AXiNsider by Airport Experience® News

Pauline Armbrust started Airport Retail News, an eight-page newsletter, in 1995 after hearing a soundbite about how much revenue airports in Europe were generating from their retail shops. American airports at the time were just discovering the potential in concessions, making it the perfect time to launch. As the industry evolved, so did ARN. Armbrust transitioned her newsletter into Airport Revenue News magazine in 2001 and started what is now the Airport Experience Conference a few years later. Two decades later, she sees an industry that focuses more intently on customer needs and wants, involves more local brands and embraces technology for the betterment of the traveler experience.

When the opportunity arose for Courtney Thornton to become in-house legal counsel for the board governing Louis Armstrong New Orleans International Airport, she didn't even realize it had lawyers outside the city attorney's office. That role exposed her to many opportunities in the industry. As Thornton began transitioning into a more customer-centered role, she's had a front row seat as the industry became more technologically sound and savvy in meeting passenger needs for dining, check-in and convenience. Thornton focuses on opportunities that push forward those experiences for customers, that increase diversity throughout the airport industry and that provide wins for all involved parties.

Liz Dwernychuk is responsible for ensuring an exceptional passenger experience for travelers at Edmonton International Airport (YEG). In recent years, YEG has evolved - in its concessions program and overall design - to a venue that is reflective of its region. It's an airport willing to pilot new ideas and seek non-traditional solutions. And, from an Indigenous Interpretive and Retail Center featuring educational exhibits and authentic art items for sale, to permanent art installations and a diverse selection of food and retail options, the airport reflects an industry-wide evolution toward making sure travelers have a unique experience with their needs met along the way.

As vice president of concessions at Orlando International Airport (MCO), Tracy Harris combines her skills in data analysis with her creativity and desire to help exceed passenger expectations. MCO's evolution from a utilitarian concessions program into a passenger-focused venue offering a broad variety of brands and services culminated two years ago with the opening of Concourse C, which balances pre- and post-security concessions, offers immersive media experiences and provides passengers a spacious, comfortable way to travel. Now, the airport is working on a master plan to bring its A and B terminals to new standards as well.

Derryl Benton was a banker in central Florida when he met the late Bill Jennings, then director at Orlando International Airport, at a chamber event. Soon he was running the small business program and then concessions at the airport. Over his 30 years in the industry, Benton has seen concessions offerings industrywide changing from minimal, drab and dull to vibrant and customer-focused. Women and minorities have become more prominent on the professional side of airports and related businesses. And, even as costs to enter the business increase, he's excited to see a new generation of diverse concessions and airport leaders continuing to push the industry forward.

Retail in airports has changed significantly in recent years. Space that previously may have been set aside for a newsstand or a bookstore has grown into large retail marketplaces that give operators more flexibility on term. That, in turn, allows them much more flexibility on being able to follow trends and understand consumer preferences. It's part of an ongoing concessions wide change that aims to better meet the rising and more diverse set of customer expectations.

Nick Crews never planned to join the family business in airport concessions. But, while finishing law school, Crews was also working part-time at LAX overseeing his parents' news and gift locations. He built relationships, gained an appreciation for his parents' work and has never left. Crews Cos. has become a leading ACDBE operator nationally, with 35 locations across LAX, ATL and the Washington airports, with more on the way. Crews leads collaboratively, which he says has helped with employee retention. That same approach has led to deeper relationships with brand and vendor partners as the airport has become a more technology-driven and complex place of business.

The Paradies family was just starting its airport business as Gregg Paradies was graduating from college. He went to work for Macy's in its buying office for a few years before returning to the family business. As airport retail evolved, Paradies became known for bringing brands like Brooks Brothers and Brighton on board. Now, in addition to getting into food and beverage, Paradies Lagardere is developing retail stores that could have a mix of local, regional and national brands within a single location, switching concepts in and out as they ebb and flow.

