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Developing the concession plan is a multistep process. Each step is necessary to maximize pro- gram impact and performance. Once the sales forecasts, the space productivity goals (sales per square foot) and the amount of commercially supportable space have been determined and the locations of the concession areas (space plan) have been determined, the specific uses of these con- cession areas must then be defined as accurately as possible. This chapter discusses the following: â¢ Achieving the right overall balance â¢ Program differentiation and creating a sense of place â¢ Concession theming â¢ Branded concessions â¢ The concession mix by category 6.1 Achieving the Right Overall Balance In developing the concession program for a particular airport, all of the previously defined com- ponents of the concession plan must be taken into account, including the concession types best suited to the airport and the proposed configuration of the concession space, both pre-security (landside) and post-security (airside). The airportâs passenger and customer profiles (see Chap- ter 4), as well as their preferences in terms of wants and needs, are major inputs to defining the concession mix. Factors such as customer income; potential levels of service; local/regional flavor and theming; incorporation of local, regional, and national brands; and customer preferences may also be con- sidered in the definition of concession concepts. An effective concession plan requires balancing a number of factors: â¢ The relative importance of the pre-security and post-security components of the concession program â¢ The relative importance of each concession category in the concession program â¢ The relative importance of concept types within the concession mix for each of the proposed concession categories â¢ The relative importance of branded versus generic concessions within the proposed mix â¢ The relative importance of national, regional, and local brands within the proposed mix â¢ The incorporation of recent trends in the concession program â¢ The judicious use of differentiating elements to create a sense of place â¢ The relative importance of revenue return and customer service Table 6-1 shows an example of a food and beverage concession mix definition matrix recently used in preparing an airport concession plan at a medium hub airport. The same type of matrix is used for other concession categories. 79 C H A P T E R 6 The Concession Mix
In this matrix, each potential concept is evaluated for each of the selection criteria shown across the top of the tableâs columns. The income potential for the airport and the customer pref- erences as derived from a customer intercept survey are the primary factors in concept selection. Other factors are usually secondary. As part of the assessment of the types of services being con- sidered, local appeal, regional appeal, and national appeal are considered. Table 6-2 depicts an example of customer market segment preferences for different types of food and beverage concepts and levels of service. Customer preference surveys are one of the tools most often used in selecting the appropriate airport concession concepts and mix. The judicious use of these planning tools, along with the space-planning criteria described in Chapter 5, enable the concession manager to define a specific and optimal concession mix for the airport. Table 6-3 illustrates a hypothetical example of a concession mix developed for spe- cific areas of an airport. When developing the concession mix, the theoretical amount of supportable space must be adapted to the available concession space within the terminal. It is unusual for available conces- sion space in all areas of the terminal to accommodate the full complement of commercially sup- portable space. Nevertheless, understanding the differences between supportable and available 80 Resource Manual for Airport In-Terminal Concessions Type of Service and Food Revenue Potential Level of Service Local Appeal Regional Appeal National Appeal Consumer Preference (from passenger surveys) TYPE OF SERVICE Fast Food/Food Court $$$ $$$ $$$ $$$ Cafeteria (self-service) CafÃ© (limited service restaurant) Casual Dining Restaurant $$ Cocktail Lounge, Bar, Pub Specialty Food Kiosk or Cart $ $ TYPE OF FOOD Pizza Juice/Fruit $ $ Specialty Coffee/Tea Salads $ $ $ Ice Cream/Frozen Yogurt Hamburgers Deli Sandwiches Chicken $$ $$ $$ Health Food $ Fish & Chips $ $ $ $ $ $ Bakery Italian Steak/Ribs $$ Chinese Soup Seafood $$ Coffee/Donuts $$ Pretzels/Popcorn Other Asian $ $$ $$$ Low Medium High Source: LeighFisher. Table 6-1. Example concept evaluation matrix used to define a concession mix.
concession space allows for better decision-making and forces concession managers to evaluate tradeoffs in the use of space. For example, where space is limited, food and beverage concepts that allow faster throughput or that encourage sales of products that can be consumed in hold- rooms or aboard the aircraft can make limited space more efficient than, for example, a sitdown restaurant with lower seating densities and longer service times. Understanding the supply of space compared with the demand for space can help the concession planner determine more effi- cient uses of available space and offset some of the potential opportunity for loss of sales and rev- enue resulting from lack of capacity. 6.2 Program Differentiation and Creating a Sense of Place In the not-so-distant past, and especially in the United States, airports have been criticized for looking alike. In fact, some brands were so ubiquitous that they became identified by consumers as being âairport brands.â More recently, regional and local brands have been added to airport concession programs, which can help concession managers create a sense of place and differen- tiate their programs from those at other airports. Theming (i.e., incorporating local elements into the overall concession program design) can also create a sense of place that differentiates one airport from another. Whether a new terminal is being The Concession Mix 81 Type of product Passengers(%) Employees (%) Well wishers and meeters/greeters (%) Types of food & beverage services Fast food/food court 23 23 40 Cocktail bar, lounge, pub 19 14 23 Full (table) service restaurant 18 14 32 Cafe (limited service restaurant) 12 16 28 Cafeteria (self service) 9 14 18 Specialty food served at kiosk or cart 4 9 8 Types of food Juice/fruit 45 28 41 Pizza 44 21 39 Coffee/donuts 44 16 57 Specialty coffee (espresso, cappuccino, etc.) 39 19 27 Salads 35 33 36 Health food 33 23 25 Hamburgers/hot dogs 32 14 28 Deli sandwiches 30 21 28 Italian food/pasta 30 9 14 Chinese 24 7 16 Seafood 21 12 14 Ice cream/frozen yogurt 20 26 27 Baked goods/pastry 18 19 26 Steak/chop house 15 12 19 Chicken 14 12 20 Soup 13 9 19 Fish and chips 10 5 10 Pretzels and popcorn 10 7 19 Source: From 2004 LeighFisher survey. Table 6-2. Food and beverage service preferences of surveyed customer market segments.
