m1nd-set’s latest analysis compares shopper behaviour in airports over the past 5 years, through the pre-Covid era to the present day, comparing the evolution of footfall and conversion rates, changes in the categories purchased, as well as the evolution and variations over the years in why people purchase in travel retail, what triggered the purchase and some of the barriers to purchase.Among the key findings, m1nd-set reveals that while conversion (share of duty free buyers out of duty free visitors) had been decreasing since 2017, from 66% to 52% in 2020, the percentage of shoppers making a purchase in duty free and travel retail stores rose again in 2021 to reach the same levels as in 2018 (59%). Inversely however, the research demonstrates a clear downward trend in terms of footfall over this period among global passengers; airports have lost 5% of passengers according to the passenger feedback between 2017 and 2021. While 42% of travellers globally say they entered the duty free and other retail shops in 2017, that percentage has fallen to 37% in Q1 2021 according to m1nd-set.Another interesting finding which emerges from the analysis is the evolution of categories purchased and purchase planning. Global travellers in 2021 are more likely to purchase categories that tend to be planned in advance. For the Perfumes category, 41% of shoppers purchased in 2021 vs 31% on average when considering all previous 4 years, an increase of 10%. For Fashion & Accessories, there is a 7% increase in 2021 compared to the previous years, (22% vs 15%), 6% for Skincare (25% vs 19%) and Jewellery & Watches (14% vs 8%), 5% for Tobacco products (22% vs 17%) and 4% for Make-up (20% vs 16%). For all these categories, the significant majority of shoppers – between 75% and 90% depending on the category – plan their purchases.The percentage of shoppers in duty free and travel retail planning their purchases had been decreasing steadily since 2017, from 80% to 75% in 2020. In 2021, however, this trend has been reversed as 86% of shoppers say they will plan their purchases to at least some extent when travelling. They are less likely to purchase completely on impulse, however, with a decline from 25% of shoppers purchasing on impulse in 2020 to 14% in 2021.Commenting on the research findings m1nd-set Owner & CEO Peter Mohn said: “The global footfall and conversion trends over the past five years are very interesting to see, as there are still more than 40% of store visitors who need to be enticed to spend, not to mention the 63% of all passengers who do not enter the shops.”“More interesting still, however,” Mohn continued, “are the non-visitor and non-shopper customer segments. In the post-pandemic environment, the reasons for not visiting or shopping at an airport have, without question, evolved and will be quite different to the reasons for not-shopping expressed in 2017.” “It’s important to underline though that while the global data demonstrated here paints a general picture, the realities will inevitably vary from one airport to another; even between terminals at the same airport. It is vital to approach these consumer insights from a regional-specific, market by market and even airport specific perspective. Each retailer and airport need to understand the reasons behind the barriers to visiting and shopping in the retail stores” Mohn concluded.
ACI World renews its commitment to the sustainable development of the aviation ecosystem at 31st WAGA
CANCUN – Airports Council International (ACI) World has renewed its commitment to the sustainability of the aviation ecosystem and called on international and national regulators to support the airport industry in achieving its collective social, environmental, and economic sustainable development goals.A key resolution, approved at the 31st ACI World Annual General Assembly (WAGA) and which…
CANCUN – Airports Council International (ACI) World has renewed its commitment to the sustainability of the aviation ecosystem and called on international and national regulators to support the airport industry in achieving its collective social, environmental, and economic sustainable development goals.A key resolution, approved at the 31st ACI World Annual General Assembly (WAGA) and which supported the ACI World annual conference’s theme of sustainability, outlined the next steps on the sustainable development of the aviation ecosystem.It recognized the need to promote restorative development by reducing and proactively addressing risks and increasing airports’ social and economic benefits by properly balancing them with the environmental aspects of the business.Noting the impact of COVID-19 on the entire aviation sector and the importance of collaboration among aviation and non-aviation stakeholders, ACI World reaffirmed the industry commitment to reach net zero carbon emissions by 2050; to embrace technology and innovation; to work to meet public expectations and societal values; and, to protect biodiversity and prevent wildlife trafficking.As such, the resolution resolved to encourage airport operators to continue to develop their voluntary airport decarbonization action plans and incorporate sustainability at the core of their business strategies. Furthermore, it called on governments and stakeholders to support and work in collaboration with the airport industry to achieve its collective social, environmental, and economic sustainable development goals.