Rick Piccolo, the longtime president and CEO of Sarasota Bradenton International Airport, has devoted his career to the aviation industry. Fresh out of high school, he started as a janitor at Buffalo Niagara International Airport (SRQ). He worked his way up through airfield maintenance into management before moving on to different jobs at airports in Florida. He gives credit for his ascension to several mentors who recognized his talent and offered him opportunities. SRQ, which has seen significant growth under Piccolo's watch, is giving back through the establishment of a charter school and various internship programs aimed at helping the next generation access aviation careers.

Marketplace Development Co-Founders Paul McGinn and Bob Weinberg started the company upon learning the Port Authority of New York-New Jersey wanted a private developer for the Central Terminal Building at LaGuardia. Marketplace became one of the first companies to focus on private sector businesses and practices to the airport. The ability to hand off filling and operating concessions to a third party has, for many airports, allowed them to maximize their programs, McGinn says.

When Pat Murray jumped from HMSHost to the newly established SSP America, the company's smaller budget necessitated growth through local partnerships and proprietary brands rather than licenses. The company had a different feel and, as it gained space and credibility, it raised the bar on airport food programs. 

Alan Gluck has worn about every type of hat the airport industry offers. He's worked for consultants, overseen the conversion of BWI's concessions program to the developer model, planned RFPs for new terminals and managed individual programs. Any model can work well, he says, if staffed, contracted and overseen properly to ensure revenue generation and profits are balanced with making sure the public is served.

From her time as an executive at McDonald's to her 18 years in the airport industry, Zenola Campbell has spent a career in hospitality. She's learned that if you focus on satisfying customer needs, everything else will fall in place. As Dallas-Fort Worth International Airport prepares to celebrate its 50th anniversary, the airport and its concessions program continue to evolve in that direction, finding new ways to reduce traveler stress by automating processes and keeping them entertained.

Paul Brown, senior director of brands and concepts at SSP America, has worked with large operators, directed a large concession program and a small airport. As a consultant, he helped small businesses and large brands get into airports. He believes focusing on the improving customer experience will, in general, lead to larger spends. But he also believes many underrepresented populations still need assistance in being able to compete for space in airports.

Eric Johnson's dad was in aviation so he grew up going to Minneapolis-St. Paul International Airport. He remembers spinning hot dog racks and generic restaurants. As his career started at MSP, the airport brought aboard more creative thinkers.  Working with consultants and operators interested in pushing boundaries, the airport became one of the first to start changing the industry. The result was a concessions program resembling a mall, with dynamic storefronts and eye-catching design that helped transition not just MSP but the entire industry.

 Andy Weddig entered airports from commercial real estate just as airport concessions programs were beginning to resemble the malls where he previously worked. He started out helping manage programs at airports like O'Hare International and Midway in Chicago. More recently, he's expressed concern on the operator side as costs and rents have increased significantly in ways that make it harder for both side to get what they need. 

Early in his career, Stu Holcombe convinced Jon Luther, then president of Delaware North Cos. subsidiary CA One Services, he could create a better portfolio of proprietary food and retail brands than existed at the time. That expanded to celebrity chef offerings and other advancements in airport food and retail. Later, he established his own company, LS Travel Retail, to help brands a pathway into airports. That segment is in transition now, with technology and passenger behaviors changing the way retail is done. 

When Candace McGraw arrived at CVG, Delta Air Lines was dehubbing the airport. She focused on attracting new carriers, which reduced airfares, and creating a great customer experience through local food, art and retail. The airport's regional economic impact has more than doubled in the time since. 

The ACDBE program has created many opportunities for small women- and minority-owned businesses to participate at airports. But Ron Gomes says it needs to evolve, including providing incentives to grow rather than immediately graduating companies that get too large. It's incumbent on the industry to work toward that, especially as the program faces uncertainty from recent Supreme Court rulings that could impact its future.

After watching the movie Airplane, Oris Dunham worked for free at Seattle-Tacoma International Airport for 13 months to learn the industry. The multitude of tasks appealed to him, but concessions at the time were mundane and lacked variety. That has changed dramatically, with a focus on sense of place and tremendous design. Now, Dunham feels that airports may spend too much time creating on that sense of place at the expense of building capacity. He says international airports have overtaken those in the U.S., in many cases because governments have spent billions of dollars to build massive, fantastic buildings.  