designed or an existing building is being renovated, these issues are best resolved at the planning and design phases in partnership with the terminal architect or with a specialist retail architect. The concession program design may differ from the other architectural rendering of the terminal build- ing. However, this differentiation must be compatible with the general terminal environment. Detailed concession design standards are an important tool in creating an overall concession theme that complements the terminal, captures a sense of the local community, and provides a common palette for the design of individual concession units in a way that is unique while consistent with the overall concession theme. Additional information on concession design and construction can be found in Chapter 12. 6.3 Concession Theming Theming contributes to the differentiation of an airportâs concession program and to a sense of place. Use of a theme can also contribute to differentiating the commercial areas of the termi- nal building from other public and airline areas. While allowing for some differentiation, the design of the commercial areas should be compatible with the general design of the terminal building. Figure 6-1 shows how a theme has been used to create a very local/regional sense of place at Van- couver International Airport. Local materials, architectural styles, a color palette derived from the Pacific Northwest, and native cultural icons such as totems and lodges are used to create a strong 82 Resource Manual for Airport In-Terminal Concessions Unit Number Zone Area (sq ft) Suggested concept F2 Arrivals - North 500 Specialty coffee News/gift operated by specialist C1 Arrivals - South 500 News kiosk Convenience retail kiosk near exit from security F1 Arrivals - South 500 Specialty coffee Subway, Quizno's, Heidi's, Charley's, other C2 Central Landside Area 1,750 Newsstand News/gift operated by specialist F3 Central Landside Area 850 Specialty coffee/bakery Starbucks, Peet's, SBC, Caribou, local brand, other F4 Central Landside Area 850 Deli Subway, Quizno's, S1 Central Landside Area 100 ATM Local bank; location to be determined S2 Central Landside Area 400 Currency exchange Kiosk; specialist forex operator C3 Central Airside Departures Core 1,600 News/books News/books operated by specialist D1 Central Airside Departures Core 1,500 Duty free Full range of duty free merchandise F5 Central Airside Departures Core 3,000 Casual dining with bar Chili's, TGI Friday's, Harvey's (local), F6 Central Airside Departures Core 650 Specialty coffee Starbucks, Peet's, SBC, Caribou, local brand, other R1 Central Airside Departures Core 800 Specialty retail Travel accessories or gadgets R2 Central Airside Departures Core 500 Jewelry Jewelry kiosk R3 Central Airside Departures Core 900 Specialty retail Fashion, designer clothing R4 Central Airside Departures Core 600 Specialty retail Bluwire, InMotion, Airport Wireless S3 Central Airside Departures Core 250 Shoeshine Local C4 Concourse A Departures 1,450 Newsstand Newsstand operated by specialist F10 Concourse A Departures 700 Specialty coffee Specialty coffee or coffee bakery, donuts, bagels, other F7 Concourse A Departures 3,950 Food court with seating Three quick-serve concepts; Mexican, burgers, sandwich, pizza/pasta, other F8 Concourse A Departures 1,500 Bar Concourse bar with limited food menu R3 Concourse A Departures 1,000 Spa XpresSpa, Be Relax, d-parture, Absolute, others S4 Concourse A Departures 100 ATM Local bank; location to be determined C5 Concourse B Departures 1,450 Newsstand Full range of duty free merchandise F12 Concourse B Departures 1,500 Bar News/books operated by specialist F11 Concourse B Departures 700 Specialty coffee Specialty coffee or coffee bakery, donuts, bagels, other F9 Concourse B Departures 3,950 Food court with seating Three quick-serve concepts; deli sandwich, sushi, others R7 Concourse B Departures 750 Specialty retail Various; open to propose? S5 Concourse B Departures 100 ATM Local bank; location to be determined Comments/Potential Brands Table 6-3. Example concession mix.
sense of place and a unique passenger experience. This sense of place is incorporated into the con- cession design. Figure 6-2 shows how a theme has been used at an airport in Barbados to create a sense of place. Barbados is known for the chattel houses used by agricultural workers in the past. This theme has been used judiciously in the design of the concession space to create an environment that reflects both local design themes and the islandâs cultural history. Chicago Midway International Airport also represents a good example of the use of material to create a sense of place, in this case an urban environment featuring traditional masonry and building canopies typical of the Windy City, as shown in Figure 6-3. 6.4 Branded Concessions There is a consensus among the operators of airports that branding contributes significantly to the performance of a concession program. National brands are important for any airport, while The Concession Mix 83 Figure 6-1. Concession design (Vancouver International Airport). Figure 6-2. Examples of concession program theming at a Caribbean airport.
