Kian Gould and Adil Raihani giving insights and best practices on how to digitalize travel retail and creating successful digital business models for airports and airlines to increase non-aviation revenues. Don't miss the Q&A section on 35:37. More information about OM³ solution: https://www.aoe.com/en/solutions/om3-suite.html

1. Kian T. Gould
(Founder & CEO at AOE)
Securing growth by digitalizing
airport non-aviation revenues
Adil Raïhani
(Partner at The Blueprint Partnership)

2. Kian T. Gould
(Founder & CEO at AOE)
Adil Raïhani
(Partner at The Blueprint Partnership)

3. Who is ?

4. The World‘s No.1
Travel Retail Digitalization Company
22 airports/airlines currently in rollout, tender or consulting phases

5. The disruption has already begun…

6. Yesterdays Airport Parking Customers

7. Yesterdays Airport Passengers

8. Yesterdays Airport Advertising

9. 4.8 Bn. mobile devices
but only 4.2 Bn.
toothbrushes worldwide

10. Todays Parking Customers

11. Tomorrows Parking Customers

12. Todays Passengers

13. Yesterday’s Urban Myth | Travel Retail is 100% on Impulse Purchasing

14. What is the new reality?

15. The average American
spends nearly
4hdaily on their smartphone

16. Europeare made on
mobile in
25% of all eCommerce sales

17. In China it is
75%already approaching

18. But the market is still growing!? Market yes, spend per passenger no…
SOURCE: TFWA & IATA
Passengers (per leg in billions) 6,7 7,2 7,7 8,3
Travel Retail market (in billion USD) 63.5 62.0 63.5 68,6
$8.27
(2017)
TR

19. Here is what these same passengers roughly spent when not traveling…
SOURCE: eMarketer
$540
$6,030
in Retail
online

20. Planned vs Impulse Purchase
81% 19%
Planned in advance Bought on impulse
89% 89% 85% 32% 30%
Planned purchasing continues to grow
SOURCE: m1nd-set Research 2018

21. The dominance of Online search
79% of today‘s purchasing
methods involve Online search
47%
14%
8%
7%
7%
Source: Gartner 2018
Search Online / Buy Online
Search Online / Buy In-Store
Search Online and In-Store / Buy In-Store
Search Online and In-Store / Buy Online
Search In-Store / Buy Online

23. Frankfurt Airport | Some early signs of success
↑ 62 % beyond business plan
Customer Growth Rate
+90 €
Additional spend
(by FRA Rewards members)
30 %
Repurchase rate
YTD
Plan
780 %
Avg. Basket increase
(online vs. offline)
Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17
300,000+ Loyalty sign-ups to-date

24. Steady growth in the premium segment
200+
New loyalty members daily
400€+
Average basket value

25. Frankfurt Airport sold over 50,000 EUR worth of Leica cameras in Q1/Q2

26. A single order of premium wine exceeded 8,000 EUR

28. All signs point towards luxury
500+ %
Average basket increase in first month
(420£ online vs. 75£ offline)

29. The top seller by total share of all sales is a 35k JAEGER-LECOULTRE

30. The most sold brand is

31. Revenue distribution at Heathrow Boutique
56%
24%
9%
7%
4%
Sales Share per Category
High-End Electronics Luxury Watches Luxury Fashion Others Duty Free

35. Highlights I 20,000+ packages per month going through the Collection Point

36. Highlights I 95% of sales comes from 5 categories

37. Highlights I Key KPIs of Collection Point logistics platform
20,000+ parcels
per month
90 seconds average
wait time
10+ monthly parcels
with ATV over 50,000

38. With the highest ever single watch purchase exceeding $1.2 million!

39. The airport as a true digital marketplace

40. Passenger
Experience
Non-Aviation
RevenuesOn-Premise Fulfillment
Mobile ShoppingE-Commerce Marketplace
VIP ServicesPersonalized Offers
Fast track Loyalty
Food & BeverageParking
The OM3 Suite | Digitalizing the entire non-aviation revenue stream

41. The Airport Marketplace Ecosystem
Shopping
Services
Payment
Services Retail / Shopping
Flight Data Hotels
Loyalty
Parking
Valet Services Lounge
Fast Track F&B Ordering
Maps
Rental Cars . . .
Airport Marketplace
Voice
Mobile
API
Touchpoints

42. All the research we conducted
over the last two years shows
that what AOE started at
Frankfurt Airport is the future of
Non-Aviation Revenues!
Peter Mohn, CEO m1nd-set research

43. Excited to answer your questions…