A 10-year-old retail kiosk program aimed at providing opportunities for local small or ACDBE-certified retail business owners to test concepts at Seattle-Tacoma International Airport (SEA) is expanding, adding space for food and beverage operators to do the same. Those who pass through SEA's introductory program, which is largely financed by the airport, can move on to the program's intermediate level before each side decides whether to make a long-term commitment and investment. Two of the original participants – Seattle Chocolate and Planewear – have graduated to inline stores with full-length leases.   “This gives us an opportunity to change up the menus, to be able to offer potentially some more ethnic cuisines that really represent all the various ethnicities and diversity of the Seattle area and the Pacific Northwest.”

“An airport shouldn't be a generic institutional place. It should really reflect the spirit and the charms of the local community through its concessions, through its service offerings, through its artwork, through its architecture. That's something we try to contribute to wherever we go.” Vantage Airport Group has been involved in some of the most visible airport redevelopments in the U.S. in recent years. Along with its partners, it's putting the finishing touches on the complete rebuild of LaGuardia Airport (LGA), leading the concessions overhaul at Midway International Airport (MDW) and taking on management of the new terminal being built at Kansas City International Airport (MCI). Each of these programs is mixing in high levels of local, minority- and women-owned concessions that represent the individual community. Stewart Steeves, COO, provides an update on those projects. 

“This isn't lip service. We're really interested in partnering with all parties and when we get engaged and we start our process, the first thing we want to do is sit down with everyone, get everyone's interests and concerns on the table. We invite everyone to that conversation.”  Enliven has pouring rights deals at four airports in the U.S. The company's new CEO, Tim Harms, says several more airports have put into upcoming RFPs language opening the door to additional such deals. While pouring rights deals remain controversial among concessions operators, Harms says Enliven wants to work with them and all parties to ensure the deals increase sales and profits for each.

“It's more than just funding. The crisis has endured longer in Canada than in the U.S. because you've had fewer restrictions and less traffic suppression, generally, as a result.” Canadian airports have faced more restrictions and gotten less help from the federal government throughout the global COVID-19 pandemic. Those factors have led to a slower recovery – they were at about 40% of 2019 traffic in August system-wide -- and forced them to take on large amounts of debt just to maintain operations. While some relief has started flowing through the Canadian aviation system, Gooch says airports are worried they're at a competitive disadvantage to airports in other countries, like the U.S., where relief has been more generous.

“We're going to continue to see more pop-up retail that is a function of the ability to be flexible. … That flexibility is going to be something that continues to develop, much like you would find in the retail world outside of airports.”  As operations return to normal following the COVID-19 pandemic, airports need to find ways for people to congregate differently than they have in the past. They are showing open-mindedness to change, from repurposing previously unused space, such as moving walkways, into long, narrow restaurant and retail space to increasing the availability lounges or flexible pop-up locations, they're working with tenants to creatively use space. They're also adding services and finding ways to become more environmentally pleasing and sustainable, in hopes of reducing stress and increasing traveler confidence.   O'Kelly Kasprak is a full-service architecture, interior design and project management firm.

“Airports need to … tell their story, make sure their elected representatives understand what these local projects are in their communities, the jobs they create, the sustainability angle, the resiliency.”  A coalition of aviation industry participants worked together with airport lobbying organizations to win $20 billion in relief funds from Congress. That's likely the extent of what Congress will provide in relief. Now, industry leaders have turned their attention toward infrastructure funding. President Biden has proposed a $2.3 trillion bill and airports have significant needs, as they begin preparing for life after COVID-19. In addition to dealing with financial challenges, the American Association of Airport Executives has enlisted a growing group of airports, operators and other players to jump-start innovation through its Airport Consortium on Consumer Trust. 

