Wednesday, April 18, 2012
NCR survey shows airport retail revenue potential
By Jacques Couret
The Atlanta (GA) Business Chronicle
Major airports, such as Hartsfield-Jackson Atlanta International Airport, are missing out on potential retail revenue, according to a survey of travelers in the United States, United Kingdom, France and Germany conducted by Opinion Research Corp. for NCR Corp.
Major airports, such as Hartsfield-Jackson Atlanta International Airport , are missing out on potential retail revenue, according to a survey of travelers in the United States, United Kingdom, France and Germany conducted by Opinion Research Corp. for NCR Corp.
Duluth, Ga.-based NCR said airports want to increase non-aeronautical revenue as airline consolidation and other factors cut the revenue airports can generate from airlines. Airports can add retail, restaurant and service operations and get more travelers to shop while at the airport to boost that revenue.
But Atlanta’s airport -- the world’s busiest -- and others need to make sure their retailers are easy to find and that the retailers are offering what travelers really want.
According to the NCR survey, 23 percent of travelers in Germany, 30 percent in France, 34 percent in the United Kingdom and 35 percent in the United States find it difficult to find stores, restaurants and other retail offerings at airports in the limited amount of time they have.
Food, beverages and reading material like books, magazines and newspapers are among the most popular items travelers in the four countries said they purchase at the airport. In the United States, 73 percent of shoppers said they bought food or drink at the airport, compared with 60 percent in the United Kingdom, 43 percent in Germany and only 23 percent in France. In the United Kingdom, 65 percent of travelers said they bought books, newspapers or magazines at the airport, compared to 63 percent of travelers in Germany, 53 percent in France and 48 percent in the United States.
But only between 2 percent and 4 percent of travelers in the four countries surveyed indicated they had purchased services like manicures, massage, haircuts or business lounge access at airports.
The survey uncovered a large segment of completely untapped potential customers: 21 percent of travelers in the United States, 18 percent in France, 15 percent in Germany and 12 percent in the United Kingdom responding that they never purchase anything at the airport.
“This survey highlights the vast untapped potential airports still have to serve travelers who have the time and inclination to shop,” said Tyler Craig, vice president and general manager of NCR Travel, in a statement. “Airports today get nearly 50 percent of their revenue from non-aviation sources. By employing some of the technologies used by today’s retailers such as mobile marketing and interactive, digital signage, airports can more effectively communicate with and make offers to travelers, boosting revenue while making their airports more welcoming, entertaining and user-friendly.”
Hartsfield-Jackson’s new international terminal will open May 16. Click here for a slideshow made in October 2011 previewing the new terminal.
More than 20 retail outlets, restaurants and other services will be available on opening day, airport officials said Tuesday.
Dining locations scheduled to be open May 16 are Sweet Auburn Market Café, French Meadow Bakery, Pei Wei Asian Diner , The Varsity, The Original El Taco and The Pecan.
Shopping choices set for opening day are The Body Shop, Tommy Hilfiger, Kiehl’s, Sunglass Icon, Touch Table, Clutch, Brookstone, InMotion Entertainment, Simply Books, two CNN International News locations and two duty-free stores.
Other facilities and services, including an interfaith chapel, ATMs and vending machines, will also be available on opening day.
Additional shopping and dining choices will open throughout the spring and summer. These include MAC Cosmetics, Jekyll Island Seafood Co., Ecco Kitchen, Lorena Garcia Tapas Bar and Maison Mathis/Illy/Stella Artois. Sleep and spa accommodations and a common-use lounge also will open later this year.
NCR, a maker of point-of-sale technology and automated teller machines, reported its profit for 2011 was down 62 percent to $52 million due to $222 million in pension costs, $30 million in acquisition-related transaction costs, a $98 million impairment charge related to its entertainment line of business and other charges. It expects first-quarter 2012 revenue to beat expectations by hitting $1.24 billion.