Making the best of airport commercial activities  

Retail and food and beverages (F&B) commercial activities are a major source of non-aeronautical revenues at airports. When well developed at an airport, these commercial activities can contribute significantly to the revenue of an airport. They also enhance the passenger experience at an airport. This calls for airports to adapt their food and beverage offerings to meet the needs of a new generation of technology – savvy consumers who have a need for diverse, high quality produce at affordable prices.

Airports will have to re-evaluate their attitude towards food and beverages at airports to get the best result from such a commercial activity. They should not be hidden in some obscure area of the airport for travellers to look for. The pricing and quality of food and beverage offerings go a long way in determining that travellers are willing and able to put their money into what is on offer.

The market research should be able to find out whether people are more comfortable with eating out, whether there are religious or cultural barriers to such activity before proceeding to allocate space for food and beverage activity. Knowing the expectations of the traveller will go a long way in ensuring the success of Retail and Food and Beverage commercial activities at an airport.

Understanding the demographics of the passengers as the numbers increase is also vital to ensuring that the retail and food and beverage commercial activity is a success. This might reveal the evolving needs of travellers such as pre-ordering before arriving at the airport. When recognised, effort should be made to meet such needs at the airport. A contactless shopping experience is trending and should not be lost on today’s airports.

Airports should also not take their eyes off sustainability issues as they package their Food and Beverage offerings. This will entail thinking seriously about going plastic free and catering for special dietary requirements.

Keeping an eye on both local and international retail and food and beverage trends will inform the strategy an airport will adopt to ensure that it gets the best possible from such commercial activity. Recently there has been a move towards integrating retail with food and beverages activity. This should be closely watched and considered in growing non-aeronautical revenue activities. Effort should be made to integrate local and global brands for improved passenger experience.

Small retailers have a niche market they can serve in an airport. So, helping them profitably do business at an airport should not be lost on commercial and business development units of airports.

Some of the challenges to be faced by small businesses at airports include lease considerations. Leases of airport shops differ from those in typical city shopping centres. Being able to meet the requirements can be very challenging. Another challenge is that sales may not meet the minimum threshold within a certain period. Sometimes airports may have to relocate tenants and it will present a negotiation challenge for the small business. Location does matter and as such small businesses will need to ensure that there is a mutual appreciation of the need for visibility as well as the need for the airport to maximise available revenue space.

Balancing the differing needs at an airport for space makes collaboration a vital part of airport relationships for all members of the airport community.

• business a.m. commits to publishing a diversity of views, opinions and comments. It, therefore, welcomes your reaction to this and any of our articles via email: comment@businessamlive.com