Has ‘Sense of Place’ Become ‘Out Of Place’ in Travel Retail?
5 minutes read
Introduction by: Peter Marshall
This feature might touch some raw nerves amongst airports and travel retailers, but we feel it is an important enough subject to be raised on TRunblocked.com. Written by Garry Stasiulevicuis of Pi Insight, the feature asks questions that need answering, as well as offers some excellent guidelines into the art of the possible. So has Sense of Place passed its sell-by date?
In the world of Travel Retail, the concept of “Sense of Place” has been a cornerstone for years. Airports worldwide have adopted this strategy to create a unique and memorable experience for travellers, often incorporating local architecture, cultural symbols, and regional products into their retail environments. However, as travel trends evolve and consumer preferences shift, one must ask: has the focus on Sense of Place in airport retail gone too far?
Overemphasis on Emulating Local Heritage
As the Travel Retail industry continues to champion Sense of Place activations as exceptional examples of immersive experiences, it is crucial to reflect on whether the average traveller truly shares this enthusiasm. Airports across the Globe (with notable emphasis on the Middle East) have invested significantly in replicating local attractions and cultural elements that showcase luxurious shopping areas.
These efforts aim to provide travellers with a taste of the local culture, yet they often pale in comparison to the authentic experiences available outside the airport. After spending days exploring real, historic sites, and engaging with the local culture, travellers might find these manufactured versions less compelling and possibly even redundant.
Moreover, the intense focus on replicating local attractions can sometimes lead to a lack of originality and innovation within the airport’s retail spaces. Travellers who may have already immersed themselves in the local environment may prefer a fresh, unique experience at the airport rather than a repeat of what they have just experienced in the city.
This introspection raises an important question: do these Sense of Place activations truly resonate with travellers, or do they merely offer a superficial nod to the local culture? As the industry continues to evolve, it must consider whether these efforts genuinely enhance the travel experience or if they need to be rethought to better align with the preferences and expectations of modern travellers.
The Dilemma of Local Products
Another aspect of Sense of Place in travel retail is the heavy emphasis on local products. While offering regional specialties can enhance the shopping experience and provide a last-minute opportunity to purchase souvenirs, the over-allocation of space to these products can be problematic. Authentic local products are often best sourced from local markets and shops within the city, where the selection is broader, prices are competitive, and the experience is more genuine. In comparison, buying ‘local’ products within the airport could draw parallels with someone buying gas-station flowers for a loved one!
Balancing Local and International Products
Pi Insight’s ShelfTrak, which measures Travel Retail store execution data across 50 global airports, sheds light on the current state of local and international product assortments and pricing.
For instance, in Asia, international products represent 82% of the range, with 18% of space given to local products such as regional food delicacies. The Middle East and North Africa (MENA) region has a similar proportion of local products at 17%, featuring items like dates and nuts as well as some own label branded products, as in the case of Dubai Duty Free. At Istanbul Airport, the blend of local Turkish delights with international luxury brands aims to create a balanced retail experience. However, with almost a quarter of space being given to local items, the mix does feel overly focussed, with a sea of Baklava facing shoppers.
Europe presents a unique picture across different airports but with an average of 17% of the range dedicated to local products, including local confectionery, meats, fish, and cheese. Paris Charles de Gaulle’s Terminal 2E, for instance ( where 40% of space given to local items), prominently features many souvenirs, local cheeses, and Paris-branded chocolates, offering travellers a ‘taste’ of France. The Americas have the smallest share of local products at just 9%, highlighting a significant lean towards international offerings.
Some airports stand out for their notable inclusion of local confectionery and food. For example, Shenzhen Airport dedicates 40% of its retail space to local products. Other airports with a high share of local offerings include Madrid (27%) and Incheon (25%).
Pricing Dynamics
Pricing also plays a crucial role in the appeal of local versus international products. In Asia, local products are priced at an average of $20 USD compared to $16 USD for international products, indicating a premium on regional delicacies. Conversely, in the MENA region, local products are more affordable at $14 USD on average, compared to $17 USD for international items. Europe sees a similar premium on local products, averaging $17 USD versus $14 USD for international options. The Americas stand out with local products priced as high as $24 USD, a significant markup compared to the $17 USD average for international offerings.
Unique Experiences vs. Carbon Copies
The true value of Sense of Place lies in creating a connection with travellers, making the airport experience memorable and distinct. However, the current approach often results in airports that feel like mere extensions of the local tourist attractions, lacking the element of surprise or novelty. Airports have the potential to offer something entirely unique—a blend of local culture with innovative retail concepts that travellers cannot find elsewhere.
Creating a distinctive airport experience means thinking beyond literal translations of local heritage. For instance, rather than recreating a local market, airports could integrate design elements that evoke the essence of the locale in a more abstract, sophisticated manner. This could involve using local materials in innovative ways, incorporating art and design inspired by local culture, or offering unique services and amenities that reflect regional traditions in a modern context.
The Relevance of Sense of Place
Despite the challenges, Sense of Place remains relevant in travel retail. It helps in differentiating one airport from another, potentially making the travel experience more enjoyable and less monotonous. However, the execution of this concept needs to be balanced and thoughtful. Rather than overwhelming travellers with overly literal and repetitive local motifs, airports should strive to create spaces that are both reflective of the local culture and innovative in their own right.
Solutions and Future Directions
Balanced Integration: Airports should aim for a balanced integration of local elements and unique, innovative retail experiences. This could mean fewer but more impactful local touches that genuinely resonate with travellers.
Focus on Quality over Quantity: Instead of filling retail spaces with numerous local products, airports should curate a selection of high-quality, unique items that travellers might not find elsewhere. This ensures that the local offerings are special and worth purchasing at the airport.
Innovative Design: Embrace creative and abstract interpretations of local culture in airport design. This can include using local materials, commissioning local artists, and incorporating subtle cultural references that enhance the overall ambiance without feeling clichéd.
Experiential Retail: Develop experiential retail spaces that offer something unique, such as interactive exhibits, live demonstrations of local crafts, or tasting sessions for local foods and beverages. This not only provides a memorable experience but also educates travellers about the local culture in an engaging way.
Feedback and Adaptation: Regularly seek traveller feedback to understand their preferences and experiences. Use this data to continuously adapt and improve the retail offerings and the overall Sense of Place strategy.
Conclusion
In conclusion, while Sense of Place is a valuable concept in travel retail, its current implementation in many airports may need re-evaluation. By focusing on creating unique, balanced, and innovative experiences, airports can better cater to the evolving preferences of modern travellers, ensuring that the Sense of Place enhances rather than detracts from the overall travel experience.
The insights provided by Pi Insight’s ShelfTrak further emphasise the need for a more nuanced approach to product assortment and pricing strategies. Airports that successfully balance local charm with innovative retail offerings will likely lead the way in creating truly memorable and engaging travel experiences.
