REDEFINING THE END-TO-END PASSENGER EXPERIENCE AND BUSINESS PERFORMANCE
REDEFINING THE END-TO-END PASSENGER EXPERIENCE AND BUSINESS PERFORMANCE
Ancillary | Digital Transformation | FTE Event News | On the Ground | Up in the Air // Mar 2025
As technology evolves, customers expect their travel experience to adapt and evolve in a way that is intuitive, contextual and seamless. In the ancillary & retailing space, progressive airlines and airports are embracing advanced technologies and innovative strategies to transform the customer experience. In part 2 of our comprehensive focus, daa (operator of Dublin and Cork airports), Lufthansa Group, Heathrow, PLAY Airlines and Fraport share their insights into the top ancillary & retailing trends to watch in 2025. You can view part 1 of our focus on ancillary & retailing trends – featuring Vantage Group, Air France-KLM, Threedot, Munich Airport, Oman Air, nlmtd, Vancouver Airport Authority, and Kinetic Consultancy – by clicking here.
Travellers increasingly expect end-to-end personalisation at every step of their journey. As technology evolves, customers expect their travel experience to adapt and evolve in a way that is intuitive, contextual and seamless. “At Dublin and Cork airports, we are working to deliver tailored experiences that reflect each traveller’s individual preferences,” explains Vincent Harrison, Chief Commercial and Development Officer, daa (a member of the FTE World Ancillary & Retailing Working Group). “The technology, data analytics and Artificial Intelligence (AI) we are investing in go beyond numbers, providing valuable insights informing the creation of customer journeys that feel incredibly personal, driving loyalty and retention to higher conversion rates and higher transaction values.”
daa’s airports are enhancing facilities, services, and experiences to cater to the growing demand for quality products including transforming the retail and food & beverage offers, developing a more luxurious lounge product, and upgrading and elevating the service offer within the private terminal facility – Platinum Services.
“We have adapted agile F&B models whereby we can change the offer by time of day and change unit concepts on a regular basis, allowing us to lean into key ‘foodie’ trends to keep offers relevant,” says Harrison. “Operators are adopting digitisation to deliver operational efficiency and a more seamless passenger experience. Our Media Sales team are working with brands to bring experiential activations to our evolving passenger demographics for more immersive experiences and brand zones throughout their journey. For example, we will be bringing our passengers branded gate takeovers to create immersive brand zones. We are also utilising the latest advancements in digital displays (DOOH) to bring best-in-class branding experiences to life at Dublin Airport.”
Harrison highlights several key trends driving daa’s Commercial business in 2025:
Hear more from daa at the co-located APEX FTE EMEA and APEX FTE Ancillary & Retailing events, taking place in Dublin – the ‘Silicon Valley of Europe’ – on 10-12 June 2025. Ruairí Kell, Head of Innovation, daa Labs, is participating in a session focused on ‘Embracing new technology and digital transformation to elevate CX and operational efficiency’ with a presentation titled ‘How daa Labs is embracing innovation to enhance CX and operations’.
Timothy Haupt, Manager Ancillaries Strategy & Commercial Development, Lufthansa Group, shares that in 2025 the world of ancillaries will be shaped by deeper personalisation, driven by smarter use of data and advanced customer analytics. “Airlines will offer tailored products closely matching individual passenger preferences and specific travel contexts – going beyond seating or baggage allowances toward unique, experience-driven services that enhance the overall journey,” Haupt explains.
Another key trend will be the seamless integration of ancillary offerings within broader digital ecosystems and mobile apps, simplifying how travellers discover and purchase ancillary products. “Passengers will expect greater convenience, fewer clicks, and frictionless transactions,” says Haupt. “Ultimately, successful airlines will prioritise personalisation, flexibility, and seamless integration, transforming ancillary revenue into meaningful, customer-centric experiences.”
Travel retail continues to be an exciting and evolving space, especially as the industry navigates shifting consumer expectations and broader market trends. “While RRPs face growing pressure from e-commerce and increased discounting in China, we’re also witnessing younger consumers who may not instinctively understand the value of travel retail and the tax and duty savings that previous generations appreciated,” explains Fraser Brown, Retail Director, Heathrow (a member of the FTE World Ancillary & Retailing Working Group). “However, what’s clear is that the travel retail channel remains resilient and distinct, with footfall and demographics diverging from what we see on the high street and in domestic malls. Airports offer a unique environment where brands can physically engage with consumers at a pivotal moment in their journey.”
There are four strategic pillars to the airport’s retail proposition, which are designed to deliver evolution rather than revolution: Digital Growth, Experiential, Space Optimisation, and Compelling Offer. Heathrow emphasises the importance of collaborating across the quaternity of retailers, airports, brands and Out of Home (OOH) media partners. “One big area is digital,” says Brown. “We are very focused on the dwell in the International Departure Lounges, but there is a great opportunity to engage and increase dwell through digital engagement. Airports are typically good at this through their own parking business – having learned about SEO and PPC through that. What we all need to do is translate that experience and knowledge to retail.”
The emphasis on experience is more significant than ever. Heathrow sees this reflected in the impressive growth of food & beverage offerings and the increasing popularity of products that stand out as distinct. “For brands, this can mean traditional exclusives unavailable domestically, personalised products curated in lounges, or items that offer a sense of place – something truly special that travellers can take home as a memory of their journey,” says Brown. “Ultimately, the power of the travel retail experience lies in its ability to offer something different, something engaging. And that’s where we see tremendous opportunity for growth and innovation.”
