BUDAPEST AIRPORT


rests in ensuring products promoted on the ground do not crossover with products sold onboard, which will ensure a complementary rather than a conflicting offer. It is well known that airlines’


knowledge of and interaction with customers straddles multiple touch points in the travel journey. Building on this, BARTA places


emphasis on smart targeting, via special offers or the aforementioned differentiation in product assortment, not to mention simply advising passengers on the availability of certain options to shop and spend.


Incremental approach “We know that some routes yield low margin travel value spend today, such as the London route for Wizz Air, where many Hungarians are travelling back and forth and they typically buy the maximum tobacco limits and forego anything else,” notes Jandu. “I believe by having faster


engagement with these customers, all parties can gain incrementally compared to today. If we can convince them to buy certain products, such as fine foods, certain wines or toys for example, then it is mainly an upside.” Data sharing by each of the


partners remains off the table at this time, TRBusiness understands, but examples such as the London route above – where Wizz Air knows where passengers book and can interact with them at five or six touchpoints during the travel journey – offers ample opportunity for upselling opportunities tied to targeted, incremental retailing. Alternatively, possible loyalty club


memberships that offer discounts to passengers on airfares could be used to leverage additional spend in store. “For the purpose of the test, we’re


is underway. The key is to make the trial as much as possible incremental to the participants through extensive analysis on existing route spending.” While the timing of any execution


is still to be decided, Jandu says he has a ‘gut feeling’ a live test of the initiative could take place in Q4 this year, in line with the launch of Wizz Air’s new Frankfurt route in November. Current discussions have been


received well by partner Heinemann Duty Free, with the Hamburg- based travel retailer’s marketing team devising some ‘very workable scenarios’ to be shared with Wizz Air to support a future roadmap for the anticipated test phase, Jandu continues. At the time TRBusiness broke the


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news of the exclusive Future Travel Experience backed BARTA initiative earlier this year, Jandu quantified the commercial benefits of enacting stronger ties with the airlines.


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A live test of BARTA could coincide with the launch of Wizz Air’s new Frankfurt route from Budapest later this year.


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“I do not think we are far away from having partnership style ancillary relations between multiple stakeholders so that everyone can optimise their earnings.”


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Retail uplift +5% He made clear that if BUD can work with the carriers and see a resulting uptick in consumer connectivity, there is every possibility the airport could spike retail sales by around 3%-5% above its current +20% retail sales growth. “I stand by this statement,” he tells


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TRBusiness. “The enthusiasm to work together has never been great with airports, retailers and airlines often too concerned about competing for the passengers’ spend, but I believe with the firewalls in place, this can become a game changer. “For BUD, this may not stop with


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Wizz Air because we have other airlines who have also expressed an early interest to explore new ways to optimise sales and ancillary income with retail in mind.” Handling 11m passengers last year,


trying to find solutions where one party doesn’t have to dig money out of their pockets to pay for the other – we’re looking at longer hanging fruit than that,” he says. “The full scope of the potential will


absolutely have to involve some sort of revenue exchange.” “It is sufficient to mention that all partners will gain once the trial


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Budapest Airport is the hub for low- cost carrier Wizz Air, one of the top LCCs in Europe, and the focal point for BARTA. However, the initiative in theory


has the potential to succeed by getting the long haul and network carriers involved in the future. “We certainly need to have


blue sky thinking on their part,” admits Jandu.


BARTA hopes to attract long-haul and network airlines to become involved in the project in the future.


TRBUSINESS 23


two route competing long-haul airlines. A future example scenario, Jandu outlines, could focus on tying promotions associated with travel retail – such as product discounting or the availability of exclusive selections – with passengers booking with one at a particular time, so as to serve as a point of difference against a similar competitor carrier. “Everyone is, or rather should be, looking for more income streams:


“For long-haul airlines, it will be


TALLINK’S MAGNUS SKJÖRSHAMMER | TFWA ASPAC REVIEW | SKYSERVICE FORUM | FTE & BARTA PREVIEW | ADVANTAGE INTERNATIONAL | L’ORÉAL | ESTÉE LAUDER | COTY | P&G | LVMH | CHANEL | M1ND-SET | PVM | MARS | RICOLA | HARIBO | FERRERO | NOW & THEN


more difficult as they stock more retail products on board than the intra-European ones, however I’m sure that further tests with network airlines will be on the radar within two years.” Currently, BUD does not have


Kam Jandu, BARTA and Budapest Airport


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