OK Boomer
Airports are unique in their ability to reach every consumer demographic and income level. While this can give opportunities for brands to build their consumer base outside of their typical demographic, it also brings interesting challenges for airports in trying to cater to diverse experiences, expectations, and requirements.
Millennial and Gen Z passengers are commonly the passenger groups who gain the most benefit as they value new experiential and retail experiences. However, although these passenger groups have the inclination to try new experiences, they don’t necessarily have the household income available to match their inclination. This provides an opportunity for airports to increase revenue potential by creating ways in which passengers with a high available household income can utilise the commercial provision.
The Baby Boomer generation control a significant level of disposable income (70% of disposable income in the US). As a result, they are arguably one of the most significant consumer groups for airports. However, while Baby Boomers have a high spend potential, they are often the passenger group with the least inclination to spend within airports (according to Pragma’s Pulse Global Survey, 85% of Baby Boomers don’t purchase products unless necessary). To increase revenue, airports need to create ways that build the commercial spend from this passenger demographic.
The Baby Boomer generation value ease and efficiency when travelling through airports. Their main objective is to arrive at their destination with as little stress as possible. While there are many operational elements such as fast track, priority parking, etc., there are also various experiential and commercial initiatives that airports can undertake to help alleviate some of the stress that Baby Boomer passengers feel.
Experiential activation
The placement of experiential activation such as vibrant design and art installations in high-stress areas such as security can capture the attention of these passengers, reducing their stress and potentially leading to increased spending on an airport’s commercial provision. Airports such as La Guardia and Changi utilise animation and artistic experiential activation.
New York’s Public Art Fund, in partnership with LaGuardia Airport, created a 25,000 sqft mural across the Terminal B departures hall (seen above) depicting the New York skyline with historic locations such as the Empire State building and the Stonewall Inn.
Changi Airport has also utilised digital art installations to reduce security stress and build the passenger experience. The security zone in Terminal 4 has a large-scale immersive wall which showcases a series of images depicting famous Singaporean landmarks as well as other immersive and engaging elements including a checked baggage simulation.
While immersive art installations don’t impact an efficient operational process, they provide a distraction for passengers, and help create the appearance of a stress-free environment. This in turn, can drive up conversion and spend for an airport’s commercial provision.
Relevant retail
Another way in which airports can appeal to Baby Boomer passengers is to provide a commercial provision that includes brands catering for them. Commercial provision within airports is a varied mix of brands that suit the diverse demographics of the passenger base. But how can airports ensure that it's not just the trendy and marketable brands that are in place within the airport but the brands that will drive Baby Boomer conversion and increase revenue?
According to Pragma’s Pulse Global Survey, Baby Boomers and Gen X have the highest interest in local and authentic products when shopping in airports. While this represents a an opportunity, airports can also include brands such as John Lewis, Bloomingdales, Lancome and Apple as these have a high level of recognition with Baby Boomers. Apple has the Genius Bar which provides technical support, workshops, and seminars on how to get the most out of your tech, helping those who are less digitally literate.
Lancome has extremely high brand recognition within older aged consumer groups. This is due partly to the long-lasting nature of the brand. Lancome provides specific skincare and makeup products for older consumer including blog posts and YouTube videos on how to cater towards you skin as you age.
By building in these experiential services and brands that cater towards the Baby Boomer generation, airports can create a place in which older passengers feel comfortable in utilising the commercial provision.
Katie Hastings