THE 2018 BUDAPEST AIRPORT TRIALS

Similar documents
Analysts and Investors conference call. Q results. 15 May 2013

The In-Flight Monetisation & Services Platform PRODUCT BROCHURE

TRBUSINESS. Flio has come a long way since it launched in 2015 with a dream of becoming a one-stop global airport app.

Air Berlin PLC AGM 06 June 2013 London

SAS Group Q Teleconference

Airport revenue per passenger vs airline revenue per passenger

THE MOST RECOGNISED NAME IN HOSPITALITY

An innovative media company delivering sustainable, profitable growth Half year results 21 st August 2013

AVIATION INSIGHTS AND DEVELOPMENTS Q FOR A LANDSCAPE OF POSSIBILITIES TALON S QUARTERLY REVIEW OF THE INTERNATIONAL AVIATION MARKET

Schiphol Group. Annual Report

BAA (SP) Limited Results for six months ended 30 June July 2011

Jeff Poole Director, Airport & ATC Charges, Fuel and Taxation To represent, lead and serve the airline industry

Information meeting. Jean-Cyril Spinetta Chairman and CEO

Highlights from the Annual Results December 2007

Gatwick Airport Limited. Results for six months ended 30 September 2012

AviAlliance The Airport Management Company

Entry of Low-Cost-Airlines in Germany - Some Lessons for the Economics of Railroads and Intermodal Competition -

Brussels Airport Airline Issues & Route Development Breakout session 18 June

Analysts Briefing. 27 November Cathay Pacific Airways Limited

1. Explain the purpose of the study. 2. How it was undertaken

A chat with Paulo Salvador, Chief Marketing Officer at Worldhotels

Seeking a world class marriage between aero nautical and non aero nautical revenue

Q3 FY 14 IMS Analyst & Investor presentation. 3 months to 30 June 2014

Singapore Airlines Group Analyst/Media Briefing HALF YEAR FY RESULTS 5 NOVEMBER 2012 THE PARENT AIRLINE 1H FY2012/13 RESULTS

The European Hotel Market

DTTAS Quarterly Aviation Statistics Snapshot Quarter Report

SIA ANALYST/MEDIA BRIEFING Q2 and 1H FY17/18 Results 8 November 2017

Beijing Global Friend Airports Roundtable Cooperative Initiatives

Air Berlin PLC AGM 18 June 2014 London

2007/08 Full Year Results Investor Briefing

SPONSORSHIP OPPORTUNITIES

30 MAY 2019 PARTNERSHIP OPPORTUNITIES. Brought to you by

Hospitality partnership for Installers. May 2017

lastminute.com Group Milan November 2018

Air Berlin PLC 15 th June, 2016 Annual General Meeting 2016 London

Heathrow (SP) Limited

BUSINESS BAROMETER December 2018

ASIS Middle East Conference 2015

Analysts Briefing. 18 March Cathay Pacific Airways Limited

The Universal Brand Experience. Version 2 short Feb. 2012

Sales increased and income will be on a recovery track in the second half of the fiscal year.

Labs: How Travelport is redefining the airline customer experience. David Gomes Commercial Director, Air Commerce

ANALYSIS OF EUROPEAN AIRPORTS STRATEGY DURING THE GLOBAL ECONOMIC CRISIS

SAS Group Asia Tour Financial Hearing Presentation May 14, 2012

The Property Franchise Group

ACI EUROPE POSITION. on the revision of. EU DIRECTIVE 2002/30 (noise-related operating restrictions at community airports)

Industry Update. ACI-NA Winter Board of Directors Meeting February 3, 2016 Orlando, FL

Ancillary Revenue per Passenger for 2013 was $16, Up Nearly 129% from 2007

5 Ways Mobility Unlocks New In-Flight Revenue Opportunities

Hampton by Hilton Istanbul Atakoy, Turkey HAMPTON BY HILTON. EMEA Development Brochure

De luchtvaart in het EU-emissiehandelssysteem. Summary

THE FUNDAMENTALS OF ROUTE DEVELOPMENT MARKETING TO AIRLINES AND THE PERFECT PRESENTATION MODULE 10

ACI EUROPE POSITION. on the revision of. EU DIRECTIVE 2002/30 (noise-related operating restrictions at community airports)

Note: These Louisiana indicators show the percentage difference from Second Quarter 2004 to Second Quarter 2005.

2 Hong Kong Tourism Board Annual Report 2016/17

Peter Sorensen Director, Europe Safety, Operations & Infrastructure To represent, lead and serve the airline industry

AIR CANADA REPORTS 2010 FIRST QUARTER RESULTS Operating loss narrows; revenue and traffic growth reflect strengthening economy

Interim Management Report First Half Results 2010/11. October 29, 2010

A STRATEGY FOR INFLIGHT PRESENTED BY KAREN DURBAN PRESIDENT INFLIGHT SALES GROUP EUROPE

InterContinental Brand Simon Scoot -Vice President InterContinental Brand Management. June 2010

Asia Pacific Aviation

Commissioned by: Economic Impact of Tourism. Stevenage Results. Produced by: Destination Research

Economic Impact of Tourism. Hertfordshire Results. Commissioned by: Visit Herts. Produced by:

THE FIRST IN SERVICE AND TIMELESS ELEGANCE. EMEA Development Information. Waldorf Astoria Shanghai on the Bund, China

Developing internationally-ready product and reaching the market. Carol Dray Commercial Director Andrew Stokes Director England

Tourism Ireland Marketing Plans Europe Finola O Mahony Head of Europe 11 th December 2017

ANA HOLDINGS Financial Results for the Six Months Ended September 30, 2018

Is British Airways losing altitude?

