As part of the Explore the Experience Era study, Airport Dimensions SVP of Global Business Development, Chris Gwilliam, joined Pravat Paikray, VP of Commercial Development at Bangalore International Airport Ltd, to explore how airports are unlocking greater value from retail within the passenger experience.

Explore the Experience Era draws insights from 100 senior airport decision-makers worldwide, highlighting key trends shaping the future of modern airports.

The airport is undergoing a fundamental shift: it is transitioning from a mere point of transit to a destination in its own right. In this transformation, retail is no longer simply a revenue generator but a vital component in shaping the passenger's overall journey.

Our recent research, "Explore the Experience Era", which surveyed 100 global senior airport decision makers on the challenges and opportunities facing them over the next 10 years, underscores this, revealing that a significant 40% of airport leaders consider retail central to enhancing passenger satisfaction. This enhancement is intricately linked to providing greater convenience, a wider array of choices, and a more personalized experience.

Over at Bengaluru’s Kempegowda International Airport (BLR), Pravat Paikray is seeing this evolution firsthand. “At BLR Airport, travel retail is undergoing a significant transformation driven by changing buying behaviors, diverse passenger demographics, and varying dwell times,” he says. “Airports are evolving into destinations beyond mere transit points. BLR is redefining retail to create an emotional connection with our passengers.

Our approach to retail and customer experience is akin to a theme park, drawing inspiration from Disney’s methodology. The overall strategy, layout, and flow focus on experience design, guest-centricity, and storytelling, with a deep understanding of human psychology, spatial design, and emotional connection.

This approach elevates our retail proposition beyond merely meeting functional passenger needs. It aims to satisfy the aspirational and emotional desires of travelers, fostering a genuine emotional connection with passengers and shifting the emphasis from impulse shopping to a more planned and purposeful experience by providing authentic and compelling reasons to engage and spend.”

Retail Shaping Passenger Satisfaction

When considering the key drivers of passenger satisfaction, several factors come to the fore. Convenience and ease of access are paramount with 44% of respondents outlining how they foster improved traveler satisfaction. The "Explore the Experience Era" research also highlights that 39% of airports believe passengers are increasingly seeking differentiated products and expanded choice within the airport environment.

Pravat emphasizes the importance of this emotional layer to retail. “Personalization is equally critical, as creating that emotional connection involves moving beyond spontaneous purchases to cultivating planned shopping experiences, offering travelers strong incentives to engage.

At BLR Airport, for instance, we carefully curate a mix of iconic international brands and ‘local heroes’, creating exclusive store identities. Each outlet is designed as a unique experience center, rather than a standard retail outlet, ensuring that every shopping encounter resonates with travelers on a personal level.”

This approach reflects a broader shift toward elevating the brand environment, where thoughtfully designed retail spaces and a balanced brand mix help define the airport’s distinctive sense of place and deepen the emotional engagement with passengers.

The Digital Transformation of Airport Retail

Technology stands as a fundamental enabler in this transformation, driving greater efficiency, enhancing convenience, and elevating the overall passenger experience. E-commerce and mobile ordering have become essential, with a remarkable 78% of airports actively engaging in digital solutions, from exploration to integration. This surge reflects the pressing need to cater to demand for seamless, engaging, and personalized journeys.

“The concept of the ‘phygital’ experience, which merges physical and digital retail, is also gaining prominence,” Pravat explains. “For example, BLR Airport utilizes a platform called BLR Pulse, which connects various touch points of the airport to deliver a unified phygital experience.” This innovative solution includes services such as booking flight tickets, flight tracking, taxi booking, food and beverage pre-ordering with gate delivery, duty-free pre-booking, contactless lounge access, wayfinding, airport hotel bookings, and much more - all accessible from a single platform.“

We at Airport Dimensions are also responding to these evolving needs. We’ve created Connecta+, an innovative single marketplace solution that connects airport services - before and during the lounge visit - into a holistic journey.

Looking ahead, AI and immersive technologies will likely play an increasingly significant role in shaping the future of airport retail, with 30% of those surveyed increasing investment in sensors or AI driven analytics to monitor and manage passenger flows.  A further 35% have made investment to offer on-demand services such as food delivery shopping, or concierge services within the terminal. BLR is already exploring these innovations through its in-house innovation lab, which has pioneered solutions like facial recognition-based onboarding, cashier-less stores, and queue-less lounge check ins.

Creating the Airport of the Future

Ultimately, the vision is to create the airport of the future: spaces that transcend their traditional function and become vibrant ‘experience zones’ that captivate travelers, encourage exploration, and foster a desire to spend time and engage with the offerings.

“At BLR Airport, we are undergoing a significant transformation which will see the airport welcoming close to 100 million passengers by 2035. This entails adopting a guest-centric philosophy, where passengers are viewed as valued guests and airport staff as welcoming hosts. A key aspect of this transformation is the thoughtful integration of retail spaces with food and beverage outlets to create a more dynamic and engaging environment, while strategically managing passenger flow. This might mean, for example, an emphasis on integrated layouts, where retail and food and beverage outlets are strategically positioned to optimize passenger traffic and enhance the overall shopping experience. BLR has implemented zoning strategies where thoughtfully created F&B experiences act as magnets to slow down traffic flow, thereby increasing exposure to nearby retail options.

Retail offerings are also embedded into restaurants and cafes to optimize dwell time and stimulate impulse buying. Leveraging technology to streamline processes, minimize wait times, and provide convenient services such as pre-booking meals and duty-free shopping is also becoming essential.”

What’s clear from both changes in the Indian airport sector and the insights from global airport decision makers is that the reinvention of retail is not just a trend, but a necessity in transforming airports into destinations that offer far more than a mere conduit for travel. Initiatives like BLR’s Project Polar Bear, which incentivizes sustainable purchasing behavior through a green loyalty points system, further demonstrate how retail innovation can align with sustainability and social responsibility. By prioritizing convenience, choice, personalization, and the creation of compelling experiences, we can unlock the full potential of retail to enrich the passenger journey and redefine the very essence of the airport experience.