Category: Commercial Management

Dolliole and Miller Launch Airport Minority Leadership Initiative

Posted on | by ScottElmore

Last month at the 2024 ACI-NA/AAAE Washington Legislative Conference, ACI-NA Chair Kevin Dolliole and AAAE Chair Perry Miller announced a new initiative called Soaring Scholars: Airport Minority Leadership Initiative, which aims to increase the percentage of minorities in leadership roles at U.S. airports. Dolliole, Director of Aviation for Louis Armstrong New Orleans International Airport and Miller, President and CEO of Richmond International Airport, launched this initiative to recruit, educate, and develop the best and brightest students beginning in high school, through college, and into management training positions at airports across the United States.

It will be established as an independent non-profit organization that will focus on four key strategies.

  • Identify minority high school students who are interested in the airport industry and demonstrate promising leadership talent
  • Partner with colleges and universities to create pathways to assist students in their pursuit of higher education in either aviation or any other relevant field
  • Provide students with leadership development, essential people skills learning, and coaching opportunities
  • Offer scholars internships and management track roles at airports

In the coming weeks, Brad Mims will join as the Executive Director of Soaring Scholars. Mims has served as a transportation professional in government and the private sector for over 40 years. More recently, he served as the Deputy Administrator of the Federal Aviation Administration, and he currently works with the U.S. Department of Transportation.

Additionally, nine airports will participate in the Soaring Scholars pilot program. These airports will help to develop the key components of the internships and management training program. They also committed to being among the first to provide employment opportunities to the highly qualified candidates developed through this initiative.

The airports are:

  • Baltimore/Washington International Thurgood Marshall Airport
  • Birmingham-Shuttlesworth International Airport
  • Hartsfield Jackson Atlanta International Airport
  • Long Beach Airport
  • Louis Armstrong New Orleans International Airport
  • Richmond International Airport
  • Ronald Reagan Washington National Airport and Washington Dulles International Airport
  • San Antonio International Airport

‘Reclaiming the Sky’ Resiliency Project Winners Announced on Sept. 11 Anniversary

Posted on | by ScottElmore

Even 22 years later, the stories of esteemed aviation leaders and their response to the September 11, 2001, terror attacks continue to provide learning opportunities for the benefit of future airport industry professionals.

As we hold space today to remember those we lost and honor those who helped in the aftermath on September 11, we are proud to honor the legacy of so many aviation leaders through the “Reclaiming the Sky Resiliency Project,” an essay contest organized by the Human Resiliency Institute at Fordham University and ACI-NA to engage up-and-coming airport industry leaders.

Through this year’s essay contest, young professionals from across the airport industry were invited to read the stories of aviation heroes profiled in the book, “Reclaiming the Sky,” by Tom Murphy, and participate in a workshop with aviation mentors to explore lessons about resiliency.

Twenty-five openings were allotted for the program. Participants had the chance to learn about the stories of airport and airline employees who went to work in New York, Boston, and Washington, DC, on the morning of 9/11 expecting a normal day, only to find that “just doing my job” was to become the creed of heroes. The stories, including the powerful teachings from Susan M. Baer, the General Manager of Newark Liberty International Airport on 9/11, tell how the front-line aviation employees responded with courage, selflessness, and resiliency that day and in the weeks and months that followed to rebuild their lives and reclaim hope – while helping to get the country moving again.

This year’s winners were Michael Gyan, Project Manager, John C. Munro Hamilton International Airport; Salvatore Mendola, Director, Brands and Concept Development, Areas USA; and Deborah Blass, Arup, Associates, Security and Risk. Their award-winning essays can be read at ReclaimingTheSky.com.

In addition to cash prizes, these three winners will also be recognized for their achievements during the 2023 ACI-NA Annual Conference and Exhibition in Long Beach, CA, on October 3.

