Moreover, accessing crucial data for capacity assessments can be difficult due to limited data availability or the challenge of processing extensive data effectively.
Furthermore, the rapid evolution of technology demands ongoing investments and adaptations from airports. They need to stay current with digital innovations, such as digital advertising, to ensure they are providing a modern and engaging experience for travellers. Health and safety measures, particularly in the post-pandemic era, also present complex challenges. Airports must implement stringent protocols while maintaining a welcoming atmosphere, requiring continuous training and vigilance.
Lastly, airport stores have unique supply chain considerations. They often have longer opening hours, requiring more shifts and odd-hour staffing. The onboarding process for staff is lengthier due to additional security checks. Some airports may also require multilingual staff, adding another layer of complexity to the hiring process.
Drugs, Airports, and Detection: Unveiling the Strategies
You may want to see also
Explore related products
Knowing the legal and regulatory requirements
When it comes to picking stores for airports, it is essential to have a comprehensive understanding of the legal and regulatory requirements that govern airport operations. Here are some key points to consider:
Federal Regulations and Compliance: Airports in the United States, for example, are subject to federal regulations outlined in the eCFR (Electronic Code of Federal Regulations). These regulations cover various aspects of airport security, including the establishment of Security Directives, personnel identification, criminal history records checks, and measures to prevent unauthorized access. The Federal Aviation Administration (FAA) enforces compliance with certain obligations through its Airport Compliance Program. Airport operators must be well-versed in these regulations and ensure their operations meet the required standards.
Security Measures: Airport security is of paramount importance. Airports are required to implement comprehensive security programs, including the designation of Airport Security Coordinators (ASCs) who serve as primary contacts for security-related matters. These coordinators are responsible for reviewing security-related functions, initiating corrective actions, and ensuring compliance with applicable regulations. Airports must also establish measures to control access to secure areas, such as employee identification systems and training procedures.
Protection of Small Businesses: Federal funding mandates that airports provide concessions opportunities for small, disadvantaged, and/or local businesses. Airport operators should be aware of these requirements and actively seek to include such businesses in their commercial offerings. This not only enhances the airport's local appeal but also fosters the growth of small businesses in the region.
Local and National Vendor Opportunities: Airports often prioritize local and regional vendors to showcase the unique character of their location. Airport operators should engage with local businesses, attend juried craft shows, and participate in local shopping events to discover new products and operators. Additionally, national airport conferences, such as the Airport Revenue News conference, provide a platform for vendors to pitch their concepts and gain exposure to airport decision-makers.
Legal Considerations for Products: When introducing new products or services, it is crucial to conduct thorough legal reviews. For instance, Cannabis Basics founder Aimee Warner had to assure the senior vice president of operations at Hudson Group that her health and beauty products could legally cross state lines. Airports and their vendors must ensure that all products sold comply with applicable laws and regulations to avoid legal repercussions.
By staying informed about the legal and regulatory landscape, airport operators can make well-informed decisions when selecting stores and vendors. These requirements help maintain safety, promote local businesses, and enhance the overall travel experience for passengers.
Scranton, PA: Airport Accessibility and Travel Options
You may want to see also
Explore related products
Considering the financial implications
Firstly, airport shop leases are different from those in suburban shopping centres. Owners of retail businesses need to be aware of the various factors that can affect the cost of their lease, such as enplanements (departing passengers) which are part of how foot traffic is calculated. Lower traffic equals lower sales, so this is an important consideration when it comes to negotiating rent. Space is also at a premium in airports, and tenants should be aware of their space needs, including storage, and negotiate this as part of their lease.
Airports are also highly focused on security, which can impact the types of products that can be sold. For example, newsstands, drug stores, and gift shops may not be able to sell items like nail clippers or pocket knives. Restaurant owners will also have to comply with different rules and regulations regarding the handling of knives and open flames. These rules and regulations are subject to frequent change, and tenants must be aware of this and able to adapt their product offerings if necessary.
Another financial consideration is the duty-free shopping that airports offer. This can be a draw for customers, particularly for items like cigarettes and alcohol, which often have a much lower cost. However, it is worth noting that sometimes duty-free shopping is not the best deal, and customers may be able to find better prices elsewhere.
Finally, airports can offer small businesses a unique opportunity to reach a wider audience and reap big rewards. However, it can also be challenging for small businesses to get a foot in the door. Airports often hold outreach events and conferences to introduce existing vendors to new ones and create new partnerships and concessions. These can be a great opportunity for small businesses to get their brands known and pitch their concepts to airport decision-makers.
Las Vegas Airport Code: What You Need to Know
You may want to see also
Explore related products
Exploring marketing and sales strategies
A key strategy is to utilise the duty-free and tax-free shopping that airports offer. This is a significant draw for customers, particularly for items such as cigarettes and alcohol, which have high duty-free savings. Some airports offer a ''Shop Now & Collect on Return' service, allowing customers to buy duty-free items before they fly and pick them up on their return, avoiding the hassle of carrying items on their trip. Researching and advertising the prices of popular duty-free items can be an effective marketing strategy, as customers can then plan their purchases in advance.
Airports also provide an opportunity for small, local businesses to thrive, with federal funding mandates in place to support these ventures. Local businesses can benefit from the high footfall and the unique, local feel they bring to the airport. To tap into this market, businesses can participate in airport outreach events, conferences, and exhibitions, where new companies can pitch their concepts to airport decision-makers.
Another important consideration for airport stores is the impact of security measures on their product offerings. Stores must comply with regulations that can differ from those outside the airport and are subject to change. For example, newsstands, drug stores, and gift shops must avoid selling certain items such as nail clippers and pocket knives. Understanding and staying up-to-date with these regulations is crucial for tenants.
Overall, successful marketing and sales strategies for airport stores should leverage the benefits of duty-free shopping, target a captive audience of travellers, and adapt to the unique security and logistical challenges of the airport environment.
Luggage Storage at Athens Airport: What Are the Options?
You may want to see also
Frequently asked questions
Luxury items are often purchased by wealthy people with time to kill before their flight. Additionally, some people may be looking to take advantage of duty-free shopping.
Airports are hyper-focused on security, which can impact how tenants operate their businesses. For example, newsstands, drug stores, and gift shops may have to vary their product offerings, and restaurant owners must comply with rules and regulations that do not apply to non-airport locations.
It is important to consider the needs of travellers. For instance, stores that sell food, drinks, and travel essentials tend to be popular. Additionally, you can create opportunities for small, disadvantaged, and/or local businesses to set up concessions.
