AOE – Digitalizing Travel Retail & Non-Aviation Revenues

AOE is the world’s leading non-aviation revenue digitalization company. AOE is an expert in solving complex problems with software, developing Omnichannel E-Commerce platforms and digital marketplace solutions based on enterprise technologies.

Thanks to many successful projects with leading aviation players such as London Heathrow and Singapore Airlines, AOE has an unrivalled expertise in the airport and airline business, with deep insights into neuralgic issues that need to be solved for travel retail to be successful in the long term. As a result, AOEs’ award-winning OM³ platform is the leading and most advanced digitalization solution in the aviation industry.

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OM³ - world’s leading omnichannel marketplace for travel retail

OM³ is a digital marketplace platform that turns digital travel retail into major non-aviation revenues. The omnichannel solution combines airport services and e-commerce on one platform, enabling sophisticated data-driven e-commerce and personalized marketing along the customer journey.

  • Proudly serving 225 Million passengers yearly
  • Powering over $500M in revenues
  • 22 airports and airlines currently in rollout, tender or consulting phases

With OM³, airports offer anything, anytime, anywhere with real added-value

  • Targeted: Personalized marketing campaigns and promotions
  • ROI: Focus on personalized luxury e-commerce, cross- and up-selling increase sales
  • Omnichannel: Seamless customer experience to secure non-aviation revenues
  • Innovative: Enables new concepts such as digital tax-free downtown shopping
  • One solution: All products, retailers and services on one platform
  • Connective: Integrate any system (airport services, erp, crm, logistics, order management, payment, fulfillment etc.)

“OM³ digitalizes and secures airports’ non-aviation revenues and hence returns travel retail to growth”

Heathrow: High-class luxury shopping increase ROI

The new Heathrow Boutique is an important element in the overall strategy to digitalize the airport’s non-aviation revenues. With the successful launch of the OM³ platform, Heathrow now has a powerful and sustainable digital marketplace that meets modern requirements and customer demands and can be continuously expanded.

The marketplace offers passengers all necessary flight data, airport services, shops and products on one platform. Thanks to attractive premium products and targeted marketing campaigns, Heathrow can focus on luxury shopping with a unique product offering and high ROI. The seamless end-to-end experience led to widespread acceptance by passengers and a major increase in sales.

  • Digital Marketplace: All shops, products and airport services consolidated on one platform.
  • Omnichannel Commerce: Seamless shopping experience across all channels and devices.
  • Future-proof ROI: Scalable, future-proof and expandable solution that secures non-aviation revenues

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Auckland: Digital tax-free downtown shopping reinvented

Auckland airport reinvented tax-free downtown shopping: Travelers at Auckland can shop duty- and tax-free, both in downtown Auckland, online or at Auckland Airport. The solution offers the best of both the online and offline worlds. Off-airport retailers can sell their products and have them delivered to the airport. Customers can buy their items from participating retailers and pick them up conveniently at a collection point at Auckland Airport.

This is an attractive approach for all participants: Passengers receive exceptional offerings, retailers increase sales and the airport generates additional revenues through the new service offering. In combination with Auckland’s E-Commerce Store “The Mall”, the solution is outstandingly successful and drives major additional non-aviation revenues for Auckland Airport.

  • Tax-Free Downtown Shopping in Auckland City: Customers can buy tax-free products from Downtown Auckland retailers without filling out complicated tax forms.
  • Automated Single-Basket On-Airport Fulfillment: Products purchased from various retailers are delivered automatically in a single shopping basket to the airport for collection by the passenger.
  • Off-Airport product range increases revenues: Additional product offering through 200+ downtown retailers along with price advantages increase revenues of retailers and the airport.

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Singapore Airlines: Next-Generation Airline Retailing

Singapore Airlines’ new KrisShop enables a new in-flight shopping experience, while also extending the Golden Hour: Passengers can shop products until the very last minute before boarding their flight. The solution is customized to enable new business models for billing, payment, drop shipment as well as other digital processes. To create a unique customer experience, KrisShop provides personalized content with custom sales and marketing campaigns in real-time. The OM³-based platform provides Singapore Airlines with the most advanced digital airline retail program in the world – thus making the solution truly future-proof.

  • Innovative Luxury Shopping: Wide array of premium brands and high-end products, customized shop-in-shop stores, with brand look and feel.
  • Loyalty Opportunity: Increase attraction of the loyalty program, expand product portfolio as well as opportunities with luxury brands.
  • Omnichannel Retailing: Data-driven, personalized communication and retailing addresses new and existing customers to increase revenues.

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Use-Case Loyalty Points: The 50-billion-dollar opportunity for airlines

30 trillion unused bonus miles on customer accounts – this amounts to 30 trillion reasons for airlines to rethink their loyalty programs. There is enormous potential in these loyalty points to use e-commerce to jump start the engine for non-aviation sales – a 50-billion-dollar opportunity that airlines are currently far from fully exploiting. As spend per passenger is on an overall decline, as are revenues from in-flight shopping, many airlines have discontinued this increasingly unprofitable service.

However, what if airlines use their loyalty program to become a full part of the travel retail ecosystem – thus taking advantage of the 50-billion-dollar opportunity of unredeemed bonus miles? Imagine the following scenario: Customers use their bonus points for shopping – not for high-cost in-flight shopping, but conveniently via the airline’s pre-order e-commerce platform, at the airport or in cooperating online marketplaces. They are suddenly given access to numerous products that are actually attractive for them, such as luxury fashion and accessories, not just core duty free. Customers benefit from a seamless shopping experience and the best-possible service, such as location-independent e-commerce and convenient delivery options such as home delivery. Airlines address customers with highly personalized offers via their e-commerce marketplace. The current 30 trillion unused bonus miles thus act as new incentives for customers to make purchases in airline shops.

Read full story how Singapore Airlines realized this in 5 easy steps

Whitepaper “The Digital Airport Commerce Ecosystem”

This whitepaper describes how stakeholders in the travel retail industry – airports, airlines, brands and duty-free operators – can benefit from digitalization and how they can begin their journey on the way to a digital airport commerce ecosystem.

Download Whitepaper


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