Airports vs. Airlines:Airports vs. Airlines:Who owns the customer?Who owns the customer?

Mike Luddy, CCO, Gatwick Airport

Nigel Dolby, MD, Dolby & Holder Consulting

Your London Airport, GatwickYour London Airport, Gatwick

Mike Luddy, Chief Commercial Officer

Gatwick• Owned by Global Infrastructure since December 2009• 34m passengers per annum• More UK residents use Gatwick than any other Airport• Average spend per departing pax of over £5• Generating over £200m non aero income

The new Gatwick brand

The new Gatwick script logo and ‘Your Airport’ sign-off describes Gatwick’s positioning as a more human Airport

The new Gatwick script logo and ‘Your Airport’ sign-off describes Gatwick’s positioning as a more human Airport

The Gatwick ‘Retail Vision’• Everyday, Gatwick is focussed on its passengers and

delivering their needs in a more personal way

• For RETAIL, this means:

– INSPIRATION• a vibrant space that sends you on your travels with a smile

– OPPORTUNITY• more time to eat and shop, meeting all your needs

– EXCITEMENT• the brands you love, delivered with style

So who owns the passenger on this journey??

Departing Baggage

Arriving Baggage

Trolleys

Trolleys Control Post Access to RZ

Staff Access

to RZ

Con

necti

ng

Pax

First & Last

Impressions

•Road

Network

•Car Parks

-Long Term

-Short Term

•Busses

•Coaches

•Taxis

•Rail Access

Cargo

Check In &

Bag DropSecurity

Departure

Lounge

Pier & Gate

/ Coach

Pre-departure

process

Aircraft

Push back

Taxi to

Runway Hold

Take

Off

Turn

Aro

und

Approach

& LandTaxi to Stand

On Stand

Arrival

Arrival Gate

& Pier

Border

Control

Baggage

ReclaimArrivals Customs

Connecting

Baggage

Ground

Handling

Airside

Operations

Air

Traffic

Control

Departing Baggage

Arriving Baggage

Trolleys

Trolleys Control Post Access to RZ

Staff Access

to RZ

Con

necti

ng

Pax

First & Last

Impressions

•Road

Network

•Car Parks

-Long Term

-Short Term

•Busses

•Coaches

•Taxis

•Rail Access

Cargo

Check In &

Bag DropSecurity

Departure

Lounge

Pier & Gate

/ Coach

Pre-departure

process

Aircraft

Push back

Taxi to

Runway Hold

Take

Off

Turn

Aro

und

Approach

& LandTaxi to Stand

On Stand

Arrival

Arrival Gate

& Pier

Border

Control

Baggage

ReclaimArrivals Customs

Connecting

Baggage

Ground

Handling

Airside

Operations

Air

Traffic

Control

Airspace

The passenger journey

Only an Airport can truly own the passenger at the Airport

• Passengers are generally in a positive state of mind when they enter the IDL . After having been through the stressful processes of check-in and security they now begin to relax and feel that their holiday has begun

– 68% of passengers surveyed entered the IDL feeling positive , of those who were feeling negative (32%), 11% were tired and 7% were hungry

– passengers who were in a positive state of mind were more likely to browse around the shops and go for something to eat whilst those in a negative state of mind were more likely to go straight to the gate or find somewhere to sit

• Immediately after entering the IDL the top three things passengers did were go to the toilets, go somewhere to eat or go to the newsagents– of those who went to either shop or eat immediately, 48% went to shop for essentials (newsagents, pharmacy and currency

exchange ) first

0%

5%

10%

15%

20%First 3 things pax do when entering the IDL

17%

48%

19%

16%

First stop activity for shops and catering only

Desirable Shop

Essential Shop

Fast Catering

Full Service Catering

When passengers enter the IDL they begin to relax and feel that their holiday has begun

When passengers enter the IDL they begin to relax and feel that their holiday has begun

Only an Airport can truly own the passenger at the Airport

Overwhelmingly, the vast majority of passengers want to shop when they are

at the Airport not on the plane• 87% of passengers are looking to purchase something in the IDL, be it a planned or unplanned

purchase– of this 87% - 39% say they will look around and buy something if it catches their eye, 22%

buy essentials for their trip, 17% are looking for planned purchases and 9% want to treat themselves

– only 13% of passengers said they try to avoid shopping altogether

• 62% of passengers both shopped and visited a catering outlet whilst in the IDL

• Average reported dwell in time in the IDL is 1 hour 5 mins and during the Easter Peak this was increased to 1 hour 20 mins

• based on average recorded times to shop and eat in the IDL, passengers have enough time to buy essentials, eat and browse around the shops

Passengers want to shop, as well as eat, when they are in the IDLand their dwell time allows them to do both

Passengers want to shop, as well as eat, when they are in the IDLand their dwell time allows them to do both

Who are these shoppers – Picture Profiles

These are the typical targets – the 25 – 34 year singles / couples with no children

These are the typical targets – the 25 – 34 year singles / couples with no children

Priority Passenger Segment – Word Cloud

Key characteristics that depicts their typical lifestylesKey characteristics that depicts their typical lifestyles

Priority Passenger Segment - Lifestyle• Young (25-34), well educated, no children• Pioneers or Hunters of new and emerging trends for

both fashion, eating and lifestyle activities• Live in, or close to city centres in desirable locations• Are wealthy, or are rapidly realising their high earnings

potential• Carefree about how they spend, living life to the full,

working is a means to fund their active social lives• They travel frequently both to European cities and to

exciting and exotic locations

The passengers in the priority segment all have the same common characteristics

The passengers in the priority segment all have the same common characteristics

What do they want

Typical ‘brands’ that will excite and attract this priority segmentTypical ‘brands’ that will excite and attract this priority segment

How do they want it?

…..airports need to get smarter at delivering to needs…..airports need to get smarter at delivering to needs

FashionLifestyle

Accessories

Technology

Duty and tax Free

PassengerSegment Grab and Go

Essentials

Flight InfoToilets

CTNChemistBureau

Sizzle

Space in Priority Order• Where does the airline fit in ?

PassengerEssentials

Shopping Core Essentials

Food & Beverage Essentials

SpecialistRetail Shops

Retail Innovation / Experiential Services

•Toilets

•Seating

•Flight Information Display Screens

•PRM

•Points of orientation

•CTN

•Chemist

•Foreign Exchange

•Duty Free Shopping

•Coffee Bars / Shops

•Fast / Snack / Quick Food outlets

•Pub / Bars

•Full table service outlets

•Niche outlets

•Department store

•Fashion

•Accessories

•Technology

•Lifestyle

•Digital Kiosks / Pods

•Mobile Pop-up Pods

•Entertainment zones

•Pay as you go Zones

•Interactivities

Why Airports own the passenger ...at the Airport

• Passengers want to be released so they can eat and shop• they want more aspirational brands and choice then an airline

will ever deliver• they have over 1hr of free time• they want to browse and impulse buy• airline sales is a secondary purchase and only appeals to the

lower end of the market

If we don't compete then why don't we work together to maximise?If we don't compete then why don't we work together to maximise?