regional and local brands may be more important at airports with a larger domestic passenger base. A main issue is the definition of what is considered a local brand or a regional brand, which may be determined on an airport-by-airport basis. The preferences of the airportâs customers in terms of branding can also be determined through the survey process. Figure 6-4 illustrates the results of a passenger survey of types of food service brands. This bar chart illustrates that almost 50% of passengers prefer a food program that includes a good assortment of national and local brands. With respect to the airport employee market, 60% prefer a concession program with a national and local assortment of brands. Of meeters/greeters and well-wishers, 42% also prefer this type of program. Passenger interviews and focus groups have noted that brands represent known quantities and safe choices that reduce the risk of a bad expe- rience and provide a product of known (although not necessarily high) quality. 84 Resource Manual for Airport In-Terminal Concessions Figure 6-3. Urban design for concessions (Chicago Midway International Airport). Figure 6-4. Branding preferences in one airport survey. 49% 12% 5% 35% 60% 10% 8% 23% 42% 15% 9% 34% 0% 10% 20% 30% 40% 50% 60% 70% National and local Mainly national Mainly regional/local Brand not important Passengers Employees Meeters/greeters/well wishers Source: From 2004 LeighFisher survey.
Local or regional brands are often added to create an atmosphere that reflects the airport locale, i.e., sense of place. National brands have flourished in airports because they generally provide familiarity and consistency in product to customers. International brands that are offered at some airports often provide an upscale image and more exclusive product offerings suited to airport customers. 6.5 Food and Beverage Concession Category The food and beverage category of airport concessions includes restaurants and bars; quick-serve units, including fast food; specialty coffee; bar/lounges; and traditional snack bars. A concession plan may include some or all of the following food and beverage concepts: â¢ Casual dining/table service restaurant with bar, a full-service or modified table service (where food is ordered at a counter and then served to the customer at the table) restaurant offering hot meals and full bar service. â¢ Quick-serve/fast food, including fast food prepared in advance and/or food made to order, served over the counter, operated as a stand-alone unit or within a food court, and often with a grab-and-go component. â¢ Cocktail lounge/bar, primarily offering alcoholic and non-alcoholic beverages with a limited food menu. â¢ Specialty coffee, serving premium brewed coffee and espresso-based beverages, teas, juices, pastries, and prepackaged salads and sandwiches. â¢ CafÃ©, a limited-service restaurant offering light meals, coffee, and other alcoholic and non- alcoholic beverages covering all meal periods and parts of the day. â¢ Specialty food/snacks, served at a kiosk or cart and including pretzels, popcorn, candy intended for immediate consumption (as opposed to packaged gift candy), and similar snack offerings. â¢ Cafeteria, where food is offered through a serving line, selected by the customer, and taken to a cashier for payment. Cafeterias were once a staple of airport food and beverage programs, but have largely been replaced by more contemporary concepts. Figure 6-5 illustrates the percentage of all hub airports included in the surveys conducted for this research where each type of food and beverage service is offered as part of the concession The Concession Mix 85 91 % 84% 81 % 79 % 70 % 58% 35 % 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Fu ll Ta bl e Se rv ic e Re st au r ant Co ck ta il Lo un ge /B ar Fo od C our t - Mu lt ip le Un it s Qui ck -S er ve Re st au rant s Fa st F ood Ca fÃ© ( limit ed se rv ic e) Sp ec ia lt y Fo od /S na ck s Ca fe te ri a Source: LeighFisher using data from the airport surveys conducted for ACRP Project 01-11. Figure 6-5. Percentage of surveyed airports offering food and beverage service types.
