Part III: The Continued Pre-Ignition Period For Airport Dining, Retail, And Experiences
The third and final installment in the ‘Next’ series. We’ve covered everything from reducing friction to focusing on cleanliness to new behaviors. The following rounds out what the airport travel experience could look like post-Coronavirus.
MORE SEATING, MORE SPACE
It is not out of the realm of possibility that there are dining and/or retail units that never return or, at best, have their return further postponed until a recovery to pre-Coronavirus levels of traffic. As mentioned in Part I, these shifts in airport dining, retail, and experiences will come when the industry has only returned to 85%. And a rise in traffic does not translate into a rise in passengers who will be spending. After all, the percentage of capture, at any level let alone 85%, is a fraction of the figure that comes through the concourse. As a result, a number of spaces will remain dark until passenger levels dictate they open. So what will become of them?
Addition by subtraction, driven by continued social distancing. By this I mean space for people to adequately spread out. And, folks, it will be in short supply.
Look for these dark spaces to be converted into additional areas for seating or, if adjacencies permit it, an expansion of units to allow for wider aisles and pathways for customers to shop.
Either choice will come with a degree of expense to convert but there is no denying that they will be necessary. As traffic to date slowly creeps above 10% pre-pandemic, the social distancing is very manageable. But what is the point where it will no longer be? Will it be 15, 20, or 30 percent before social distancing is no longer possible? Airport concourses were not necessarily built for hundreds or thousands of people to be able to stand six feet apart. As traffic over the last few years continued to rise,airport environments remained the same unless, of course, you were gifted with a recently renovated terminal. Otherwise, who didn’t find themselves in a mosh pit of people lining up to board a flight?
The solution of widening physical spaces is too costly and likely not even possible. Converting these dark spaces only serve to ameliorate, if not completely solve, the challenge. But it will be needed. As for dining, people will still want tables for eating. Look for these tables to be appropriately spaced apart. But it will not be like what you would see in a mall food court, looking like a grid with only so little room between you and the person behind you that you apologize for bumping into them or they for bumping into you. No. The six foot social distancing rule will dictate how many tables will be made available in a given space. Will plexiglass-walled tables or self-contained booths dot the dining landscape? That would look like a labyrinthine, cubicle-filled call center-like office space. Not at all eye pleasing, but maybe not out of the realm of possibility.
SPECIALTY RETAIL
Or the lack of it.
I foresee a period where retail will be less about stores dedicated solely to a fashion line, personal accessories, or narrowed to a specific category. This doesn’t necessarily mean a swing to more travel essential stores, though I expect the breadth of products in these units will expand to include more grab-and-go food. Specialty is definitely in for a bit of a twist.
The COVID-19 pandemic accelerated online shopping behaviors and likely further cemented its place in our lives if it had not been there already. Let’s say it’s due to the A-word: Amazon. The only value that specialty retail will have in airports—and it could also possibly serve as its salvation—will be to provide a truly compelling product that can easily go from being a want to a need while simultaneously sitting just out of the reach of Amazon and its ridiculously handy Prime service. This means leaning into being truly local. No, not more shirts, magnets, or snow globes though many will be thankful that these items aren’t going away, myself included. But local will be a common thread in airport retail.
There has been a groundswell of support for small businesses and it has proven, specifically from the most recent recession, that we are an extremely supportive community. As an economy begins its recovery and small businesses sprout and begin to grow again, there will be a rediscovery of our support for small and local, especially ones tied to causes and charities. Think about local crafters or products exclusive to a region and unattainable anywhere else, especially from the Big A. Besides, if there has been a growing movement in caring where our food is sourced, why not have the same caring for retail?
The local approach to products will also be extended to the concepts that you’ll find in airports. Why? It isn’t lost on many that numerous brands were near bankruptcy before COVID-19 while for others the pandemic drove the final nail in their coffins. As a result, where I predicted that food would go in the direction of national brands, I expect retail to head in the opposite direction towards more proprietary and local. Expect to see community- and area-focused concepts such as The Shoppes At Bayshore in Tampa International Airport or Napa Farms Market in San Francisco International Airport. Concepts focused on iconic neighborhoods or areas of a city or region currently do exist but will become only more prevalent. Additionally, this will add to the sense of place that airports have long been incorporating in the redesign of their concourses. Another point to consider is that with the expected rate that brands will not survive or the ease with which items can easily be had via the internet, it might be best to lean on the skills and agility of buyers to be in tune with the local scene and to keep your product line trendy and relevant. Like I said about food, I will note here about specialty retail: I’m not saying that there will not be any nationally recognized brands or concepts much like chain restaurants aren’t going to edge out local restaurants. There will certainly be national brands because they have very loyal followings. There just might not be many of them.