The young professionals who participated in the 2023 include Deborah Blass, Arup; Carey Metcalfe, Lee County PA; LaTarryl Hall, City of Charlotte; Ryan Thomas, Parsons Group; Adam Ussher, Dane County Airport; Anna Phillips, Columbus Airport; Michael Hamilton, Savannah Airport Commission; Michael Gyan, John C. Munro Hamilton Airport; Juan Martinez, Chicago Dept of Aviation; Antonette Chambers, Clarksville Airport; Kendall Griswold, GSP Airport; Arjun Nair, Syracuse Airport; Jimmy Vazques, San Diego Airport; Aireyanna Kennedy, Syracuse Airport; Benjamin Torres, San Diego Airport; James Gerrald, Jacobs; Ana Zivanovic, San Francisco Airport; Esther Chitsinde, HDR; Christopher Liese, Munich Airport USA Holding; Anandhi Mahalingam, Transsolutions; Kristin Jewell, Baton Rouge Airport; Julie Seglem, Areas USA; Madison Strong, Tulsa Airport; Roeland Visser, InterVISTAS; Jeff Taylor, Jacksonville Airport, Salvatore Mendola, Areas USA; Brooke Bowman, Areas USA.

Judges for the essay competition were aviation industry leaders Cedric Fulton, Virginia Buckingham, Lysa Leiponis, Eileen Ammiano, John Duval, Kathy Denker, Debbie Roland and Jennifer Juul.

For more information, visit ReclaimingTheSky.com. For aviation companies looking to participate in the expansion in 2024, contact Tom Murphy at Tom@edge4vets.org.

’60 Minutes’ Correspondent Scott Pelley: Aviation is a Miracle

Posted on | by ScottElmore

During the 2022 ACI-NA Annual Conference in Minneapolis, Alessio Olivetti caught up with Scott Pelley, the 60 Minutes correspondent and 2022 annual conference keynote, who shared his experience as tireless traveler and long-time journalist.

 

AO: You travel all around the world. It’s safe to say you’re a frequent traveler. What’s the most memorable airport experience have you ever had?

SP: My most memorable experience would have been at the very beginning of COVID, when thousands of people in the United States were dying every day.

I was covering COVID, and I was flying through Houston’s George Bush Intercontinental Airport. I got off the plane and I was the only person in the terminal. Everything was closed. There were Texas State troopers clearing every plane and taking down the contact information for every passenger who came off.

I could hear the soles of my shoes clacketing on the floor. I was literally by myself walking through Houston Intercontinental, which I came through many times surrounded by tens of thousands of people in the terminal.

It was just such a shocking, remarkable experience to understand better in an airport than anywhere else the effects the COVID was having and would continue to have on the national economy. If Houston Intercontinental is empty of people, the economy has stopped, you can tell.

 

AO: You wanted to become an astronaut when you were a child. The U.S. has been the cradle of the aerospace industry for a century. Why are people fascinated in stories about aviation and lately about space tourism?

SP: People are still fascinated about the courage required to leave the Earth and fly beyond the atmosphere. Even though we have been watching that happen in the United States since 1957, the year I was born by the way, people are still fascinated about the images coming back from space, our astronauts on the International Space Station for example. And now in this all-new world of private companies launching people in space we are beginning to imagine, ‘Hey, it could be me, I could go too!’

In terms of aviation, there is just something about flying. I should be the most jaded airline passenger at all times. I’m a multi-million miler on many different airlines, but I’m still thrilled when I get on a plane and it leaves the ground. It never gets old.

I was on the A380 the other day, which is the size of an apartment building. The engineering involved in building something like an A380 or a 747-8 is a miracle, getting that thing off the ground almost effortlessly. Engineering is far beyond me, but I have so much respect for it.

There is another thing about aviation. People complain insensitively about their flight being delayed, canceled, or their luggage being lost. I get all of that, it’s very frustrating.

But I would argue that aviation today is a miracle. You can literally be anywhere on this Earth in 24 hours. Imagine such a thing.

