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Indian Travel Retail on the rise
Empowered customer
and airport’s response
They want different services
1. Personal / Privacy / no demand for service
2. Recognition / special service expectation
3. Fairness
Question 1
• What is the demand & travel pattern of future passenger
- what will the travel experience
- what is the demanded service
- what implication for commercial performance
Question 2
• How do we define our industry / our service
- where do we look (brands/operator/airport)
- Are we agile enough
- What is our specific value proposition
in our holistic offering
a combined question from these 2 stories
Are we ready to implement the services for tomorrow passengers to best satisfy their commercial expectation and demand?
- are we capable
- are we committed
- are we smart enough
Bangalore- the gateway to south India
• Vision
• Passenger increase (operational efficiency)
• India’s Aerospace Hub
• India’s one of largest Consumer Market
• Cosmopolitan Culture
• Over 688 Multinational
Companies
• Home of 87 Global Fortune 500
companies
Source : Thoughtworks
Bangalore Airport
Region/Traffic (Mn.) Domestic International Total
South India 42.41 21.22 63.63
North India 40.72 14.84 55.56
West India 38.7 12.81 51.51
East India 15.48 1.99 17.47
Total 137.31 50.86 188.17
Bengaluru
(FY 2014-15)12.47 2.93 15.40
BIAL is 3rd Largest (Overall Traffic) Airport in the Country
- Privatized airport
- Emerging market
- Regional airport
A look in our passengers
Source : Thoughtworks
Source : Thoughtworks
Source : Thoughtworks
New Customer• E-commerce is becoming a dominant channel
- modern retail from 17% to 13% between 2013 to 2019,
e-commerce from 2% to 11% (source : mint)
- India has 353 million internet users (only 20% of population)
- Indian e-commerce USD 60 billion in 5 years (source : edaily)
• New customer means empowered customer - more information
- higher demand
- instant voice
BIAL response
Upcoming T2
HOTEL
T1
T2
PARKING
PARKING
PARKING
FORECOURTT1-T2 RAIL STATION
BIAL response
• Complete self-service competency
• 360 degree information (self-empowerment)
• Re-defining the space itself
• Holistic design of total journey
Source : Thoughtworks
BIAL commercial
Aeronautical / Cargo Fuel
Non-Aeronautical/ Commercial
BIAL commercial
Retail
Food & Beverage
Lounges
Landside
Advertising & Promotions
BIAL commercial
International, 61.2%Domestic, 18.2%
Kerbside, 5.2%
Landside, 15.4%
BIAL Duty-free
LiquorTobacco
Perfumery
AccessoriesFashion
Foodothers
TechnologySouvenirs
Indian Travel Retail
• Rapidly growing market with increasing travelers- In-India TR or By-India TR
- cheaper tickets to boost 21.13% increase in July 2015
• Price sensitive market - Early stage of TR (shopping will become an integral part)
- But brands loyalty is also growing
• Customer perception / behavior - 96% look for info before shopping (76% by online) Source : Mint
Future of Indian Travel Retail
• #1 outlets and ‘a center of shopping’
• Size will up-grade the quality
• Aviation will be the dominant travel pattern
• More out-bound international / leisure travels
• Diverse brands and medium market products
will expand
Challenge
• Infra to meet the upcoming demand (tangible / intangible)
• Changing of perception (quality / price)
• How to make customers stand & move in commercial zone (paradox of bookshop)
• Winners are price & choice diversity
Commercial Strategy• Engage
- present strong story points - increase communication & trust
• Explore - new concept / pop-up displays- experiential products / kind & speedy service (Subway)
• Excite- Ambience, active promotion, combined suggestions - product of month / must-buy items
Future travelers at BIAL
• Airport’s value proposition to ; - global shoppers - concessionaire (commercial operator) - brands (product developer)
• Ways to ; - ommi-channel - travel & shopping curation - data sharing / pre-order / real-time exchange /door-to-door
