airports vs. airlines: who owns the customer? mike luddy, cco, gatwick airport nigel dolby, md,...
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Airports vs. Airlines:Airports vs. Airlines:Who owns the customer?Who owns the customer?
Mike Luddy, CCO, Gatwick Airport
Nigel Dolby, MD, Dolby & Holder Consulting
Your London Airport, GatwickYour London Airport, Gatwick
Mike Luddy, Chief Commercial Officer
Gatwick• Owned by Global Infrastructure since December 2009• 34m passengers per annum• More UK residents use Gatwick than any other Airport• Average spend per departing pax of over £5• Generating over £200m non aero income
The new Gatwick brand
The new Gatwick script logo and ‘Your Airport’ sign-off describes Gatwick’s positioning as a more human Airport
The new Gatwick script logo and ‘Your Airport’ sign-off describes Gatwick’s positioning as a more human Airport
The Gatwick ‘Retail Vision’• Everyday, Gatwick is focussed on its passengers and
delivering their needs in a more personal way
• For RETAIL, this means:
– INSPIRATION• a vibrant space that sends you on your travels with a smile
– OPPORTUNITY• more time to eat and shop, meeting all your needs
– EXCITEMENT• the brands you love, delivered with style
So who owns the passenger on this journey??
Departing Baggage
Arriving Baggage
Trolleys
Trolleys Control Post Access to RZ
Staff Access
to RZ
Con
necti
ng
Pax
First & Last
Impressions
•Road
Network
•Car Parks
-Long Term
-Short Term
•Busses
•Coaches
•Taxis
•Rail Access
Cargo
Check In &
Bag DropSecurity
Departure
Lounge
Pier & Gate
/ Coach
Pre-departure
process
Aircraft
Push back
Taxi to
Runway Hold
Take
Off
Turn
Aro
und
Approach
& LandTaxi to Stand
On Stand
Arrival
Arrival Gate
& Pier
Border
Control
Baggage
ReclaimArrivals Customs
Connecting
Baggage
Ground
Handling
Airside
Operations
Air
Traffic
Control
Departing Baggage
Arriving Baggage
Trolleys
Trolleys Control Post Access to RZ
Staff Access
to RZ
Con
necti
ng
Pax
First & Last
Impressions
•Road
Network
•Car Parks
-Long Term
-Short Term
•Busses
•Coaches
•Taxis
•Rail Access
Cargo
Check In &
Bag DropSecurity
Departure
Lounge
Pier & Gate
/ Coach
Pre-departure
process
Aircraft
Push back
Taxi to
Runway Hold
Take
Off
Turn
Aro
und
Approach
& LandTaxi to Stand
On Stand
Arrival
Arrival Gate
& Pier
Border
Control
Baggage
ReclaimArrivals Customs
Connecting
Baggage
Ground
Handling
Airside
Operations
Air
Traffic
Control
Airspace
The passenger journey
Only an Airport can truly own the passenger at the Airport
• Passengers are generally in a positive state of mind when they enter the IDL . After having been through the stressful processes of check-in and security they now begin to relax and feel that their holiday has begun
– 68% of passengers surveyed entered the IDL feeling positive , of those who were feeling negative (32%), 11% were tired and 7% were hungry
– passengers who were in a positive state of mind were more likely to browse around the shops and go for something to eat whilst those in a negative state of mind were more likely to go straight to the gate or find somewhere to sit
• Immediately after entering the IDL the top three things passengers did were go to the toilets, go somewhere to eat or go to the newsagents– of those who went to either shop or eat immediately, 48% went to shop for essentials (newsagents, pharmacy and currency
exchange ) first
0%
5%
10%
15%
20%First 3 things pax do when entering the IDL
17%
48%
19%
16%
First stop activity for shops and catering only
Desirable Shop
Essential Shop
Fast Catering
Full Service Catering
When passengers enter the IDL they begin to relax and feel that their holiday has begun
When passengers enter the IDL they begin to relax and feel that their holiday has begun
Only an Airport can truly own the passenger at the Airport
Overwhelmingly, the vast majority of passengers want to shop when they are
at the Airport not on the plane• 87% of passengers are looking to purchase something in the IDL, be it a planned or unplanned
purchase– of this 87% - 39% say they will look around and buy something if it catches their eye, 22%
buy essentials for their trip, 17% are looking for planned purchases and 9% want to treat themselves
– only 13% of passengers said they try to avoid shopping altogether
• 62% of passengers both shopped and visited a catering outlet whilst in the IDL
• Average reported dwell in time in the IDL is 1 hour 5 mins and during the Easter Peak this was increased to 1 hour 20 mins
• based on average recorded times to shop and eat in the IDL, passengers have enough time to buy essentials, eat and browse around the shops
Passengers want to shop, as well as eat, when they are in the IDLand their dwell time allows them to do both
Passengers want to shop, as well as eat, when they are in the IDLand their dwell time allows them to do both
Who are these shoppers – Picture Profiles
These are the typical targets – the 25 – 34 year singles / couples with no children
These are the typical targets – the 25 – 34 year singles / couples with no children
Priority Passenger Segment – Word Cloud
Key characteristics that depicts their typical lifestylesKey characteristics that depicts their typical lifestyles
Priority Passenger Segment - Lifestyle• Young (25-34), well educated, no children• Pioneers or Hunters of new and emerging trends for
both fashion, eating and lifestyle activities• Live in, or close to city centres in desirable locations• Are wealthy, or are rapidly realising their high earnings
potential• Carefree about how they spend, living life to the full,
working is a means to fund their active social lives• They travel frequently both to European cities and to
exciting and exotic locations
The passengers in the priority segment all have the same common characteristics
The passengers in the priority segment all have the same common characteristics
What do they want
Typical ‘brands’ that will excite and attract this priority segmentTypical ‘brands’ that will excite and attract this priority segment
How do they want it?
…..airports need to get smarter at delivering to needs…..airports need to get smarter at delivering to needs
FashionLifestyle
Accessories
Technology
Duty and tax Free
PassengerSegment Grab and Go
Essentials
Flight InfoToilets
CTNChemistBureau
Sizzle
Space in Priority Order• Where does the airline fit in ?
PassengerEssentials
Shopping Core Essentials
Food & Beverage Essentials
SpecialistRetail Shops
Retail Innovation / Experiential Services
•Toilets
•Seating
•Flight Information Display Screens
•PRM
•Points of orientation
•CTN
•Chemist
•Foreign Exchange
•Duty Free Shopping
•Coffee Bars / Shops
•Fast / Snack / Quick Food outlets
•Pub / Bars
•Full table service outlets
•Niche outlets
•Department store
•Fashion
•Accessories
•Technology
•Lifestyle
•Digital Kiosks / Pods
•Mobile Pop-up Pods
•Entertainment zones
•Pay as you go Zones
•Interactivities
Why Airports own the passenger ...at the Airport
• Passengers want to be released so they can eat and shop• they want more aspirational brands and choice then an airline
will ever deliver• they have over 1hr of free time• they want to browse and impulse buy• airline sales is a secondary purchase and only appeals to the
lower end of the market
If we don't compete then why don't we work together to maximise?If we don't compete then why don't we work together to maximise?