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The Grand Cayman Airport Transformation Begins

| Airport & Travel Retail, Retail Stategy | Leave a comment |

On April 13, 2017, the Cayman Islands Airport Authority (CIAA) released its Request for Proposal (RFP) for retail concession space at the Owen Roberts International Airport. I spent a few days reading the RFP with great detail and found the document to be well done and clearly developed in order to bring a great opportunity to select the highest quality shopping and dining concepts to meet the passenger’s needs. In light of this news, I would like to share with you my most recent blog post regarding this opportunity.

Travel retail is set to be worth a staggering $125 billion by 2025. With its diverse culture of over 200 nationalities, fast growth in passenger numbers, a captive consumer base and with digital yet to be fully developed, it seems that things are destined to get better and better for the travel retail industry. Airports across the world are home to impressive retail and brand success stories. A channel with exclusive product ranges, incredible retail activations and a generous investment in high-profile promotions.

Of the travelers that do enter the travel retail stores:

  • 70% of buyers plan to make a purchase >> 30% buy on impulse.
  • 50% buy to treat themselves >> make the retail offer enticing.
  • 30% buy a brand for the first time >> give shoppers confidence.
  • 30% spend more than intended >> encouraging trade up.

It’s no wonder that many brand owners view airport retail as an opportunity to expose their products to the masses, drive domestic market loyalty and capitalise on the uniqueness of the channel. Be it for one reason or a mix of all, it’s clear therefore that the retail experience needs to be prioritised above all else to fulfill shopper, brand and the retailer requirements. In simple terms, travel retail must put the shopper at the heart of all it does.

In the last 25 years, the economics of travel retail has vastly evolved from a traditional operation under a fixed rental cost agreement to a more dynamic business model where airports operators charge rent as a percentage of sales in addition to a minimum guaranteed. In other words, the relationship between airport operators and retailers radically changed from a simple Real Estate agreement to a Commercial Partnership approach. Under this new innovative model, both retailers and airport authorities need to raise their level of expertise and performance to maximise revenues.

The travel conditions have changed dramatically as well, air passengers must go through long security controls, stress linked to air-traveling (delays, connections, long-flights, etc.). The main focus of travel retailers should be on delivering an exceptional retail experience that can stand up to any other shopping environment – aiming to improve the overall passenger experience. For passengers, shopping in a travel retail environment can and should an enjoyable experience; but to provide an inclusive experience, both retailers and airports managers must consider all travelers.

The opportunity is now! If you are thinking to bid for the chance to be one of the merchants under the new CIAA plan, now is the time to put your best foot forward and consider the following:

  • Build efficient operation that combines exceptional service with a positive customer experience
  • Make incremental improvements on the retail basics as it delivers lasting base line growth
  • Embrace the latest digital advances to make meaningful connections
  • Create retail environments that are relevant for everyone, not just the privileged few
  • Build business plans that take into account 7/18 business and complex logistics
  • Put together an application that will meet the Airport Authority management’s expectations
  • Maximise marketing revenues to balance the concession fee costs
  • Hire/train/organize staff to run their operations based on the passenger shopping behaviour

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Savage Consulting is the only consulting company in the Cayman Islands with this specific area of expertise in Airport/Travel Retail, helping retailers and restaurant owners to create a winning concept adapted to the specific demands of air travelers. If you want to learn more, please contact us at carlo@savage.consulting or call at +1 (345) 326-3333.

CIAA seeks out new concepts for Airport Retail, Food & Beverage

| Airport & Travel Retail, Retail Stategy | 3 Comments |

A new and improved airport experience is coming to the Cayman Islands and with that comes a transformation of the customer experience – including the retail and food and beverage area. The Cayman Islands Airports Authority (CIAA) is close to release the Request for Proposal (RFP) for retail concession space at the Owen Roberts International Airport. This brings a great opportunity to select the highest quality shopping and dining concepts to meet the passenger’s needs.

Travel retail is set to be worth a staggering $125 billion by 2025. With its diverse culture of over 200 nationalities, fast growth in passenger numbers, a captive consumer base and with digital yet to be fully developed, it seems that things are destined to get better and better for the travel retail industry. Airports across the world are home to impressive retail and brand success stories. A channel with exclusive product ranges, incredible retail activations and a generous investment in high-profile promotions.