mix. Figure 6-6 illustrates the percentage of airports including specific food and beverage con- cepts in their concession programs. In domestic terminals, food and beverage concessions are the strongest magnets drawing cus- tomers into a concession or retail zone. A clustering of various types of conveniently located retail shops and services near food service opportunities, especially post-security, as that is where most sales occur, can help optimize sales. The primary market for food service is enplaning pas- sengers, with a secondary market consisting of their well-wishers and airport employees. In many international terminals, food and beverage concessions are placed in corner locations to (1) preserve frontage for retail and (2) take advantage of the depth and width of corner loca- tions. Food and beverage concessions then act as a draw to pull passengers in front of the retail offerings. Compared with domestic terminals, international terminals earn higher revenues on duty free and specialty retail sales, so preserving valuable frontage for retail is often a priority. 86 Resource Manual for Airport In-Terminal Concessions Figure 6-6. Frequency of airport food and beverage concepts offered. Source: LeighFisher using data from the airport surveys conducted for ACRP Project 01-11. 9% 9% 14% 14% 16% 19% 21% 21% 23% 33% 37% 40% 44% 44% 47% 47% 51% 56% 56% 60% 60% 63 % 77% 79 % 79 % 84% 84% 0% 20% 40 % 6 0% 80 % 100 % Ot her St eak Hous e Fi sh & Ch ip s Vegetarian/Health Food Ot her As i an F ood Pr et ze ls /P opc or n Ja p anes e/ Su sh i Wi ne Ba r Ba r beque S eafood Fr oz en Yo gu rt Ch i nes e Ch i cke n S oup D onut s Hot D ogs Ic e Cr eam Me xi ca n Sa l ads Ita li an F ood/ Pa st a Ju ic es /S m oothi es B agel /B ak er y Ho t S andw ic hes Ha m bur ge rs Pi zza De li- S andw ic hes S pec ia lt y Co ffee/T ea
6.6 Convenience Retail The convenience retail concession category represents the traditional core of airport retail and includes various kinds of newsstands (news/gift shops, news/book shops, news/book/coffee shops, and convenience stores). This category consists of the merchandise most often sought by passen- gers. A newsstand will typically offer a selection of daily newspapers, magazines, paperback and hardback books, small travel accessories (such as sleep masks and luggage locks and tags), pre- packaged candies and snacks, bottled and canned drinks (at many airports), health and beauty aids, and various other sundries popular with travelers. Variations on the pure newsstand are news/gift shops, news/book shops, and news/book/ coffeeshops: â¢ News/gift shops have traditionally been the cornerstone concept in airport retail, particularly where space or passenger traffic is limited. News/gift shops consist of newsstands providing tra- ditional newsstand items along with gift items and general merchandise. News/gift shops typi- cally offer higher-margin merchandise to take advantage of the foot traffic generated by the news, magazines, and other newsstand items. Many larger airports have, in certain locations within the terminals, shifted from large news/gift shops to smaller newsstands, with the recovered space used to expand the specialty retail category. â¢ News/book shops devote the majority of their space to books, with some space devoted to traditional newsstand merchandise. News/book shops may, at times, also include a coffee element. â¢ News/book/coffee shops consist of a newsstand combined with a specialty coffee unit and may include a smaller airport version of major bookstores. â¢ Convenience stores offer a range of prepared or self-serve food and beverage items along with newspapers, magazines, books, candies, and various sundries. As with its off-airport counter- part, the airport convenience store is intended to be a one-stop shop for passengers with limited time or who value convenience, and add-on sales are encouraged across categories. The convenience retail category implies quick service and must be readily available to the trav- eler, but need not be in prime space, as customers will seek them out. Figure 6-7 illustrates the per- centage of airports included in the surveys conducted for this research that offer the different categories of convenience retail concessions described above. The Concession Mix 87 Figure 6-7. Frequency of types of convenience retail services at surveyed airports. 91% 81% 63% 37% 28% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% News/Gifts News/Books Newsstands Convenience Store News/Coffee Source: LeighFisher using data from the airport surveys conducted for ACRP Project 01-11.
6.7 Specialty Retail The specialty retail concession category includes shops specializing in such merchandise as books, bulk candy and fine chocolates, gourmet or packaged specialty foods, fashion accessories, flowers, arts and crafts, sporting goods, high technology personal electronics and mobile acces- sories, fine art, jewelry, gadgets, toys, clothing, and the like. Many specialty retail locations are branded and include mall retailers that have developed smaller, airport-specific concepts. The specialty retail category generates impulse shopping. People who purchase items at these shops rarely plan to do so, but their interest is piqued when they see a store or an item, and they make a purchase as a result. Therefore, it is very important that these shops be placed along major passenger flow routes in prime locations. Additionally, synergy (the interplay among shops) is very important in this category, as interest in one specialty shop may cause browsing and purchasing in another. Similarly, synergy between food (often thought of as the âmagnet concessionâ) and spe- cialty retail locations is important. As a result, these concessions tend to be more successful when clustered with other specialty retail shops or near major attractions, such as duty free or food and beverage concessions, a major art/sculpture display, and the like. Figure 6-8 illustrates the percentage of airports included in the surveys conducted for this research that offer various specialty retail concepts within their concession program. 