Airport Experience® News - Conference Issue 2024

Vino Volo has been a category leader since its inception almost 20 years ago.” Bisset also points to some of Paradies Lagardère’s more recently introduced proprietary concepts that he says have been successful, including Beercode, which is modeled after the Vino Volo concept but with a craft beer focus rather than wine; The Goods, which features Amazon’s Just Walk Out technology; The Apartment, a retail concept that offers top retail brand names; and Clockwork A.I. robot manicure machines. Though airports may be concerned about the lack of familiarity a passenger may have with a proprietary brand, concessionaires see this as an opportunity to offer something exclusive. “Proprietary brands allow us to create something unique to an airport and concepts that may become sought-after destinations when flying to or through a city because they’re not something travelers can experience anywhere else,” says Tyler Pitman, senior vice president of concept development, brand partnerships and adult beverage, North America, for Avolta . “They give us the chance to create our own brand that travelers come to know and love, such as our retail concept Evolve by Hudson and bookstore Ink by Hudson.” Proprietary concepts can also be tailored to the unique footprint of an airport. “There might be an 800-square-foot space available, which is dinky compared to an 8,000-square foot streetside concept, so it requires a unique solution in order to actually physically fit in the space and serve passengers’ needs, and that’s where we’ve come up with our own portfolio of boutique brands,” SSP America’s Murray says. Areas USA’s Mendola points out that proprietary concepts also allow concessionaires to put a bigger spotlight on local vendors, makers and curators.

concessionaires have to weigh when determining an appropriate balance. “National chains offer the most recognizable brands and usually attract the most customers as a result, but even with an elevated support structure for training and equipment, such brands require certain royalties and fees that impact the financial pro forma for the concessionaire,” he says. “Local brands may require slightly less royalties but the infrastructure for support may not be as advanced. Another option to consider would be a proprietary concept, which allows full control and no fees for the concessionaire, but the level of familiarity by travelers may take some time to establish.” A Place For Proprietary Concepts SAN’s Zachrisson believes that concessionaires have found a good balance in providing reliable, trusted national concepts along with local favorites, but

she has one sticking point. “It still seems like there are concessionaires who haven’t gotten the memo on proprietary concepts, otherwise known to airports as ‘white labels’ or ‘no-name brands’—they just don’t have passenger appeal unless there are no other choices,” she says. Concessionaires, of course, have quite a different view of proprietary brands. “If done correctly, proprietary brands can have a very strong impact on a concessions program,” Bisset says. “With the concessionaire having control over the product or menu offering, it allows for the flexibility to make alterations based on airport requests and ensure product assortments align with what’s on trend.” This benefit is in addition to the lower costs to build and operate these types of concepts. “Anyone with a concern over the lack of awareness and potential success of a solid proprietary brand needs to look no further than our own portfolio,” Bisset adds. “Our

Left: Concessionaires see many benefits to proprietary brands. Since concessionaires have control over the concept’s offering, alterations can be made to keep up with airport requests and traveler trends. (Areas’ StrEAT at HOU and SSP America’s Bad Egg at SEA pictured.)

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AX NEWS MARCH 2024