ccording to GlobalData, though worldwide airport spending is predicted to grow to $49 billion by 2021, average spend per passenger is dropping at a number of airports. The report cites information from Fraport Group, headquartered in Frankfurt, Germany, whose holdings also include airports in the US, Brazil, China and India. The company reported year-on-year revenue growth of 2.4% in 2017, yet average spend per passenger fell by 3.4%.
Amsterdam’s Schiphol Airport painted a similar picture, reporting that its average spend per passenger fell 5.5% last year. Competition from e-commerce retailers has been attributed to the decline in average spend — duty-free shopping just doesn’t hold the allure it used to. Now, many companies are turning to digital strategies to improve the retail experience for their passengers. A handful of airports lead the charge, including London Heathrow.
The airport is said to be developing a new retail strategy that incorporates e-commerce shopping, alongside customer relationship management and other electronic services such as food and drink pre-ordering and parking reservation. London Heathrow reported revenue growth of 7.7% for the year concluding on October 31st, 2017, up to £659 million ($875 milion), while average spend per passenger rose 4.5%, to £8.45 (about $11.40).