IATA ECONOMIC BRIEFING FEBRUARY 2007

Latest market insights and marketing plans from VisitBritain/VisitEngland. Anke Monestel, VisitEngland 8 th February 2018

Delivering for Dundee & Angus. How we re working to grow the visitor economy

Keflavik International Airport Discounts for new routes

Produced by: Destination Research Sergi Jarques, Director

Building Connections to PROVIDE A TOTAL CUSTOMER EXPERIENCE

ACI EUROPE ECONOMICS REPORT This report is sponsored by

Content Delivery to Aircraft: The Challenge

Implementation of a marketing and promotion action for the EU ecolabel on indoor paints and varnishes in selected European

Airport retail in 2017: A year in review

Never Just Stay. Stay Inspired. CONRAD EMEA DEVELOPMENT BROCHURE. Conrad Dubai, UAE

TUI GROUP INVESTOR PRESENTATION

C O R P O R A T E N E W S

Produced by: Destination Research Sergi Jarques, Director

EDIT THIS TEXT IN INSERT > HEADER / FOOTER. INCLUDE TEAM NAME, SECURITY CLASSIFICATION AND DRAFT STATUS. CLICK APPLY TO ALL. 02 February

INTERNATIONAL NEWS & RESULTS

Produced by: Destination Research Sergi Jarques, Director

Produced by: Destination Research Sergi Jarques, Director

How Airlines and Airports Are Working Together to Deliver a Seamlessly Connected Passenger Experience

Results 2Q17. August 9, 2017

If Brandenburg Airport were open today it would already be full!

DTTAS Quarterly Aviation Statistics Snapshot Quarter Report

ACI EUROPE POSITION PAPER

New Market Structure Realities

DESTINATION MELBOURNE ANNUAL ACCOMMODATION PACKAGE MEDIA KIT

Quarterly Aviation Industry Performance

Jakarta, 3 May Analyst Meeting. Q1/ Corporate Performance

The Accounting Case Competition for Secondary Schools and Tertiary Institutes. Tertiary Institutes Group

LCC IMPACT ON THE US AIRPORT S BUSINESS

DOUBLETREE BY HILTON HOTEL ELAZIG EMEA DEVELOPMENT BROCHURE

TRBUSINESS. It was also driven by an increase of long-haul destinations, and expanded short haul networks.

HEADSTRONG TOWARDS STRATEGIC PARTNERSHIP ARND SCHWIERHOLZ AIRBERLIN

Transcription:

B.A.R.T.A. the Brand Airline Retailer Technology Airport initiative Airlines are the compulsory stakeholder in keeping retail relevant: What scope is there for a TrinityBARTA Working Cooperation? B.A.R.T.A. team: SHANGHAI, CHINA. 31 OCT -1 NOV, 2018 PATRICK BOHL, HEAD OF RETAIL & ADVERTISING, BUDAPEST AIRPORT

THE PREMISE: AIRPORT RETAIL IS DECLINING BECAUSE OF ONLINE COMPETITION In Europe, airport retail revenues have come under pressure from technological disruption. While passenger numbers continue to rise, non-aeronautical revenue per person has been falling at airports across Europe and plateauing in North America. Financial Times May 2018

THE PREMISE: AIRPORT RETAIL IS DECLINING BECAUSE OF ONLINE COMPETITION There is no doubt that, along with disruptive technologies such as the continued growth of online retail services, increased retail competition outside the influence of the airport will also begin to limit growth prospects for airports. Stefano Baronci, Director of Economics at ACI World Financial Times May 2018

IMMEDIATE TECHNOLOGICAL THREATS TO AIRPORT AND ON-BOARD/ANCILLARY SALES THREATS: Financial Times report May 25 2018

NON-AERONAUTICAL SALES AT AIRPORTS DECLINING Airport non-aeronautical revenue under pressure from technological disruption. Non-aeronautical = 40% of all income in 2016 - down from 50% in 2000 According to ACI World Airport retail revenues hit by online retail, falling to 2.73 per passenger in 2016 from 2.91 per passenger in 2010 According to ACI World (Caution: Averages and survey sample are unhelpful major airports report retail spending of closer 10+ pp the average at Dublin Airport, Heathrow etc much lower at Frankfurt at 3.06)