“The outcomes of the ACI Latin America and Caribbean/World Annual Assembly, Conference, and Exhibition have demonstrated the sustainability leadership of the airport industry,” said ACI World Director General Luis Felipe de Oliveira. “ACI was the first global aviation organization to commit to a 2050 net zero carbon goal on 8 June 2021 and our membership reaffirmed this commitment at the 31st WAGA in Cancun, Mexico.“ACI also supports the recent Declaration made by ministers and representatives of governments at the recent United Nations Climate Change Conference (COP26), which called for the wider adoption of decarbonization objectives to be agreed at the ICAO 2022 Assembly. Airports and aviation need more government commitments such as this if we are to collectively prosper and maximize our socio-economic benefits to communities worldwide. ACI will continue to call on governments and regulators to support the industry in achieving its collective social, environmental, and economic sustainable development goals. Collaboration is the way to reach these goals.”At the conference’s closing and handover ceremony, ACI World announced that Moroccan Airports Authority (ONDA) will be the host of next year’s annual conference taking place in Marrakesh, Morocco, from 24–26 October 2022.“Moroccan Airports Authority (ONDA) is delighted, once again, to host the next ACI Africa/World Annual General Assembly, Conference, and Exhibition in 2022. It is with great pleasure that I welcome you to Marrakech. I am convinced that this meeting will strengthen our optimism and our will for a safe and irreversible sustainable recovery,” said Mrs. Habiba LAKLALECH, CEO, ONDA.“We look forward to working with the ACI Africa region and ONDA for the 32nd Annual ACI Africa/World Annual General Assembly, Conference, and Exhibition,” said ACI World Director General Luis Felipe de Oliveira. “We have no doubt that all delegates will be warmly welcomed next year as we collectively progress on the path to sustainable recovery.”
Africa and the Middle East show signs of travel reactivation
The ForwardKeys team of travel analytics experts have been closely monitoring the winds of change in the travel sector since the pandemic unleased, and up until recently, the air ticketing data was showing the Americas, especially the Caribbean, as the sole game changers when it comes to real-time travel recovery. However, the latest travel data…
The ForwardKeys team of travel analytics experts have been closely monitoring the winds of change in the travel sector since the pandemic unleased, and up until recently, the air ticketing data was showing the Americas, especially the Caribbean, as the sole game changers when it comes to real-time travel recovery. However, the latest travel data shows that Africa and the Middle East are also proving to be much more resilient.1. International Arrivals in Africa and the Middle EastWhile the total global inbound figure for international arrivals as of October 2021 sits at -77%, for Africa and the Middle East this figure is at – 68%. Furthermore, it is Sub-Saharan Africa that is showing the best year to date performance.“Looking at September-October arrivals, 71% of travellers coming to the region were coming from Middle Eastern destinations. While for North Africa, Visiting Friends & Relatives travellers account for 46%, and Sub-Saharan Africa accounts for 33%. For the Middle East it is only 18%, suggesting that travel here is mainly for Leisure,” says Gordon Clark, VP of Business Development in Travel Retail at ForwardKeys.2. Top nationalities on the moveDuring this pandemic, the top nationalities travelling outbound in the region were: Saudis. This was then followed by Emiratis and Qataris.“When comparing to other regional counterparts the top three nationalities all had a much higher vaccination rate, flight connections and easier travel conditions when compared to say, South Africa, which was plagued with new Covid cases and strict lockdown rules,” adds Clark.3. The appeal of DubaiZeroing in on Dubai, a major player in aviation and long-haul travel, the air ticketing data reveals booked arrival figures are down by 64% from November 2021 – April 2022, typically the peak season for international leisure travel.On the flip side, there has been a marked growth for travel from Egypt to Dubai and the US On-The-Book (OTB) travel figures are down by just 13% compared to pre-pandemic times. Also, year-to-date the length of stay has doubled, increased from 7 days to 14 days per booking.“The other good news to observe is that business travel to the UAE is on a good path to recovery, reaching 75% in the week starting 21 October compared to 2019, supported by live events like the Dubai Expo,” says Gordon Clark.He adds: “In this same period Premium cabin classes travel has gained 7% of market share compared to 2019. Singles and couples are the ones travelling the most to this region. After the opening of Dubai Expo in October, travel to UAE increased and was only 35% behind 2019 levels – things are moving in the right direction for Dubai and the region overall.”
