The Need for Disruption

DFS Group CEO Philippe Schaus has made a strong argument for change to the Global Travel Retail (GTR) traditional airport concession model.

As reported on the Travel Retail Business article online, Philippe has said the following

Part of the problem which we have today is that all the risk is on one side and all the opportunities on the other. It’s going to reach an end, and the airports will not be able to compete against the Internet this way.

This subject was also tackled recently at The Trinity Forum, bringing together all of the stakeholders in the industry, from airports to retailers and brand owners.

One particular article covering the key topics discussed was produced by The Moodie Davitt Report – click here for the link.

Talks amongst the stakeholders on this topic have been facilitated by this forum since 2003 when it was founded, 12 years ago. Yet, no change has been forthcoming and the challenges with the model remain the same.

The need for disruption remains the same as the relationship is not balanced, as Philippe Schaus states

we are in a state of unstable equilibrium

Ultimately, the current state of the Trinity of stakeholders limits the opportunities to attract consumers and improve the value proposition as it:

• stifles innovation (due to investments required elsewhere by retailers and brand owners)
• limits creation of excitement and engagement
• makes it more difficult to increase penetration levels instore
• increases the barriers to entry to new entrants (thus limiting diversity of offer)

The need for disruption is there for all to see, however will the industry and its stakeholders continue on this path until an external factor disrupts the existing model (eCommerce, Amazon, other threats) or will someone take a leap of faith, be brave and test and develop a new model for the Trinity.

The jury is out however the need for disruption remains in place for all to see….