Moodie-Davitt snapshot: Fraport 1H 2018 results Retail revenue declines by almost -4% to 94.8 million PASSENGERS SPEND LESS AT MAJOR AIRPORTS Net retail revenue per passenger down -12.3% to 3.06 Wider Retail & Real Estate division revenue down -10% to 241.3 million Group revenue overall up by +13% to 1.532 billion Passenger traffic increases by 9.1% Source: The Moodie-Davitt Report ADP, SCHIPHOL ALSO DOWN: Groupe ADP spend per passenger (1H 2018): 17.9 (-1.3% year-on-year) Amsterdam Airport Schiphol spend per passenger (2017): 13.35 (-2.2% year-on-year)

28th EVIDENCE OF MELTDOWN IS PATCHY, ANECDOTAL AND UNSCIENTIFIC! AIRPORT COMMERCIAL & RETAIL CONFERENCE & EXHIBITION Hosted by: 18-20 March 2019, Harpa, Reykjavik, Iceland To clarify the situation, the ACI EUROPE Commercial & Retail Conference in Reykjavik March 2019 will include scientific evidence of the performance of retail, especially in Europe.

SHE S WALKING PAST THE SHOP! KNOWN KNOWNS: 75% of EURO travellers don t buy. BARTA: A $1 BILLION OPPORTUNITY? KNOWN UNKNOWNS: The full effect of direct competition from technological disruption 2017 European travel retail worth $20 billion* 3-5% growth/yield improvement = $1 billion! *Generation Research

AIRPORT SHOPPING FUNDAMENTALLY VICTORIAN! PRE-INTERNET; PRE-WRIGHT BROTHERS Despite all our efforts with loyalty programmes, Galleria, Milano opened 1877 technology (Apps, Beacons) etc, airport shopping mainly relies on browsers and impulse.

Airlines are best-placed to drive commercial offers to travellers at just the right time in their journeys! AIRLINE TRAVELLERS ARE DIGITALLY ENGAGED END-TO-END DUTY FREE EXCLUSIVES Flight booking Pre-flight reminders Boarding passes Apps TXT gate notifications etc, etc AIRPORT SHOPPING MUST BECOME DIGITALLY ENGAGED WITH TRAVELLERS Not 25% Not 50% 100% digital engagement

WHAT IS BARTA? A concept developed by Future Travel Experience, the technology platform dedicated to enhancing end-to-end passenger experience and business performance B Brands A Airlines R Retailers T Technology platforms A Airports

Budapest Airport encourages a BARTA dialogue between airline partner and duty free/travel value partner Direct commercial relations Direct commercial relations No direct commercial relations

BUDAPEST AIRPORT AN IDEAL TEST BASE FOR BARTA CONCEPTS Ideal site for the March-May 2018 BARTA trial. Budapest Airport = 13 million throughput part of the AviAlliance airports portfolio inc. Athens, Düsseldorf, Hamburg Home base for Wizz Air a top five European LCC with 30m+ passengers Stand-out retail location for Heinemann a top-5 global travel retailer (330 shops on 79 airports)

THE BUDAPEST BARTA TRIALS = A very simple partnership a very simple promotion Shop at Heinemann snack on Wizz Air Flights Promoted Heinemann shopping electronically from point of booking onwards Offered a voucher for inflight café based on 50 and 75 purchasing benchmarks

MARKETING DEVICES BUD CHANNELS

MARKETING DEVICES HDF CHANNELS

MARKETING DEVICES WIZZ CHANNELS

THE RESULTS OF THE MARCH-MAY 2018 BUDAPEST BARTA TRIAL

RESULTS EXCEED EXPECTATIONS! Very popular! voucher handout almost double target (1,900 weekly) 77% redemption rate

COMMERCIAL CONSIDERATIONS BUD KPIS

HEINEMANN BUD BARTA KPIS MAR-MAY 2018 FULL THREE-MONTH RESULTS STAND-OUT ROUTE PERFORMANCE

WIZZ ONBOARD KPIS MARCH, APRIL AND MAY

KEY CONCLUSIONS AND INDICATORS Simple BARTA voucher trial yielded +4.3% SPP in first two months If Mar-Apr BARTA improvement of +4.3% was reproduced across Europe = +$860m in airport retail! No cannibalization of Wizz Air boutique sales or decrease in turnover from F&B Onboard Wizz Air Café from BUD stronger than rest of the network No requirement to renegotiate airport-retailer contracts Imagine what results could be achieved with full digital engagement via airlines!

THE FUTURE: The campaign continues November 2018 Evaluating the cooperation of frequent customer programmes (eg Wizz Discount Club, Heinemann & Me) Involvement of brands in the next BARTA campaign

MORE DISCUSSION OF BARTA 28th AIRPORT COMMERCIAL & RETAIL CONFERENCE & EXHIBITION Hosted by: 18-20 March 2019, Harpa, Reykjavik, Iceland 18-20 March 2019, Reykjavik 18-20 June 2019, Istanbul

MORE FUTURE: Impressive results from modest BUD voucher scheme So BIGGER results from ambitious BARTA schemes with airlines! Trinity should include airline (digital) engagement A Trinity-BARTA Working Cooperation = natural Trinity progression