6.8 Duty Free Duty free retail is the strongest âmagnetâ concession in an international airport terminal. Inter- national passengers often seek out duty free shops at airports. This does not mean, however, that duty free shops should be located in out-of-the-way spaces. Rather, the drawing power of duty free should be used to anchor concession developments and enhance the synergy among concessions. By locating concessions in this manner, duty free customers will be exposed to other, non-duty free shopping opportunities (e.g., specialty retail) in the vicinity. Duty free shops in the United States are generally operated in one of two ways: cash and carry or gate delivery. At a few U.S. airports (Los Angeles International Airport, San Francisco Inter- national Airport, and others), where there are no domestic passengers in the departures area, Cus- toms authorities may permit conventional cash and carry shopping. The duty free concessionaire is subject to fines equivalent to as much as five times the value of the merchandise if duty free purchases are taken from the secure departures area to a place other than aboard a departing international flight. Gate delivery is not as successful as cash and carry because of the perceived risk on the part of customers that the goods may not be delivered or that they will forget to claim the goods at the gate. A major duty free operator has estimated that gate-delivery requirements may reduce sales by as much as 20% to 25% compared with cash and carry. Outside of the United States, duty free shops typically operate like any other airport shop in dedicated departures areas, with the customer making a purchase on a cash and carry basis. In recent years, U.S. Customs and Border Protection has accepted the presence of cash and carry duty free shops in the departure areas of flights bound for the United States at Canadian airports, where U.S. Customs and Border Protection and U.S. Citizenship and Immigration Service pre- clearance services are available. However, the shops have limits on the value of merchandise that can be purchased. Before entering U.S. inspection areas, passengers can typically access a duty free shop that offers a broad range of cash and carry duty free items subject to the typical import limits for arriving U.S. passengers. 88 Resource Manual for Airport In-Terminal Concessions
The duty free shops and related storage and warehouse facilities are considered a class of bonded warehouse, and their designs are subject to U.S. Customs and Border Protection approval. The Customs service delegates considerable authority to its regional and district direc- tors, so variations exist in how local duty free shops are built and operated. However, they must meet the requirements for bonded warehouses in terms of the security of the merchandise to pre- vent it from entering the domestic economy. Otherwise, no specific design standards exist for duty free shops. The Concession Mix 89 Figure 6-8. Types of specialty retail concepts at surveyed airports. 5% 9% 12% 12% 14% 19% 21% 23% 28% 30% 30% 33% 33% 35% 37% 42% 42% 44% 47% 49% 51% 51% 56% 58% 65% 74% 0% 10% 20% 30% 40% 50% 60% 70% 80% Office/Business Supplies Wine Accessories/Wine by the Bottle Card Shop (Cards, Stationery, etc.) Cigars Precious Stones and Gems Shoes Arts and Crafts Pharmacy/Drug Store Gourmet/Local Specialty Food Children's and Infant's Clothing Other Sports Related Leather Goods Watches Golf Accessories and Equipment Toys/Games/Stuffed Animals Sunglasses Men's Clothing and Accessories Cosmetics/Soap/Personal Care Luggage, Handbags, Travel Accessories Movie/DVD Rentals/Accessories Jewelry Women's Clothing and Accessories Electronics Candy/Chocolates Regional/Local Theme or Products Bookstore Source: LeighFisher using data from the airport surveys conducted for ACRP Project 01-11.
Outside the United States, many countries allow arrivals duty free shops to be offered at their airports. An arrivals duty free shop is usually located in the baggage retrieval area, close to the bag- gage carousels, but prior to Customs inspection. Where arrivals shops are located outside of the Customs inspection areas, they are often travel retail shops, not true duty free shops, and do not sell bonded merchandise on a true tax free or duty free basis. The common types of duty free merchandise include liquors and other alcoholic products, fra- grances and cosmetics, and cigarettes and other tobacco products. Customers achieve the greatest savings on these products because of their high price points and because they may be subject to heavy duties and taxes. Over the years, duty free concessionaires around the world have diversified into other luxury product lines such as confectionery, jewelry, watches, clothing, fashion acces- sories, leather bags, etc. These items may or may not be subject to high duties and taxes, but appeal to customers already open to making high-end retail purchases. (The incremental sales in this cat- egory can be significant and highly profitable for both concessionaires and airport operators. At the A. B. Won Pat International Airport serving the U.S. Territory of Guam, one Japanese vaca- tioner made a single purchase totaling $103,000 according to the duty free concessionaire.) The relative share of total sales of each duty free product category varies greatly from one airport to another and is influenced by demographics of the passengers using the airport. In some coun- tries, religious practices prohibit the sale of alcohol. Thus, the product mix to be offered in a duty free shop should be assessed and developed carefully, using market research tools, such as surveys, to determine the specific preferences of the airport market. The airport will want to have good information on which to base decisions regarding the allocation of scarce retail and duty free space. The detailed merchandise mix will be the responsibility of the concessionaire. 6.9 Services This category of concessions includes various offerings that are provided to fulfill potential customer needs, largely as an aspect of customer service. Most of these concessions are not sig- nificant revenue generators for the airport on an individual basis. The range of services offered will vary with passenger volumes and terminal configuration and may include the following: â¢ Arcades and game rooms â¢ Automated teller machines â¢ Baggage carts â¢ Baggage lockers â¢ Baggage wrap â¢ Banks â¢ Business centers â¢ Clinics/medical centers â¢ Currency exchange booths and machines â¢ Florists, flower carts, or flower vending â¢ Hair salon/barber shop â¢ Internet kiosks or chairs â¢ Massage â¢ Movie/DVD rentals â¢ Nail care â¢ Shoeshine â¢ Spas â¢ Public pay telephones â¢ Wi-Fi 90 Resource Manual for Airport In-Terminal Concessions
Figure 6-9 illustrates the proportion of airports where each type of service is offered as part of their concession programs according to the surveys conducted for this research project. A subcategory of the services category is specialty entertainment, which includes virtual real- ity simulators, mini-golf facilities, driving ranges, gaming machines, casinos, and the like. These concessions are relatively new, with few examples at airports. Specialty entertainment facilities The Concession Mix 91 Figure 6-9. Percentage of surveyed airports offering specific services. 12% 14% 16 % 21% 21% 23 % 23 % 26% 26% 33 % 35% 44% 47 % 60% 60% 74 % 91 % 0% 10% 20 % 3 0% 40% 50% 60 % 7 0% 80% 90% 100% Pa y Lo un ges Cl in ic /D oc to r' s O ffi ce /U rg en t Ca re Ar cade /G am e R oom Ba ggag e Lo cke rs /S to ra ge Po st al Se rv ic es Bar ber Sh op /U ni se x Ha ir Sa lo n Fl or is t Co ur ie r Dr op Bo xe s (F edE x, UP S) Na il Ca re Bu si ne ss Ce nt er wi th em ai l- fa x, c opy in g St at e Lot te ry Ti ck et Sa le s In te rn et Ki osks Sp a/ Ma ss age Th er apy Fo re ig n Ex ch an ge Pu bl ic Ph on e Ce nt er s Sh oe Sh in e Au to ma t ed Te lle r Ma ch in es Source: LeighFisher using data from the airport surveys conducted for ACRP Project 01-11.
