ACI EUROPE Commercial & Retail Conference 2024: the Future of Non-Aeronautical Revenue
This month (23rd October 2024), the ACI EUROPE Commercial & Retail Conference took place in Helsinki, hosted by Helsinki Airport and Finavia. The Conference is the meeting place for all who are focused on delivering non-aeronautical revenue success. The event was attended by senior airport commercial executives, operators, brands, and their business partners from retail, food & beverage, travel services, media, and other enterprises worldwide.
The reimagined event consisted of a one-day working agenda, as well as a networking social programme. The ACI EUROPE Commercial Forum, the internal working group focusing on the development of non-aeronautical revenues, met ahead of the event and within its framework.
After a warm welcome from Chair of the ACI EUROPE Commercial Forum Philipp Ahrens (Vienna International Airport) and Vice-chair Martijn Steur (Kinetic Consultancy), the conference opened with insights on how to meet travellers’ expectations in a post-pandemic world. Giving the State of the Industry Address, ACI EUROPE Deputy Director General Morgan Foulkes described how traffic has recovered to pre-Covid levels, but profits still lag behind. Non-aeronautical revenue is a key driver of these profits, at +17% in 2023 compared to 2019. With 51% of European airports achieving full passenger recovery – but wildly varying national markets – Foulkes stressed the need for airports to create a new value creation model, focusing on sustainability, innovation, and diversification of revenues.
One of the key discussions centred around transforming airports into destinations where people seek experiences rather than just pass through. Ibrahim Ibrahim, renowned futurist, retail strategist and author of Future Ready Retail highlighted the shift towards ‘people and places’ over ‘buildings and spaces,’ emphasising that airports must blend physical, digital, and human elements to create a holistic experience for the consumer. Ibrahim introduced four pillars for future readiness: fast, simple services; slower, enriched experiences; a ‘local’ touch unique to each airport; and a sense of belonging rooted in ethical consumption. By ritualising these aspects, airports can create memorable moments for travellers that are seen as high value.
The adapting profiles of consumers – particularly the need to evolve to cater to Gen Z and future travellers who expect mission-driven and purpose-filled spaces. Gen Z’s consumer habits reveal a desire for sustainable and purpose-driven brands, with many noting their preference for in-store engagement and brand testing, demonstrating the need for airport retail to be interactive and value-driven.
Sustainability emerged as a key priority of travellers, with airports, travel retail operators, and manufacturers needing to meet regulatory standards while fostering innovation. From Schiphol’s commitment to enhancing vegetarian and vegan offerings and minimising packaging waste as part of a more sustainable food strategy, to the option of giving small, local brands space within airports to enhance traveller’s sense of connection to the destination in an ecologically beneficial way, innovations in sustainability were front and centre in the debate.
Summarising an intense yet insightful day of discussions, Matthew Brown of Echochamber gave a closing keynote address on the future of non-aeronautical revenue. With airports increasingly resembling shopping malls and leisure destinations, Brown explored how retail, hospitality, and local brands can integrate to enhance the travel experience. Highlighting the emergence of ‘retail with purpose,’ where airports act as curators of local hero brands and blend retail with digital exhibitions, storytelling, and pop-up events to maintain constant engagement and novelty, the ACI EUROPE Commercial & Retail Conference offered a how-to guide for airports to redefine their role as not only travel hubs, but dynamic spaces that offer unique retail experiences.
