Reimagining airport revenue with eSIM

Airports are under increasing pressure to innovate and adapt to a myriad of challenges. It’s an era of rapid transformation, with millions being spent on building upgrades, digital innovation, sustainability and enhanced customer experiences.

Such huge expenditure has made ancillary revenue more important than ever, with airports realising they must offer a broad spectrum of supporting services to further elevate the passenger experience and increase income from both new and existing sources.

In this article we’ll be exploring the different trends in airport retail and how airports are capitalising on the direct and indirect revenue-boosting powers of eSIM, gleaning invaluable insights and getting to know their customers better in the process.

We know that eSIM is a pure revenue-generator for airports, converting demand from travellers who arrive prior to their flight departure and want to avoid expensive roaming costs by purchasing convenient, low-cost mobile data bundles without the need for a physical SIM card.

But that’s not the whole eSIM business case. eSIM Go is not only helping airports around the world create new income, but also to harness mobile data plans as a catalyst for optimising revenues from existing duty-free retail offers.

Duty-free is a big earner for airports. According to 2023 figures, the global duty-free retail market was predicted to grow from $42.65 billion in 2023 to $70.75 billion by 2030. But airports don’t control that whole market through their terminal-based duty-free shops. For example, passengers can choose instead to purchase onboard duty-free goods from an airline during their flight.

Airports have always operated at a disadvantage because they typically know so little about the passengers they process, unless they’ve bought a service like prepaid car parking or valeting. When it comes to selling duty-free, airports rely heavily on positioning duty-free shops in prime locations and exploiting onsite advertising. Online duty-free shopping, where customers can preorder goods and collect them when arriving at or departing the airport, is generally offered but is difficult to target at customers the airports are unaware of.

Passengers who’ve purchased eSIMs from the airport therefore present significant upsell opportunities, once they’ve consented to receive marketing. For example, sending a carefully timed email or app notification (informed by each passenger’s eSIM purchasing history) inviting them to pre-order duty-free items for ‘click and collect’ on their return journey through the airport.

eSIM takes all the commercial power of airport retail and elevates it even further. By adding mobile data into the mix, airports can now enjoy an additional revenue stream and become customer champions by presenting them with personalised offers, improving the airport shopping experience and solving one of the biggest challenges of international travel — staying connected without spending a fortune on data roaming.

Builds better relationships with customers

The vast majority of people always use their mobile devices while travelling, which presents an untapped opportunity to connect with passengers, not only when they pass through the airport, but long after their journey. With a branded eSIM offering, airports can stay connected with customers and drive them through multiple touchpoints, presenting them with personalised offers based on their interests and buying habits and making duty-free outlets even more profitable.

Caters to different shopping styles

Picking up a bargain at duty-free may be a much-loved part of the experience for millions of air travellers, but for others it’s a hassle. eSIM lets airports sell to customers who need to pick up gifts and special offers but don’t enjoy shopping. Instead of dealing with queues and navigating busy shops, they can now pre-order what they need and just pick it up in one easy transaction. This suits everyone from the millennials and Gen-Z passengers who like to do everything online, to busy business travellers with limited time, to the growing number of older passengers who favour ease and comfort.

Rapidly growing market

As of November 2023, the average spend on travel data from home networks in the UK and US is around $2 a day. If we take $15 as the average that travellers would want to pay for a two week trip and multiply it by the 2.3 billion passenger trips taken every year, we predict the annual serviceable market for eSIM to top $34.2 billion by 2025.

Drives innovation

Virtually every new smartphone is being manufactured with eSIM capabilities, which means that by the end of the decade the plastic SIM card will be virtually extinct. For airports, the eSIM revolution is still in its early stages, which presents a really exciting opportunity for those who adopt it to be seen as innovators. A case in point is Sydney Airport, who recently won the 2023 Airport Innovation Award for their data roaming product tripsim by SYD, made possible by partnering with eSIM Go.

Quick and easy

Selling mobile data shouldn’t be complicated, and eSIM Go leads the way in making connectivity easy. We’re empowering businesses to build their own eSIM offerings with no mobile telecoms infrastructure, knowledge or experience — our partners have been able to get up and running within a matter of weeks, offering their customers the best coverage and rates in the industry. 

International travellers have been crying out for fair, affordable and reliable data for years. eSIM gives them exactly that, so it makes perfect sense for airports to add it to their commercial offerings. Combine this with the opportunity to gain deeper insights, build relationships, improve the customer experience, innovate and add easy revenue, and it’s easy to see why so many are getting on board. 

eSIM Go is at the forefront of a movement driving connected traveller information, unlocking value and building brand loyalty. Drop us a line to find out more.