I’m amazed at the way the airline industry runs all around the world with thousands of operations every day, and virtually accident-free. It’s one of the greatest achievements of man.

 

AO: What’s your favorite interview if you have one?

SP: Now I have a new favorite interview and that’s the one I did in April with Volodymyr Zelenskyy.

I’ve never met a leader of a country who has impressed me more. The courage that he took to stay in Kyiv when the Russians were coming at him in three different directions. And when he walked outside into the courtyard and filmed a video message on his phone.

That moment galvanized the country to resist. It was on the knife’s edge of collapsing until he walked out and said, ‘We’re not going anywhere, we’re all staying here.’

Just an incredibly courageous and impressive man who forced the Russians to retreat from Kyiv and from Ukraine’s second largest city, Kharkiv. He has punched way above his weight leading his people so courageously.

At the end of the interview, I said ‘Mr. President, we wish you all the luck in the world.’ He broke into English saying, ‘Half of it, I think we need half of it.’

A man with 44 million people on his shoulders and he is still having a sense of humor.

Celebrating April as U.S. Airport Professional Appreciation Month

Posted on | by ScottElmore

 

As U.S. Airport Professional Appreciation Month comes to a close, we have been so excited to celebrate the airport industry professionals who are demonstrating their commitment to industry excellence and professional development.  We recently caught up with Sylvia A. Palmer, Vice President, Operations and Regulatory Affairs, at the Airport Consultants Council to learn about her experience in the program.  Sylvia recently completed her USAP studies and is now an accredited U.S. Airport Professional.  She is one of eleven students to be celebrated this first U.S. Airport Professional Appreciation Month!

ACI-NA: Why did you decide to enroll in USAP?

SP: In 2020, as the aviation industry was undergoing massive disruption, I desired a resource that would provide a comprehensive overview of the entire U.S. airport system as we knew it, and the all-encompassing evolution occurring as a result of the pandemic’s wide-reaching impact on the aviation industry.

ACI-NA: How is USAP making you a better airport industry professional?

SP: The USAP program’s detailed and well-constructed modules touched on every aspect of the U.S. airport ecosystem, in a cohesive manner. It helped me understand the changing industry landscape, and operational and management strategies that would help to re-invent the overall airport and travel experience. The program is also helping me better understand how to engage airport development stakeholders and regulatory bodies in the advancement of a more resilient, efficient, sustainable, customer-centric aviation system.

ACI-NA: What would you say to a friend or colleague who expresses interest in USAP?

SP: I endorse the USAP program for anyone who desires to grow as a leader within the aviation industry. It strengthens the critical skills necessary to effectively manage and lead change in the current dynamic airport environment. Congratulations to ACI-NA for delivering such rigorous professional development, and thank you for the opportunity to participate.

About the USAP Accreditation Program

In 2020, ACI-NA launched an accredited e-learning training curriculum, the U.S. Airport Professional (USAP) Program, to equip students with the leadership and strategic management skills necessary for personal and professional advancement in the U.S. airport industry.  The program was developed in collaboration with U.S. airport industry and professional development experts.

Comprised of seven online courses and a writing assignment, the USAP accreditation program covers the full range of current airport management topics, including leadership development, business strategy, commercial management, finance, operations, safety, security, air service, and more.  Each student who completes the program is permitted to use the USAP credential to demonstrate their understanding of the U.S. airport system.

Learn more about the U.S. Airport Professional accreditation program at www.usairportprofessional.org.

 

Looking Forward One Year In

Posted on | by ScottElmore

By Kevin M. Burke, President and CEO, ACI-NA

Now at the one-year milestone of widespread travel and local restrictions to help stop the spread of COVID-19, we are reminded that this past year has been incredibly challenging for so many, both personally and professionally.  While so much has changed in our industry as we continue to respond to this prolonged crisis, airports remain fully committed to ensuring the health, safety and security of the traveling public and airport workers.