can often be located away from major passenger flows, as they are attractions that will draw peo- ple if properly promoted and advertised. Services have been a growth area for airports in recent years as illustrated in Chapter 2. Airports have grown this category by adding new services and increasing the number of locations within the terminal where the service is offered. 6.10 Advertising In-terminal advertising represents a great revenue potential for airports and should be part of any state-of-the-art concession plan. In recent years, significant developments have taken place in this category of concessions. The advent of vinyl substrate banners and wall wraps is an innovation in airport advertis- ing that has expanded options for airports, advertising concessionaires, and advertisers in recent years. It has changed the nature of traditional airport display advertising by making many surfacesâwalls, loading bridge interiors, soffits, windows, and columnsâeffective for advertising displays. On the other hand, the advent of plasma and other flat-panel digital screens has not revolution- ized airport advertising in the way many thought it would. However, as the size of screens increases (one manufacturer currently offers a 103-inch model, but at a high price), the reliability of the tech- nology improves, and costs continue to decrease, the use of flat-screen monitors for advertising will increase. The long-term potential is strong. Other types of dynamic displays, including custom- sized LED displays, also offer the potential to create unusual, nonstandard advertising. Video pro- jection systems are also occasionally used, but lack the brightness and overall visual impact of flat-panel displays. As airport operators invest in high-technology information technology (IT)/communication networks, it makes sense to provide for advertising displays in these networks. Such networks have also recently been used to provide closed circuit and/or satellite real-time television programming to waiting passengers. More recently, the advent of âintelligent portable devicesâ such as iPhones and BlackBerries, with high definition color screens, has created new opportunities for concessionaires, airport oper- ators, airlines, and other potential advertisers to promote, in real time, their products and services to passengers and other airport users. For example, the operator of a duty free shop could adver- tise various promotions to passengers on their mobile devices as they circulate within the terminal toward their gates. 6.10.1 In-Terminal Advertising Program A well-developed advertising program will ensure that all sites and media are fully integrated with the terminal architecture and environment, all sites are located for maximum effectiveness and sales, advertising does not conflict with wayfinding and other commercial signage, and the latest sign/telecommunications technologies are incorporated where appropriate. An in-terminal advertising program should include the following elements: â¢ Identification of the optimum media range for the terminal and the markets specifically served by the airport â¢ Identification of the best locations for each type and size of advertising media 92 Resource Manual for Airport In-Terminal Concessions
â¢ Identification of the optimal number of advertising units for the terminal, by type â¢ Sites and networks to promote airport retail and other services to passengers â¢ Identification of the rules that the advertising provider(s) will need to follow in operating the advertising business at the airport â¢ Design guidelines for the key advertising units, including sizes and parameters to be respected by the designers. In-terminal advertising includes static displays such as dioramas, baggage claim device wraps, baggage cart advertising, banners, wall wraps, product displays, concession advertis- ing, digital screens, nontraditional advertising, sponsorships, and other creative advertising locations. Dioramas Dioramas are back-lighted advertising displays using printed media. Single and double-sided dioramas are the most common type of advertising display. New lighting technologies, including LED light sources, lower the energy costs of this type of advertising and improve reliability and vis- ibility. Large dioramas, often called âspectaculars,â are effective along corridor walls and in large public areas where sufficient wall area is available. Large displays have a strong visual impact and command premium rates. Figures 6-10 though 6-12 present examples of advertising dioramas. Baggage Claim Device Wraps Some airport operators have successfully included advertising directly on their baggage claim carousels. These wraps are relatively effective as passengers often stand by the baggage carousels for long periods of time. The Concession Mix 93 Figure 6-10. Wall-mounted backlighted advertising dioramas.
Figure 6-11. Floor-mounted backlighted advertising diorama. Figure 6-12. Large dioramas. 94 Resource Manual for Airport In-Terminal Concessions
Baggage Cart Advertising In the United States, baggage carts are most often provided on a pay-per-use basis through a concessionaire. Passengers pay a fee for each transaction using dollar bills, credit cards, or debit cards. International terminals are an exception, where airport operators often provide carts as a service to arriving international passengers, who tend to travel with more checked baggage. Out- side the United States, most airport operators provide baggage carts as a free service and offset the capital and operating cost of the service by selling advertising on each cart. This could also be viewed as a form of sponsorship when a single advertiser places advertising on all of the baggage carts and where the advertising is long term (see Figure 6-13). Banners Banners can be very effective, particularly where sufficient vertical height is available in a termi- nal area. Banners are relatively easy and inexpensive to install and are especially useful for shorter term event campaigns and retail promotions. The capital investment requirement is very low, and their visibility is very good, especially when used in multiple locations within a given area (see Figure 6-14). Wall Wraps Wall wraps have become more prevalent in airport advertising in recent years because of their low cost and high degree of customization. The size of wall wraps invariably creates a high impact, and advertisers using them often consider themselves to be sponsors of an area of the terminal building. These wraps can be used to cover whole walls or used around columns. Wall wraps are relatively easy to install and remove, as they do not require investment in supporting structures. Wall wraps can be highly effective, as shown in Figure 6-15, and can be The Concession Mix 95 Figure 6-13. Advertising on free baggage carts.
