Younger passengers are leading the change in redefining consumers’ airport expectations with a growing appetite for new experiences according to the airport lounge and experience specialist, Airport Dimensions.
Having surveyed more than 9,000 travellers for its comprehensive study titled ‘AX24′, Airport Dimensions’ findings revealed that overall travellers expect 8% growth in their travel over the next 12 months. Led by a strong return to travel emerging markets, this growth is primarily driven by Millennial and Gen Z travellers.
With recent changes to airport passenger duty and price comparison available at the touch of a smartphone button meaning that traditional retail at airports is suffering from a value perception, airports are having to work harder to bolster both existing and future revenue streams. Satisfying the needs of younger passengers whose spending power is only set to increase will be integral in helping airports weather wider regulatory changes to the industry.
With experiences now representing 25% of discretionary spend, AX24’s research shows that younger travellers significantly outperform their seniors when it comes to spending on new services and experiences. Gen Z are less interested in spending on traditional amenities such as parking and fast track, but are drawn to new services such as sleep suites. What’s more, as digital natives, millennials and Gen Z are more likely to pre-book airport services than older travellers. 78% say they are interested in pre-booking services across the airport compared to 68% overall.
When it comes to food and beverage (F&B) options, AX24 shows that older travellers are increasingly interested in more premium F&B options (61%). However, for Gen Z audiences, high-end dining is less important than other non-food experiences.
With Millennials and Gen Z consumers expected to make up 45% of luxury sales by 2025, it is also not surprising that younger travellers are more likely to spend on offerings such as VIP shopping experiences rather than utility-based services such as airport parking. More than 50% of Millennials and Gen Z travellers also want to see more walk-through duty free concepts, while 57% of Millennials and 59% of Gen Z want more automated kiosks and vending machines. Gen Z are also far more likely to share and advocate for their experiences on social media. With this in mind, airports need to consider how to support these customers, creating more “instagrammable moments”.
The exponential growth in e-commerce also has a key role to play in the future of airport retail. Travellers are increasingly interested in airport shopping online via their mobile device from the comfort of their lounge seat. Investing in e-commerce and dialogue technology platforms to engage travellers more directly would allow airports to personalise incentives, promote deals and recognise loyalty to create a more rewarding and less price-sensitive retail experience for the connected and discerning younger shopper.
“Airports are entering an exciting era as travel looks forward to strong long-term growth. Younger travellers in particular are returning with a desire for fresh and engaging airport experiences. They are actively seeking out amenities such as lounges, quality food and beverage options, and unique retail offerings. Airports should capitalise on this opportunity by equipping themselves with the night tools, parternships, and engagement strategies to drive revenue growth,” said Stephen Hay, Global Strategy Director at Airport Dimensions.
