Airport Business

OCT 2018

The airport professional's source for airport industry news, articles, events, and careers.

Issue link: https://airportbusiness.epubxp.com/i/1034468

Contents of this Issue

Navigation

Page 24 of 59

RETAIL MATTERS October 2018 airportbusiness 25 customers pass by your shop each hour, it should be possible to tailor products, prices and offers more successfully. ICF has worked with three levels of consumer data to tailor airport retail more effectively. With the application of artificial intelligence, we expect to refine predictions of the relationship between consumer data and sales efforts. Level One: Based on airline schedules and gate usage, it’s straight-forward to see which destinations dominate the pier at each time of the day. Network models such as or airline data can estimate the mix of origin-destination passengers on each flight: for example, what percent of the morning passengers to Detroit are actually destined for China, where they need to arrive with gifts for their family? Level Two: Although it may ultimately be possible to drill into demographics by census tract of each traveler, we can already predict some customer preferences based on the cities that passengers are coming from and going to. Using consumer data, we can profile how purchasing habits and willingness to pay differ between Angelinos and Delhiites, then use that information to help retailers tailor their product offer by time of day. Level Three: Using artificial intelligence to learn how the passenger profiles align with the success of specific merchandise offers, we can help retailers optimize their selling mix to align with the flights operated each hour of the week, in each season. As with so much of Big Data, it’s not necessary to know everything to be able to profit today. The beauty of today’s machine learning environment is that every successful sales promotion today adds to our ability to predict which offers and prices will be successful tomorrow. Several advertisers have recognized the power of using real-time flight data to serve relevant advertising to passengers in the airport. In a campaign at Singapore Changi airport in 2017, JCDecaux invited customers, who were targeted based on the timing of eight nearby flight departures, to interact with a cognac advertisement by shaking their mobile phone. The tactic drove an unprecedented 67 percent of respondents to redeem a coupon in the airport and drove double-digit sales growth. If one advertising campaign targeting just eight flight departures can lead to double-digit sales growth, then imagine the impact of real-time promotions throughout the day. The global surge of airport retail that connects directly and meaningfully to travelers is coming soon. ABOUT THE AUTHOR Samuel Engel Samuel Engel is the global managing director of aviation at ICF. LEKTRO Since 1945 The Original Aircraft Tug Models Ranging 15,000 to 280,000 lbs. • Electric • Towbarless • Certified • Universal • Easy to Use • Simple to Maintain • Rugged www.LEKTRO.com 1-800-535-8767 1-503-861-2288 sales@lektro.com www.aviationpros.com/10017532 Sets up in 20 minutes! CRACK•STIX® Permanent Concrete Joint & Crack Filler Special price for Airports: $45cents/foot Crack•Stix® is a revolutionary product that has been in the market for over 20 years. Many municipal airports use it for quick repairs or for repacking expansion joints. DALTON ENTERPRISES, INC.™ Dalton Enterprises, Inc. Cheshire, CT Shipping out of CT, WI, FL & CA www.crackstix.com 888-711-7483 Made in the USA www.aviationpros.com/12430569

Articles in this issue

Links on this page

Archives of this issue

view archives of Airport Business - OCT 2018