particularly effective in creating a total âbrandingâ experience, where a single advertiser is prominently displayed throughout an area of the terminal. Product Displays Exhibition areas, with or without staff, have enormous potential in many airports, particu- larly those with the target passenger profile for an advertiser. Many advertisers seek opportunities to interact directly with potential customers to demonstrate their services or products and to establish a direct relationship. Staffed credit card sign-up booths are an example. Automobiles are another form of common product display, and automobile dis- plays can command premium fees (see Figure 6-16). Concession Advertising Advertising, whether on backlit dioramas, vinyl substrate, or other media, may also be attrac- tive to retail and food and beverage concessionaires in the terminal, depending upon the 96 Resource Manual for Airport In-Terminal Concessions Figure 6-14. Advertising banner. Figure 6-15. Wall wrap in a connecting corridor.
charges for their use. In international terminals, paid advertising for luxury brands is common and is intended to promote sales of the brand in the duty free shops or specialty shops and boutiques. Advertising outside of the shops is usually arranged through the airport advertis- ing concessionaire. Product advertising within retail stores, such as fashion or cosmetics ads within duty free shops, or prominently displayed rows of identical magazine covers in newsstands, is usually pro- vided in consideration for display allowances, usually in the form of wholesale discounts from the manufacturer. Figure 6-17 shows a column wrap advertising a concessionaireâs product offering. Digital Screens The main advantage of using digital screens for advertising is the ability to change messages instantly and to show movement or animation. Digital screens can also be used to show closed circuit or broadcast television programming in areas where passengers are waiting for long periods. Units combining plasma screen and LED technologies have been developed for airports and have been very successful in increasing the client base for advertising, as shown on Figure 6-18. These units are especially efficient when used by government agencies to disseminate informa- tion to passengers, as in the waiting areas before Immigration and Customs inspections. Tourism departments and agencies also find these units to be attractive for institutional advertising or tourism promotion. The Concession Mix 97 Figure 6-16. Automobile display.
Nontraditional Advertising Nontraditional advertising is increasing in airports that serve the passenger volumes capable of supporting these new media. Nontraditional advertising includes the following (although other terminal advertising locations can also be included): â¢ Flight information displays. Advertising is now being included on the flight information dis- play system (FIDS) screens. FIDS screens can be a very effective advertising medium; however, an airport operator must be careful not to hide important flight information with advertising, as not being readily able to see such information could upset some passengers. It is much better to dedicate one of the screens to advertising than to incorporate advertising directly on the same screens as the flight information. Using screens not needed for flight information has limited 98 Resource Manual for Airport In-Terminal Concessions Figure 6-17. Column wrap advertising. Figure 6-18. Video screen in arrivals area with advertising.
potential, as the screens are vacant only during off-peak periods, when fewer people are avail- able to see the advertisements. â¢ In-terminal radio station. In-terminal closed circuit radio, broadcast over the terminal sound system, can feature paid advertising and promotion, music, or other local programming. This type of advertising is considered by many to be intrusive, however, and has had limited applica- tion at airports to date. â¢ Exterior and interior loading bridge advertising. Advertising on the interior and exterior of loading bridges can be profitable, especially if the exterior of the loading bridge is visible from the interior holdrooms of the terminal building. These are also frequently sold to a single adver- tiser as a form of large-scale sponsorship. Wall wraps on the interior loading bridges can offer targeted advertising. In determining revenue arrangements, ownership of the loading bridges may need to be considered if they are not owned by the airport operator. Interior loading bridge advertising is often bundled with exterior loading bridge advertising to create a strong advertis- ing or sponsorship opportunity. International banks are particularly prominent buyers of this type of advertising (see Figure 6-19). Figure 6-20 illustrates the proportion of airports that have included each type of nontradi- tional advertising in their concession programs according to the survey. Sponsorships Many airport operators have the potential to create sponsorship agreements. Depending on the local market, some companies are willing to pay to brand an area or facility within the ter- minal with their corporate name. Boston Logan and Chicago OâHare International Airports have popular childrenâs play areas sponsored by local childrenâs museums. The operator of Bob Hope Airport in Burbank, California, worked with a local television station to create a branded seating area within the terminal featuring televisions and wall wraps. The Dallas/Fort Worth International Airport Board has entered into an exclusive contract with a soft drink bottling company that includes sponsorship payments, vending rights, and development of childrenâs play areas at the Dallas airport. All concessionaires serving soft drinks at the airport are required to offer the brands of the official sponsor. Las Vegas McCarran International Airport has clocks throughout the The Concession Mix 99 Figure 6-19. Advertising on loading bridge exteriors.
