American revolution
In the past North American airports were mainly viewed as transportation hubs - utilitarian spaces solely focused on getting passengers from point a to point b. The typical airport experience was an uninspiring blur of sterile terminals, overpriced food, and generic shops hawking duty-free goods.
However, in recent years we have seen a dramatic shift take place. Airports are transforming into vibrant commercial destinations, embracing locally inspired concepts, innovative brands, and experiential offerings that cater to the evolving needs and desires of the modern travellers, seeking comfort, convenience, and sense of place, within the confines of an airport terminal.
Results from Pragma’s Pulse Global Survey of consumer behaviour shows that shoppers in from the USA, UK, and India, have the highest frequency of visits to physical stores. This demonstrates the importance of creating more innovative and experiential retail stores with unique displays, art installations, storytelling, in store theatre, and digital integration.
Furthermore, in the UK and USA, there is a preference for value over luxury, which indicates a focus on quality goods at affordable prices.
Pragma's analysis of average spend per enplaning pax (SPE) of top 50 performing airports from AXN Factbook from 2012 to 2022, shows an increase of 20%. A deeper look into a more recently renovated LaGuardia Airport which is one of the newest airport developments that have opened in the USA, shows a 57% increase in SPE from 2012 to 2022.
So how are North American airports embracing a more commercially focussed approach, that caters to passenger needs?
Embracing local flavours
Gone are the days of generic food courts and souvenir shops. Airports are now partnering with local restaurants, breweries, and artisans to showcase the unique character of their cities and regions. For example, Seattle-Tacoma International Airport features a branch of Salty’s at the Sea, a local seafood chain, while Toronto Pearson International Airport boasts a bustling Farmers Market. Airports like JFK T6 and SEA-TAC are further increasing their localism and sense of place within airports by opening more opportunities for local and small businesses.
Experiential retail
Airports are incorporating interactive and immersive retail experiences. One of the most noticeable shifts in airport design is the emphasis on retail spaces. They are no longer just transition points; they have become shopping destinations.
Airports and retailers are incorporating interactive and immersive retail experiences. Duty Free Americas (DFA) hosted a series of high-impact, immersive fragrance activations throughout the recent holiday season in Miami, Hartsfield-Jackson Atlanta, and Punta Cana International Airports. Some features included key limited-edition releases, compelling displays, pop-ups, luxury beauty kiosks, bold wraps and innovative floor graphics to drive shopper engagement.
Kansas City International Airport’s new terminal (seen above) features a travel essentials shop, in concourse A, 18th & Vine designed to honour the historic 18th & Vine jazz district, with an interactive keyboard at the rear of the store. The Concourse B features a replica of the popular city market in the River District of Kansas City, which features an eclectic mix of local vendors and takes the passengers through a discovery of the city.
Tech-infused amenities
Technology is playing a central role in enhancing the airport retail experience. WHSmith debuted its first store in USA in LaGuardia Airport new Terminal B and incorporated Amazon’s Walk Out technology to provide seamless convenience to passengers. Some airports, like Dallas Fort Worth International Airport, even have a gaming lounge, Gameway, for gaming enthusiasts.
The commercial transformation of North American airports is still in its early stages, but the potential is undeniable. New airport projects like JFK T1 and T6, Chicago O’Hare expansion, Pittsburgh airport terminal modernisation, SEA-TAC Concourse C expansion are just a few airports that are currently under development with a strong focus on embracing local flavours, innovative concepts, and technology-driven solutions. Airports can create not just a place to catch a flight, but a destination in itself. This shift presents exciting opportunities for brands, restaurants, and retailers to tap into a captive audience of millions of passengers and contribute to a more enjoyable and memorable travel experience.
Mohamed Hisham