How Can Airports Reinvent Experiences to Meet Evolving Consumer Behaviour?
At the Trinity Forum 2024 in Vietnam, industry leaders explored how generational changes and the demand for seamless, memorable experiences challenge airports to rethink their approach.
At the Trinity Forum 2024 in Vietnam, industry leaders explored how generational changes and the demand for seamless, memorable experiences challenge airports to rethink their approach.
With younger travellers prioritising convenience, personalised service, and immersive experiences, airports can reimagine themselves as destinations rather than just transit hubs.
This article explores the demands of the modern traveller and focuses on ways airports can cater to their needs.
Generational Shifts and the Demand for Experiential Value
Younger travellers, particularly Millennials and Gen Z, are setting the pace for change in the travel retail landscape.
Having grown up in a digital-first, omnichannel world, these consumers value immediate access, seamless interactions, and, increasingly, experiences over material goods. The term “Swiftanomics” captures this shift, referencing the high price many are willing to pay for experiences like Taylor Swift concerts, where tickets can exceed £850.
This willingness to invest in experiences is reflected in their travel habits. Data shows that Gen Xers spent an average of $5,060 per trip, Millennials spent $4,141, and Gen Zs spent $2,788 on travel between 2020 and 2023. While these amounts are substantial, they also allow airports to tap into the younger traveller’s desire for unique, shareable, and memorable experiences.
To encourage these travellers to spend more on experiences, airports must move away from traditional retail setups and embrace dynamic, shareable, and culturally resonant experiences. This could be done by creating immersive, Instagrammable environments with interactive art installations and themed lounges, tapping into their love for capturing and sharing unique moments online.
Additionally, offering digital-first, seamless mobile experiences that allow for everything from booking to navigation via apps will appeal to their preference for using smartphones for convenience and real-time updates.
By aligning with these unique preferences and values, airports can transform travel experiences, ensuring that it’s not only memorable but also more meaningful—and, ultimately, more profitable.
Financial Constraints and the Need for Long-Term Vision
Despite the promise of increased passenger numbers, airports face significant financial challenges, with debt-to-EBITDA ratios having doubled in recent years. To sustain growth, airports must shift to a long-term perspective that goes beyond short-term revenue targets.
This requires focusing on foundational investments that reflect evolving customer expectations, which can yield returns over time. Embracing a longer-term strategy to build infrastructure and services that accommodate these changing needs can help position airports for steady, sustainable growth.
Creating a Customer-Centric, Holistic Strategy
Today’s travellers seek a seamless experience, whether it’s the convenience of quick retail purchases or the opportunity to enjoy tailored dining and entertainment options.
As expectations rise, airports must focus on delivering a holistic, customer-centric strategy that extends beyond transactions and emphasises relationship-building. By understanding travellers’ wants, needs, and pain points as they move through and around the airport, airports can deliver experiences that truly resonate.
According to Deloitte, customer-centric companies are 60% more profitable than those that aren’t, highlighting the immense value of creating positive, personalised experiences that drive repeat business and enhance customer loyalty.
However, many companies claim to be customer-centric, yet few truly are. A customer-centric company is evident in every interaction, focusing on putting the customer at the heart of everything it does—even over its own agenda. It means creating an environment where employees and customers experience different attitudes and actions.
For airports, this customer-centric focus involves harnessing data and personalisation to offer more than just transactional experiences.
From relevant retail recommendations to unique experiential offerings, airports can deliver tailored experiences that reflect each traveller’s individual preferences. This improves satisfaction and customer loyalty, as customers feel their preferences are being catered to.
As younger generations like Millennials and Gen Z lead the charge for more dynamic, memorable travel experiences, airports must embrace these evolving demands by creating immersive, Instagrammable spaces and offering seamless digital-first interactions. By doing so, they can encourage greater spending and foster long-term relationships with a new generation of travellers.
The Role of Travel Retail in Brand Building and Talent Development
Travel retail is emerging as a critical touchpoint for building brand affinity. When passengers encounter a brand in an airport setting, it’s more than just another retail transaction; it’s an opportunity to connect emotionally.
This presents a valuable platform for brands to increase awareness, build loyalty, and make a lasting impression. Airports are thus evolving as environments where brand connection and experiential value come to the fore, adding layers to what was once a straightforward retail model.
Equally important is the role of talent development within the airport environment. The calibre of customer service can make a substantial difference in the quality of a passenger’s experience.
As demand grows for unique, memorable interactions, airports and their retail partners need to ensure they have the right talent and empowered staff to deliver personalised, impactful experiences.
Opportunities for Brands to Capitalise on Shifting Consumer Behaviour
Brands operating within airports can stay competitive and relevant by catering to evolving consumer needs. Exclusive product lines, pop-up experiences, and tailored loyalty programmes can add significant value to the airport shopping experience, appealing to passengers seeking something unique.
Rather than focusing solely on high-ticket items, brands can consider offering diverse experiences that align with traveller preferences, creating an environment that speaks to every budget and interest.
Delivering value across various stakeholders—from travellers and airport employees to retail partners—will be key to navigating the current landscape. By staying nimble and adjusting to these evolving demands, brands can maintain relevance in a rapidly shifting market while enhancing the airport experience.
An Era of Transformation in the Airport Experience
The airport landscape is evolving, with today’s generational changes driving a shift toward a new type of experience.
Airports that embrace this change will become transit points and destinations that captivate and engage.
By developing a customer-centric approach, investing in long-term strategies, and focusing on talent and brand alignment, airports and their partners are positioned to redefine the travel experience for generations to come.
This transformation era invites all stakeholders to innovate and create an airport experience that resonates with the modern traveller, setting a new standard in global travel.