Although North American airports quickly mobilized to protect travelers and workers, the significant drop in passenger traffic has wiped out record growth in air travel and decimated the airport industry’s financial outlook. In 2019, more than 1.9 billion people traveled through North American airports.  At the start the pandemic, air travel dropped by upwards of 95 percent.  ACI-NA estimates that the pandemic will cost U.S. airports more than $40 billion and Canadian airports more than $5.5 billion — a number that will only grow if the pandemic drags on.

There is no shortage of issues confronting the industry.  Early in the pandemic, ACI-NA created the Airport Industry Recovery Advisory Panel to provide the industry with valuable recommendations on immediate term, medium term and long-term measures to address the public health concerns and assist airports coming out of the pandemic.

These initiatives, ranging from restoring confidence in air travel to implementing a wide variety of mitigation strategies, are fostering a completely new level of collaboration across aviation industry stakeholders.  We each have a role to play, and the value of partnership has never been more important. As we think about the future, airports leaders should remain cognizant of the ever-evolving airport business model.  Our ongoing relationships with airline partners, concessionaires, retailers, service providers, and government regulators are essential to our continued success.

ACI-NA led the charge in an effort secure $20 billion in immediate financial relief for the U.S. airport industry.  We are immensely grateful from the strong support of the U.S. government for airports and their concession partners as they remain open and fully operational though this crisis.

Thanks to the proactive leadership of our team in Ottawa, Canada’s airports received some of the only sector specific COVID support in Canada, with some CAD $1.4 billion through ground rent waivers and deferrals, wage subsidy, and infrastructure funding.  However, as the situation in Canada grows more dire each day, our work continues in Canada to secure addition relief to meaningfully address the financial challenges Canada’s airports face.

One of the silver linings to come out of this pandemic is the rapid innovation and the deployment of new technologies to allow for a seamless – and contactless – passenger experience.  While most of this progress had seemed years away, the pandemic has accelerated this effort to turn our industry’s aspirations into reality.  One thing is clear: the passenger experience will look different than it did before. It is going to be better.

Airports have taken unprecedented actions to limit the spread of COVID-19.  As the eternal optimist, I am confident there is a light at the end of the tunnel and much to be done when we emerge from it. From enhancing airport sustainability and resiliency to taking full advantage of automation and big data to enabling a new generation of aircraft to operate at our airports, we face myriad opportunities to make a difference in the aviation industry. All of these opportunities require a ready and able workforce. We look forward to working with the industry to develop training that will help current airport workers adapt as well as prepare the next generation to make their mark on aviation.

Thank you for the continued trust you place in ACI-NA and the immensely talented team here at your trade association.  I continue to be proud of our team, our members, and the important work we do on behalf of North American airports.

 

Americans Are Starting to Fly Again

Posted on | by bwilson@airportscouncil.org

States around the country are taking their first steps to safely reopen our economy and to start rebuilding a sense of normal life. This Memorial Day weekend is the unofficial start of summer in North America — a well-deserved benchmark that we’ve made it through a difficult start of this year. This typically marks the beginning of our busy travel season, and while COVID-19 has quieted the typical buzz in our airport terminals and dramatically reduced the crowds, we are finally seeing an uptick in passengers who want to travel again.

Despite the challenges we still face, the Transportation Security Administration expects more than 350,000 people to travel through our airports this Memorial Day weekend. That is a far cry from the 2.7 million air travelers who passed through our airports last Memorial Day weekend, but it nearly doubles our traffic from weeks prior. Airports welcome these early signs of a rebound, and they are ready to help passengers navigate the new normal as we work to adapt to the future of travel together. If you’re traveling this Memorial Day weekend, here are a few tips to get you started:

  • Arrive early: Airports around the U.S. have enhanced safety standards and measures for all passengers. This could mean more delays as you travel through security checkpoints. Be sure to arrive early so you are able to make it to your gate and flight on time.
  • Adhere to physical distancing: Remember to keep your physical distance (6 feet) when going through checkpoints, shopping at concessions shops, or standing in line at customer service. By keeping your distance, you can help stop the spread of germs and keep you and others in your party healthy.
  • Wear a facial covering: Many states and local governments as well as airlines are requiring that masks be worn when occupying a public space. Please be sure to bring a facial covering with you to the airport and wear it throughout your duration there. For facial coverings to be worn properly they must cover your nose, mouth, and chin.
  • Practice good hygiene: Wash your hands often with soap and water for at least 20 seconds throughout your time while traveling. Cover your mouth and nose with your elbow or a tissue when you cough or sneeze, and then throw the tissue away in a trash bin. Avoid touching your face.
  • Be patient: We are all learning these lessons together, so please understand that our dedicated workforce is doing everything in their power to adapt to these new requirements as quickly as possible to ensure the travel experience remains as seamless as it can be in the face of new health and safety guidelines.

As the nation continues to open up and more people begin to travel, implementing these best practices will help to keep you and your loved ones safe and healthy. Our airports are eager to welcome you back.

Members of Congress Announce Framework for Infrastructure Bill That Includes a PFC Increase

Posted on | by SElmore@airportscouncil.org

Last week, ACI-NA welcomed the news of an infrastructure investment framework – called the “Moving Forward Framework” – which was announced by a group of Members of Congress, led by House Transportation and Infrastructure Chairman Peter DeFazio (D-OR). The start of the new year represents an important opportunity for Members to announce their top policy priorities and we are pleased that improving airport infrastructure across the U.S. is a high priority for so many Members, as well as the American people.

The Moving Forward Framework calls for raising the federal cap on the Passenger Facility Charge (PFC) and indexing it for inflation. If enacted into law, a lift on local PFCs would allow airports to fund necessary infrastructure improvements, including repairing aging facilities and making expansions to accommodate record-breaking passenger traffic.

In his remarks, Chairman DeFazio highlighted how airports are in dire need of infrastructure upgrades and addressed the fact that the very same airlines who are comfortable with increasing baggage fees oppose an updated Passenger Facility Charge because they know it will increase airline competition in many airports. You can watch his remarks here.

Immediately following their announcement, ACI-NA President and CEO Kevin Burke thanked the group, and specifically Chairman DeFazio, for their leadership.

“The House Democrats’ infrastructure framework recognizes the time has finally come to increase the woefully outdated PFC,” said ACI-NA President and CEO Kevin Burke. “A long-overdue adjustment to the Passenger Facility Charge (PFC) will provide the lift America’s airports need to take off into the future. Unlike a $40 bag fee that just pads an airline’s bottom line, a modernized PFC will help our terminally challenged airports make transformative investments in new infrastructure that will improve the passenger experience for millions of travelers. I am particularly thankful for the leadership of Chairman DeFazio, the father of the PFC, for making this one of his top legislative priorities.”

Burke also joined American Association of Airport Executives President and CEO Todd Hauptli and Airport Consultant Council President T.J. Schultz in a joint letter thanking Chairman DeFazio for his leadership on this issue. In the letter they write:

“…we strongly support proposals in the House Democrats’ infrastructure framework that call for raising the federal cap on local PFCs and indexing it for inflation. We are grateful for your leadership. We look forward to working with you and your colleagues to advance legislation that would help airports finance critical projects and repair our nation’s infrastructure.”

Just this month independent research from RAND Corporation confirmed the best way to fix America’s airports is by modernizing the PFC. Further, according to a recent ACI-NA study, U.S. airports face more than $128 billion in infrastructure needs by 2023, with over 56 percent of the needs inside aging terminals. President Trump has repeatedly called for renewed investment in American airports, so we will be listening closely for any references to infrastructure investments in his State of the Union address.

We look forward to working closely with Congress to get this framework over the finish line so that we can finally empower airports to improve their infrastructure and continue to meet the demands of the traveling public.