Of the travelers that do enter the travel retail stores:

  • 70% of buyers plan to make a purchase >> 30% buy on impulse.
  • 50% buy to treat themselves >> make the retail offer enticing.
  • 30% buy a brand for the first time >> give shoppers confidence.
  • 30% spend more than intended >> encouraging trade up.

It’s no wonder that many brand owners view airport retail as an opportunity to expose their products to the masses, drive domestic market loyalty and capitalise on the uniqueness of the channel. Be it for one reason or a mix of all, it’s clear therefore that the retail experience needs to be prioritised above all else to fulfill shopper, brand and the retailer requirements. In simple terms, travel retail must put the shopper at the heart of all it does.

In the last 25 years, the economics of travel retail has vastly evolved from a traditional operation under a fixed rental cost agreement to a more dynamic business model where airports operators charge rent as a percentage of sales in addition to a minimum guaranteed. In other words, the relationship between airport operators and retailers radically changed from a simple Real Estate agreement to a Commercial Partnership approach. Under this new innovative model, both retailers and airport authorities need to raise their level of expertise and performance to maximise revenues.

The travel conditions have changed dramatically as well, air passengers must go through long security controls, stress linked to air-traveling (delays, connections, long-flights, etc.). The main focus of travel retailers should be on delivering an exceptional retail experience that can stand up to any other shopping environment – aiming to improve the overall passenger experience. For passengers, shopping in a travel retail environment can and should an enjoyable experience; but to provide an inclusive experience, both retailers and airports managers must consider all travelers.

The opportunity is now! If you are thinking to bid for the chance to be one of the merchants under the new CIAA plan, now is the time to put your best foot forward and consider the following:

  • Build efficient operation that combines exceptional service with a positive customer experience
  • Make incremental improvements on the retail basics as it delivers lasting base line growth
  • Embrace the latest digital advances to make meaningful connections
  • Create retail environments that are relevant for everyone, not just the privileged few
  • Build business plans that take into account 7/18 business and complex logistics
  • Put together an application that will meet the Airport Authority management’s expectations
  • Maximise marketing revenues to balance the concession fee costs
  • Hire/train/organize staff to run their operations based on the passenger shopping behaviour

To receive alerts on airport industry news, follow us on social media and sign up for our newsletter!

Savage Consulting is the only consulting company in the Cayman Islands with this specific area of expertise in Airport/Travel Retail, helping retailers and restaurant owners to create a winning concept adapted to the specific demands of air travelers. If you want to learn more, please contact us at carlo@savage.consulting.

How to Host a Great Workshop

| Airport & Travel Retail | Leave a comment |

Attend a workshop could be one of the most useful and thrilling parts of your workweek.However, for the presenter, it may become your nemesis with the added pressure of providing relevant and innovative in a public setting, with real people watching you!Workshops are often sold a promise that if you attend, whether free or not, you gain some invaluable knowledge that could potentially revitalize the way you do business or function in society. For years we have been attending and hosting workshops for years, watching the presenters with their fancy PowerPoints and listening to the many attendees that want simple solutions to their complex issues. As a solution, we thought it would be best to provide you with a few tips on how to run a workshop that people will love and recommend to their friends:

Tip #1: Become an Investigator
Who said a little Facebook exploration or Google search could hurt anyone? Use online portals to find out about your attendees – Who are they? What kind of business are in? What might be there purpose for attending the workshop? Ask the workshop organizer for a list of attendees so you can start your research early and you may even want to add some tailored information to your presentation that enhances your commonalities with the
audience.

Tip #2: Involve your audience
You are your audience’s best motivation! Ask them questions – ones that provide you insights into their thoughts and others that spur imagination, enlightenment or curiosity.Certain questions can be asked to the group as a whole and others should be constructed for specific individuals that may need some extra attention or motivation to participate.