“Even under the best of circumstances we don't expect that traffic is going to get back, certainly not this year and probably not in 2022, to levels that are needed to sustain the airports and concessionaires.”  Passenger counts are increasing, which provides reason for optimism, but they're far from back to a level that can sustain airports and operators. So, while nearly $1 billion in federal aid for concessions since COVID-19 devastated the industry is welcome relief, it doesn't mean the Airport Restaurant & Retail Association and other organizations won't ultimately have to go back for further relief later. Airports and operators have worked together well in seeking such relief and may be in a better place now, not just for COVID relief, but to collectively solve some of the challenges currently facing the concessions industry. Connect with Rob>> 

“Once we're sort of back to some sense of normalcy we're going to see a huge bump in economic activity, and then maybe [with] a little bit of a lag, in travel. That's exactly what happened 100 years ago when the 1919 pandemic ended.”  President Joe Biden faces several aviation-related challenges as he begins his term. They range from finding a way to pay for long-overdue infrastructure improvements in a time when the sources that traditionally fund those projects are significantly down to promoting competition between airlines and ensuring that air service to small communities doesn't suffer due to economic challenges and pilot shortages. But there are also signs, such as projected GDP growth in the U.S. that could indicate recovery from the doldrums brought on by COVID-19 may be speeding up slightly faster than initially expected. And when the recovery is complete, the U.S. could be looking at an economic recovery resembling that of the Roaring Twenties that followed World War I and the Spanish flu pandemic.  Connect with Stephen>>

“We thought combining everything into one contract would provide the flexibility the financial markets would look for in order to help finance the project.” – David Long, deputy director of aviation overseeing properties and commercial development.  The city of Kansas City is moving forward with plans for the concessions program inside the new terminal at Kansas City International Airport (MCI). An RFP will be on the street in mid-January. Whether it results in a single operator running the entire program or a dozen operators splitting the space, the proposal will result in a single contract that city officials think will be more palatable to financial markets offering support. The city and its consultant, ICF, will host a virtual meeting on January 12 and 13 through the virtual reality platform Virbela, where bidders can learn more. Firms can register at: www.FlyKCI.com/Concessions.  Connect with Justin Meyer>> Connect with David Long>>  

“We're anticipating money for airports …There have been no details yet, but we are anticipating a robust infrastructure package.” This episode is an update to our pre-election conversation with Sam Whitehorn, episode 112 released on October 29, 2020. The election is, well, likely almost over. Most of the prominent races that featured candidates with a history of supporting transportation funding were won by the incumbent candidate. The election of Joe Biden likely means negotiations with Congress will be at least a bit calmer over the next four years. And, even if the Georgia Senate run-offs in January result in divided government, infrastructure is generally a bipartisan issue, with influential members of both parties in favor of putting money into projects in all phases of transportation, including airports. Connect with Sam>> Learn more about Elevate Government Affairs>>

“If the employee experience is positive, it's going to drive optimal and exceptional customer experiences.” While there's still a lot of uncertainty around when airports might start truly recovering from the COVID-19 pandemic that has devastated it since March, there are some positive signs in terms of hiring. A survey of its clients conducted by CXE earlier this year indicated that nearly two-thirds were starting or planning to start bringing back substantial portions of its pre-pandemic work force. Many of those companies also have started spending more time focusing on improving the employee experience, with plans to communicate regularly, train aggressively and regularly recognize and show them appreciation for their work. These strategies, in both the short- and long-term, could help improve the overall travel experience for passengers. Connect with Lise>> Learn more about CXE>>

“An infrastructure package … is something that stimulates jobs. It does a lot to get people back working and get the economy moving.” President Donald Trump and former Vice President Joe Biden have both promised significant infrastructure bills during their campaigning for president. There aren't a lot of details as to what their plans would include or how they would be funded. But the need for significant upgrades to roads, bridges and airports across the U.S., coupled with the ability to stimulate the economy and get people back to work, make it likely that either candidate, if elected, would make such investments an early priority.

