• Emerging Growth Strategies and Business Models in the Aviation Retail Sector
    Innovation culture and growth strategies are driving the recovery of airport and airline retail outlets

    Research Overview

    Revenue from retail and related activities forms the majority share of non-aeronautical revenue for both airports and airlines. There are significant differences in the retail environment of airports and airlines. However, some common trends, like new technology implementation and new business models, can be seen across both segments.

    The COVID-19 pandemic has accelerated the usage of new technologies in almost all markets. Retailers outside the aviation ecosystem were already using technologies like the Internet of Things (IoT), Big Data, and location-based services. This study examines how their use in the aviation ecosystem is also gaining prominence. Retail outlets operating out of airports are expected to adopt solutions based on these technologies in the near future.

    The eCommerce business model has been successfully implemented in the retail sector. Omnichannel retailing, in particular, has proved to be an ideal model for the airport setting. Omnichannel retailing requires stakeholders to form collaborative relationships, which is common among airports and retailers. For customers, this model offers unparalleled personalization. Some airports in the Asia-Pacific and Europe have already utilized this model and achieved great success.


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