LAX CEO: We Need to Bring the Passenger Facility Charge Back to its Original Buying Power

Posted on | by Scott Elmore

Last week, Los Angeles World Airports Chief Executive Officer Deborah Flint addressed the Washington Aero Club at a lunch event in Washington, D.C. In her speech, Flint described Los Angeles International Airport’s (LAX) current $14 billion investment project and how it will help to relieve congestion and improve the LAX travel experience for passengers.

She also discussed how airports across the country are using technology to improve efficiency and ease long lines.

Finally, she urged Congress to return the Passenger Facility Charge to its original buying power by updating it to be $8.50. She noted that it’s been two decades since the PFC was updated and that it’s well overdue that we modernize it to keep up with inflation.

Excerpts from her speech are below.  Her full remarks are available here.

Flint on the need to modernize the PFC:

“A new level of investment in infrastructure is needed and for airports this can be real by bringing the Passenger Facility Charge to its original buying power.

“It is time. It has been two decades that the PFC has been unchanged even though there have been 26 models of the iPod, which was released the same year. It has been so long that the styles have even come back – parachute pants and tracksuits are back in again.

The ask is to increase the PFC from $4.50 to $8.50 and index it for inflation in the future. That will make a difference for airports of all sizes – large, medium, and small.”

Flint on LAX’s infrastructure projects:

“We are making a $14 billion investment in an Automated People Mover train system, roadways, a Consolidated Rent-A-Car facility that will combine the 20 separate facilities that burden our neighborhoods and roadways, a connection to regional rail, and modernizing each terminal.

“And we are beginning the environmental review to improve the airfield, build a new concourse off of Terminal 1, and a new Terminal 9, which requires billions of additional dollars.”

Flint on airports improving efficiency through biometrics:

“Back to my 16 year old and her airport expectations. For her, wifi and cellular are like air – as they have become for all of us. Her face is everything.

“I am talking about biometric aircraft boarding gates, self-baggage drop, TSA and CBP screening – all biometrically enabled at LAX today. While privacy and data security must have high bars, the efficiency of biometrics is astounding. We boarded an A380 using biometric facial boarding in 20 minutes.”

Flint on the future of the airport industry:

“Airport by airport, working with our partners in airlines and throughout the industry, we need to be excited, energetic and chase the next evolution. We need to push for our airports to be more innovative, sustainable, to be stewards for local communities, to bring the joy and certainty back to air travel, and together get the funding to invest and let our industry shine. At Los Angeles World Airports our vision is Gold Standard Airports … Delivered.  The U.S. deserves that vision for each and every one of our airports.”

Infrastructure Week 2019: 20th Century Airports in a 21st Century World

Posted on | by Scott Elmore

Today marks the official start to Infrastructure Week 2019, the long-celebrated week each year when the infrastructure community comes together and engages in a broad conversation about the importance of modern infrastructure.  For us, every week is Infrastructure Week (we’re not the first ones to make that joke and we won’t be the last…), but we’re proud to join in and represent airports in such an important dialogue this week.

As part of our participation in Infrastructure Week, ACI-NA will continue to amplify our important message about the need to invest in America’s aging airports.  Beginning today, passengers in airports will have the opportunity to hear directly from ACI-NA on the benefits of an improved and modernized airport system.  Watch by clicking below.

We couldn’t think of a better way to get our message in front of those who stand to benefit the most from the improved passenger experience, increased airline competition and lower airfares, and enhanced safety and security that will come when we meet the nearly $130 billion in infrastructure needs of America’s airports over the next five years.

We are proud to count CNN Airport Network as a valued ACI-NA member and an active participant in our Beyond the Runway Coalition.  CNN Airport Network’s tremendous support for our industry is greatly appreciated as we ramp up our efforts to engage in a broad conversation about the importance of modern airports to local communities.

