Bounce back

With countries relaxing their Covid related travel restrictions, air travel has been revitalised in 2022.

ICAO's latest reports indicate that seat capacity and passenger traffic globally has reached an estimated 80% of the 2019 levels for the same period of January to August. While some regions are achieving higher growth than others, it is estimated by both ACI and IATA that globally the aviation industry will recover to pre-pandemic levels by 2024.

Asia Pacific's air traffic is forecasted to grow to 70% of pre-pandemic traffic and up to 60% of passenger traffic by the end of the year according to IATA and ACI respectively. The recovery of air travel in Asia Pacific looks increasingly optimistic as more countries relax their travel restrictions and open up dormant terminals to cater for increased passenger traffic.

We look at some of the main Asian destinations and their expected recovery:

Singapore relaxed its travel restrictions for vaccinated passengers earlier this year, and has dropped the mandatory 7-day quarantine for unvaccinated passengers. With events such as the Singapore Grand Prix and the 10th anniversary of Gardens by the Bay imminent, Changi Airports has ramped up their activities. In order to cater for the forecasted 80% pre-pandemic level traffic by the end of the year, Changi has opened up their Terminal 4. Opened in 2017, Changi's newest terminal uses state of the art automation to enhance the passenger journey and features immersive and experiential retail environments.

Pragma's sister company Benoy was responsible for the concept design architecture, interior design and graphic design for Changi T. A key element in making travel easier was mapping traveler journeys through airports. Benoy studied the passenger journey from beginning to end to understand how users move through an airport, how they use the space, what the pain points are and what creates a positive and engaging experience. Benoy also led the retail interior design, as well as retail and aviation facility planning for Jewel Changi Airport creating a unique and dynamic interior retail environment within Jewel for travelers and residents alike.

Japan has just announced that from October 11, they will relax border control measures to be similar to the US. They will also resume visa-free travel and individual travel, removing the daily cap of 20,000 which will boost the travel industry within the region. Taiwan has also announced that they are ending the quarantine requirements for all visitors and AirAsia has forecasted to recover their full operation by mid-2023 largely due to the relaxation of restrictions from their key markets such as Malaysia, Thailand, Indonesia and Singapore.

China's domestic travel has started to pick up again after the relaxation of the nation's worst lockdown earlier this year. Domestic traveller numbers increased by 62% month-on-month this July and is expected to keep on growing. The Government of China's focus currently is expanding their domestic travel sector and to restore international air travel from 2023. However, international air travel is slowly starting with Sichuan Airlines resuming their route from Chengdu to Helsinki.

2023 and beyond
As the demand for travel increases, operational efficiencies and revenue generation should be carefully considered if airports are to bounce back and recover. Airports must continue to transition into destinations, not just transit points. The travel retail trends that are currently emerging involve story telling and immersive experiences. Brands and retailers are designing their offering and retail environments to captivate the passengers and leave them with an unforgettable experience.

As competition for attracting passengers increases, the competitive advantage can only be gained by providing an unforgettable passenger experience. Airports such as Changi have continuously been improving on this aspect by providing seamless passenger experiences which results in satisfaction and increased dwell time, both key factors for increasing retail revenue. Design and analytics play a key role in developing the airport as a destination.

Mohamed Hisham