Bonnel calls on industry to look beyond pricing

Adele Wolstenhulme

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The Nuance Group CEO Europe Jean-Paul Bonnel called on the trade to understand the lessons to be learned from high street retail and think beyond the constraints of pricing, when he addressed delegates on day one of the Global Travel Retail Summit

Over 130 industry delegates gathered in London for the Raven Fox Global Travel Retail Summit today to examine the opportunities and challenges posed by the travelling millions in the next decade.
 
Keynote speaker The Nuance Group CEO Europe Jean-Paul Bonnel opened the Summit by offering insights from his experience in the high street sector. Bonnel, who spent over 20 years working for Marks & Spencer and Printemps Group, said that there was "no logic and no science" to some travel-retail offers and encouraged more use of "retailtainment" to create events instore.
 
He said: "We should walk away from purely selling, and think about what else we can bring to the shopping experience." Bonnel cited the development of the Virgin Atlantic Airways Upper Class lounge at London Heathrow airport as an example of targeting the consumers' individual needs.
 
"Are we really always serious about the importance of price savings? We should think of different ways to attract customers other than price discounts," said Bonnel. He outlined the importance of commercial area layout, merchandising, retail concept renewal and innovation, marketing the shopping experience and following the right key performance indicators.
 
Hochtief airport director commercial and property activities Dr Peter Evangelos Poungias highlighted the approach of private investors to commercial retail activities.  He emphasised the importance of a sophisticated management team to exploit future retail revenue potential and for joined up thinking with concessionaires and brand owners to develop future retail business models.
 
BAA USA vice-president and regional director Mark Knight presented the challenges of operating duty-free stores in US airports. Although the US market often puts "politics before passengers", he urged the industry to "work within its constraints instead of raging against the status quo."
 
In a light-hearted presentation, Aviation Health Institute director Farrol Khan showcased the organisation's "healthy flying" concept, and the commercial opportunities it can present to travel retailers. He explained how to combat stress associated with air travel, and presented findings demonstrating that the reduction of passenger stress by 2% can result in a 1% increase in spend.
 
World Duty Free trading director David Griffiths, Hellenic Duty Free Shops deputy general director Harilaos Lambropoulos and Abu Dhabi Airport Catering & Duty Free managing director Mohamed Mounib addressed the outlook for their companies, home markets and regions, focusing on changing consumer behaviour and product trends of the future.