“Millennials and Gen-Zers, so many of these people do so much from their smart device. Data is all part of that, so if we start to share data better, maybe we create a different environment and we change how we do things.” As the industry prepare for eventual recovery from the effects of the COVID-19 pandemic, several other factors are affecting what the industry might look like in the future. Millennials are becoming more prominent and powerful and they're less likely than older passengers to spend money on food or retail when they travel. So, as airports look to find ways to convince travelers they are safe, they also must deal with the likelihood of changing passenger habits that could affect the layout and mix of the entire experience.

“It might look like there's not a lot going on here, but we're almost busier than ever. In some of the areas we had identified as potential areas of growth, we're moving really quickly on. Real estate development is one and cargo is the other.” Traffic at Pittsburgh International Airport (PIT) is running at about 30 percent of 2019 levels. But that doesn't mean the airport has nothing going on during the industry-wide COVID-19 crisis. The airport delayed the groundbreaking on a $1.1 billion modernization project, but spent time rethinking design aspects of its future terminal that airport officials hope can mitigate the impact of potential future health outbreaks. PIT also has begun development of its Pittsburgh Airport Innovation Campus, which aims to attract participants in the 3D printing industry to the airport, furthered its solar and natural gas developments on the way toward unveiling its self-sustaining microgrid, and diversified its non-aeronautical revenue formula with a foray into the cargo business.

“Carriers are burning let's call it $25 million a day. We need to get from a cash negative perspective to a cash neutral to a cash positive, then we can talk about profitability. So, I think we're really three or four years away.” Initially, Delta Airport Consultants' research indicated the possibility that by the end of 2019, traffic could be back as high as 40 percent of 2019 levels. The recent second-wave of COVID-19 cases around the U.S., however, and the accompanying announcement by several carriers that they would shrink capacity after Labor Day, indicate a slower recovery, with regional air service likely to experience the greatest suffering. A slow return to flying by businesses and ongoing restrictions on international travel also represent a drag on a potential recovery, meaning it's likely three or four years or more before traffic even approaches the record year that 2019 was for many airports.

“For the first time I'm hopeful to see a seamless, touchless process in travel. People have been talking about it for a long time. … We should use the crisis to move these things along. The experience can become much more pleasant.” Rian Burger, Senior Principal specializing in Airports for Stantec Architecture   While COVID-19 has had a disastrous effect on travel, it's pushing airports to make many changes that have been talked about for years. Enhanced cleaning processes and touchless transactions are among ways the industry is getting healthier. Airports should consider furthering those enhancements and going a step further by diversifying revenue streams going forward to ensure that pandemics or other disasters don't have the same kind of impact in the future.

“I'm not sure there is ever going to be a return to exactly the way things were before. I think there will be a new normal and everyone will get used to it, but there will be a change in the way things are done that will remain permanent.” Julie Wienberg, Vice President of Aviation Infrastructure, HNTB Corp. The COVID-19 health pandemic will eventually be in the past and signage reminding travelers to socially distance and wash hands may go away with it. But this is likely not the last pandemic this country will see. Whether it's building with materials that are easier to clean, increasing the availability of touchless options for passengers or designing security measures that ensure the health and safety of travelers and those who work at the airport, increased awareness of the implications of health-related incidents will create long-term change in the airport experience.

Vancouver-based Smart Design Group has benefited significantly from its work in aviation design. So, as the effects of COVID-19 ravaged travel counts across the world, Nick Baker wanted to give something back. He's offered his company's services for free to members of the Airport Minority Advisory Council in order to help smaller businesses navigate changes necessary to consider reopening. While he's optimistic and hopeful that the effects of COVID will be a memory in the next couple years, he's also got some ideas on how the industry can evolve to win back the confidence of travelers and emerge stronger as travelers return. This episode is the first in Airport Experience New's newly branded, AXiNsider podcast series.

The Craft of Perpetual Creation and Reinvention. This Hub Session features a conversation with Ross Koenigs, research and design brewer for New Belgium Brewery, in which he discusses reinventing the wheel to stay abreast of trends. Hub Sessions took place at the 2020 Airport Experience Conference in Denver. We share these Hub Session recordings with you here courtesy of Plaza Premium Group, the Hub Session Sponsor.