terminal sponsored by Rolex, while the operator of Miami International Airport has entered into a similar arrangement with the Dominican Republic tourism board. Samsung sponsors popular charging stations for laptops and cell phones at a number of airports, typically located in or adjacent to holdrooms. Other sponsorship opportunities may include business centers, smoking lounges, and common- use airline clubs, as well as United Service Organizations (USO) facilities. Figure 6-21 illustrates the percentages of airports with sponsored services in terminal buildings, according to the survey. Other Creative Advertising Locations Restroom advertising has limited potential. However, for certain types of personal care prod- ucts, this type of location may be attractive (see Figure 6-22). Although limited in scale, this type of advertising represents added value as it does not compete with sales from other types of advertising. 6.10.2 Best Locations for Each Media Type In choosing media types for each location, several factors should be considered, the most important of which is the number of passengers that will be exposed to an advertising display. Other factors should also be taken into account: â¢ Cost-effectiveness should be considered in the choice of media types and sizes for each loca- tion. Investment in backlit wall dioramas may require several years of use to achieve payback. Dynamic media, such as flat-panel monitors, are particularly capital intensive. Currently, only locations with direct exposure to high passenger volumes can justify heavy capital investment. In general, more conventional state-of-the-art, high-quality static advertising units should be located in areas where people are in motion, and the latest high-technology plasma screens should be located in areas where people remain for longer periods of time, such as the wait- ing areas around the baggage claim units, inside the departure holdrooms, or in front of food and beverage seating areas. 100 Resource Manual for Airport In-Terminal Concessions Figure 6-20. Percentage of airports surveyed using nontraditional types of advertising media. 42%45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 27% 14% 14% 8% WiFi advertising Loading bridge advertising â Interior Loading bridge advertising â Exterior In-terminal radio stations Advertising on FIDS
The Concession Mix 101 Figure 6-21. Percentages of airports surveyed that have advertising sponsorships. Figure 6-22. Advertising in restrooms. 51% 32% 12% 9% 6% 0% 10 % 20 % 30 % 40 % 50 % 60 % CNN Ai r por t C hannel Wi -F i â sponsor ed Ch il dr enâ s pl ay ar ea â sponsor ed Tel ev is i on wi th sponsor shi p So ft dr in k pou ri ng ri gh ts Source: LeighFisher using data from the airport surveys conducted for ACRP Project 01-11.
â¢ Double-sided display units should be used when space is available for freestanding units, and single-sided display units should be used when they would be located on a wall. Sizes will vary depending on space availability and passenger volumes. â¢ Banners can be used with dramatic effect where sufficient ceiling height exists. Table 6-4 illustrates a partial summary table of the contents of an advertising master plan prepared for an airport. This table depicts the types, sizes, recommended locations, and num- ber of advertising units. Such a table would be complemented by a terminal layout drawing identifying each advertising unit at the right location with a code letter (see the left-hand col- umn of the table). 6.10.3 Getting Information to the Customer Helping customers understand the range of concessions and services within the terminal and their locations relative to the customer is an important element of good customer service and improves overall concession penetration, sales, and revenues. This can be accomplished by plac- ing terminal concession directories strategically throughout the terminal (see the discussion of wayfinding in Chapter 5). For instance, making passengers aware of the pre- and post-security choices enables passengers to allocate their time more efficiently. Passengers with long dwell times or departure delays can use these directories to find offerings that fit their current taste or mood. The concession developer at Pittsburgh International Airport uses displays to communicate its terminal-wide street pricing policy, which encourages concession patronage. The street pric- ing policy is displayed both in and around the concessions. 102 Resource Manual for Airport In-Terminal Concessions Letter Code on the Drawing (location) Type of Advertising Unit Size Recommended Locations in Terminal Specific Locations in This Terminal Total Proposed Number of Units (Advertising Faces) A Backlit column format (single or double sided) 55 inches high by 37 inches wide In locations where people are on the move and not stationary Double-sided, in the circulation areas of the plaza between the octagons and in the bus stations 34 (68) B Backlit horizontal (single or double sided) 40 inches high by 50 inches wide In locations where people are on the move and not stationary Double-sided, in the circulation areas of the plaza, facing the restaurant areas 18 (36) C Indoors spectacular backlit 8 feet high by 10 feet wide In locations where people are on the move and not stationary On the washroom walls, facing the main bus parking 35 D Wall wraps Various sizes (very adaptable) Inside circulation corridors; around building columns; on jet bridges Proposed to identify the sponsored zones. To be used around each main terminal column in the specific sponsored zone, which are contiguous to the circulation corridors with octagons, and the circulation corridor where the main food and concession area is located 42 E Exhibition areas Various areas for various products, with sales personnel In wide circulation areas where people have time to browse In the large area between the main plaza food and concession area and the central check-in area 1 Source: LeighFisher. Table 6-4. Partial summary table: contents of an advertising master plan.
Information can also be sent to customers through different media, including terminal adver- tising (especially on digital screens), boarding pass jackets, coupons and leaflets, wayfinding pan- els, and the like. More recently, software has been developed to inform passengers of concession promotions, and they can even check menus and place their orders on their portable electronic devices and smart phones. This information dissemination technology is still developing, build- ing upon the geographic information system (GPS) and location mapping software increasingly available in smart phones. The Concession Mix 103