Lagardère Travel Retail has published its third trend report in the ‘Travel Experience Voices’ series, with this edition titled ‘Transforming today to step into tomorrow’.
Travel Experience Voices highlights three key themes that are high on the agenda for industry stakeholders: the role of hybrid concepts, implementation of sustainable practices and collaboration through data-sharing.
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The report is based on face-to-face interviews with airport and brand executives, plus a quantitative online survey taken by 58 airports and 150 brands across 27 countries, plus contributions from subject-matter experts.
Through testimonies and case studies, the report showcases how industry stakeholders and airports are preparing for the future while championing sustainability.
Blending retail and dining
Key findings reveal that airports are keen to invest and develop further hybrid stores, with technology as a key enabler. Among airports surveyed, 76 percent consider hybrid concepts – blending retail and food & beverage – as a long-term trend. Of all respondents 24 percent said such concepts are becoming more popular as they help enhance the customer experience.
On implementing hybrid concepts, 23 percent of airports and brands cited brand/concept collaboration as the biggest challenge with a further 23 percent citing B to C concept positioning and understanding. Airports and brands highlighted an ‘efficient store layout’ as the most important feature of hybrid stores, followed by a diversified offer and omnichannel integration.
Airports said they consider space optimisation as the main challenge when creating masterplans that include multiple activities.
Focus on sustainability
The report also underscores the need for collaboration within the industry as mandatory to making progress in decarbonisation.
The level of demand for responsible consumption among travellers is rated as 3.2 out of 5 by airports and brands. Many also focused on the limitations on communicating the industry’s CSR engagement.
Data-sharing challenge
Data sharing meanwhile is recognised as a potential performance booster, especially in supporting shared strategies and business goals.
Airports and brands said they face challenges in the implementation of data-sharing models across the industry, with GDPR, compliance laws and regulations representing the main one.
Some 47 percent of respondents said they are using generative AI to analyse their data. Meanwhile a perhaps surprisingly low 56 percent of those surveyed said they would consider data partnerships to increase knowledge of the consumer.
Lagardère Travel Retail chairman and CEO Dag Rasmussen said: “These themes are not just trends; they are the beacons guiding our strategic direction in an increasingly interconnected and conscious world.
“Hybrid concepts stand at the crossroads of innovation, blending digital with physical, global with local, and retail with F&B. These dynamic spaces redefine the travel experience, offering travellers a seamless integration of convenience, entertainment and engagement.
“Our dedication to CSR underscores everything we do. In a world facing unprecedented environmental and social challenges, we stand firm in our responsibility towards sustainable development, community engagement and ethical business practices.
“Amidst these endeavours, the power of data in shaping the future of travel retail cannot be overstated. In an age where information has become vital, harnessing data analytics and artificial intelligence offers us unparalleled insights into consumer behaviour, enabling personalised experiences that were once the realm of imagination.”
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Conducted between January and March 2024, the interviews and the online survey provide a comprehensive snapshot of the industry’s current landscape and future trajectory, said the company.
Lagardère Travel Retail said: “Through collaboration, innovation and a shared commitment to sustainability, we move forward with optimism, shaping a travel retail industry that is more connected, vibrant, and sustainable than ever before.”
(Source: The Moodie Davitt Report )