Tip #3: Stay Focused
Although the 2 hour speaking allotment might seem like a big task to fulfill, it is actually much harder to cram a ton of information into a small period of time than to have unlimited hours to play with. If your presentation time is around 2 hours in length, speak for 45 minutes to an hour and allow time for questions and interactions. There is always bound to be someone that asks an important question during the presentation and you want to be able to provide them with what they need, right then and there, without time being a factor.

Tip #4: Pump Up the Passion
As our Italian partner Carlo always says, “Lead with the passion, make them excited about what you have to say!” Compare a monotone speaker that drags on and on for hours to a fiery,passionate and thought provoking speaker who fills the room with energy and enthusiasm. Literally, get in their faces and walk around the room, making eye contact and engaging with each and every person in the audience. These people are taking important hours out of their day to come and learn something from you. Keep them engaged and leave them with a lasting impression.

Tip #5: Keep them wanting more
Providing a workshop does not mean giving away all of your best kept secrets. Offer a few tips and tricks that could be easily implemented or understood by the audience, with the intention of engaging the audience in conversation. Be resourceful, be innovative and always offer an incentive for people to engage and wanting more information about your subject matter.

Tip #6: Give them a thoughtful keepsake
Attendees did not just come to listen to you speak for two hours; they came to learn and develop their processes. Stay one step ahead of the game and focus on writing down your key takeaways in a short and concise document that guests can take with them. What better way to remember your workshop than by referring to the handout provided at the end of the session? Talk about being proactive!

Tip #7: Follow-up with a Purpose
Just like every Business Communications course in college always taught you, the art of the follow-up could mean the different between a basic lead or the opportunity to sign a deal.Thank your audience for coming and provide them your contact information should they have any additional questions. Also, post informational content and feedback from the workshop presentation on Facebook and other social media channels to keep people engaged and up to speed with how you might be able to offer services to their businesses.

Let me Google that for you

| Airport & Travel Retail | Leave a comment |

If there is one thing you learn as an entrepreuner…it’s how to roll up your sleeves and do it yourself, or teach yourself how to do something. When we were younger our parents or teachers may have told us to go look in the dictionary or encyclopedia if we had a questions. T​hanks to google and youtube – it’s gotten even easier.

BE RESOURCEFUL.
Having been in managerial positions, it always amused me when someone would ask me a question that I too would have to plug into Google to get the answer. That’s when I discovered the funny – and a little bit cheeky – website called www.letmegooglethatforyou.com. Gone are the days where everyone sits in their isolated cell doing one minute task. In today’s fast moving, competitive work environment you need to expand your skill set and become resourceful. If you want to be cheeky, check out this funny link that you can send to someone when they ask you something that would require you to Google it for them: LMGTFY

NEVER STOP LEARNING.
1 – Research & Read: Whether you read an article a day on business, leadership or something more industry specific – it is important to continue learning new things.
2 – Lessons Learned: Another aspect of learning is to take time after a project or event to discuss and document what went well and what didn’t. Reviewing these ‘Lessons Learned’ before the next project or event will help prevent you from making the same mistakes over and over again.
3 – Courses & Workshops: Make sure you plan for and budget for more formal workshops or courses. Whether it is a conference, a local workshop – such as the ones self at the Chamber of Commerce, or an online learning institute such as Lynda.com.Investing in yourself and your team will ultimately help your business!

FINDING THE BALANCE.
Just to contradict the above…I will remind everyone that this theory requires you to ‘Find the balance.’ As a business owner, or anyone looking to advance in their career…you have to find the balance between being resourceful with a do-it-yourself attitude and know when it’s more efficient and effective to hand over the task to someone else. When evaluating this you need to ask a few questions.
1 – Do I have the time to try to figure this out or do it myself?
2 – How much will it cost me to outsource this? or redirect the task?
3 – Is it worth it to my business?

KNOW WHEN TO LET GO.
Once you have mastered becoming a serial ‘do-it-yourselfer’…which I believe is a critical success factor for start-ups…then you can start to let go of certain tasks that will be done more effectively and efficiently by others. By learning to let go, you can truly become the conductor of your own business orchestra. Which by the way…I am still working on mastering! Feel free to insert any suggestions on this topic: “Delegating for Dummies’, into the comments below!

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