For the latest on Infrastructure Week, visit the Centerlines NOW blog or following along on social media using #InfrastructureWeek #BuildForTomorrow.

Concessions – Tailored and Transformed

Posted on | by rrudishlaning@airportscouncil.org

DIGITAL AND MOBILE TECHNOLOGIES ENHANCE TRAVELERS’ EXPERIENCES, MAXIMIZE REVENUE

By Sheryl Jackson

While technology plays a large role in many different aspects of the airport industry from operations and security to customer service, airport concessions have just begun their digital transformation in recent years.

While the transformation may be recent, airport leadership and concessionaires realize the impact it can have on the industry. Between 50 and 75 percent of airports plan to develop or use mobile applications to enhance travelers’ experience and to maximize revenue by 2020, according to a study conducted by an airline industry technology company. These efforts include the use of airport beacons and sensors to tailor offers and promotions to smart devices for items such as food, beverage, duty-free merchandise and delivery of food or merchandise to the gate.

CONVENIENCE: GOOD FOR BUSINESS, CUSTOMER

“The main driver of innovation, technological or other, is customers; wants and needs,” said Gregg Paradies, President and CEO of Paradies Lagardère. “For instance, there is an increased expectation by travelers that the convenience delivered by technology in their everyday life is going to be available at the airport,” he said. “Along the same lines, our airport partners expect us to embrace innovation so we can properly align with their goals. Ultimately, for us, it’s just part of how we want to continue to deliver first-class customer service.”

Making the purchase of food, retail items or services in an airport more convenient is not only good for the airport customers, but also for the airport and concessionaires, pointed out Liz Grzechowiak, Assistant Director of Concessions and Business Development at Minneapolis-St. Paul Metropolitan Airports Commission. “It’s all about revenue growth because when you reduce the length of lines, more people are likely to purchase because they don’t perceive a long wait and throughput is increased,” she said. “Technology such as point-of-service ordering and pay stations and mobile order and pay apps make it easy for customers to get food quickly and improve customer service.”

ESTABLISHING STRATEGY, BOOSTING REVENUE

Technology can also help in the back of a restaurant, explains Grzechowiak. “Smashburger is implementing new cooking technology that reduces the cooking time for their burgers, which also speeds delivery of food,” she said. Another emerging technology that she has seen demonstrated is robots in the kitchen – sautéing, stirring and performing other repetitive tasks that reduce the number of line cooks needed. “This will be a valuable technology as food service vendors look for ways to handle today’s difficult labor market.” Not only will fewer line cooks be needed, but employees can spend time taking and filling orders rather than handling tasks in the kitchen.

Paradies’ technology strategy is built on three dimensions: the transactional, the functional and the experiential, said Paradies. The first one is about user-friendly payment solutions, the second one helps our stores operate with speed, accuracy and reliability, and the third one is all about using technology to create fun and “cool” factors in airport retail and dining. “We believe that executing on these three dimensions delivers the ultimate customer experience and drives higher revenues.”

Examples of Paradies’ use of technology include payment options such as Apple Pay, Android Pay, Mobile POS and Samsung Pay. “We were also the first to partner with Grab, an app that allows travelers to pre-order meals at airport restaurants, and we’re working to leverage the partnership in our retail stores,” said Paradies. “We also have a Server Pager system in our restaurants to assist with orders and to help travelers check out faster, and Vino Volo has developed a proprietary app that combines a customer rewards program with the ability to locate stores and products.”

In the retail arena, visitors to TripAdvisor stores can use a touchscreen that brings the world’s largest travel website to a traveler’s fingertips, allowing them to plan their visit or the next leg of their journey while in our store, said Paradies. Not only is this a valuable service for visitors, but it creates a reason to enter the store and spend time in it, creating more opportunities for sales.