Sonja Arnorsdottir, Chief Commercial Officer, PLAY Airlines: “In 2025, we’ll see Artificial Intelligence (AI) take another step in automating and personalising the experience for our customers, with ongoing optimisation through dynamic pricing and personalised product offerings, driven by AI and digital enhancements onboard. This will enhance the customer experience while simultaneously driving revenue for airlines.”
Airport retailing is becoming more dynamic and customer-centric than ever before. “A key trend is experimental retailing with pop-up stores, interactive retail spaces and entirely new concepts that make shopping at airports an experience,” says Johannes Noack, Product Manager eCommerce, Fraport (a member of the FTE World Ancillary & Retailing Working Group). “Artificial Intelligence and data analytics will make it possible to recommend personalised offers, tailored to the needs of the traveller at the time. Beyond this technical evolution, 2025 is also about an increasing level of collaboration between system partners along the passenger journey, with the goal of a seamless journey that all our passengers deserve.”
Hear more from Fraport at the FTE World Innovation Summit, hosted by Pittsburgh International Airport on 13-15 May 2025. Claus Grunow, Vice President of Corporate Strategy and Digitalization, Fraport, is participating in the Advanced Technology Conference in a session focused on ‘What are the advanced technologies that will help revolutionise our sector, and what building blocks need to be put in place to implement and make these technologies flourish within your organisation?’
The future of ancillary & retailing is poised to be defined by a greater emphasis on personalisation, seamless integration of advanced technologies, and enhanced customer experiences. As highlighted in the above examples, the trends of 2025 are moving toward smarter data use, Artificial Intelligence (AI)-driven innovations, and immersive, tailored services that cater to individual passenger preferences. By leveraging these advancements, airports and airlines are not only improving operational efficiency but also fostering deeper connections with travellers, ultimately transforming the journey into a more engaging and memorable experience. As these trends continue to evolve, the industry’s focus will be on creating truly dynamic, customer-centric environments that enhance both convenience and satisfaction.
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Content plans: Members of the FTE Digital, Innovation & Startup Hub and the FTE Baggage Innovation Working Group will convene in Madrid for an action-packed joint members meetings, hosted by IAG and Iberia at their Madrid HQ where we will hear unique insights from IAG family members, and a host of guest speakers.
Content plans: Members of the FTE Digital, Innovation & Startup Hub and the FTE Baggage Innovation Working Group will convene in Madrid for an action-packed joint members meetings, hosted by IAG and Iberia at their Madrid HQ where we will hear unique insights from IAG family members, and a host of guest speakers.
Content plans: AI, IOT & Robotics case studies & knowledge sharing
Content plans: Focus on the future of baggage handling, Proof of Concepts updates & knowledge sharing
Content plans: A worldwide summit uniting inventive minds to tackle aviation’s biggest challenges, explore pit’s terminal modernization, and uncover the city’s vibrant tech and innovation landscape
Content plans: AI, IOT & Robotics case studies & knowledge sharing
Content plans: Focus on the future of baggage handling, Proof of Concepts updates & knowledge sharing
Content plans: Strategies for revenue growth through collaborative retailing; discussions around progressive new business models & knowledge sharing
Content plans: A gathering of air transport’s digital and innovation leaders, creative designers and progressive minds, who will inspire one another and reimagine travel together.
Content plans: AI, IOT & Robotics case studies & knowledge sharing
Content plans: Focus on the future of baggage handling, Proof of Concepts updates & knowledge sharing
Content plans: AI, IOT & Robotics case studies & knowledge sharing
Content plans: Focus on the future of baggage handling, Proof of Concepts updates & knowledge sharing
Content plans: Strategies for revenue growth through collaborative retailing; discussions around progressive new business models & knowledge sharing
Content plans: Known as the ‘CES of Aviation’, FTE Global is THE DEFINITIVE EVENT FOR INNOVATORS, TECHNOLOGISTS, DESIGNERS, COLLABORATORS AND GAMECHANGERS
Content plans: AI, IOT & Robotics case studies & knowledge sharing
Content plans: Focus on the future of baggage handling, Proof of Concepts updates & knowledge sharing
Content plans: Focus on the future of baggage handling, Proof of Concepts updates & knowledge sharing
Content plans: AI, IOT & Robotics case studies & knowledge sharing
Content plans: Strategies for revenue growth through collaborative retailing; discussions around progressive new business models & knowledge sharing
Content plans: Asia’s biggest free to attend passenger experience & business performance expo
Content plans: Focus on the future of baggage handling, Proof of Concepts updates & knowledge sharing
Content plans: AI, IOT & Robotics case studies & knowledge sharing
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13–15 May 2025, Pittsburgh
A worldwide summit uniting inventive minds to tackle aviation’s biggest challenges, explore PIT’s Terminal Modernization, and uncover the city’s vibrant tech and innovation landscape.
10-12 June 2025, Dublin
Empowering the airline sector to profit from collaborative digital retailing opportunities at every step of the journey
10-12 June 2025, Dublin
Empowering the airline sector to profit from collaborative digital retailing opportunities at every step of the journey
10-12 June 2025, Dublin
A gathering of air transport’s digital and innovation leaders, creative designers and progressive minds who will inspire one another and reimagine travel together.
09-11 Sep 2025, California
Where the world’s most progressive travel facilitators define tomorrow’s end-to-end passenger experience
11-12 November 2025, Singapore
Connecting vendors with airline and airport executives to transform tomorrow’s end-to-end passenger journey across Asia-Pacific
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