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BY TED McCAGG and DONALD GERARDS
TRA-Black & Veatch
Airports, like other enterprises and corporations, are increasingly driven by the bottom line. They are sources of revenue for their owner-operators, and their success is measured by the extent to which they generate revenue -- not necessarily by how convenient they are for the public, or how well they accommodate their tenants' operations. Airports' key tenants, the airlines, are especially keen on this distinction.
But the factors that contribute to a financial success and a people-pleasing place can be viewed as two sides of the same coin, just as they are for a retailer or a restaurant. An airport can do both.
In the end, airports are for people, and airports that are designed to account well for people's needs and habits are likely to succeed far beyond airports that don't take care of people as well. Ultimately, all airport revenue is derived from the people who use airports: from airline and concessionaire fees, PFCs (Passenger Facility Charges), and even federal funding -- itself derived from passenger ticket taxes. Airports that are designed to respond to human needs, capabilities, culture, desires and aspirations can find both happy users and prosperous tenants.
Airports don't exist strictly for concessions, but they come close -- because people want them and spend money at them.
At many large airports, concessions seem to dominate the interior scene. This is because concessions account for a large portion of the airport's total revenue, along with the airline fees and parking.
Airports cater to buyers of all kinds of things: food and beverage, retail, duty free, even for-fee services such as business centers and work-out clubs. The variety can be staggering: the old coffee shop, news stand and trinket shop were long ago replaced by dozens of theme restaurants, bars, cafes, lounges, snack bars, espresso stands, stores, ethnic product shops, boutiques, supermarkets, department stores, T-shirt stands, and art galleries. Some are high quality shops and restaurants, and some are lower-cost, quick-service outlets.
| Today's airports face a choice: Cope with people . . . and survive. Or respond thoughtfully to human needs through design, and prosper. |
Concessions are used mostly by departing and connecting passengers. But they may be located throughout most zones of the airport: the landside (before passing security), and the airside (after security). They may be centralized into mall-like concessions zones, or spread out among the check-in lobbies and departure gates, convenient to places where people wait.
Where to place concessions for maximum convenience, efficiency, and cost-effectiveness is the biggest factor in prosperous concessions -- and revenue production. And where in the airport they will do well varies among airports, depending on a specific airport's layout and on its users, the passengers and visitors. Determining what kind of concession is best for each location, and what size it should be, are keys to its success.
How people at airports use concessions is strongly influenced by their time, individual human natures, and the way they feel at the moment. Some people are worried, some are relaxed. Some visit, walk around, work quietly or play while they wait. Some don't have enough time to do any of these things, but must buy something anyway.
Many passengers are anxious about the security checkpoint. They may put it off until the last minute, or else they hurry through security, then wait -- and shop. Others wish to say good-bye before they pass security, using concessions first, then go on alone to their gate. Most people today, however, pass through security quickly -- with or without farewellers -- and then relax near their gate, seeking out concessions there.
The new international terminal at Tel Aviv, designed by TRA-Black & Veatch, provides amenities for passengers and visitors alike, responding to Israel's unique culture. Dozens of concessions and services are clustered into three areas: a large airside core near airplanes, a "well-wishing hall" and "greeting hall."
Some passengers suffer "departure angst" about their soon-to-depart flight, whether it's soon or not. These people find comfort by hurrying to their departure gate, seeing for themselves the status of their flight, then returning to concession areas to spend their time. When this is the case, concession locations and types must adjust to this particular cultural trait.
International airports, in particular, encourage passengers to check in early and pass through departure controls quickly, not only to avoid departure delays, but to maximize passengers' time in the airside concessions areas.
Almost all people, except the most hurried, can be enticed to buy something, especially if the price is right, and some passengers seek out the opportunity to spend. They drink coffee,
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| TRA-Black & Veatch's new Denver International Airport's airside concourses offer a concentration of major shops and specialty concessions in a major node at the center, with smaller shops and food-and-beverage outlets in minor nodes convenient to the gates. After an uncertain start, the new airport is proving to be a financial success. |
Many airport concessionaires have discovered the advantage of lower prices. Where passengers notice that airport prices are now similar to prices downtown or at suburban malls, they can't resist shopping at the airport. The result: total revenues increase.
Retail use patterns vary widely among airports, and concessionaires need to customize their retailing according to individual markets. Many airports hire consultants who specialize in airport concessions market assessment, to assist them in deciding about their concessions: locations, types, sizes. These assessments are based on projected revenues, and depend on a myriad of human factors to plan for financial success.
Airport operations beyond money-making enterprises are more difficult to assess, but can be just as important to financial success. If one airport is easier than another airport for airlines and their passengers to use, and if passengers put there money in that direction, then airlines will prefer it.
Airlines will tend, over time, to schedule more flights into airports where there is manifest demand to fly -- to go where the people are and where the money is.
More travelers than ever before chose flying over driving, even for short trips. Why not? It's fast, and now it's cheap. Low-cost air travel is enticing people out of their cars.
Saving travel time is the biggest motive, of course.
But some airports get low marks on this. They aren't convenient, quick, and enjoyable. Some airports require check-in times longer than many of their flights. So many travelers chose another travel mode -- or another airport.
So what makes people prefer one airport over another? What makes a good people-airport?
Once again, it's an airport designed in response to human needs and limitations. Thoughtful design looks deeply into people's capabilities and habits: How far do I have to walk? Can I ride a people mover? Can I find my way easily? How comfortable are the parking, curbs, and lobbies to use? How are crowds and queues handled? How do I feel about my experience dealing with the airport? Was it easy and enjoyable to use, or was it an annoying struggle?
Human values have to do with what we enjoy, what we think is important -- what is truly valuable to us, as a society and as individuals. Nearly all humans seek to enjoy life and life's experiences.
Most values are obvious. Given the choice, people select: pleasure over discomfort; enjoyment over humdrum; peace over anxiety; orientation over confusion; and interesting experiences over mundane ones. All things being equal, they always choose quicker service and lower cost.
People remember enjoyable experiences, and plan their travel accordingly. If they can't choose which airport to use, they can at least choose how to spend time in it.
If an airport isn't enjoyable, people try to minimize their contact with it. It's human nature to avoid the uncomfortable. When an air terminal integrates human values, people tend to: arrive earlier; dwell a while; enjoy the facility; bring along visitors; spend time and money; and seek ways to come back again.
The shops and food/beverage services at Tel Aviv's new international terminal are sized and situated to cater specifically to Israel's special air travel market.
There are many things airports can't do to affect their success, and many things they can do.
They can't change their location, the city and region they serve. But they can capture a larger market share, by enticing people to fly short distances rather that drive.
They can't lower their fees to attract new airline service, below their actual costs. But they can assure cost-efficient operations and maximize their concessions revenues to the full capacity of their market. They can encourage their region's travelers use their airport, not a neighboring airport. And they can make travel easier and more enjoyable for people.
Today's successful air terminals are designed to assure people's enjoyment in every way possible, because it's the easiest way to enable the airlines and other tenants to prosper. As they prosper, so do the airports that house them.
As much as efficiency and cost-effectiveness are goals for the airlines and other tenants, passenger convenience and enjoyment are goals of the air terminal's financial planners and designers. Prosperity for all is the product.
Ted McCagg FAIA and Don Gerards AIA are Seattle architects who have specialized in planning and designing air terminals for over 30 years. To date, they have more than 80 airports to their credit. Their firm, Black & Veatch, includes the firm TRA of Seattle, and has offices in many locations around the world.
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