Airports report continued carbon savings despite challenges of COVID-19 crisis
CANCUN – As the global airport industry convenes in Cancun, Mexico for the 31st ACI LAC World Annual General Assembly, the Airport Carbon Accreditation programme published first carbon performance results for the reporting period May 2019 to May 2021 – two years heavily marked by the COVID-19 crisis.In spite of the devastation suffered by the…
CANCUN – As the global airport industry convenes in Cancun, Mexico for the 31st ACI LAC World Annual General Assembly, the Airport Carbon Accreditation programme published first carbon performance results for the reporting period May 2019 to May 2021 – two years heavily marked by the COVID-19 crisis.In spite of the devastation suffered by the industry at large, the collective carbon management of airports in Years 11 and 121 of the programme yielded a reduction of 347,718 tonnes of CO2e (-5.5%) within the emissions under direct control of airport operators (i.e. Scope 1 and 2 as per GHG Protocol). This amount of CO2 can be compared to the full lifecycle emissions of 4,967,400 iPhones2. The following absolute emissions savings achieved by airports in their respective regions contributed to this result3. Since the onset of the COVID-19 pandemic in March 2020, despite the dire financial and operational conditions, 67 new airports joined the global effort to mitigate carbon emissions and thus became certified under Airport Carbon Accreditation. Currently, there are 362 airports addressing carbon emissions across the six levels of the programme. Olivier Jankovec, ACI EUROPE Director General said: “There is no more ruthless test for an industry’s pledges to address its environmental footprint than being exposed to a crisis. When we look at the COVID-19 crisis, the magnitude of challenges it presents for the aviation industry and airports in particular is historical. Faced with terrible odds, it would have been easy to say, “We cannot do this right now. We need to put out one fire first, before we can address the next one”, but this is exactly the opposite of what I have witnessed so far. The shift in the aviation industry’s commitment and indeed delivery of climate action is palpable.”He added: “I am proud to note that airports are not sitting on the sidelines of this momentum, waiting for the bigger emitters in the sector to move first. Airports have always been and are today a powerhouse of decarbonisation and today’s announcement is another case in point for this claim. We are addressing our slice of the problem right now and making sure that we will be reliable partners for the entire eco-system in its drive to transform in the future. It is a defining moment for our industry and seeing the ambition and the perseverance that is shining through airports’ efforts in driving CO2 emissions down is a source of hope in this difficult time.” 1 Due to the extraordinary conditions faced in 2020, special provisions were applied to all accredited airports, including the merge of programme Years 11 and 12, which implied the extension of accreditation validity by one year. While the reporting period is May 2019 – May 2021, each airport submitted only one 12-months-carbon footprint in this timeframe. Therefore, the reduction was achieved within one year, but reported at different moments in a two-year-period.2 This equivalent was calculated based on this recent article quoting the lifecycle emissions of smartphones. In this case, iPhone 12 emissions were used as comparator (70kg CO2e). This figure should not be treated as scientifically confirmed information, as it’s drawn for visualisation purposes only. Please note that CO2 equivalents by their nature are indicative tools, as emissions vary based on many factors, including usage patterns, geographic location, quality of energy and processes at production facilities, etc.3 Additional carbon performance data as well as a comprehensive overview of other programme developments and airport case studies for the period 2019-2021 will be published in the forthcoming Airport Carbon Accreditation Annual Report, planned for Q1 2022.