As mentioned in Part I of the series regarding cashierless stores or service, I would attach a renewed effort with innovation in retailers connecting with customers prior to their arrival. Mobile payments or more contactless options for payment should slowly become the standard.
Over the last decade airports and operators have attempted to create some semblance of an omnichannel experience but the cost to build and maintain such a system was too great. An out-of-the-box solution, should one be available, will hold a great deal of appeal. Order ahead and delivery is not just a means of finding extra time if travelers are in a rush but also a means to lessen contact and interaction. Again, this is behavior that already exists just not in the airport environment. BOPIS (or Buy Online Pick-up In Store) existed pre-COVID as a way to prevent having to wait a day or two for your item to arrive. I have personally done this many times and, if your item is available, I consider it to be much more convenient than Amazon Prime. Then came curbside pick-up. Your order. Head to the store at your designated time. Wait in the designated parking spot. They come out and give you your order. Stores have essentially become mini-warehouses. This could work in airports as well provided that there is awareness and a known delivery system.
Speaking of delivery...
DELIVERY VEHICLE
Grubhub, Door Dash, Post Mates, Uber Eats. The list can be lengthier but virtually every consumer is familiar with the players either from personal use or simply from name recognition. Whether it is prepared food or groceries, delivery services have been on the rise. The period of quarantining only solidified their value. Just shopping in my grocery store I would find myself in a conga line of shoppers doing gig work for Instacart and Shipt. There is certainly demand and there is already learned behavior. The challenge in airports will be of traveler awareness.
As mentioned above, the value of airport delivery services like At Your Gate will be as much about safety as convenience. Actually, maybe a bit of both. If successfully deployed, there will be a lessening of traffic and activity in the concourses, which leads to more social distancing. From a safety standpoint, a travelers is not having to weave your way through a phalanx of travelers and raising their risk of exposure. I would also include some sort of tamper evident seal on the containers to prove that the food has not been tampered with. Chipotle is one chain who immediately adopted such a move.
But what about the food itself? Per this piece from NPR, “...food hasn't been shown to be a transmission entry point for the coronavirus, surfaces can be”. It will take an orchestrated effort by both the restaurateur and the delivery person to ensure that safe handling practices are followed and that these practices are communicated constantly to travelers. Again, it’s all about ensuring that the consumer feels safe and comfortable.
Speaking of communication...
SIGNS & ANNOUNCEMENTS
There will be indications everywhere of all things related to sanitation practices. The methods, equipment, and frequency will be noted in common areas and gate holds. You might even hear it in the overhead announcements mixed in with the gate changes and boarding calls. It will be difficult to not hear or read at least once about the renewed safety and sanitation processes before you even make it to your gate. Be prepared to be bombarded. Restaurateurs and retailers, if they have not already, will be much more transparent if the actions of their staffs are not evidence enough of a renewed safety and sanitary focus.
I have stated previously that this series is not intended to provide an exhaustive list. As of this writing, it seems that there aren’t any new twists or turns by this virus that will cause the industry to have to pivot and rethink their post-Coronavirus operating strategy. In some ways this is a good thing.
The impact on airports and businesses has been destructive. I am not blind to that reality. But what I am optimistic about is the ability of this industry and others to rebound. It may not be swift but a rebound will come. I cling to the hope that when the airport dining, retail, and experience industry comes out on the other side, the “next” of this industry will be an exciting one.
Read Part I here.
Read Part II here.
This and future articles are meant to spark conversation, discussion and debate. Was something overlooked? Would love for you to chime in!
Strategic Business Development | Sales Management | Global Airport Retailing | Travel Retail | Airport CXM | Channel Management | Ocean Plastic Hunter
4 年This is a really interesting insight Ramon Lo, thanks for sharing with us. Actually I'm not properly with you about future of speciality retail because I believe you haven't considered luxury and its purchasing dynamics, but it takes all sorts. Better ideas come always from different viewpoints.