Trip advisor

Over the last three weeks we have looked in detail at three types of transport hub: airports, train stations, and motorway service stations. In this, the last of our current topics on transport, we take a broader look at commercial trends in the transport sector.

In our work in this sector, we have identified four key distinctions that shape the commercial offer differently to that found downtown, or in shopping malls.

Primary purpose
Although self-evident, the commercial offer is not the main reason to visit a travel hub. In order to appeal to the visitor, the commercial offer needs to be convenient, accessible, and relevant.

By placing the offer along the route taken by the visitor, convenience and visibility is increased, communicating the type of offer available. But to turn the visitor into a customer, the offer also needs to be both at an accessible price point, as well as relevant to the consumer, which is usually linked to their trip type.

But while the commercial offer may not be the main reason for visiting, the type of offer can often be a contributing factor. By aligning the offer to the user-base, not only does this make visit incidence higher, but also increases the commercial penetration and drives revenue.

Trip type and frequency
Business, leisure, or visiting friends and relatives are usually the main reasons why someone uses a travel hub. Understanding the make-up of the demographic – and how their commercial needs may differ – is key to increasing the spend per visitor.

The reason for the trip may also impact how often a user makes the same journey, and therefore how familiar they might be with the offer. This can lead to developing different strategies to ensure that the commercial offer remains fresh and relevant for each visit. Elements such as promotional sites and pop-ups can help provide seasonal promotions and drive engagement, while working with retailers to refresh components of the core offer can provide a point of difference for each visit.

Dwell time
Visitors to a travel hub often have very limited time available, and they may have several things competing for their time, from the functional and process-driven (i.e. buying a train ticket), to trip related activities like sending an email, or having a virtual meeting. The commercial offer therefore has to prioritise efficiency and speed-of-service for their consumers but still ensure that the offer remains vibrant and enticing.

With so many things vying for our limited time, retailers need to stand out, using effective displays, promotions, and exclusives to entice visitors and convert them into customers. The transport hub needs to ensure that the entire commercial offer is in line with consumer expectations and latest trends are incorporated into the commercial environment, including exploring how the digital ecosystem fits into their estate.

Space
One of the main challenges facing a transport hub is the limited overall volume of commercial space available, often leading to decisions being made about what retail categories can be facilitated, and the type of restaurant choices on offer. Selecting the appropriate blend of brands and formats is crucial to the overall success of the offer. Too diverse an offer will be confusing and lack identity, throwing would-be consumers into disarray. Too narrow and the appeal will only be limited to a smaller subset of the visitors, who might not be the highest spending customers.

The unit sizes are also usually smaller than those outside transport hubs, leading retailers to limit the breadth of the physical store offer. One of the key challenges facing retailers is how they modify their offer yet still maintain broad appeal, and if they can utilise digital infrastructure to enhance and extend the product lines available.

No individual driver is more important than the others, and the metrics of each often fluctuate throughout the year. Transport hubs need to understand how the elements interact with each other and develop a good understanding of how their demographics are evolving. This will ensure that they are not just remaining on trend, but choosing the right trend for their specific user base. This constant evaluation and fine-tuning of the commercial offer will lead to increased visitor satisfaction and spend.

Chris van Ryswyck