Another example of how technology can increase revenue, Paradies points to his company’s Mobile POS, which allows for menu orders to be taken and payment processed remotely while customers line up at peak times. The orders are instantly sent to the kitchen staff for preparation while the customer is in line. “This solution was tested at DCA at several of Paradies Lagardère’s bars and restaurants, such as Wow Bao and Washington Pour Bar in 2016 and 2017,” he said. “After it was used during the lunch and dinner rush periods for several weeks, sales went up at Wow Bao by 10 percent and at Washington Pour Bar by almost 17 percent as a result of faster order processing and delivery of menu items to the consumer.”

Grzechowiak said that kiosks used by McDonalds at Minneapolis-St. Paul International Airport have also resulted in higher sales. “Although employees might forget to suggest additional menu items to customers, the kiosks suggest another item with every order, and images entice customers to add bacon to their sandwich or add a dessert to the order,” she said. “Human behavior also plays a part in this result because I might say no to bacon when I’m asked by an employee because I don’t want to be judged as someone who doesn’t eat healthy; however, a kiosk doesn’t judge!”

DIGITALLY ENHANCED INTERNAL DELIVERIES

Food delivery within the airport is a fast-growing convenience made possible by technology, points out Grzechowiak. “As airports and their concessionaires consider these services, be aware of how each might differ and what additional support they need to succeed,” she suggested. Grab is an application-based program that allows people to order and pay for food from a participating restaurant via mobile phone and then pick up the food with no wait.

At Your Gate is an actual delivery service for food and retail items that has been pilot tested at Minneapolis-St. Paul International Airport. “The test was limited to our employees, and it was successful,” said Grzechowiak. “Although there is a $2.99 delivery fee, many of our employees choose to pay it to save time since they might spend as much as 28 minutes of their 30-minute lunch break walking to a restaurant, waiting in line, waiting for food and walking back to their post if they are not close to food service areas.” Now, employees can order food for delivery and enjoy their full 30-minute lunch break, she added.

While Grab does not require physical space at the airport, At Your Gate does require space from which employees operate, said Grzechowiak. “It is also important for each of these services to have marketing support from the airport and its airlines to make sure that customers know about the services and understand how to access them.”

‘TIME’ FOR TECHNOLOGY

Technology will continue to play an important role throughout airport interactions with customers because “time” is the most precious commodity, said Dominic Lowe, Executive Vice President of Unibail-Rodamco-Westfield Airports. “To effectively serve the customer, however, technology must be relevant, simple to use and connect seamlessly,” he said.

Lowe said that this means that airports, concession operators and service vendors need to work together to create a connected infrastructure that supports all digital touchpoints – mobile phones, point-of-service applications, airport directories, retail catalogs and food menus. “While mobile technology is important, we have to remember that mobile is beyond a phone – it extends to tablets and wearables.”

As more applications are adopted and new technologies introduced, it is important for airports and concessionaires to make sure that the technology is agnostic, which means it can connect to other applications or platforms easily to share content and information, said Lowe. “We must work together to get customers what they want – easy access to information, shorter wait times and a way to find and obtain the product or services they need.”

As everyone looks toward the future of technology in concessions, Paradies points out that technology that enhances the traveler experience will be paramount, whether it’s tools to make it easier to make purchases, or order meals, to entertainment. An example of entertainment made possible by technology is his company’s partnership with JFK Terminal 4 that enabled the deployment of PeriscapeVR, the first-ever interactive virtual reality center of its kind in an airport – offering travelers an interactive and blissful escape, he said. “Also, I think it’s fair to say that smartphones are here to stay and will likely become the preferred vehicle for payment. This will not only make interactions with the consumer more fluid, it will also create an opportunity to enhance the intimacy between concessionaires and the traveling consumer through better and faster access to data.”

Paradies does caution airports, vendors and concessionaires about adopting trendy or cool technology. “I would advise against technology for technology’s sake,” he said. “Paradies Lagardère is doing our research on the needs of our airport partners and travelers throughout North America. We’re excited about what technology and innovation can offer. But we want to make sure it fits the needs of our partners and our customers.”