The Next in Line of the Evolving Airport Hotel. This Hub Session features a conversation with Jonathan Song, director of global business development for Plaza Premium Group, in which he discusses the ins and outs of bringing hotels to airports. Hub Sessions took place at the 2020 Airport Experience Conference in Denver. We share these Hub Session recordings with you here courtesy of Plaza Premium Group, the Hub Session Sponsor.

Artificial Intelligence and the Continued Smartening of Our World. This Hub Session features a conversation with Christina Apatow, founder of Fetchy Fox, in which she discusses the possibilities opened up by embracing artificial intelligence in the airport. Hub Sessions took place at the 2020 Airport Experience Conference in Denver. We share these Hub Session recordings with you here courtesy of Plaza Premium Group, the Hub Session Sponsor.

The Value of Incremental Change Yielding Substantive Results. This Hub Session features a conversation with Bethanie Nonami, CEO of Marley Nonami, in which she uses data and metrics to tout the advantages of using small changes to make a big impact on customer experience. Hub Sessions took place at the 2020 Airport Experience Conference in Denver. We share these Hub Session recordings with you here courtesy of Plaza Premium Group, the Hub Session Sponsor.

The Miseducation of CBD. This Hub Session features a conversation with Dr. Keith Aqua, chief medical officer for Mile Hight Labs, in which he explains the facts and the myths about CBD. Hub Sessions took place at the 2020 Airport Experience Conference in Denver. We share these Hub Session recordings with you here courtesy of Plaza Premium Group, the Hub Session Sponsor.

When he first transitioned into airports Jason Paltzer was just looking for a fresh start, but he wasn't prepared for the dynamic and ever-changing world of airport concessions to be so enthralling. In this episode, Paltzer discusses how he finds the hustle and bustle of the industry invigorating and how stepping up to meet challenges has helped enrich his career. This is the latest in our series Ones to Watch. This episode was recorded in the AXN Podcast booth sponsored by Tastes on the Fly at the 2020 Airport Experience Conference in Denver.

Eric Friedman's interest in aviation began at an early age. When he discovered life as an air traffic controller wasn't everything he'd dreamed, he transitioned into an operations role at MSY, where he's currently part of the concessions team. In the wake of the opening of the airport's newest terminal and instituting a post-security pass system for non-ticketed guests to dine and shop in the airport, Friedman finds joy in providing a memorable and warm experience for all MSY guests, travelers and otherwise. This is the latest in our series Ones To Watch. This episode was recorded in the AXN Podcast booth sponsored by Tastes on the Fly at the 2020 Airport Experience Conference in Denver.

“Dragged kicking and screaming” into the airport concessions industry, Meredith Genochio, chief operating officer of Tastes on the Fly, recounts her reluctant transition more than a decade ago from the traditional dining sector to airport concessions, and how she quickly gained a passion for her company's mission.  This episode was recorded at the 2020 Airport Experience Conference in the first week of March in Denver, CO.

...and the steering of a small, family-owned business during unprecedently turbulent times. This interview was recorded Friday March 27.

The following was recorded Sunday March 22. My conversation with Nick centers on the view of the crisis from a small business perspective, his outlook on how we survive as an industry, and the work he is doing as a board member of the Airport Restaurant & Retail Association (ARRA). BONUS: I've added my chat with Ben Rababy with United Concessions Group. This was recorded March 19 and much had changed since then. Regardless, this is again a good look at how small business is seeing this pandemic.

Pam Dechant chats about her entry into the airport industry and what she is looking forward to at Denver International Airport. For all of the upcoming episodes I will also be sharing my conversations with various small businesses to get their view on the impact to their company. For the latest on COVID-19 related news impacting the airport industry, head to airportxnews.com.  

...and the continuation of a legacy business by its next generation. Here is a link to a documentary on Herman J. Russell that you should take the time to watch. It's inspiring.  https://www.pba.org/shows/building-atlanta-herman-j-russell-story/

...and how a personal pain point led to the creation of a virtual restaurant in an airport. This episode is sponsored by Tastes on the Fly. For more information on how to bring their experiences to your airport, click here.