Take off! The evolution of the travel media experience
More than half the world’s population will be passing through airports by 2017 – so how can advertisers make the most of the opportunities? Talon Outdoor’s head of insight, Spyros Maliadis, explains.
Worldwide demand for air travel is increasing. Passenger numbers are rising exponentially and airports are being redeveloped as a reflection of this growth, to the extent they are dubbed “Cathedrals of the 21st century”. Central to this is technology, which has transformed the entire passenger journey, from booking to interacting with the airport environment.
From an advertising perspective, airports have always been an important and evolving environment to reach global, desirable and affluent consumers in a highly positive and receptive setting.
Numbers speak for themselves: The International Air Transport Association believes that by 2017 there will be a 31% rise in airport passengers, with actual figures nudging a staggering 4 billion. This growth is coming from all directions; in the developed world there will be a higher travel volume of trips per individual, whilst in emerging markets this growth will be due to first-time travellers from the expanding middle class.
Changes in travel experience
The way people travel is also changing: the average trip length and spend have increased by 16% and 28% respectively in the last four years. Leisure is growing faster than business travel as we choose to go on multiple short city breaks rather than traditional beach holidays. Online bookings are close to saturation level at 65% of the market share, with the mobile era already upon us.
Mobile is driven by customer expectations for real time response and higher levels of customization of services, anytime, any place, anywhere. Personalised content that allows brands to deepen customer relationships is beginning to transform the travel experience, delivering different messages at multiple touch points.
This presents brands with more opportunities to engage the traveller and to influence and infiltrate their personal experience. Tourist boards such as YourSingapore.com, hotel chains like Intercontinental Hotels and travel operators like TUI are already offering mobile “concierge” services.
Sharing travel experiences is also easier, especially with the emergence of new peer-to-peer options. With an particular impact on rental accommodation, travellers now directly contact local residents, not only to arrange where to stay but to seek out an authentic travel experience. This is a burgeoning section which has increased by +31%, is valued at around $10 billion and has brands like Airbnb now serving thousands of cities worldwide.
The aviation industry is also adapting to changes in travel; two of the biggest budget airlines, EasyJet and Ryanair, now offer a new tier of tickets aimed at business travellers willing to pay more for a better service. A move closely related to the 10% decline in the number of traditional company trips.
Technology at the heart of travel change
Technology, through mobile services and connectivity, is shaping today’s passenger experience. Mobile bookings are increasing and by 2017 should account for 30% of online travel sales. Additionally, mobiles are now used as boarding passes, wallets and personal advisors, receiving intelligent updates including delays, and travel changes.
Social media is now an integral part of travel planning; 61% of European travellers and 65% of American travellers plan their trips using it. This figure included luxury travellers, with 50% connecting with brands via social media and 80% visiting review sites like Trip Advisor.
Crucially the quality of mobile services depends on the availability of online connectivity. Airports such as Amsterdam Schiphol and Frankfurt airport now offer free unlimited Wi-Fi, which is not only a service to passengers, it allows brands to provide a holistic, connected, consumer experience. With connectivity now expanding to in-flight Wi-Fi, travellers can be targeted after take-off too.
Technology will essentially enable the transition of conventional advertising and communication into a more integrated experience, utilising mobile and all parts of travel.
Big data shaping travel experience
Changes in travel technology create opportunities to use data in order to create content and drive effective engagement. Dynamic data can influence messaging according to location, time of day, passenger type, destination and footfall.
Digital screens built into the infrastructure of airports, eye scanners and facial recognition can create more efficient, personalised journeys and can be used to drive call to action.
Cathedrals or Airports?
Globally, airports are positioning customer experience at the heart of their operation. With over $385 billion spent modernising the airport environment and incorporating advertising into their architectural design, airports have become prime advertising territory.
The most recent example in the UK is the multi-billion redevelopment of Heathrow’s Terminal 2, dubbed the “Queen’s Terminal”. Big enough to house 52 retail units and 100% digital, Terminal 2 offers targeted digital networks along with a portfolio of large format digital sites.
Gatwick airport has also undergone extensive improvements, including a multi-million media investment by Eye Airports. Gatwick is now one of the main candidates for a new runway, especially after the rejection of the Boris Island airport plan by the UK Airports Commission.
Airport retail is also evolving, with the market set to grow by +73% and reach £37 billion by 2019; clearly the time has come for savvy advertisers to stop using airports as a tactical opportunity and make them a strategic priority.
In Heathrow’s T5 alone, passengers spend over $450 million per year on perfumes, jewellery and watches, making it second only to Bond Street or New Bond Street for many brands in the UK, in terms of productivity and sales per square meter.
With an average dwell time of 2.5 hours, airports allow consumers to absorb advertising messages and interact with brands. Coupled with promotions, passengers can be driven to trial new products and services, thus increasing retail visits. Amsterdam’s Schiphol airport, having added +20% more commercial space, clearly harbours similar ambitions.
Future Vision
Traditionally, airports were built near cities and roads connected one to the other but this too is changing. Airports are now being redeveloped to be a fundamental part in the way we live with many examples of entire cities being formed around airports.
Just one example is Songdo, Korea, which was built from scratch and connected to Seoul Incheon airport by a 7.4 mile highway bridge. This was a 10-year project, costing in excess of $40 billion and takes us closer to the future vision of an ‘Aerotropolis’, a city with the airport at its heart.
The passenger journey also constantly evolve, shaped by an increase in travel demand, the emergence of new travel trends, technological advances and the redevelopment of airports.
At Talon, we believe that this journey is now an environment that can facilitate the ultimate integrated and connected communications. By being able to connect with passengers throughout their entire journey, can enable brands to “sponsor” the travel experience and achieve a ubiquitous status that very few other media can offer.